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9 August 2019
Panama National Charged with Possession of Fraudulent Immigration DocumentsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FELIX ANTONIO SANCHEZ-GOMEZ, age 54, a citizen of the Republic of Panama, was charged on Thursday, August 8, 2019 in a one-count bill of information with possession of fraudulent immigration documents, in violation of 18 U.S.C. ' 1546(a).
According to the bill of information, FELIX ANTONIO SANCHEZ-GOMEZ possessed a counterfeit Permanent Resident card, in violation of 18 U.S.C. ' 1546(a).
If convicted, FELIX ANTONIO SANCHEZ-GOMEZ faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00; two years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Palm Bay Woman Convicted of Production of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found Rose Beth Litzky (33, Palm Bay) guilty of conspiracy to produce child pornography, production of child pornography, and possession of child pornography, involving two female children. Both of the victims, toddlers at the time, were under Litzky’s care. Litzky faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on the conspiracy and production counts, and up to 20 years’ imprisonment on the possession charge. In addition, Litzky must forfeit an iPhone that was used in furtherance of the offenses. A sentencing hearing is scheduled for October 15, 2019.
Litzky was indicted on September 26, 2018.
According to evidence presented at trial, on September 15, 2016, Litzky’s boyfriend, Roberto Oquendo, was the subject of a traffic stop. During the traffic stop, deputies from the Brevard County Sheriff’s Office received a tip that Oquendo was possibly in possession of child pornography. As a result, task force agents with the Federal Bureau of Investigation and Homeland Security Investigations interviewed Oquendo. Oquendo disclosed to the agents that he had used a cellphone to take pictures of the genital area of two young children under his custody for his sexual gratification.
Further investigation led to the seizure and search of several computers and cellphones from a place in Brevard County where Oquendo had hidden them. Through forensic analysis, investigators found that one of his cellphones contained deleted chats between Litzky and Oquendo where they had discussed taking sexually explicit images and videos of the two children. The forensic evidence revealed that between October 2014 and September 15, 2016, Litzky caused the two children to engage in sexually explicit conduct while chatting with Oquendo through a social media app that allowed Oquendo to see the children in the nude for his sexual gratification. Some of the images depict Litzky as she caused the children to engage in sexual conduct. At the time the images were produced, Oquendo resided in Virginia, and Litzky resided in Florida. Oquendo created hundreds of screenshots of the visual depictions and transported them to Brevard County, where they were found on his cellphone.
Agents interviewed Litzky about the sexual exploitation of the children and she admitted to producing hundreds of visual depictions of the children in the nude that she then sent to Oquendo via text messaging for his sexual gratification. Litzky’s iPhone was searched and found to contain child pornography.
In January 2019, Oquendo pleaded guilty to two counts of production of child pornography. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on each count. His sentencing hearing is scheduled for August 26, 2019.
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 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 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.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This is another case 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 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 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.projectsafechildhood.gov.
Owner of AMA, A Rockland Based Consumer Products Testing Company, Arrested for Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Catherine A. Hermsen, Director of the United States Food and Drug Administration (“FDA”) Office of Criminal Investigations (“OCI”), William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Kevin Gilleece, Acting Rockland County District Attorney, announced that GABRIEL LETIZIA, Jr., the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer products testing company in New City, has been charged with wire fraud and conspiracy to commit wire fraud in connection with his participation in a scheme to defraud AMA’s customers by reporting false laboratory test results. Letizia was arrested this morning and was presented and arraigned this afternoon before Magistrate Judge Paul E. Davison in White Plains federal court. The case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “AMA Laboratories, a consumer products testing company, tested consumer products for other companies that relied on AMA for genuine, accurate test results in order to safely bring their products to the consumer market. Unbeknownst to them, AMA’s owner, Gabriel Letizia, and others were engaged in a scheme to falsify those crucial test results by testing their products on far fewer panelists than they reported. Letizia and his co-defendants’ scheme not only cost the victim companies millions, they endangered the safety of thousands of consumers.”
Director, FDA Office of Criminal Investigations Catherine A. Hermsen said: “Honest reporting of product testing is vital for ensuring the safety of drugs and cosmetics for U.S. consumers. When companies and individuals engage in criminal activity that puts the public health at risk, FDA will work to investigate and bring them to justice.”
Acting Rockland County District Attorney Kevin Gilleece said: “As if enriching themselves through theft and fraud wasn't bad enough, the 30-year scheme perpetrated by these individuals may have had a deleterious impact on the health and wellness of countless victims. Letizia and his employees broke the law and violated the ethical duties owed to their customers and volunteers. The teamwork exhibited by all participating agencies throughout the joint investigation that began with the Rockland County District Attorney's Office was exemplary.”
According to the allegations contained in the Indictment that was unsealed today and statements made in court proceedings[1]:
AMA is a consumer products testing company in Rockland County, New York. LETIZIA is AMA’s owner and executive director. David Winne served as AMA’s technical director, Mayya Tatsene served as AMA’s clinical laboratory director, Patrycja Wojtowicz served as AMA’s associate director of clinical studies, and Kaitlyn Gold served as AMA’s supervising laboratory technician. AMA tested the safety and efficacy of cosmetics, sunscreens and other products on specified numbers of volunteer panelists for consumer products companies.
From 1987 through April 2017, LETIZIA and others at AMA defrauded AMA’s customers of tens of millions of dollars by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. LETIZIA, and AMA employees acting under his direction, sent the customers fraudulent reports, which falsely represented to the customers that AMA had tested the products on the number of panelists specified by the customers. LETIZIA and AMA employees acting under his direction also made materially false and misleading statements about the results of the tests to AMA’s Customers.
LETIZIA, 69, of New City, New York, was charged in the Indictment with conspiracy to commit wire fraud and wire fraud. The charges each carry a maximum prison term of 20 years.
David Winne pled guilty on May 23, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Mayya Tatsene pled guilty on May 29, 2019, before United States Magistrate Judge Lisa Margaret Smith, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Patrycja Wojtowicz pled guilty on June 12, 2019, before United States Magistrate Judge Judith C. McCarthy, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
Kaitlyn Gold pled guilty on June 24, 2019, before United States District Judge Cathy Seibel, to one count of conspiracy to commit wire fraud and one count of wire fraud. The charges each carry a maximum prison term of 20 years.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the U.S. Food and Drug Administration, Office of Criminal Investigations, the Federal Bureau of Investigation, and the Rockland County District Attorney’s Office.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga Zverovich are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Ohio, West Virginia, and Pennsylvania residents indicted for drug conspiracy in Ohio ValleyRead the Press Release
WHEELING, WEST VIRGINIA – Eight people are facing charges of distributing heroin, cocaine, “crack” cocaine, and fentanyl after being indicted by a federal grand jury in Wheeling earlier this week, United States Attorney Bill Powell announced.
“Whether you live in another state or not, engaging in federal criminal conduct in the Northern District of West Virginia will get you prosecuted,” said Powell.
The 24-count indictment alleges heroin, cocaine, “crack” cocaine, and fentanyl distribution in Hancock County and elsewhere from February 2018 to July 2019. Those named in the indictment are:
• Robert Leon Sullivan, age 55, of Steubenville, Ohio
• Antonio Dewayne Brown, age 35, of Weirton, West Virginia
• Michael Bernard Barnett, age 43, of Steubenville, Ohio
• Ryan Thomas Savage, age 36, of Wintersville, Ohio
• Rolland Kwame Owens, age 29, of Steubenville, Ohio
• Rashaan Donell Mukes, age 33, of Steubenville, Ohio
• Shannon Terill Loveless, age 41, of Steubenville, Ohio
• Zjaondezel Solomyn Douglas, age 35, of Zelienople, Pennsylvania“The men and women of the DEA, working alongside our law enforcement partners, are committed to making communities like Weirton safer by getting rid of illegal drugs, and locking up those who traffic them,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division, which oversees the agency’s operations in West Virginia, Kentucky, and Tennessee, Kentucky.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Oak Ridge, Tennessee Doctor and Boca Raton, Florida Pain Clinic Owner Sentenced for Oxycodone Trafficking ConspiracyRead the Press Release
LONDON, Ky. – Timothy Dennis Gowder, 72, of Oak Ridge, Tennessee, and Anwar Mithavayani, 56, of Boca Raton, Florida, were sentenced to lengthy terms in federal prison by United States District Judge Robert E. Wier for conspiring to distribute oxycodone and other drugs, and for money laundering. Gowder received a sentence of 21 years of imprisonment. Mithavayani received a sentence of 25 years of imprisonment.
Gowder was the medical director at the Tennessee Pain Institute (TPI), a pain clinic that operated from 2011 to 2016 near Chattanooga. Mithavayani was a co-owner of the clinic with Pete Tyndale. After a month-long trial earlier this year, a jury convicted Gowder, Mithavayani, and Tyndale of operating TPI as a pill mill, and for money laundering related to proceeds from TPI. The three men were responsible for the illicit distribution of more than 1.6 million oxycodone 30mg pills, and hundreds of thousands of other narcotic pills and sedative pills, such as Xanax. Approximately half of TPI’s pill customers were traveling from eastern Kentucky.
Under federal law, Gowder and Mithavayani each must serve 85 percent of his prison sentence. Upon release, both will be under the supervision of the United States Probation Office for three years. The Court also imposed a fine of $250,000 and a community restitution award of $200,000 upon Gowder. Mithavayani must pay a $500,000 fine and a $400,000 community restitution award.
Co-defendants Tyndale and James Bradley Combs will be sentenced later this month. Co-defendant Larry Karr of Keavy, KY, pled guilty to the drug trafficking charge in May of 2018, and was later sentenced to 108 months in prison.
“The sentences imposed reflect the seriousness of the harm caused by the defendants’ unlawful and medically unnecessary distribution of controlled substances,” said United States Attorney Robert M. Duncan, Jr. “The defendants’ callous actions undoubtedly contributed to the current opioid crisis. We remain resolute in our commitment to hold accountable drug traffickers who profit from addiction, including those who illegally deal drugs under the guise of medical care.”
U.S. Attorney Duncan, Special Agent in Charge D. Christopher Evans of the Drug Enforcement Administration’s Louisville Field Division, Special Agent in Charge Matthew Line of the Internal Revenue Service, Criminal Investigation Division, Andy Beshear, Kentucky Attorney General, and Richard W. Sanders, Commissioner of Kentucky State Police jointly announced the sentences.
The investigation was conducted by the DEA, the IRS, and the Kentucky Attorney’s General Office as part of an Organized Crime Drug Enforcement Task Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Gregory Rosenberg.
New Orleans Tax Preparer Pleads Guilty to Failing to Declare More Than $695,000 in Income on Tax ReturnRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that QUINCY E. IRVIN, age 41 of New Orleans, Louisiana pled guilty on Wednesday, August 7, 2019 to a one count Bill of Information for making false statements on an income tax return in violation of Title 26, United States Code, Section 7206.
In papers signed by the defendant and filed in open court, Irvin admitted to owning two tax preparation companies, Discount Tax Services and Quincy Irvin Tax Services. Irvin admitted to failing to declare a total of $696,060 in income for the tax years 2012, 2013, and 2014. The total tax loss to the government was $249,074 as a result of Irvin’s false statements.
