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17 May 2019
Wilmerding Man Pleads Guilty to Possessing Large Amounts of Fentanyl Sourced in New York CityRead the Press Release
PITTSBURGH - A former resident of Wilmerding, PA, pleaded guilty in federal court on one count of possession with intent to distribute more than 40 grams of fentanyl, United States Attorney Scott W. Brady announced today.
Ronnell Lawrence, age 31, pleaded guilty yesterday before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that on July 10, 2017, Rondell Lawrence drove his twin brother and co-defendant, Ronnell Lawrence to the Greyhound Bus Station in downtown Pittsburgh. Ronnell Lawrence then boarded a bus bound for New York City. Ronnell Lawrence returned to Pittsburgh after spending only one hour in New York City. On July 11, 2017, Rondell Lawrence returned to the Greyhound Bus Station to pick up his brother. Investigators observed Ronnell putting a large camouflage backpack into the back of the Nissan Pathfinder. Investigators later stopped the Nissan Pathfinder for having an expired registration. A subsequent search of the vehicle and the camouflage bag placed there by Ronnell revealed eight large bags of suspected heroin and fentanyl and a bus ticket to New York City. The Drug Enforcement Administration Laboratory later tested the substances seized from the bag and revealed that the substances were approximately 390 grams of a heroin/fentanyl mixture.
Judge Cercone set sentencing for September 10, 2019 at 1 p.m. The law provides for a maximum total sentence of not less than five years in prison and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Lawrence has been detained since his initial appearance and will remain detained pending sentencing. Co-defendant Rondell Lawrence was previously sentenced to five years (60 months) in prison on the same charge.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), Pittsburgh Bureau of Police, and North Versailles Police Department conducted the investigation leading to the indictment in this case.
Warsaw Man Admits to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kory Doyle, 33, of Warsaw, NY, pleaded guilty to possession of child pornography involving a prepubescent minor before Chief U.S. District Judge Frank P. Geraci The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in September 2017, the New York State Police executed a search warrant at the defendant’s residence in Warsaw. Several of Doyle’s electronics were seized. A forensic examination determined that the electronics contained over 700 images and 500 video files containing child pornography.
The plea is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 15, 2019, at 11:30 a.m. before Judge Geraci.
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Violent Felon Convicted of Fraud and Firearm OffensesRead the Press Release
RICHMOND, Va. – A North Carolina man was sentenced yesterday to 10 years in prison for conspiring to commit mail and bank fraud and possessing a firearm as a convicted felon.
According to court documents, Lareese Martelles Mallety, 25, of Raeford, conspired with several others to steal mail from local business parks and cash checks obtained through these thefts. Between July 2018 and his arrest in October, Mallety repeatedly traveled to Richmond from his home near Fayetteville, North Carolina to commit these crimes. He and others used pry bars to vandalize secure business mailboxes and thereby gain access to the incoming and outgoing mail of over 70 local businesses. Mallety then recruited homeless individuals found nearby to cash checks obtained through these thefts. Mallety and others used razor blades and typewriters to alter the stolen checks and make them payable to the homeless recruits. In just three months, these recruits cashed more than a dozen checks totaling over $36,000, returning all of the money to Mallety as directed.
Mallety was apprehended in October 2018 while traveling to Richmond in furtherance of this scheme. A search of his rental car recovered a pry bar, razor blades, a typewriter, three stolen U.S. mail parcels, and 45 checks stolen from local businesses worth nearly $120,000. A stolen handgun was found under Mallety’s seat, which he admitted bringing for protection. A nine-time convicted felon, Mallety carried a handgun throughout this conspiracy, often showing it to homeless recruits when directing them to cash stolen checks. Mallety has two prior convictions for conspiring to commit armed robbery and has previously been convicted of possessing a firearm as a convicted felon.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-160.
U.S. Attorney's Office Honors 34 Law Enforcement Officials in Annual Awards CeremonyRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, will be presenting awards today to 34 officials from federal, state and local law enforcement agencies in Delaware to honor their outstanding investigative work in cases prosecuted by the U.S. Attorney’s Office.
U.S. Attorney Weiss stated, “The honorees worked on a broad range of cases, from complex bank fraud, cyberstalking and theft of trade secret cases to child exploitation, firearms, and illegal drug distribution. Each of the officers demonstrated the hard work and investigative creativity required for a successful federal prosecution. As important, federal, state and local law enforcement worked together to accomplish a common objective. I thank those honored for their talent and dedication and their respective police departments and agencies with whom we partner to keep Delaware’s communities safe.