IRVIN faces 3 years incarceration, a $250,000 fine, the cost of the investigation, as well as restitution to the IRS. Sentencing is set for November 13, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
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New Bill Seeks to Make over 500 Violent Criminals (Including Many Rapists and Murderers) Immediately Eligible for Early ReleaseRead the Press Release
WASHINGTON –The Second Look Act of 2019, which is pending before the Council of the District of Columbia, will give violent criminals (including rapists and murderers) an opportunity to reduce their sentences after only serving 15 years in prison and will expand eligibility to adults who committed their crimes before they turned 25-years-old. Approximately 583 violent criminals will be immediately eligible to apply for release.
On March 26, 2019, Councilmember Charles Allen, Chairperson of the Committee on the Judiciary and Public Safety, held a public hearing to consider Bill 23-0127, the “Second Look Amendment Act of 2019.” If passed, the proposed legislation will expand eligibility to adult offenders who committed violent offenses between the ages of 18 to 24-years-old. The proposed legislation will also allow a defendant to be released after serving only 15 years in prison, regardless of the original sentence imposed, if the court determines that the defendant is not a danger to the community or to any person, despite the “brutality or coldblooded” nature of the offense.
This proposed legislation is the third iteration of the Incarceration Reduction Amendment Act (IRAA). The first version was passed on April 4, 2017. It provided an avenue for sentence reduction consideration for 16 and17-year-olds tried and convicted as adults who served 20 years of their original sentence and had not yet become eligible for parole. The second version, passed May 10, 2019, shortened the number of years a defendant must serve from 20 to 15, allowed them to apply even if parole had been denied, and removed “the nature of the offense” from the factors that a judge must consider.
More than 70 defendants have filed motions for sentence reduction or are in the process of doing so. To date, approximately 17 motions have been ruled on and only one petition has been denied. Of the 16 motions granted, 12 cases involved murders, two cases involved rapes, one case involved armed robbery, and one case involved armed kidnapping. Bureau of Prisons data suggests that of the 583 eligible criminals who could apply for early release under the proposed Amendment, one in three will reoffend within three years of release.
The U.S. Attorney’s Office thoroughly reviews each motion and evaluates the defendant’s request for a sentence reduction knowing that this request will affect the victim, the victim’s family, and the community. Our role in this litigation is broad and we consider a range of interests, which includes the victim, the victim’s surviving family, the community at large, and the defendant.
The IRAA in its current form, which now eliminates the nature of offense from the judge’s consideration, strips victims of their sense of finality, and upends decades of local and national efforts to ensure truth in sentencing. The proposed legislation ignores how painful this process is for victims and will drastically increase the number of victims who must be re-traumatized by expanding the age of eligible defendants.
“Our communities are safer when we do a better job of rehabilitating offenders in our custody,” said U.S. Attorney Jessie K. Liu. “The Council should not hastily pass this legislation but should instead gather data about how defendants released under the current version of the IRAA fare over time. The victims of these crimes and the community at large should not be jeopardized by the Council’s rush to expand the IRAA. The proposed legislation misses the mark.”
The U.S. Attorney’s Office is a national leader in criminal rehabilitation for non-violent offenders, and has nine diversion programs including one focused on restorative justice. These programs are geared towards rehabilitation.
The proposed legislation before the D.C. Council, helps violent offenders, with little or no benefit to non-violent offenders, and is unlike other criminal justice reform initiatives nationwide, including the federal First Step Act. This proposed legislation is not evidence-based, does little to protect the rights of victims and comes at a time when the homicide rate in the District has increased significantly.
The U.S. Attorney’s Office is committed to sensible criminal justice reforms that protect the rights of victims, ensure the safety of the community, and fairly consider the interests of defendants. Public Safety is our top concern.
For more information about the proposed changes, contact Councilmember Charles Allen at (202) 724-8072 or at [email protected].
Myrtle Beach Man Sentenced to 20 Years in Federal Prison for Selling "Speedball" That Caused Overdose DeathRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that James Latron Sumter, a/k/a “T”, age 35, of Myrtle Beach, was sentenced to 20 years in federal prison after pleading guilty to conspiring to distribute a quantity of cocaine and heroin, the use of which resulted in serious bodily injury or death. Chief United States District Judge R. Bryan Harwell of Florence accepted Sumter’s plea and imposed the sentence.
“The United States Attorney’s Office is locking arms with our state and local partners in the fight to end the opioid epidemic in our state,” said U.S. Attorney Lydon. “Locally, we are assisting our partners in Myrtle Beach and Horry County by working hand-in-hand with their narcotics and homicide detectives to identify, investigate, and prosecute those who deal these deadly drugs. Together, we are holding accountable the men and women introducing this poison into the Grand Strand and across South Carolina.”
At the change of plea and sentencing hearings, Assistant United States Attorney Everett McMillian presented evidence that reflects Sumter was contacted on December 29, 2017, by co-conspirator Charles Rayford Hunt, Jr., who was seeking to purchase what is commonly called a “speedball”—a potent combination of cocaine and heroin—for $100 for a female acquaintance of Hunt’s. Hunt met the female while working as an Uber driver and had a short-lived romantic relationship with her for two days prior to this incident. As reflected in text messages between Hunt and Sumter and statements from witnesses, Hunt drove the female victim to an apartment where Sumter provided the drugs sometime after 9:00 pm. Hunt then drove the victim to his apartment where she snorted the drugs and immediately thereafter showed signs of an overdose. Upon seeing her reaction, Hunt contacted Sumter and returned to pick him up. Not wanting to take the overdosing victim home to her father with whom she lived, Hunt and Sumter drove around and eventually stopped at Magoo’s Sports & Spirits to play pool sometime after midnight—leaving the overdosing victim passed out in the back seat of the car. After playing pool, Hunt took Sumter back to the apartment complex and drove around the Myrtle Beach area with the victim still passed out in the back seat of his car. Eventually, Hunt realized the victim had quit breathing at which time he “panicked” and dumped her body in a wooded area just across the North Carolina border during the early morning hours of December 30. Hunt then drove back to Myrtle Beach, throwing the victim’s cell phone into the intercostal waterway on the way back. He took the victim’s purse and belongings to another conspirator, Jose Anthony Ortiz, Jr., who destroyed many of the victim’s personal items in a burn pit at Hunt’s request.
On December 31, Special Agents with the Federal Bureau of Investigation and Drug Enforcement Administration learned of the incident. Working together, the FBI and DEA quickly collaborated with detectives from the Horry County Police Department and Columbus County Sheriff’s Office in North Carolina to unravel the scheme. Hunt was located, promptly confessed his role in the event, and led officials to the victim’s body. An autopsy and toxicology report later confirmed the victim died as a result of a heroin and cocaine overdose. Further investigation uncovered that Sumter had conspired with several other individuals in the Myrtle Beach area during 2017 to distribute cocaine and heroin on other occasions. The evidence reflects that another overdose in January 2017 may also be attributable to heroin Sumter provided. This second victim was revived by first responders using Narcan, and he has since reportedly recovered from his addiction.
Hunt and Ortiz were prosecuted for their roles in covering up the overdose. Both men pleaded guilty and are currently serving sentences in federal prison. Sumter has been in custody since he was arrested on this charge in August 2018.
This case is the result of a concentrated effort to disrupt and dismantle the flow of deadly opioids into the Myrtle Beach area. By partnering with local, state, and federal law enforcement partners, the United States Attorney’s Office will continue to aggressively prosecute those who deal in illegal narcotics, especially those individuals who distribute opioids that cause serious bodily injury or death to others.
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Montgomery Woman Sentenced to 72 Months for Filing False Tax ReturnsRead the Press Release
Montgomery, Alabama – On Thursday, August 8, 2019, a Montgomery woman, Laquanda Gilmore Garrott, 39, was sentenced to 72 months in prison for filing false federal tax returns, announced United States Attorney Louis V. Franklin, Sr., and Special Agent in Charge Thomas J. Holloman, III of the Internal Revenue Service’s Criminal Investigation Division, Atlanta Field Office. In addition to the six-year prison sentence, she was also ordered to pay $56,897.00 in restitution. There is no parole in the federal system.
The evidence presented at trial showed that, from 2011 through 2015, Garrott operated a tax preparation business called L&G Associates, LLC, in Montgomery. The government proved that Garrott knowingly put false information on multiple tax returns in order to increase refunds for clients, which also increased her own tax preparation fees. In one case, Garrott falsely claimed that a client lost more than $30,000 on a lawn care company even though she knew her client had no such business. By including the false business losses, Garrott was able to offset the client’s taxable income and make the client eligible for the Earned Income Tax Credit.
“Ms. Garrott stole money from the federal treasury when she filed false federal income tax returns, a crime that affects all of us,” noted United States Attorney Franklin. “Her significant sentence of imprisonment was appropriate and should act as a deterrent to any tax preparers who puts their own gain above their legal obligations.”
“Tax return preparer clients look to them for expertise and guidance. It is the tax return preparers’ obligation to faithfully and accurately prepare a return on behalf of their clients” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “Tax return preparers who purposely prepare false tax returns to get high refunds are stealing directly from American taxpayers and today’s sentencing shows IRS-CI, in concert with the Department of Justice, is committed to aggressively pursuing unscrupulous tax professionals that prey on the public.”
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour prosecuted the case.
Montana Woman Sentenced for Wire Fraud and Tax EvasionRead the Press Release
United States Attorney Ron Parsons announced that a Kalispell, Montana, woman convicted of Tax Evasion and four counts of Wire Fraud was sentenced on August 7, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Judy Lynn Carroll, age 60, was sentenced to 7 years in federal prison, to be followed by 3 years of supervised release on the Wire Fraud charges. Carroll was also ordered to pay a total of $1,240,236.01 in restitution to several victims and a $400 special assessment to the Federal Crime Victims Fund.
The Wire Fraud charges relate to a scheme devised by Carroll to obtain money from others for her own benefit. As part of the scheme, Carroll falsely told others the Internal Revenue Service (IRS) had seized her financial account that contained several million dollars. Carroll knew the IRS had not seized her financial account and that she did not have any account that had millions of dollars. Carroll then convinced several individuals, including a resident of South Dakota, to send her hundreds of thousands of dollars between 2000 and 2016.
Carroll was also sentenced to 7 years in federal prison, to be followed by 3 years of supervised release, and ordered to pay $310,078.00 in restitution to the IRS and a $100 special assessment to the Federal Crime Victims Fund on the Tax Evasion charge, with the prison time to run concurrently with the Wire Fraud convictions.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Minnesota Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Minneapolis, Minnesota, man has been indicted by a federal grand jury for Production of Child Pornography and Receipt of Child Pornography.
Nicolas Edward Wilson, age 34, was indicted on July 9, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 5, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 30, 2014, Wilson knowingly enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing such depiction would be transported in interstate or foreign commerce by computer.
The Indictment also alleges that on or about between September 23, 2012, and April 4, 2015, Wilson knowingly received and distributed, and attempted to receive and distribute, any child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charges are merely accusations and Wilson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Wilson was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 15, 2019.
Michigan man guilty of drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrence D. Marsh, of Detroit, Michigan, was found guilty of drug distribution and firearms charges, United States Attorney Bill Powell announced.
After a four-day trial, a jury deliberated for 35 minutes before finding Marsh, age 37, guilty of one count of “Conspiracy to Possess With the Intent to Distribute and Distribute Controlled Substances,” one count of “Aiding and Abetting Possession With the Intent to Distribute Methamphetamine within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Heroin within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Fentanyl within 1000 Feet of a Protected Location,” and one count of “Aiding and Abetting Possession of Firearm in Furtherance of Drug Trafficking Crime.”