Among the honorees, Christopher J. Bumgarner, a Task Force Officer with the Dover Police Department, received the Stephen Misetic Memorial Award, which recognizes the law enforcement officer whose work best exemplifies the spirit of cooperation and collaboration necessary to make significant federal cases.
The honorees at today’s ceremony are members of the following law enforcement agencies:
- Delaware State Police
- Dover Police Department
- Elsmere Police Department
- Delaware State Fire Marshal
- Federal Bureau of Investigation
- Wilmington Department of Police
- Drug Enforcement Administration
- New Castle County Police Department
- Internal Revenue Service-Criminal Investigation
- Department of Correction, Probation and Parole
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Special Inspector General for the Troubled Asset Relief Program
- U.S. Immigration and Customs Enforcement, Homeland Security Investigations
- Board of the Governors of the Federal Reserve System, Office of Inspector General
U.S. Attorney Recognizes Law Enforcement During National Police WeekRead the Press Release
The U.S. Attorney for the Southern District of Illinois, Steven D. Weinhoeft, recognized the service and sacrifice of federal, state, and local law enforcement officers on the occasion of National Police Week, and commented on the FBI’s 2018 Law Enforcement Officers Killed and Assaulted report.
"National Police Week is a great time for all of us to pause and commemorate the men and women in blue who bravely protect and serve our communities each and every day," U.S. Attorney Weinhoeft, said. "We are especially proud to recognize their contributions to our system of justice, as well as their dedication, personal sacrifice, and public service. On behalf of the Department of Justice, this office extends its most sincere appreciation to all current and former law enforcement officers and their families."
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th of every year National Peace Officers Memorial Day, to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
This year, National Police Week is being observed from May 12 to May 18. During this time, our nation celebrates all law enforcement officers across the country, recognizing their hard work, dedication, loyalty and commitment in safeguarding the communities in which they serve.
According to statistics collected by the FBI, in 2018, 106 law enforcement officers were killed in the line of duty. Over half of those deaths were felony homicides – tied for third most in the last ten years; the remainder were fatal accidents. The names of 371 officers killed in the line of duty were added this year to the National Law Enforcement Officers Memorial in Washington, D.C.
For more information about other National Police Week events, please visit www.policeweek.org. To access the FBI’s 2018 Law Enforcement Officers Killed and Assaulted report, please visit https://ucr.fbi.gov/leoka/2018/topic-pages/officers-feloniously-killed.
U.S. Attorney Maria Chapa Lopez Announces Formation of Tampa Bay Human Trafficking Task ForceRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the formation of the Tampa Bay Human Trafficking Task Force, which held its first meeting on May 16, 2019. The task force consists of federal, state, and local law enforcement and prosecutors, along with several victims’ services organizations. Members of the task force will work collectively to improve upon the detection, investigation, prosecution, and victim assistance efforts in human trafficking matters throughout the Tampa Bay area.
“Combating human trafficking is a priority for the Department of Justice and our federal, state, and local law enforcement partners,” said U.S. Attorney Chapa Lopez. “The Tampa Division of the United States Attorney’s Office covers eight counties and serves a population of over 4.4 million people. We intend to combine the resources, efforts and expertise of our task force partners to fight human trafficking at every level, from prevention, investigation and enforcement, to supporting the victims of these heinous crimes.”
For more information about the Tampa Bay Human Trafficking Task Force, please contact AUSA Mandy Riedel or Victim Coordinator Chris Griffiths at 813-274-6000.
Two Peoria Men Charged with Stealing Nearly 100 Guns from Licensed Dealers in Monmouth and GalesburgRead the Press Release
PEORIA, Ill. – A federal criminal complaint, unsealed today, charges two Peoria, Ill., men with stealing nearly 100 guns from two west central Illinois federal firearms licensees, The Tac Shack, in Monmouth, and Farm King, in Galesburg, in March 2019. Keith L. Winters, 28, of the 100 block of E. Melbourne Ave., and Miray A. Smith, 28, of the 3400 block of N. Molleck Drive, are each charged with conspiring and stealing guns from a federal firearms licensee. A third man, Jeremy L. Howard, 39, of the 2400 block of W. Wiswall St., is also charged, with Winters and Smith, with two counts of possession of stolen guns. Winters faces two additional counts of possession of firearms by a felon.
“Too frequently we see the deadly consequences of stolen guns in our communities,” stated U.S. Attorney John Milhiser. “We will continue to work with our federal, state, and local partners to get guns out of the hands of the wrong people and aggressively prosecute those who put them there.”
“Investigating thefts of firearms from Federal Firearms Licensees is a top priority of ATF. These crimes not only pose a danger to the licensed dealers, but to the community as a whole. I commend the investigative partnerships and prosecutorial commitment of the Central District of Illinois,” said Chicago Field Division ATF Special Agent in Charge Tim Jones.
Howard was arrested today and the complaint and affidavit were unsealed at his court appearance this afternoon before U.S. Magistrate Judge Jonathan E. Hawley in Peoria. Howard was remanded to the custody of the U.S. Marshals Service and a detention hearing was scheduled for May 24. Winters and Smith have not been apprehended and remain fugitives at this time.
As alleged in the complaint affidavit, on March 21, 2019, Winters, Smith and another unnamed individual drove a stolen truck from Peoria to The Tac Shack, at 1100 E. Jackson Ave., Monmouth, Ill. Another passenger vehicle accompanied the truck to serve as a lookout. When they arrived at The Tac Shack, Winters and Smith allegedly threw a brick through a window and used a metal pole to break the glass and make entry. After taking 39 guns from the store, the men drove back to Peoria and allegedly divided up the stolen guns.
On March 29, 2019, Winters, Smith, and another individual allegedly drove a stolen truck from Peoria to Farm King, at 3000 W. Main St., Galesburg, Ill., where the men used wire cutters to enter a fenced area, then threw a brick through a window and used a metal pole to make entry. During the burglary, another individual who had accompanied the men in a separate vehicle, acted as a lookout for law enforcement. After taking 59 guns from Farm King, the men drove back to Peoria and allegedly divided up the stolen guns.
The charges are the result of investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, assisted by the Galesburg Police Department; Illinois State Police; Monmouth Police Department; Peoria County Sheriff’s Office; and the Peoria Police Department. Assistant U.S. Attorney Ronald L. Hanna is representing the government in the prosecution of the case in coordination with the Warren County, Knox County and Peoria County State’s Attorneys’ Offices.
If convicted, for the offenses stealing from a federal firearms licensee, possession of stolen firearms, and felon in possession of a firearm, the maximum penalty for each count is up to 10 years in prison. The maximum penalty for conspiracy to steal and possess firearms from a federal firearms licensee is five years in prison.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
Two Men and One Woman Sentenced for Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that two men and one woman were convicted of Possession with Intent to Distribute a Controlled Substance and Conspiracy to Distribute a Controlled Substance, and were sentenced on May 14, 2019, by U.S. District Judge Charles B. Kornmann.
Victor Manuel Caperon, age 36, from San Diego, California, convicted of Possession with Intent to Distribute a Controlled Substance, was sentenced to 130 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Amos Hall, a/k/a Amos Lee Hall, IV, age 36, from Watertown, South Dakota, convicted of Conspiracy to Distribute a Controlled Substance, was sentenced to 84 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Alexis Dumarce, age 31, from Watertown, South Dakota, convicted of Conspiracy to Distribute a Controlled Substance, was sentenced to 50 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Caperon was indicted by a federal grand jury on March 13, 2018. He pled guilty on November 14, 2018. Hall and Dumarce were indicted by a federal grand jury on June 13, 2018. They pled guilty on November 13, 2018.
The convictions stem from a methamphetamine conspiracy in and around the Watertown and Sisseton, South Dakota areas from November 23, 2017, through February 28, 2018. The conspiracy involved over 500 grams of methamphetamine, a Schedule II controlled substance. Hall, Dumarce, and two other co-defendants, Dyvon Byrd and Danny Callahan, were selling methamphetamine brought to South Dakota from California by Caperon and co-defendant Josh Paul. Caperon and Paul were found with six pounds of methamphetamine on February 28, 2018, during a traffic stop in Corson County, South Dakota. This methamphetamine was intended for sale in the Watertown and Sisseton areas.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Corson County Sheriff’s Office, and the Watertown Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Caperon, Hall, and Dumarce were immediately turned over to the custody of the U.S. Marshals Service. Byrd, Callahan, and Paul are set to be sentenced on June 3, 2019.