“Great perseverance by our trial team and law enforcement partners led to this conviction. We will continue to prosecute these cases aggressively. The type of criminal conduct exhibited by the defendant will never be tolerated,” said Powell.
Marsh conspired with others to distribute heroin, fentanyl, and more than 500 grams of methamphetamine in Marion County and elsewhere from the fall of 2018 to January 2019. Some of the drug dealing took place near West Fairmont Middle School, and included the presence of firearms.
The government is seeking the forfeiture of $18,540 in cash, two pistols, a rifle, and several rounds of ammunition.
Marsh faces not less than 10 years and up to life incarceration and a fine of up to $10 million for the conspiracy and aiding and possession of methamphetamine count. He faces up to 40 years incarceration and a fine of up to $2 million for each of the heroin and fentanyl counts, and faces five years to life incarceration and a $250,000 fine for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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. Attorneys Traci M. Cook and Brandon S. Flower are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Three Rivers Drug and Violent Crimes Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that ROBERTO MUNOZ-AGUILAR, age 32 was sentenced Wednesday, August 7. 2019 on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a). He pled guilty on June 20, 2019. He was sentenced to time served.
In documents signed by the defendant in open court, he admitted to being an illegal alien who had previously been deported January 3, 2012 from Calexico, California. He admitted to illegally re-entering the United States without permission from the proper authorities. He has been incarcerated since May 2019 and faces deportation once again.
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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Mexican Man Sentenced for Illegal Use of a Social Security Number and Submitting False Information in an Attempt to Secure a U.S. PassportRead the Press Release
NEW ORLEANS, LOUISIANA – FRANCISCO JAVIER NUNEZ-ALEMAN, age 32, a citizen of Mexico was sentenced Wednesday, August 7, 2019 on a two-count indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B), and with using a false social security number in attempting to secure a U.S. Passport, a violation of Title 18, United States Code, Section 1542. He pled guilty on April 3, 2019.
NUNEZ-ALEMAN faced a maximum term of imprisonment of not more than five (5) years, a fine of $250,000.00, and a mandatory special assessment of $100.00 on both counts. Additionally, NUNEZ-ALEMAN is subject to a period of supervised release after imprisonment of up to three years. He was sentenced to time served. He has been incarcerated since November 2018.
The indictment further alleged that NUNEZ-ALEMAN applied for a U.S. Passport at the Bourg, La. Post Office. The State Department determined that the Social Security number he used belonged to another individual. NUNEZ-ALEMAN further used the fraudulently obtained social security number in applying for a job at a Houma, La. employer.
U.S. Attorney Peter G. Strasser praised the work of the United States Department of Homeland Security and the U.S. State Department Diplomatic Security Service in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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McKees Rocks Man Pleads Guilty to Possessing Heroin and FentanylRead the Press Release
PITTSBURGH, Pa. - A former resident of McKees Rocks, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.
Jamorr Mathis, age 40, pleaded guilty to one count before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, on November 16, 2017, FBI agents and other law enforcement officers executed a search warrant at Mathis’ residence in McKees Rocks. Agents recovered several bricks and bundles of heroin and fentanyl from a candle jar and a purse located inside of the residence. Mathis admitted that he sold about a brick or two a day and, he also admitted to buying about seven bricks every couple of days for $150 per brick.
Judge Bissoon scheduled sentencing for December 4, 2019. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Mathis remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Stowe Township Police, McKees Rocks Police and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Mathis.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marcus Devaughn Coleman, of Fairmont, West Virginia, was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Coleman, age 35, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2019. Coleman, who is prohibited from having a firearm, admitted to having 9mm pistol in March 2018 in Marion 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 Marion County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Man Pleads Guilty to Delivering 11 Kilos of Drugs to VirginiaRead the Press Release
NEWPORT NEWS, Va. – A California man pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin.
According to court documents, Adrian Barraza-Pena, 27, of Riverside, was given a recreational vehicle in Riverside and was instructed to accompany another man to Memphis, in that recreational vehicle. On May 12, Barraza-Pena and the other man arrived in Memphis. Two days later, Barraza-Pena and the other man were instructed to start driving towards Virginia to meet a third man at a certain parking lot in South Hill. At this meeting, the man accompanying Barraza-Pena made contact with the third man and gave him a bag, which contained 8.54 kilograms of heroin and 3 kilograms of cocaine.
Barraza-Pena pleaded guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and faces a mandatory minimum of 10 years in prison and a maximum of life when sentenced on November 20. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorneys Amy E. Cross, Peter G. Osyf, and Kevin P. Hudson are prosecuting 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. 4:19-cr-47.
MS-13 Gang Member Sentenced in Connection with AssaultRead the Press Release
ALEXANDRIA, Va. – An MS-13 gang member was sentenced today to more than five and a half years in prison for his leadership role and participation in a violent gang-related assault of a victim with multiple baseball bats.
“The hallmark of MS-13 is extreme violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The sole purpose of this brutal and senseless assault was to instill fear in communities here in Northern Virginia and dissuade cooperation with law enforcement. Our investigation and prosecution of this case should send a clear message that the violent acts of MS-13 in our community will be prosecuted at every opportunity.”
According to court documents, in October 2018, Jose Ochoa Del-Cid, 21, of Falls Church, an admitted MS-13 gang member, conspired with several other members and associates of MS-13 to lure the victim to James Lee Park, in Falls Church, so that they could assault the victim. Del-Cid and other members and associates of MS-13 believed the victim was cooperating with law enforcement, falsely representing himself as a member of MS-13, and disparaging the local Silvas clique of MS-13. After luring the victim to the park under false pretenses, Del-Cid and approximately a dozen other members and associates of MS-13 beat the victim with bats, fists, and feet for approximately three minutes. As a result of the beating, the victim suffered multiple broken limbs and was hospitalized for several days.
“The FBI Washington Field Office remains aggressive in investigating and dismantling gang activity, to ultimately bring justice to the victims of the horrific violence of MS-13,” said Timothy Dunham, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “Our goal is take these violent offenders off the street, which should send a message to others that this violence will not be tolerated in our community.”
This matter was investigated by the FBI WFO’s Safe Streets/HIDTA Task Force – Northern Virginia which is composed of FBI Agents along with Task Force Officers from the Fairfax County Police, the Prince William County Police, the Loudoun County Sheriff’s Office, Leesburg Police Department, the Alexandria City Police, Fairfax City Police, Vienna Police Department, Herndon Police Department, and the Fauquier County Sheriff’s Office, along with Agents from the Department of Homeland Security, Homeland Security Investigations and ATF. The mission of this task force is to identify, investigate, disrupt and dismantle the most egregious and violent gangs operating in the Capital Region to include members of MS-13, a transnational street gang, known for its acts of violence.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nicholas U. Murphy II and Morris Parker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-88.
Leader of Narcotics Trafficking Conspiracy Sentenced to 16 Years in PrisonRead the Press Release
WASHINGTON – Darnell Catlett, 46, of Upper Marlboro, was sentenced today for his role as a leader of a nearly year-long crack and cocaine drug trafficking conspiracy in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Timothy Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office.
Catlett pled guilty in May 2019 in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base and a detectable amount of cocaine. Judge Richard J. Leon sentenced Catlett to 16 years in prison, to be followed by five years of supervised release.
Catlett was arrested on the morning of March 15, 2018, and his residence was searched pursuant to a search warrant. At Catlett’s residence, the FBI recovered a loaded firearm, $70,813 in U.S. currency, a money counter, and multiple plastic bags with drug residue. Inside his BMW parked in the garage, Catlett had 234 grams of crack packaged for distribution. As part of his plea agreement, Catlett accepted responsibility for a firearm possessed in his Maryland residence at the time that he was arrested and that he was a leader of the conspiracy. Prior to his arrest, Catlett had been intercepted on a court-approved wiretap and unbeknownst to him, had sold narcotics to law enforcement.
Catlett was previously convicted of drug trafficking in United States District Court for the District of Columbia in 1992, and assault with intent to kill in the District of Columbia Superior Court in 1995.
Five others have pled guilty to charges in the case. They include Everette Reel, 46, of Upper Marlboro, Md; Jamal Curtis, 41, of Washington, D.C., Derek Holmes, 54, of Washington, D.C., Russell Harrison, 40, of Temple Hills, Md., and Brian Jenkins, 44, of Brentwood, Md. Reel, Curtis, and Holmes are now serving sentences. Coconspirators Russell Harrison and Brian Jenkins still face sentencing. Harrison faces a mandatory minimum sentence of five years of imprisonment and up to life imprisonment for his possession of multiple firearms in furtherance of his drug trafficking as part of the conspiracy. Jenkins faces a mandatory minimum sentence of five years of incarceration and up to forty years imprisonment for his distribution of cocaine and crack as part of the conspiracy.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
In announcing the sentence, U.S. Attorney Liu and Special Agent in Dunham, commended the work of those who investigated the case. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Candace Battle and Teesha Tobias, Legal Assistant Emma Atlas, and Christopher Macchiaroli and Kevin Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendants.
Las Vegas Man Charged with Possession of Illegal Firearms and Destructive DevicesRead the Press Release
LAS VEGAS, Nev. – A southern Nevada man, who is employed as a security guard, was charged and arraigned in federal court today in connection to bomb making materials found at his Las Vegas home following an FBI-led Joint Terrorism Task Force investigation.
“Threats of violence motivated by hate and intended to intimidate or coerce our faith-based and LGBTQ communities have no place in this Country,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “Law enforcement in Nevada remains determined to use the full weight of our investigative resources to prevent bias-motivated violence before it happens. I commend our partners who identified the threat and took swift and appropriate action to ensure justice and protect the community.”
“The FBI’s Las Vegas Joint Terrorism Task Force is committed to protecting our community from any threat of domestic terrorism and I could not be more proud of the work they did in this case,” said Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas Division. “As this complaint illustrates, the FBI will always be proactive to combat threats that cross a line from free speech to potential violence.”
Conor Climo, 23, of Las Vegas, Nevada, was charged by a criminal complaint with one count of possession of an unregistered firearm – namely, the component parts of a destructive device. Climo was arrested Thursday morning and made his initial appearance on Friday afternoon before United States Magistrate Judge Nancy J. Koppe.
According to the criminal complaint, Climo was communicating with individuals who identified with a white supremacist extremist organization using the National Socialist Movement to promote their ideology. Members believe in the superiority of the white race and have a common goal of challenging the established laws, social order, and government via terrorism and other violent acts. The organization encourages attacks on the federal government, including critical infrastructure, minorities, and members of the LGBTQ community.
The complaint alleges that during encrypted online conversations throughout 2019, Climo would regularly use derogatory racial, anti-Semitic, and homosexual slurs. He discussed attacking a Las Vegas synagogue and making Molotov Cocktails and improvised explosive devices, and he also discussed conducting surveillance on a bar he believed catered to the LGBTQ community located on Fremont Street in Downtown Las Vegas. The criminal complaint also describes that items seized by law enforcement during the execution of an August 8, 2019 search warrant, including a notebook with several hand-drawn schematics for a potential Las Vegas-area attack. The notebook also contained drawings of timed explosive devises. Furthermore, Climo claimed to have tried to recruit a homeless individual for pre-attack surveillance against at least one Las Vegas synagogue and other targets. His recruitment attempts proved fruitless.
Climo faces a maximum penalty of 10 years in prison and a $250,000 fine.