Two Men Plead Guilty for Their Respective Roles in Illegally Possessing Firearms Stolen from Jefferson County Patrol VehicleRead the Press Release
St. Louis, MO – Timothy Hopkins, 43, of O’Fallon, MO, and Richard O’Hara, 30, of Richwoods, MO, each pleaded guilty to being a felon in possession of a firearm. Each appeared in federal court this afternoon before U.S. District Judge John A. Ross who accepted the pleas. Sentencing for both Hopkins and O’Hara has been set for August 27, 2019.
According to court documents, on June 20, 2018, Hopkins, a previously convicted felon, was arrested by a Jefferson County Sheriff’s Deputy after leaving a gas station without paying for gasoline. The deputy identified Hopkins as having an active arrest warrant. Hopkins was handcuffed behind his back and placed in the front passenger seat of the patrol car. He maneuvered his handcuffs to the front, slid over to the driver’s seat, and fled the scene by stealing the deputy’s patrol car. In the car was a 12-gauge shotgun, an AR-15, and firearm magazines.
Hopkins proceeded on a joy ride in the stolen patrol car. He arrived at a residential home near Richwoods, Missouri, where co-defendant James Martin was temporarily living. Hopkins identified himself, stated he was not a deputy, and asked Martin to cut off the handcuffs, which Martin did. After cutting off the handcuffs, Hopkins gave Martin the 12-gauge shotgun and the AR-15. Hopkins also allowed Martin to search the patrol car and take other items, including a law enforcement badge, flashlight, and multi-tool from the car. Martin, in turn, transferred the AR-15 to Richard O’Hara, also a previously convicted felon.
Hopkins left the Richwood area and continued to drive around Washington County, Missouri. Air and ground units from multiple law enforcement agencies were engaged in the search for Hopkins. Law enforcement located Hopkins on a dead-end street and blocked the road. Hopkins, still in the stolen patrol car, reversed direction and drove through fields and along trails in wooded areas. Numerous patrol cars sustained damage, including the stolen patrol car. Hopkins eventually crashed the stolen patrol car in a ditch. He escaped the vehicle by climbing through a window. Hopkins tripped on debris and fell to the ground, enabling deputies to place him into custody.
“We are proud of the actions taken by our deputies and department to ultimately apprehend Mr. Hopkins and in assisting the U.S. Attorney’s Office in securing these convictions. We are equally proud of the efforts, training and measures we have undertaken department-wide since this incident occurred to ensure that it does not happen again. Stated simply, we continually strive to serve our community in a safe and professional manner,” said Jefferson County Sheriff David Marshak following today’s changes of plea. Sheriff David Marshak
Hopkins faces a maximum sentence of ten years in prison and a fine of not more than a $250,000. He could receive both a prison sentence and a fine. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Co-defendant James Martin pled guilty in March 2019 to possession of a stolen firearm/ammunition and will be sentenced on June 27, 2019.
This case was investigated by the Jefferson County Sheriff’s Office, Washington County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jason Dunkel is handling the case for the U.S. Attorney’s Office.
Twelve Men Charged in Syracuse-Based Heroin/Fentanyl Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – A federal grand jury has indicted 12 members of a Syracuse-based drug trafficking organization that distributed more than two kilograms of heroin and mixtures of heroin and fentanyl, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
United States Attorney Grant C. Jaquith stated: “Heroin and fentanyl kill tens of thousands every year. Each and every death causes unfathomable suffering and grief for loved ones, and the magnitude of overdose deaths reverberates in our communities. Holding dealers who peddle this poison accountable is essential in turning this tide. We will continue to work with the Drug Enforcement Administration to investigate and prosecute those who profit from the tragedy of addiction.”
“DEA’s job is to save lives,” said Ray Donovan, DEA Special Agent in Charge. “Today’s arrests are significant because we arrested 12 opioid traffickers allegedly responsible for fueling the deadliest drug crisis in U.S. history. In addition to the arrests, we seized over a million dollars-worth of heroin/fentanyl, which would supply every ticket holder at a sold-out event in the Carrier Dome at least one dose of death. I commend our law enforcement partners and the U.S. Attorney’s Office for the Northern District of New York on this exceptional investigation.”