A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter is being investigated by the FBI-led Joint Terrorism Task Force, which includes law enforcement partners from local, state, and federal agencies. The case is being prosecuted by Assistant United States Attorney Nicholas Dickinson of the District of Nevada with the assistance from the Civil Rights Division of the Department of Justice.
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LaPorte Man Charged with Transportation of Child PornographyRead the Press Release
HAMMOND- United States Attorney Thomas L. Kirsch and Federal Bureau of Investigation Special Agent In Charge Grant Mendenhall in coordination with LaPorte County Prosecutor John Lake announced that Michael Christianson, age 50, of LaPorte, Indiana was charged with transportation of child pornography.
The criminal complaint alleges that on or about July 2, 2019 FBI Agents from the Charlotte Division responded to a complaint by a book publisher about material contained inside three books submitted for publication and authored by Mr. Christianson. The lead was distributed to Indiana FBI agents. The books appear to be geared toward children as they use large fonts, simple words, and most of the sentences rhyme. The books explain and show images of the body parts of boys and girls, encourage and show images of children playing naked with one another, and encourage and show images of naked children playing with adults, including naked adults. The forms of “play” encouraged by the books include hand to genital and genital to genital contact. The photographs and illustrations in the books include depictions of minor children being caused to lasciviously display their genitals or otherwise engage in sexually explicit conduct.
Mr. Christianson was convicted of child molesting in 2002 and was sentenced to serve 30 years in prison and register as Sexually Violent Predator for the rest of his life. He was released from prison in 2016 and was still on probation at the time of the newly charged offense.
Any members of the public who have information regarding any contact Mr. Christianson has had with minor children are encouraged to call the FBI at (219) 942-4900.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team in coordination with the Indiana State Police, the Michigan City Police Department, the Lake County Illinois State’s Attorney’s Office and the LaPorte County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Jill R. Koster.
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Kanawha County Woman Pleads Guilty to Marijuana DistributionRead the Press Release
CHARLESTON, W.Va. – A Kanawha County woman pled guilty to a federal drug charge. Shanika Collins, 41, of Charleston, pled guilty to one count of distribution of marijuana. Collins is the second defendant to be convicted based on an investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT). Earlier this year, Collins’ former boyfriend, James Michael Hill, pled guilty to multiple federal charges, and was sentenced to 8 years in prison.
“Collins was dealing marijuana on behalf of her boyfriend,” said United States Attorney Mike Stuart. “And now she’s convicted of a federal crime. Remember, those that do the crime together, do the time together. Marijuana is illegal under federal law. This office prosecutes all federal crimes, including those involving marijuana.”
Collins admitted that on May 7, 2018, she sold a half of a pound of mid-grade marijuana to a confidential informant in exchange for $600. On May 10, 2018, MDENT detectives applied for multiple search warrants involving various locations pursuant to the investigation. Collins consented to letting detectives search her apartment. MDENT detectives were able to seize over 15 pounds of mid-grade to high-grade marijuana from Collins’ apartment. Collins acknowledged that she was dating Hill, and that she was storing and delivering the marijuana on his behalf.
Collins faces up to 5 years in prison when she is sentenced on November 7, 2019.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Jury Convicts Daytona Beach Man in Cocaine Distribution ConspiracyRead the Press Release
Orlando, Florida – A federal jury today found Benjamin Greene Robinson (31, Daytona Beach) guilty of one count of conspiracy to possess with the intent to distribute more than 500 grams of cocaine. He faces a minimum mandatory sentence of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for November 20, 2019.
Robinson was originally indicted on June 5, 2019. A superseding indictment was returned on July 24, 2019.
According to testimony and evidence presented at trial, in January 2016, Robinson and three conspirators arranged for multiple shipments of cocaine to be sent through the U.S. Postal Service (USPS) from California. During the investigation, the FBI and the USPS seized three of the packages, each containing two kilograms of cocaine hidden inside tubs of protein powder. Law enforcement identified five additional shipments that the conspirators had successfully shipped through the mail. In 2016, during the month of January, Robinson and his conspirators were responsible for shipping 14 kilograms of cocaine through the mail, estimated to be worth a total $490,000.
Two of Robinson’s co-conspirators, Dondi Kentrail Freeney (Sanford) and Telvin Williams (Sanford) have pleaded guilty for their roles in the conspiracy and will be sentenced on September 19, 2019. Antonio Chandler (Belle Isle), the third co-conspirator, has a change of plea hearing scheduled next week.
This case was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service, the Lake County Sherriff’s Office, and the Volusia Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Dana E. Hill and E. Jackson Boggs.
Iranian Citizen Pleads Guilty to Conspiring to Facilitate the Illegal Export of Technology to IranRead the Press Release
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Erica H. MacDonald, Assistant Director John Brown of the FBI’s Counterintelligence Division and Special Agent in Charge Jill Sanborn of the FBI Minneapolis Division today announced the guilty plea of Negar Ghodskani, 40, for her participation in a conspiracy to illegally export controlled technology from the United States to Iran. Ghodskani, who was indicted on Dec. 8, 2015, arrested in Australia in 2017, and made her first appearance in District Court on July 22, 2019, entered her guilty plea today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea, from 2008 until late 2011, Ghodskani was a Tehran-based employee of Fanavar Moj Khavar (Fana Moj), a company located in Tehran, Iran. In 2009, Ghodskani, along with co-defendant Alireza Jalali and others, established Green Wave Telecommunication, Sdn Bhn, (Green Wave), a company located in Kuala Lumpur, Malaysia, that operated as a front for Fana Moj. As part of the conspiracy, Ghodskani falsely represented herself as an employee of Green Wave to U.S. companies in order to acquire export-controlled technology from the United States. To accomplish these acquisitions, Ghodskani, Jalali and others concealed the ultimate destination and end users of the exported technology.
As part of the conspiracy, Ghodskani contacted producers and distributors of the sought-after technology, solicited purchase agreements, and negotiated the purchase and delivery of the goods with the U.S. seller. When received by Green Wave in Malaysia, the goods were repackaged and unlawfully exported from Malaysia to Fana Moj in Tehran, Iran. In 2017, Fana Moj was designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the Iranian Revolutionary Guard Corps (IRGC). Co-defendant Jalali pled guilty in November 2017 and was sentenced in March 2018.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Iranian Citizen Pleads Guilty to Conspiring to Facilitate the Illegal Export of Technology to IranRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald today announced the guilty plea of NEGAR GHODSKANI, 40, for her participation in a conspiracy to illegally export controlled technology from the United States to Iran. GHODSKANI, who was indicted on December 8, 2015, arrested in Australia in 2017, and made her first appearance in District Court on July 22, 2019, entered her guilty plea today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea, from 2008 until late 2011, GHODSKANI was a Tehran-based employee of Fanavar Moj Khavar (Fana Moj), a company located in Tehran, Iran. In 2009, GHODSKANI, along with co-defendant ALIREZA JALALI and others, established Green Wave Telecommunication, Sdn Bhn, (Green Wave), a company located in Kuala Lumpur, Malaysia, that operated as a front for Fana Moj. As part of the conspiracy, GHODSKANI falsely represented herself as an employee of Green Wave to U.S. companies in order to acquire export-controlled technology from the United States. To accomplish these acquisitions, GHODSKANI, JALALI and others concealed the ultimate destination and end users of the exported technology.
As part of the conspiracy, GHODSKANI contacted producers and distributors of the sought-after technology, solicited purchase agreements, and negotiated the purchase and delivery of the goods with the U.S. seller. When received by Green Wave in Malaysia, the goods were repackaged and unlawfully exported from Malaysia to Fana Moj in Tehran, Iran. In 2017, Fana Moj was designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the Iranian Revolutionary Guard Corps (IRGC). Co-defendant JALALI pled guilty in November 2017 and was sentenced in March 2018.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Defendant Information:
NEGAR GHODSKANI, 40
Convicted:
- Conspiracy to defraud the united states, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 8 was:
Kristopher Daniel Rainey, 35, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Rainey faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Rainey was released pending further proceedings. The case was investigated by the FBI West Task Force. Pacer case reference. 19-99.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 8 was:
Nicholas Gregorio-Matias, 41, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Gregorio-Matias faces a maximum two years in prison, a $250,000 fine and three years of supervised release. He was detained pending further proceedings. The case was investigated by the U.S. Border Patrol and Toole County Sheriff’s Office. Pacer case reference. 19-55.
Donald Paul Olson, 38, of Conrad, on charges of possession with intent to distribute methamphetamine, distribution of meth and prohibited person in possession of a firearm. If convicted of the most serious crime, Olson faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Olson was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montana Division of Criminal Investigation and the Montana Highway Patrol. Pacer case reference. 19-47.
Leah Goggles, 36, of Cut Bank, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Goggles faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Goggles was detained pending further proceedings. The case was investigated by the FBI, Glacier County Sheriff’s Office and Blackfeet Law Enforcement Service Pacer case reference. 19-50.
Ryan Joseph Cantrell, 23, of Wolf Point, on charges of sexual abuse of a minor. If convicted of the most serious crime, Cantrell faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. He was detained pending further proceedings. The case was investigated by the FBI and Fort Peck Criminal Investigation. Pacer case reference. 19-48.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal possession of 20 firearms sends Tennessee man to prisonRead the Press Release
BILLINGS—Bruce Howell Runion was sentenced today to three years in prison and three years of supervised after admitting he possessed 20 firearms in Musselshell County despite being prohibited from having guns because of a felony conviction, U.S. Attorney Kurt Alme said.
Runion, 47, of Crosby, Tenn., pleaded guilty in February to being a felon in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that the Musselshell County Sheriff’s Office responded to a call for assistance at a residence on Aug. 1, 2017. Runion was outside, covered in blood and acting aggressively. During a safety sweep of the residence, officers saw on a coffee table a pistol that had been discharged into the ceiling. An investigation found that Runion had become enraged because of a phone call and had discharged the firearm into the ceiling while trashing the residence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives identified Runion as a prohibited felon and obtained a search warrant for the residence. Agents found an assortment of 20 firearms.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the ATF.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Illegal Alien Sentenced for Aggravated Identity Theft and Firearms PossessionRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Jorge Delgado-Macias (44) to 40 months in federal prison for being an alien unlawfully in the United States in possession of a firearm and for aggravated identity theft.
Delgado-Macias had pleaded guilty on May 23, 2019.
According to testimony and court documents, on October 17, 2018, law enforcement officers searched Delgado-Macias’s home in Hillsborough County and found two firearms, a Taurus .40 caliber pistol and a Taurus 9mm pistol, along with ammunition for each gun. They also discovered that Delgado-Macias was a citizen of Mexico and that he had re-entered the United States unlawfully, after having been deported to Mexico in 1998. Delgado-Macias also admitted, that while in the United States, he used the identity of another person unlawfully and without permission to obtain a Social Security card and a false Florida driver license.
This case was investigated by the United States Department of Homeland Security and the United States Border Patrol, with assistance from the Hillsborough County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Jay L. Hoffer, with assistance from Assistant United States Attorney Dan Baeza.
Husband and Wife Convenience Store Owners Plead Guilty to Fraud Involving Food Stamp ProgramRead the Press Release
Jacksonville, Florida – Russell Leroy Dotson, Jr. (62) and Maria Luisa Dotson (65), both of Jacksonville, have pleaded guilty to conspiracy to commit wire fraud. Each faces a maximum penalty of 20 years in federal prison and payment of restitution to the United States.
According to court documents, the Dotsons owned and operated Asmarina Food Mart, with two locations in Jacksonville. Upon opening the convenience stores, they applied for and received approval from the Food and Nutrition Service, an agency of the United States Department of Agriculture, to participate in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. After receiving this approval, the Dotsons trained their employees how to conduct fraudulent transactions with SNAP recipients using their Electronic Benefit Transfer (EBT) card. The Dotsons instructed their employees to ring up fraudulent transactions to make it appear that SNAP recipients had purchased eligible food products from the store using their EBT cards. The employees then gave the SNAP recipients cash representing approximately one-half of the amount of the fraudulent transaction, while the Dotsons received the remainder of the money. Over approximately 27 months, Russell and Maria Dotson defrauded the United States out of $257,979.
This case is part of a long-term investigation into SNAP fraud occurring at the two Asmarina Food Mart locations in Jacksonville. To date, 11 others have pleaded guilty and have been sentenced for their roles in this scheme. Shelly Rowe Sullivan, Teighlor Michelle Wicker, Tracy Lynn Hammock, Shannon Marie Whaley, Denise Diane Taylor, Ormetre Patterson, Cierra Elizabeth White, Laura Lockwood, Shanelle Bryant, Felicia Meadows, and Theresa Marie Paschall were previously sentenced to supervised release and ordered to pay a total of $218,629.67 in restitution to the United States.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Secret Service - Jacksonville Field Office, and United States Department of Agriculture - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOAQUIN ENRIQUE LOPEZ-JIRON, age 33, a citizen of Honduras, pled guilty on Thursday, August 8, 2019 to a one-count bill of information charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the bill of information, JOAQUIN ENRIQUE LOPEZ-JIRON reentered the United States in or about 2019, after having been previously removed therefrom on or about April 15, 2011.
JOAQUIN ENRIQUE LOPEZ-JIRON faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for November 14, 2019.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Helena-West Helena Resident Indicted for Supporting a Terrorist OrganizationRead the Press Release
LITTLE ROCK— A Helena-West Helena resident has been charged with providing support to a terrorist organization. A federal grand jury has charged Bilal Al-Rayanni, a 28-year-old Yemeni national living in Arkansas, with supporting a terrorist organization in Yemen as well as providing a false name on a passport.
Assistant Attorney General for National Security John C. Demers, United States Attorney for the Eastern District of Arkansas Cody Hiland, Assistant Director Mike McGarrity of the FBI’s Counterterrorism Division, and FBI Special Agent in Charge of the Little Rock Field Office Diane Upchurch announced the charges on Friday.
The superseding indictment alleges that Al-Rayanni, also known as Bilal Kassim Alawdi, provided material support and resources to a foreign terrorist organization known as Al Qa’ida in the Arabian Peninsula (AQAP). According to the superseding indictment, Al-Rayanni provided support by working as personnel for the AQAP for three months in Yemen in 2014, knowing that the organization engaged in terrorism.
Al-Rayanni lived in Arkansas prior to traveling to Yemen in 2014. The superseding indictment states that this activity occurred within an extraterritorial jurisdiction of the United States, meaning that Al-Rayanni’s alleged criminal actions took place out of the country, before he returned to Arkansas.
Al-Rayanni was originally charged on July 11, 2019, in a one-count indictment charging him with making a false statement on a passport application in May of this year, alleging that he used a false name on the application. Al-Rayanni will be arraigned before United States Magistrate Judge Jerome T. Kearney on Thursday. Al-Rayanni has been held in federal custody since originally arrested on the passport charge on June 27, 2019.
“The government’s first responsibility is to protect our people and our national interests,” United States Attorney Hiland said. “Thanks to the diligent work of special agents with the FBI and Department of State, this indictment demonstrates our nation’s continuing commitment in the ongoing fight against foreign terrorist groups and those who promote and support those groups.
“This particular investigation also highlights the critical value to our law enforcement agencies that originates from citizens who take the time and effort to report suspicious activity when it is observed.”
“The top priority of the Little Rock Field Office of the FBI is to protect the citizens of our great state from all types of threats,” stated FBI SAC Upchurch. “I am very proud of the excellent work done by our Joint Terrorism Task Force Agents, Task Force Officers, and other JTTF members and am thankful for the support of our partners at the Department of Justice, U.S. Attorney’s Office, and Diplomatic Security Services.”
The penalty for providing material support to a terrorist organization is not more than 20 years’ imprisonment, and the penalty for providing a false statement on a passport application is not more than 15 years’ imprisonment. Both crimes carry a fine of up to $250,000 and not more than three years of supervised release.
The investigation was conducted by the FBI, the Little Rock Joint Terrorism Task Force, and the State Department’s Diplomatic Security Service. This case is being prosecuted by Assistant United States Attorneys Stacy Williams and Mike Gordon, and National Security Division Attorney Andrew Sigler.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Garrard County Man Sentenced to 156 Months for Conspiracy to Distribute Heroin and CarfentanylRead the Press Release
LEXINGTON, Ky. — Jerrod Doolin, 37, of Lancaster, Kentucky, was sentenced yesterday to 156 months in federal prison by United States District Judge Karen C. Caldwell for conspiracy to distribute heroin and carfentanyl and distribution of carfentanyl resulting in serious physical injury.
Beginning in July 2016 and continuing through January 19, 2017, Doolin conspired with several other people to distribute heroin and carfentanyl in Garrard, Jessamine and Fayette County. On January 10, 2017, Doolin and Jeffrey Ruggiero, 29, of Nicholasville, another defendant distributed a quantity of carfentanyl, which resulted in an overdose.
On April 9, 2019, Doolin pled guilty to the charge and admitted to distributing carfentanyl in an amount no less than 1100 grams of heroin in the Central Kentucky area during the five-month period of the conspiracy. Ruggiero was previously sentenced to 132 months imprisonment for his participation in the conspiracy.
“A critical component of our drug enforcement effort is the prosecution of drug dealers who cause overdoses. We are committed to prosecuting these important cases,” said United States Attorney Robert M. Duncan, Jr. The defendant’s distribution of heroin and carfentanyl endangered lives and contributed to addiction in Central Kentucky. “His actions warranted the lengthy sentence he received from the Court.”
Under federal law, Doolin must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
United States Attorney Duncan and Christopher Evans, Special Agent in Charge of the DEA, jointly made the announcement.
The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorneys Cynthia T. Rieker and Todd Bradbury.
Former VA Employee Sentenced to Max in Fake Invoice SchemeRead the Press Release
HOUSTON – A 76-year-old Houston woman has been ordered to prison following her conviction of conspiring to commit fraud against the Veterans Administration (VA) by generating purchase orders for fictitious goods and services, announced U.S. Attorney Ryan K. Patrick.
Eduora McDaniel aka Eudora McDaniel pleaded guilty Jan. 31, 2019 to conspiracy to commit wire fraud.
At a hearing that concluded late yesterday, U.S. District Judge David Hittner handed McDaniel the maximum 60-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court noted further ordered McDaniel to pay $290,000 restitution and a $100,000 fine and ordered the government to garnish the maximum amount of McDaniel’s government pension until the restitution and fines are paid.
McDaniel admitted she conspired with a vendor to defraud the VA by submitting fake invoices for goods and services that never happened. As a prosthetics representative for the VA, McDaniel had the authority to obtain prosthetic goods and services if a physician found it medically necessary, which she was authorized to pay using a government-issued VISA credit card. McDaniel created fake purchase orders for her co-conspirator’s company and paid them using her government credit card. McDaniel and the co-conspirator then split the payments.
McDaniel’s co-conspirator, Angela Hunter, pleaded guilty in August 2018 and is scheduled to be sentenced Aug. 13, 2019.
McDaniel has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Former Tribal Chair Indicted for Embezzlement & Theft from an Indian Tribal Organization and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced today that a former Crow Creek Sioux Tribe councilmember and chair was indicted by a federal grand jury for embezzlement & theft from an Indian tribal organization, and aiding and abetting.
Brandon Sazue, age 45, of Chamberlain, South Dakota, was indicted on August 6, 2019. He appeared before U.S. Magistrate Judge Mark Moreno on August 9, 2019, and pled not guilty to the Indictment.
According to the Indictment, in about March 2014 through February 2019, Roland Robert Hawk Sr., Francine Maria Middletent, Roxanne Lynette Sazue, Jacquelyn Ernestine Pease, and Brandon Sazue embezzled, stole, willfully misapplied, willfully permitted to misapplied, and converted to their own use over $1,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe. During times relevant to each defendant’s case, Brandon Sazue served as Chair of the Crow Creek Sioux Tribe, Hawk served as the elected Treasurer of the tribe, Roxanne Sazue was also Chair, and Middletent was an elected councilperson. When not serving in their respective leadership positions, all defendants, except for Brandon Sazue, worked for Hawk in the tribe’s finance office. In their respective leadership roles and employment positions, the defendants had the access and opportunity to the funds that were embezzled from the tribe.
The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment and/or a $250,000 fine; 3 years of supervised release; $100 to the Federal Crime Victims Fund; and restitution may be ordered.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hawk Sr. was remanded to the custody of the U.S. Marshals Service. Defendants Pease, Middletent, Roxanne Sauze, and Brandon Sazue were released on bond. A trial date has been set for September 10, 2019.
The case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former St. Louis County Executive Seven V. Stenger Sentenced to Federal Prison for "Pay to Play" Bribery SchemeRead the Press Release
St. Louis, MO – Steven V. Stenger, 47, of Clayton, was sentenced to 46 months in prison, a fine of $250,000, three years’ supervised release, $130,000 restitution and a $300 special assessment related to his guilty pleas to three felony counts of honest services bribery/mail fraud. He appeared in federal court today before U.S. District Court Judge Catherine D. Perry.
According to court documents and statements made in court, beginning during October 2014, even before he was officially elected County Executive, and continuing through December 31, 2018, Stenger engaged in a systemic scheme to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services by soliciting and accepting bribes in exchange for county contracts and grants. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from individuals and their companies in exchange for his favorable official action in issuing government contracts and grants to those political donors. Stenger directed members of his executive staff, including his chief of staff and chief of policy, and various other high level county employees to take steps to ensure that his political donors would win in the bidding process for various county contracts. In doing so, other companies who expected a level playing field in the county’s bidding process were victimized, as were the approximately one million residents of St. Louis County. For over four years, Stenger treated important county contracts and grants as something to barter away as if they were his own personal thank you gifts.
One businessman from whom Stenger solicited and received political donations was John Rallo. In exchange for campaign donations and several fundraising events, Stenger directed the county’s Director of Operations to award John Rallo and his company, Cardinal Insurance, insurance contracts through St. Louis County during 2015 and 2016. Further, Stenger directed the Chief Executive Officer of the St. Louis Economic Development Partnership, Sheila Sweeney, to award John Rallo and his company, Cardinal Creative Consulting, a 2016 consulting contract for $130,000 through the St. Louis County Port Authority. Additionally, Stenger took official action to ensure that John Rallo and his company, Wellston Holdings, LLC, obtained two properties in Wellston, Missouri, which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. Stenger also admitted to steering a 2019 - 2021 state lobbying contract from the St. Louis Economic Development Partnership to a company identified as “Company One” in exchange for political donations and fundraising efforts from the company’s owner. Stenger took steps to hide, conceal and cover up his illegal conduct, including making false public statements and directing others with knowledge of his scheme to make false public statements.
"Steve Stenger abused his power as an elected official to benefit himself," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Had the FBI and U.S. Attorney’s Office not stopped Stenger from misusing taxpayer dollars for his personal gain, he would have continued to run St. Louis County into the ground. He will now have years in federal prison to reflect on the cost of his greed.”