In connection with this investigation, law enforcement officers led by DEA seized more than 67,000 individual bags of heroin and mixtures of heroin and fentanyl, which weighed more than two kilograms; $78,000 in drug proceeds; 11 vehicles; and two handguns.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The defendants are all charged with conspiracy to distribute and possess with the intent to distribute heroin and fentanyl, and they face the following potential penalties:
Defendant
Age
Residence
Minimum
Maximum
Jesus Manuel Lopez-Mendez
34
New York City
(the Bronx)
10 years
Life
Gavin Ballog
29
Syracuse
10 years
Life
Yan Morales
29
Syracuse
10 years
Life
Brian Morales
28
Syracuse
10 years
Life
Juan Santa
27
Syracuse
10 years
Life
Jerry Massa
21
Syracuse
5 years
40 years
Ariel Massa
18
Syracuse
5 years
40 years
Carlos Torres
24
Syracuse
5 years
40 years
Gregorio Pizarro
20
Syracuse
None
20 years
Gregory Darrain
29
Syracuse
None
20 years
Michael Calderon
24
Syracuse
None
20 years
Dennis Smith
32
East Syracuse
None
20 years
Ballog, Bryan Morales, Santa, and Lopez-Mendez are also charged with possession with intent to distribute a controlled substance. Ballog is charged with two counts of possession with intent to distribute 100 grams or more of heroin. Morales is charged with one count of possession with intent to distribute heroin. Juan Santa is charged with one count of possession with intent to distribute heroin and fentanyl. Lopez-Mendez is charged with one count of possession with intent to distribute 100 grams or more of heroin. The indictment also contains forfeiture allegations.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Eleven defendants have appeared in federal court in Syracuse and were held without bail pending detention hearings scheduled for next week. Defendants Ballog, Yan Morales, Brian Morales, and Santa were arrested and charged by criminal complaint on February 2, 2019. Lopez-Mendez was arrested and charged by criminal complaint on February 11, 2019. The remaining defendants were arrested this week, except for Gregory Darrain, who is a fugitive.
This case is being investigated by the DEA Syracuse Resident Office HIDTA (High Intensity Drug Trafficking Area) Group consisting of agents and officers of the DEA, the New York State Police, and the City of Auburn (New York) Police Department, Syracuse Police Department, Onondaga County Sheriff’s Office, and investigators from the Onondaga County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Carla B. Freedman.
Towing company owners indicted in federal fraud conspiracyRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced that a federal grand jury has indicted Brian Fenner, 44, of Indianapolis, and Dennis Birkley, 59, of Wisconsin, with conspiracy to commit mail, wire, and bank fraud. The two men were arrested by the FBI and Indiana State Police. Birkley’s company, AMI Asset Management, was also charged in the indictment.
“Those who choose to profit by peddling deception will be held accountable by this office,” said Minkler. “That is particularly true when that deception is targeted at vulnerable individuals.”
The indictment alleged that Fenner and Birkley conspired to wash motor vehicle titles of bank liens and sell the vehicles for personal profit. According to the indictment, Fenner targeted financially distressed individuals who were upside down on their auto loans. He allegedly promised to pay their bankruptcy attorneys’ fees if they turned their vehicles over to him. The indictment alleges that between 2013 and 2016, numerous individuals from all around the United States signed on with Fenner and had their vehicles towed to and stored on Fenner’s lots in Indianapolis, in exchange for what they thought would be a “free” bankruptcy.
What neither the individuals nor the banks knew, however, was that Fenner had allegedly agreed with his silent partner, Birkley, to exploit Indiana’s mechanic’s lien law to strip the vehicle titles of the banks’ liens, leaving the individuals with the debt but no collateral to return to the bank.
According to the indictment, Fenner purported to charge the individuals exorbitant “towing” and “storage” fees for bringing their cars to his Indianapolis lots. The indictment alleges, however, that Fenner never intended to collect those fees. Rather, he used the fees to get a “mechanic’s lien” on the vehicle.
A mechanic’s lien is a legal process that allows legitimate service providers, like an auto mechanic, to recoup reasonable fees for their services if a customer does not pay. Under Indiana law, if a customer does not pay the fees owed within a certain period of time, the service provider can sell the vehicle at a public auction to the highest bidder. The service provider recoups their legitimate fees and then passes on any excess money from the auction, first to any other lienholder, such as a bank, and then ultimately to the vehicle’s owner.
In Fenner’s case, however, there were no auctions. According to the indictment, Fenner and Birkley conspired in advance that Birkley and his company, AMI Asset Management, would “win” every auction. The amount Birkley would pay would be exactly equal to the amount of the sham fees that Fenner purported to charge. Therefore, there was no excess money to satisfy the bank’s lien or return to the individual.
Instead, Birkley received vehicles with titles clear of liens from banks or anyone else. Then, according to the indictment, Birkley sold the vehicles, sometimes at a real public auction, and often received thousands of dollars in profit, which he split with Fenner.
In the end, the scheme allegedly left the financially distressed individuals with no vehicles but still with the vehicle loan debt, which they were often unable to discharge in bankruptcy.
According to Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, Fenner and Birkley each face up to twenty years in prison.
This case is being jointly investigated by the Federal Bureau of Investigation and the Indiana State Police, with assistance from the Department of Justice’s U.S. Trustee Program.
“The partnership between the Indiana State Police and the FBI allows joint investigations of this nature to occur and hold accountable those who seek to profit on the misery of other,” said state police Supt. Doug Carter. “This also serves as a reminder to potential victims of similar scams that offers that sound too good to be true usually have a nexus to a criminal act.”
“The charges announced today address a significant fraud scheme that caused harm to vulnerable debtors and strikes directly at the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10). “This indictment reflects the cooperative efforts among several federal law enforcement agencies that work together to combat fraud and abuse in the bankruptcy system.”
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust and vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
Tonawanda Man Sentenced for Receiving Child Pornography from MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Steven Brzezinski, 35, of Tonawanda, NY, who was convicted of receipt of child pornography, was sentenced to serve 96 months in prison and 20 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant, who was on probation for an unrelated offense, was in possession of a tablet containing child pornography. Additional forensic examination of the tablet revealed that Brzezinski had a romantic relationship with a 15 year old boy over the internet and had received child pornography from the minor via Facebook Messenger. The defendant has a previous conviction for endangering the welfare of a child.
The sentencing is the result of an investigation by Federal Bureau of Investigation, under the direction of Gary Loeffert, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Toledo pastor sentenced to life in prison for sex trafficking of a minor, while another Toledo pastor sentenced to more than 17 years in prison for similar crimesRead the Press Release
A Toledo pastor was sentenced to life in prison for sex trafficking of a minor, while another Toledo pastor was sentenced to more than 17 years in prison for similar crimes, U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Eric B. Smith said.
Cordell Jenkins, 48, was sentenced to life in prison. Kenneth Butler, 39, was sentenced to 210 months in prison. They previously pleaded guilty to charges including conspiracy to sex traffic children, sex trafficking of children and related charges.
“These sentences for two men who abused their positions of authority to prey on children are richly deserved,” Herdman said. “I remain in awe of the courage of the victims and the dedication of our law enforcement personnel in bringing these men to justice.”
"Our children should not be bought, sold or traded,” Smith said. “They should not be used for financial or personal gain. The children who are victimized in the vicious world of sex trafficking deserve justice. In federal court in Toledo, justice was served. Pastor Anthony Haynes violated every trust bestowed on him - as a leader of the church, he was responsible for helping those in need. Especially children. As we saw this week, he violated that trust in the worst way imaginable. Today we are thankful for the law enforcement partnerships that led to this verdict."
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
Another pastor, Anthony Haynes, was convicted this year by a jury of conspiracy to engage in sex trafficking of a minor, sex trafficking, child exploitation and obstruction of a sex trafficking investigation following a trial. He is scheduled to be sentenced later this year.
Haynes, Butler and Jenkins sexually assaulted a juvenile girl beginning in 2014 through 2017, according to trial testimony and court documents.
The girl was 14 when the conduct began and she was in the custody of Haynes. Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to trial testimony and court documents.
Haynes also facilitated the victim being sexually exploited by other men, including Jenkins, according to trial testimony and court documents.
Jenkins also caused another juvenile girl to engage in commercial sex acts in March 2017, according to court documents.
Butler also caused another juvenile girl to engage in commercial sex acts from 2015 through 2017, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Texas Man Indicted in Puerto Rico for Wire and Bank Fraud SchemeRead the Press Release
WASHINGTON – On May 15, 2019, a Federal grand jury returned a 34-count indictment charging Gopalkrishna Pai, of Euless, Texas, and previously residing in Puerto Rico, with conspiracy to commit wire and bank fraud, 19 counts of wire fraud, five counts of aggravated identity theft, and nine counts of money laundering, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. The investigation was conducted by the FBI, and is ongoing.
The indictment alleges that from in or about May 2014, through in or about October 2018, defendant Gopalkrishna Pai conspired, devised, and engaged in a scheme to defraud merchant processors and others by submitting false information and falsified documentation to create merchant accounts in the name of Straw Companies, to process credit card and electronic payments, and to receive a substantial financial benefit. The fraudulent scheme employed by Gopalkrishna Pai disguised his involvement and use of over 100 companies formed to facilitate the processing of approximately $98 million in gross revenue in online retail sales.