“Public service is a public trust,” said Assistant U.S. Attorney Hal Goldsmith. “Through his illegal pay to play scheme aimed at filling his own political coffers, the former County Executive shattered that trust. The residents of St. Louis County and St. Louis County government employees have suffered immeasurable harm as a result. The Department of Justice will continue to aggressively investigate and prosecute public corruption wherever it exists, and work to restore the public’s trust in its elected officials.”
The Federal Bureau of Investigation and the Postal Inspection Service investigated this case with the assistance of the Internal Revenue Service Criminal Investigations.
Former Schuylkill County Clerk of Courts Pleads Guilty to Mail Fraud and Falsification of RecordsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Steven M. Lukach, Jr., age 69, of Nesquehoning, Pennsylvania, pleaded guilty on August 8, 2019, before U.S. District Court Judge Robert D. Mariani to mail fraud and falsification of records.
According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years. In 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach. An FBI investigation ensued and while the audit was going on, Lukach interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office. Lukach did so in an effort to conceal that he was taking funds from various accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former President of Hartford Nonprofit Who Stole from HUD Program is SentencedRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that STEVEN F. HARVIN, 54, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation, the first 60 days of which Harvin must serve in home confinement, for stealing from a U.S. Department of Housing and Urban Development (“HUD”) program. Judge Shea also ordered Harvin to perform 50 hours of community service.
According to court documents and statements made in court, the Housing Opportunities for Persons with AIDS (“HOPWA”) Program is a HUD program dedicated to the housing needs of people living with HIV/AIDS. Under the HOPWA Program, HUD makes grants to local communities, states and nonprofit organizations for projects that benefit low-income persons living with HIV/AIDS and their families. HUD is also responsible for administering the Section 8 housing program, which provides federally subsidized housing to low income tenants.
From approximately August 2015 to September 2016, Harvin served as President of Zezzo House, a non-profit organization in Hartford that provides housing for individuals and families with health challenges, including HIV/AIDS. HUD provides HOPWA funds to the City of Hartford, which in turn provides the HOPWA funds to organizations in the Hartford area, including Zezzo House. Between January and August 2016, Zezzo House received $70,722 in HOPWA funds. Harvin embezzled some of these funds through cash withdrawals, spent some of the funds on ineligible Zezzo House expenses, and he failed to account for the use of other funds.
Zezzo House also receives Section 8 funding and, during this time period, Harvin diverted funds from rent checks from Section 8 tenants to his personal use.
In total, Harvin misappropriated approximately $32,854 in HOPWA and Section 8 funds.
This matter was investigated by the U.S Department of Housing and Urban Development, Office of Inspector General, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former PCAOB Inspections Leader and KPMG Executive Director Sentenced for Scheme to Steal Confidential PCAOB Information in Order to Fraudulently Improve KPMG’s PCAOB Inspection ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CYNTHIA HOLDER, a former Public Company Accounting Oversight Board (“PCAOB”) Inspections Leader and KPMG Executive Director, was sentenced today to 8 months in federal prison for participating in a scheme to defraud the Securities and Exchange Commission (the “SEC”) and the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections, the results of which were shared with, and utilized by, the SEC in carrying out its governmental functions. HOLDER pled guilty October 16, 2018, before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a former employee of the PCAOB, Cynthia Holder understood the importance of the organization’s work: to protect investors and the public by overseeing the audits of public companies. But she undermined the Board’s and the SEC’s regulatory missions when she stole confidential inspection information and provided it to KPMG, her new employer. KPMG, in turn, used this confidential information to cheat on PCAOB inspections. Holder’s sentence should be an example to others that stealing confidential information and corrupting regulatory processes are crimes that this Office takes very seriously.”
According to the allegations contained in the Indictment filed against HOLDER and statements made in related court filings and proceedings:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally. The PCAOB transmits these Inspection Reports to the SEC, which utilizes them in carrying out its agency functions.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms. By 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel such as HOLDER and HOLDER’s co-conspirator, Brian Sweet.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, HOLDER, David Middendorf, Thomas Whittle, Jeffrey Wada, Sweet, and others worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected, in an effort to game the system and improve inspection results. For example, after Sweet began employment at KPMG, but while HOLDER was still employed by the PCAOB, HOLDER fed Sweet confidential PCAOB information about certain pending inspections. HOLDER did so while simultaneously seeking employment at KPMG. During the pendency of her efforts to obtain employment at KPMG, HOLDER – in violation of PCAOB rules – continued to work on KPMG inspections at the PCAOB. Once she secured a job at KPMG, HOLDER stole valuable confidential information on her way out of the PCAOB and then passed it on to Sweet, her new boss at KPMG.
In March 2016, HOLDER obtained the PCAOB’s confidential 2016 inspection selections for KPMG from Wada, who was still working at the PCAOB but who had recently been passed over for a promotion. Wada – who was not responsible for KPMG inspections at the PCAOB
– accessed and stole valuable confidential information from the PCAOB and passed it on to HOLDER. HOLDER, in turn, provided the 2016 inspection selections to Sweet, who passed them to Middendorf, Whittle, and others. Middendorf, Whittle, Sweet, and others then agreed to launch a stealth program to “re-review” the audits that had been selected. In order to cover up their illicit conduct, the KPMG engagement partners were given a false explanation for the re-reviews. The stealth re-review program allowed KPMG to double-check its audit work, strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, Wada, who had again been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to HOLDER. At the same time, Wada provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet shared the preliminary inspection selections provided by Wada with Whittle and Britt, while noting that the information was only preliminary. Whittle’s response was to ask Sweet to confirm that they would get the final list as well.
In February 2017, Wada texted HOLDER saying, “I have the grocery list. . . . All the things you’ll need for this year.” Wada then spoke to HOLDER and provided her with the full confidential 2017 final inspection selections. HOLDER again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and others. Middendorf, Whittle, and Sweet agreed to inform engagement partners on the list so that extra attention could be paid to these audits in light of the forthcoming PCAOB inspections.
In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter, as a result of which KPMG’s Office of General Counsel launched an internal investigation. Thereafter, HOLDER and Sweet took a number of steps to destroy or fabricate evidence relevant to the investigation. For example, HOLDER deleted a number of relevant text messages, emails, and documents, and said she was going to purchase a “burner phone” so her conversations could not be monitored. Similarly, Sweet burned evidence of the 2017 inspection list and provided a falsified version of the list to KPMG counsel.
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In addition to a prison term, HOLDER, 53, of Houston, Texas, was sentenced to 2 years of supervised release. Restitution amount was deferred to a later date.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission, which has brought an administrative proceeding against Holder.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Jordan Estes, Martin Bell, and Margaret Graham are in charge of the prosecution.
Former New York City Correction Officer Pleads Guilty to Conspiring to Smuggle Contraband into Rikers Island JailRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Simon Gordon, a former correction officer employed by the New York City Department of Correction (“DOC”), pleaded guilty to conspiring to accept bribes in exchange for smuggling contraband into a jail on Rikers Island. The plea proceeding took place before United States District Judge Carol Bagley Amon. When sentenced, Gordon faces up to five years in prison and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
From approximately January 2018 through July 2018, Gordon agreed to accept bribes in exchange for smuggling contraband, including marijuana, into one of the jails on Rikers Island. On July 29, 2018, DOI investigators monitoring a telephone call between Gordon’s co-conspirators overheard a discussion about a cash payment made to Gordon in exchange for smuggling contraband into the jail. Specifically, co-conspirator 2 told co-conspirator 1 that Gordon was given two “bands,” coded language referring to $2,000, and that co-conspirator 2 had “six balls,” code for six packages of narcotics, for Gordon.
On July 30, 2018, when Gordon arrived for work, he was searched and found to have a package containing marijuana concealed in the crotch of his pants. The package was coated with clear nail polish, to mask the smell of marijuana.
“Gordon betrayed the trust placed in him as a correction officer when he accepted bribes to smuggle contraband into Rikers Island, jeopardizing the safety and security of the correctional facility,” stated United States Attorney Donoghue. “This Office is committed to working with its law enforcement partners to identify and hold accountable those like Gordon who corrupt our correctional institutions.” Mr. Donohue extended his grateful appreciation to DOI for its outstanding investigation.
“City correction officers who accept bribes to transport contraband into correctional facilities undermine the safety and security of the jails, as well as of their fellow officers,” stated DOI Commissioner Garnett. “In this case, a correction officer who pocketed cash in return for bringing in marijuana to Rikers Island is now convicted and no longer a city employee – sending a strong message that New York City has no tolerance for this illegal conduct. I want to thank the Office of the United States Attorney for the Eastern District of New York for its partnership in this investigation and the successful prosecution of the matter.”
The government’s case is being prosecuted by Assistant United States Attorney F. Turner Buford.
The Defendant:
SIMON GORDON
Age: 24
Bronx, New YorkE.D.N.Y. Docket No. 19-CR-352 (CBA)
Financial Broker Sentenced to 42 Months in Prison for Tax Evasion and Failure to File Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York announced today that RICHARD JOSEPHBERG was sentenced to 42 months in prison for evading hundreds of thousands of dollars in taxes for the calendar year 2011 and willfully failing to file tax returns for the calendar years 2013 through 2015. JOSEPHBERG previously pleaded guilty to these crimes before U.S. Circuit Judge Richard J. Sullivan, who imposed today’s sentence.
According to allegations in the Indictment, court filings, and statements made in public court proceedings:
JOSEPHBERG was previously convicted in September 2007, in the U.S. District Court for the Southern District of New York, of 16 counts of tax fraud and one count of health care fraud, which resulted in a sentence of 50 months in prison and three years’ supervised release. JOSEPHBERG was released from custody and commenced his term of supervised release in late October 2010. While on supervised release, JOSEPHBERG began committing the tax crimes for which he was sentenced today.
Specifically, starting in late 2010, JOSEPHBERG began employment with an investor relations firm called CEOcast in Manhattan. Through the individual who operated CEOcast, JOSEPHBERG secured a commission-based arrangement with another investment firm, Socius Capital Group LLC (“Socius”). Socius agreed to pay JOSEPHBERG a commission of approximately 15 percent of any profit generated by Socius on financing deals originated by JOSEPHBERG. For originating one such financing deal, JOSEPHBERG was entitled to commission payments totaling approximately $1.57 million in 2011. After receiving payments totaling approximately $35,725 in his own name, JOSEPHBERG directed Socius to issue the remaining commission payments in the name of a newly formed corporate entity called “Almorli Advisors Inc.” JOSEPHBERG opened a new bank account in the name of Almorli Advisors Inc. (“Almorli Bank Account-1”), and deposited payments totaling approximately $1.53 million into that account.
In March 2012, while preparing to file 2011 federal income tax returns, JOSEPHBERG took steps to evade paying hundreds of thousands of dollars in federal income taxes by disguising and concealing the type of income that JOSEPHBERG had received from Socius. On or about March 27, 2012, JOSEPHBERG formed a second corporate entity called “Almorli Advisors NY LLC,” which served as a shell company to insulate JOSEPHBERG from IRS scrutiny. JOSEPHBERG caused his accountant to prepare a false 2011 partnership income tax return, Form 1065, in the name of Almorli Advisors NY LLC (the “2011 Form 1065”), listing JOSEPHBERG as a 99 percent partner and JOSEPHBERG’s son as a one percent partner. To evade a substantial part of the income taxes due and owing for 2011, JOSEPHBERG caused the 2011 Form 1065 falsely to report the commission payments from Socius, totaling approximately $1,574,922, as a long-term capital gain, rather than ordinary income. JOSEPHBERG’s purported 99 percent share of this false long-term capital gain flowed through to his 2011 individual income tax return, Form 1040. JOSEPHBERG’s fraudulent misclassification of this income resulted in a reported tax liability that was hundreds of thousands of dollars lower than the true tax liability because individual long-term capital gains were taxed at a significantly lower rate than ordinary income.