As a part of the conspiracy, defendant Gopalkrishna Pai owned and operated F9 Advertising LLC (hereinafter F9), a for profit limited liability company organized in Puerto Rico in May 2014 and registered under the Export Services Act, Puerto Rico Act 20 of 2012. F9 engaged in the sale of personal care products, including skin creams, via the internet utilizing a negative option marketing model. Negative option marketing is a category of commercial transactions in which sellers interpret a customer’s failure to take an affirmative action, either to reject an offer or cancel an agreement, as assent to be charged for goods or services.
The defendant created over 100 liability companies (Straw Companies), obtained individual Employer ID Numbers (EINs) from the Internal Revenue Service (IRS) for each Straw Company and opened individual commercial bank accounts under his control for each Straw Company. False documents were then created and submitted to merchant processers to create merchant accounts to process online sales, and to disguise Gopalkrishna Pai’s involvement.
The merchant processors are companies that provide services to other businesses to process electronic payments, including but not limited to credit card payments. These companies include: Humboldt Merchant Services (Humboldt); Paysafe Group Limited (Paysafe); Global Merchant Advisors (Global); and Merchant Payment Acceptance Corp. (PayKings).
The true owner and operator of the Straw Companies was disguised through the falsification of bank records and EIN tax documents and other information in order to prevent merchant processors and their related financial institutions from having knowledge of the true owner and operator, which was the defendant. Credit card and other payments processed by the merchant processors were paid to accounts in the name of the Straw Companies, controlled by the defendant, and transferred to F9.
As part of the scheme to defraud the merchant processors, the defendant exchanged email communications and internet transmissions via interstate wire to submit documents, including applications, containing materially false representations, and falsified documentation, which included real individuals’ personal identification information like names, social security numbers, and signatures.
This fraud scheme and conspiracy generated approximately $98 million in total revenue, processed based on materially false information, through the Merchant Processors in the names of the Straw Companies.
“This individual took advantage of Puerto Rico and Law 20 to create a company, F9 Advertising, to generate significant revenue through a fraudulent scheme based on lies and falsified documents,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The indictment underscores the USAO’s commitment to the investigation and prosecution of all types of fraud, and to our continued efforts to ensure that Puerto Rico is not a safe haven for criminal activity.”
“The mission of the FBI San Juan Financial Investigation Strike Team is to identify patterns of sophisticated money laundering, determine the criminal conduct behind those transactions, and to partner with financial crimes experts at the U.S. Attorney’s Office to prosecute those responsible,” said Douglas A. Leff, Special Agent in Charge of the FBI-San Juan Field Office. “This case is an example of the successful use of financial intelligence to follow the money and to solve a series of crimes that might otherwise have gone undetected.”
The case is being prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, the defendant is facing a maximum penalty of 20 years of imprisonment for each conspiracy and wire fraud count as well as a maximum two year term of imprisonment for each aggravated identity count and a maximum 10 years of imprisonment for each money laundering count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Texas Man Convicted of Traveling to Wisconsin to Engage in Illegal Sexual ConductRead the Press Release
MADISON, WIS. – After a one-day court trial, Robert Hosler, 28, Austin, Texas, was found guilty today by U.S. District Judge James D. Peterson of two counts involving interstate communications and travel to engage in illegal sexual activity. The verdict was announced by U.S. Attorney Scott C. Blader for the Western District of Wisconsin. Hosler waived his right to a trial by jury.
Hosler pleaded guilty today to a third charge, possessing child pornography. Hosler admitted that at the time of his arrest in Eau Claire, Wisconsin, on September 6, 2018, he possessed a cell phone containing visual depictions of minors engaging in sexually explicit conduct. At least one of the depictions involved a minor who had not attained 12 years of age.
The evidence presented at trial established that in August 2018, Hosler responded to an advertisement posted on the Internet, which offered a 12-year-old child for sexual purposes. In response to the ad, he flew from Texas to Minneapolis, rented a car and travelled to a prearranged meeting location in Eau Claire, where he was arrested by law enforcement officers. The advertisement was posted by an undercover law enforcement officer.
“The defendant traveled to Wisconsin with the intent to sexually assault a child,” said U.S. Attorney Blader. “My office will continue to work closely with our law enforcement partners at the local, state, and federal level to bring those who seek to sexually exploit children to justice.”
Hosler’s sentencing has not been scheduled. He faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison.