JOSEPHBERG also engaged in a scheme to evade the assessment of federal income taxes for calendar years 2013 through 2016. During those years, JOSEPHBERG received substantial income from performing consulting and other professional services. Despite earning substantial income, JOSEPHBERG failed timely to file any federal income tax returns for the calendar years 2013 through 2016 until after IRS agents informed JOSEPHBERG in May 2017 that he was under investigation. In addition to not timely filing any tax returns, JOSEPHBERG took various affirmative steps to evade the assessment of taxes. Among other things, JOSEPHBERG routed substantial amounts of income through Almorli Bank Account-1 and another bank account in the name of Almorli Advisors Inc., which bank accounts JOSEPHBERG controlled and used to pay for his personal expenses.
In all, through the crimes to which he pleaded guilty and relevant conduct, JOSEPHBERG caused the Internal Revenue Service (“IRS”) to incur losses of approximately $1.2 million. JOSEPHBERG’s scheme also caused a loss of $75,744.28 to the New York State Department of Taxation and Finance (“NYSDTF”), based in large part on JOSEPHBERG’s failure to timely file any state tax returns for 2013 through 2016.
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In addition to the term of prison imprisonment, Judge Sullivan ordered JOSEPHBERG to serve 3 years of supervised release. Judge Sullivan deferred restitution to a later date.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Final Two Defendants in Methamphetamine Distribution Conspiracy SentencedRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Matthew A. Beaudion, 30, and Jessica N. Davis, 34, both of Monroe, were sentenced Wednesday, to 120 months in prison and 92 months in prison, respectively, by U.S. District Judge S. Maurice Hicks Jr. for conspiring to distribute methamphetamine in Ouachita Parish.
On August 14, 2017, Matthew Beaudion, Jessica Davis, and co-defendant Justin Jenkins, traveled to Houston, Texas, for Beaudion to purchase methamphetamine that he and Davis planned to distribute once they returned to Monroe. Davis personally assisted with the planned distributions of the methamphetamine by coordinating with a customer as to when they would return to Monroe with the drugs. Beaudion paid Jenkins to drive because he was the only one who had a valid driver’s license. After returning to Monroe on August 15, 2017, law enforcement agents stopped the vehicle and discovered 690.5 grams of methamphetamine hidden behind the radio under the dashboard of the vehicle.
Justin D. Jenkins, 34, of Monroe, Louisiana, previously pled guilty to the conspiracy count on January 24, 2018 and was sentenced on May 2, 2019. Beaudion and Davis previously pled guilty to the federal charges on April 10, 2019.
The DEA and the Ouachita Parish Sheriff’s Office participated in the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Feds/LMPD Complete Raids Targeting Violent Crime in LouisvilleRead the Press Release
LOUISVILLE, Ky. – During a two-week period starting July 22, 2019, and ending August 2, 2019, the United States Marshals Service; Louisville Metro Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration, and the Federal Bureau of Investigation conducted Operation Iron Grip in an effort to reduce violent crime in Louisville.
During the course of the operation, federal agents and Deputy United States Marshals assisted the Louisville Metro Police Department in arresting 57 individuals (49 for warrants, 7 new felony arrests, and one misdemeanor arrest) and seizing13 firearms (9 firearms on convicted felons, 4 firearms reported stolen and 1 firearm in the possession of a juvenile). Three subjects currently have federal detainers. There were 136 total charges. As a testament to how serious the charges were, 79 percent of the people arrested are still in custody, including three transported to prison.
“We promised more federal raid jackets alongside our LMPD partners in removing trigger-pullers from Louisville neighborhoods and we delivered,” said U.S. Attorney Russell Coleman. “The goal however is not a one-off, even as effective as Iron Grip, but a sustained cooperative effort between all levels of law enforcement to reduce these shootings and make families safer in our city. Stay tuned; much more to come.”
“Every day, the United States Marshals Service tracks down violent fugitives in the Louisville Metro area,” said United States Marshal Gary Burman. “Operation Iron Grip provided an excellent opportunity for the Marshals to work side by side with officers from LMPD and our federal partners which resulted in a significant number of arrests in a relatively short time. Special recognition should go to US Supervisory Deputy Marshal David Hale for his leadership and coordination of this effort.”
Jefferson County Commonwealth’s Attorney Tom Wine said, “Operation Iron Grip is another example of resourceful teamwork between federal and state law enforcement agencies and prosecutors working to protect our community,” he continued. “Individuals, especially convicted felons with firearms, who have avoided criminal prosecution, will now be held accountable for their criminal charges. We encourage residents of Metro Louisville to continue to help us bring to justice those who have endangered the lives and well-being of law abiding people.”
“Efforts such as Iron Grip are key tools in addressing violence in our community,” said Louisville Metro Police Chief Steve Conrad. “Without partnerships, police cannot do our jobs effectively. We are very grateful to our federal partners for joining together with us to address the people who are most violent in our city.”
“Combining the resources of ATF with LMPD and our federal law enforcement partners is a force multiplier in the reduction of violent crime in metro Louisville,” stated Stuart Lowrey, Special Agent in Charge, ATF Louisville Division. “ATF remains ‘No Better Partner’ in these coordinated efforts to restore community safety through the arrest of violent offenders.”
“FBI Louisville has doubled our resources working violent crime and gangs in the City of Louisville, and we are proud to be a part of the LMINTEL Task Force and to assist in taking violent criminals off the streets of Louisville,” stated FBI Special Agent in Charge Robert Brown, Jr. “This is just one piece of the violent crime puzzle. We continue to ask for the public to come forward and identify those who perpetrate violent crime in our communities.”
“The dedicated men and women of the Drug Enforcement Administration don’t just work in Louisville, we live here too… we’re part of this community,” said D. Christopher Evans, Special Agent in Charge of DEA’s Louisville Field Division. “We will work tirelessly with our law enforcement partners to ensure that Louisville is safe for everyone,” Evans added.
The arrests were a result of close collaboration between the Louisville Metro Police Department and federal agencies including: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); and the United States Marshals Service (USMS). Prosecutions will be handled by both Jefferson County Commonwealth’s Attorney’s Office and the United States Attorney’s Office.
Eagle Butte Man Charged with False StatementRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for False Statement.
Paul William Stands For, age 24, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 8, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 18, 2019, Stands For willfully and knowingly made a materially false, fictitious, and fraudulent statement to a Task Force Officer with the Federal Bureau of Investigation’s Northern Plains Safe Trails Drug Enforcement Task Force by stating that a handgun was his, when he in fact knew this statement was false.
The charge is merely an accusation and Stands For is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Stands For was released on bond pending trial. A trial date has not been set.
Defense Contractor to Pay $4.02 Million for Alleged Improper BillingRead the Press Release
NEWARK, N.J. – A Virginia-based military contractor doing business in New Jersey will pay $4.02 million to resolve allegations that it improperly billed the United States for extra payments to employees, U.S. Attorney Craig Carpenito, District of New Jersey, announced.
Mission1st Group Inc. (Mission First), a Virginia Corporation which provided program management, systems engineering, and information technology and communications, improperly billed the United States for extra payments to employees, known as uplifts, that were not actually paid to its employees.
Employees of civilian contractors in support of U.S. military forces stationed in Iraq and Afghanistan are entitled to uplifts to their salaries in the form of danger pay and hazardous duty pay. The settlement resolves allegations that Mission First billed uplifts that it was supposed to pay to its employees, but did not actually pay the employees. The United States alleged that Mission First also billed the United States for Federal Insurance Contributions Act (FICA) taxes on the uplift billings, which were in most instances in excess of the statutory cap for the affected employees, and then improperly retained those excess tax payments.
U.S. Attorney Carpenito credited Special Agent Peter DeRado of the Defense Criminal Investigative Service; Special Agents William Schelpf and Kim Canady of the Major Procurement Fraud Unit of the U.S. Army’s Criminal Investigation Division; David Gotlib, an auditor with the Department of Defense Contract Audit Agency; and Steven G. Foster, a contracting officer with the Army Contracting Command, Aberdeen Proving Ground, led by Kenyata L. Wesley Sr., Executive Director, Senior Executive Service, with the investigation.
The government is represented by Senior Trial Counsel Anthony J. Labruna and Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark, and Trial Attorney Art J. Coulter of the Civil Frauds Section of the Justice Department in Washington, D.C.
Defense counsel: Justin A. Chiarodo Esq., Washington, D.C.
Defendant Sentenced in an Omaha-Based Methamphetamine Drug Trafficking OrganizationRead the Press Release
United States Attorney Joe Kelly announced that Francis Dale Peebles, age 40, was sentenced in federal court today in Omaha, Nebraska, for conspiracy to distribute and possession with intent to distribute methamphetamine. United States District Court Judge Robert F. Rossiter, Jr. sentenced Peebles to 120 months of imprisonment. After completing his term of imprisonment, Peebles will begin a five-year term of supervised release.
Beginning in mid-2017, agents with the Drug Enforcement Administration began an investigation into an Omaha-based methamphetamine drug trafficking organization. Court-authorized wire and electronic interceptions led investigators to Francis Dale Peebles, who was subsequently identified as someone that was receiving pound quantities of methamphetamine from the drug trafficking organization. A search warrant on Peebles’s residence resulted in 490.4 grams of methamphetamines, 144.8 grams of THC concentrate, 1068.9 grams of marijuana, $6,944.00 United States Currency and ten firearms being seized.
This case was investigated by the Drug Enforcement Administration.
DOJ Announces Settlement of Sexual Harassment Claims Against Oswego Property OwnerRead the Press Release
WASHINGTON – The Department of Justice today announced that Douglas S. Waterbury and his co-defendants will be obligated to pay $850,000 in damages and civil penalties to resolve two Fair Housing Act lawsuits alleging that Waterbury sexually harassed numerous female tenants and prospective tenants for nearly three decades at properties he owned in and around Oswego, New York. The Department filed one of the lawsuits and a group of private plaintiffs brought the other.
Under the Consent Decree in United States of America v. Douglas S. Waterbury, et al., which still must be approved by the U.S. District Court for the Northern District of New York, Defendants have agreed to pay a total of $450,000, which includes $400,000 in monetary damages to former tenants and potential tenants who were harmed as a result of the sexual harassment, as well as a $50,000 civil penalty. Additionally, the Defendants will pay $400,000 to compensate nine plaintiffs in the related private suit. The Consent Decree also bars Douglas Waterbury from participating in the rental or management of residential properties.
"The sexual harassment of the vulnerable female applicants and tenants in this case by their landlord is an egregious and intolerable violation of federal civil rights law," said Assistant Attorney General Eric Dreiband. "The Department of Justice will continue to pursue any depraved landlords and others who prey upon vulnerable women."
"No woman should have to endure harassment and discrimination to obtain housing," said Grant C. Jaquith, United States Attorney for the Northern District of New York. "Landlords who sexually harass their tenants in our district will be held accountable under the Fair Housing Act."
The Department’s complaint, filed in 2018, alleged that Douglas Waterbury, his business partner, and two related entities operated an extensive real estate business involving more than 50 residential rental properties in and around Oswego, New York. The lawsuit further alleged that Douglas Waterbury subjected former tenants and potential tenants of these homes to sexual harassment, including unwanted sexual intercourse, sexual advances and comments, groping or other touching of their bodies without consent, and offers to reduce or eliminate security deposits and rent in exchange for sexual contact. The complaint further alleged that Waterbury took or threatened to take adverse action against residents when they refused or objected to his advances.
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing.
Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1‑800‑896‑7743, e-mail the Justice Department at [email protected], or contact HUD at 1‑800‑669‑9777 or through its website at www.hud.gov/program_offices/fair_housing_equal_opp.
DEA Agent and International Narcotics Trafficker Each Plead Guilty in Connection with Decade-Long Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FERNANDO GOMEZ and JOSE MARTINEZ-DIAZ, a/k/a “Tony Zinc,” pled guilty in Manhattan federal court to charges related to a decade-long narcotics conspiracy. GOMEZ, who was an active agent with the Drug Enforcement Administration (“DEA”) until his arrest in December 2018, pled guilty today to a narcotics conspiracy involving the distribution of cocaine. As part of his plea, Gomez agreed that he supplied guns to MARTINEZ-DIAZ. MARTINEZ-DIAZ pled guilty on July 29 to his participation in a racketeering conspiracy involving the enterprise known as La Organizacion de Narcotraficantes Unidos (“La ONU”). As part of his plea, MARTINEZ-DIAZ agreed that his participation in the enterprise involved the distribution of at least 450 kilograms of cocaine and two attempted murders.
U.S. Attorney Geoffrey S. Berman said: “DEA Special Agent Fernando Gomez violated the very laws he swore to enforce. Rather than uphold the nation’s drug laws, for over a decade he helped a major drug trafficker, Jose Martinez-Diaz, get away with his crimes. This case exemplifies the enduring commitment of this Office, along with our law enforcement partners, of preserving the highest degree of integrity for law enforcement from within. And with the guilty pleas of Gomez and Martinez-Diaz, justice will now be served.”
According to the Indictment, statements made during public court proceedings, and public court filings:
GOMEZ, while working as a detective with the City of Evanston Police Department in Illinois, transported firearms to Puerto Rico and provided those firearms to MARTINEZ-DIAZ. After joining the DEA, GOMEZ helped members of the narcotics conspiracy, including MARTINEZ-DIAZ, evade detection by law enforcement.
La ONU was a criminal enterprise involved in the trafficking of cocaine from Puerto Rico to the Bronx, New York. The cocaine was distributed in New York, including out of a daycare center in the Bronx, New York. Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations.
MARTINEZ-DIAZ was a high volume cocaine trafficker who supplied La ONU members with drugs that were transported from the Dominican Republic. La ONU further distributed the cocaine, including in the Southern District of New York. Martinez-Diaz smuggled the narcotics from the Dominican Republic, usually by boat. In connection with his membership in La ONU, Martinez-Diaz was involved in the distribution of over 5,000 kilograms of cocaine.
Martinez-Diaz funded and assisted La ONU in its fight against its rival, La Rompe ONU. For example, Martinez-Diaz provided money to La ONU members to purchase firearms. In addition, Martinez-Diaz and others created a fake Puerto Rico Police Department patrol car. Members of La ONU used the fake patrol car to harass and intimidate members of La Rompe ONU, and to conduct shootings.
In or about 2007, Martinez-Diaz ordered a shootout in Puerto Rico. The target of the shootout was shot but survived.
On another occasion, Martinez-Diaz paid an individual $5,000 in connection with the attempted murder of a rival drug dealer.
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FERNANDO GOMEZ, 42, of Chicago, Illinois, pled guilty to one count of participating in a narcotics conspiracy involving the distribution of cocaine, which carries a maximum sentence of 20 years in prison. MARTINEZ-DIAZ, of San Juan, Puerto Rico, pled guilty to one count of participating in a racketeering conspiracy, which carries a maximum sentence of 20 years in prison. Sentencing for GOMEZ is scheduled for November 21, 2019; sentencing for MARTINEZ-DIAZ is scheduled for November 26, 2019 at 3:30 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of United States Postal Inspection Service, DEA, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice Office of the Inspector General, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Andrew Thomas, Lara Pomerantz, and Allison Nichols are in charge of the prosecution.
Columbus Man Charged with Coercing Minor Girls OnlineRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged a Columbus man with multiple crimes related to the sexual exploitation of minors. The man allegedly chatted with minor females on Instagram, Snapchat and other social media sites and requested that the girls send him videos of themselves engaged in sexual acts.
Michael T. Sutherin, 21, of Columbus, was charged with producing, advertising for, distributing receiving and possessing child pornography, as well as coercing a minor, in a 13-count indictment returned here yesterday and filed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and members of the FBI’s Child Exploitation Task Force announced the charges.
According to the indictment, Sutherin coerced at least four females ages 12 to 15 to engage in sexual activities on video.
Sutherin’s indictment includes multiple charges punishable by a mandatory minimum of 15 years and up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorneys Heather A. Hill and S. Courter Shimeall, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you believe you were also a victim in this case, or have related information, please contact the FBI at 614-849-1765.
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Columbia Brothers Sentenced to Federal Prison on Firearm ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Shamari Delresse Jones, a/k/a “Amari,” age 34, and Jokari T. Jones, age 36, both of Columbia, were each sentenced to federal prison. Shamari Jones was sentenced to 7 years’ imprisonment after pleading guilty to being a felon in possession of firearms and ammunition. Jokari Jones was sentenced to 10 years’ imprisonment after pleading guilty to being a felon in possession of firearms and ammunition and to misprison of a felony.
Evidence presented to the court showed that on the evening of July 29, 2017, officers with the Columbia Police Department were on routine patrol on West Beltline Boulevard and observed Shamari Jones driving. They knew that his driver’s license was under suspension. After confirming that his license was suspended and noticing that the license plate on the vehicle came back to a completely different vehicle, officers initiated a traffic stop. Shamari Jones, the driver, and the passenger both exited the vehicle and Shamari Jones was observed with a baggie in his hands. Shamari Jones fled on foot as the officers approached, but he was apprehended and the baggie was found to contain rounds of .44 caliber ammunition. While the officers were pursuing Shamari Jones, the passenger left in the vehicle. Shamari Jones was arrested on state charges.
The following day, the Lancaster County Sheriff’s Office responded to Shamari Jones’ mother’s home in Heath Springs in reference to a shooting. No one was injured, but while at the home, a number of firearms and rounds of ammunition were recovered by law enforcement, including a Bushmaster .223 caliber rifle with an extended magazine and two 12 gauge shotguns.
The investigation revealed that immediately after Shamari Jones’ arrest for being in possession of the ammunition, his brother—Jokari Jones—and another individual moved the firearms from Shamari Jones’ Columbia home to his mother’s home in an effort to keep law enforcement from finding the firearms. At the time of federal offense, Jokari Jones was on state bond from an unrelated state offense two weeks earlier and was on GPS monitoring.
The investigation also showed that in October 2015, Shamari Jones, a known gang member, had attended the CeaseFire Columbia Offender Notification meeting in which he, and others, were advised by law enforcement officials that should they be found in possession of firearms and ammunition, their case would be considered for federal prosecution in light of their extensive prior records.
Federal law prohibits Shamari Jones from possessing firearms and ammunition based upon his prior South Carolina state convictions, including: assault and battery of a high and aggravated nature, where he shot an individual (2004); possession with intent to distribute crack cocaine and possession of cocaine (2009); assault with intent to kill, where he shot at a group of individuals and a female was shot in the crossfire (2 counts) (2009); possession of cocaine (2010); and possession with intent to distribute marijuana (2015).
Federal law also prohibits Jokari Jones from possessing firearms and ammunition based upon his prior South Carolina state convictions, including: unlawful carrying of a pistol (2003); assault with intent to kill, wherein he shot at an individual (February 2005); assault with intent to kill (2 counts) and unlawful carrying of a weapon, wherein he shot at an individual and was later apprehended in possession of a handgun with an obliterated serial number (March 2005); criminal domestic violence (2006); unlawful carrying of a weapon (2006); unlawful possession of a firearm by a person convicted of a crime of violence (2012); carrying weapons on school property, wherein he was observed on video surveillance shooting a firearm at an individual on the premises of Arden Elementary School (2012); and unlawful carrying of a weapon, wherein he was found in possession of a firearm with a loaded high capacity extended magazine (2016).
United States District Judge Mary Geiger Lewis of Columbia sentenced Shamari Jones to 84 months in federal prison, to be followed by a 3-year term of court-ordered supervision. Judge Lewis sentenced Jokari Jones to 120 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by ATF, the Lancaster County Sheriff’s Office, and the City of Columbia Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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Charleston Man Sentenced for Federal Drug and Firearm ChargeRead the Press Release
Received more than four years in federal prison for his cocaine and firearm possession near a local casino
CHARLESTON, W.Va.—A Charleston man was sentenced to more than four years in federal prison, announced United States Attorney Mike Stuart. Michael A. Parker, 37, of Charleston, West Virginia, received a sentence of 49 months imprisonment. Parker previously pled guilty to Possession of Cocaine with the Intent to Distribute, and also to being a Felon in Possession of a Firearm on April 26, 2019. Parker also agreed to forfeit the firearm and $14,225.87 that were recovered from the scene. Stuart commended the investigation by the Nitro Police Department, assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police Forensic Laboratory and Mardi Gras Casino security workers.
“Another felon with a gun dealing drugs,” said United States Attorney Mike Stuart. “We see this over and over again. Prior felony offenders reentering our communities that possess guns and pick up their previous criminal activity where they left off, will find themselves reentering federal prison.”
Parker admitted that on July 28, 2018 at 5:00 a.m. in the morning, he had driven to the Mardi Gras Casino in Nitro, West Virginia. He double-parked the car he was driving and went into the casino. Casino security noticed the double-parked car and also saw a gun on the floorboard of the car. Casino security contacted the Nitro Police to get their assistance in asking Parker to move his car. Parker initially agreed to move the car and offered to meet the police outside. Instead, Parker walked out a different door of the casino, fled into the woods near the casino, and hid there.
Casino security workers monitored Parker’s flight with security cameras and relayed this information to the Nitro Police. Parker was quickly located and eventually agreed to return to his car. Once there, Parker agreed to unlock his car and the police recovered the gun. While securing the firearm, the Nitro Police officer immediately noticed a quantity of cocaine and a large stack of cash in the car. Once this evidence was removed from the car, Parker fled a second time into the woods. He was eventually apprehended with the assistance of a K9 unit. Police recovered a large bag of cocaine, 5 smaller bags of cocaine, a bag of marijuana, $14,225.87 in cash and a Smith and Wesson .380 caliber pistol with 11 rounds of ammunition and an extended magazine.
Parker is a prior convicted felon, having been convicted in United States District Court of Distribution of Cocaine Base and Possession with the Intent to Deliver Cocaine in 2004. Parker has not been pardoned or otherwise had his right to own a firearm restored. ATF traced the firearm and concluded it had traveled in interstate commerce. The West Virginia State Police Forensic Laboratory tested the recovered drugs and confirmed that they were cocaine and marijuana, both controlled substances.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorneys Erik S. Goes and Kristin Scott are handling the prosecution.
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