The charges against Hosler are the result of an investigation by the Eau Claire Police Department, Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Department of Homeland Security, Central Texas Violent Crimes Task Force, Wisconsin State Patrol, and West Central Drug Task Force. The prosecution of the case is being handled by Assistant U.S. Attorneys Elizabeth Altman and Diane Schlipper.
Texarkana Physician Agrees to Pay $118,000 to Settle Medicare Billing Fraud AllegationsRead the Press Release
TEXARKANA, Texas – A Texarkana, Texas, physician has agreed to pay $118,000 to settle allegations of improper billing practices for his Medicare patients at his three clinics, announced U.S. Attorney Joseph D. Brown today.
Dr. Donald S. Douglas, 50, operates clinics in Texarkana and New Boston, Texas. The United States’ allegations against Dr. Douglas are contained in a settlement agreement between the parties. According to the allegations, Dr. Douglas’ advanced practice nurses (sometimes referred to as APNs or mid-level practitioners) were hired to assist him with seeing patients in his clinics. Under Texas law, APNs may perform certain duties such as treating and diagnosing patients, performing exams, and other functions. If the services are provided with proper physician supervision, they may be billed to Medicare at the full physician rate. Without direct supervision, APNs may bill Medicare under their own identification number at a reduced rate. The United States alleged that Dr. Douglas billed Medicare for services provided by his APNs at the full physician rate even when a physician was not available to supervise the APNs’ services.
“Pursuing healthcare fraud is a top priority for my office,” said U.S. Attorney Joseph D. Brown. “When providers such as Dr. Douglas enrich themselves at the expense of Medicare, we will hold them to account.”
CJ Porter, Special Agent In Charge, Department of Health and Human Services Office of the Inspector General, Office of Investigation said, “Patients can be assured that the government will investigate outlays of taxpayer funds earmarked for medical care to ensure it is delivered by properly licensed and supervised practitioners and at the correct and allowable rate.”
Under the terms of the settlement agreement, Dr. Douglas does not admit liability. The United States does not allege the services were not provided or that Dr. Douglas’ APNs provided inferior care. Dr. Douglas cooperated with the government’s investigation and will pay $118,000 to settle the allegations.
The Medicare program is a federally-funded health care program that provides health care benefits for persons aged 65 and older or for those who receive Social Security Disability Insurance. Funding is partly provided by Social Security and Medicare taxes. The program is administered by the Centers for Medicare & Medicaid Services (CMS) which is an agency under the United States Department of Health and Human Services.
Medicare relies on the public to inform when fraud, waste, or abuse might be occurring in the health care setting. Fraud may be reported to the Medicare Fraud Hotline at 1-800-HHS-TIPS (1-800-447-8477) and may be done anonymously.
This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the United States Attorney’s Office for the Eastern District of Texas. The civil settlement was negotiated by Assistant U.S. Attorney James Gillingham.
Suspected Alien Smuggler and His Three U.S.-Based Adult Children Charged in ConspiracyRead the Press Release
Assistant U. S. Attorneys Timothy D. Coughlin (619) 546-6768 and Victor P. White 619 546-8439
NEWS RELEASE SUMMARY – May 17, 2019
SAN DIEGO – Luis Antonio Mendez-Brahan of Tijuana and his three California-based adult children were indicted by a federal grand jury for participating in a family-operated alien smuggling organization.
Mendez-Brahan and his children - Christopher Mendez, Wendy Monserrath Mendez and Nancy Jacqueline Suarez - are all charged with one count of Conspiracy to Bring in Illegal Aliens for Financial Gain, to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity. The father is also charged with five counts of Bringing in Aliens for Financial Gain.
Mendez-Brahan resides in Mexico and remains at large. His children were taken into custody yesterday at their homes in Wasco, California near Bakersfield and Madera, California near Fresno. All made their first appearances in federal court today.
According to the indictment, Mendez-Brahan was the leader of the smuggling organization for almost a decade and was responsible for smuggling hundreds of illegal aliens into the United States. The Mendez-Brahan organization allegedly operated in an area east of the Tecate Port of Entry and used an ever-changing cadre of spotters, guides and drivers to facilitate the smuggling organization’s criminal activities. The indictment alleges that Mendez-Brahan charged between $7,000 and $8,500 for each alien he arranged to be smuggled into the United States.
According to the indictment, the defendants used money service businesses such as Western Union and Money Gram to move money from the U.S. to Mexico. Border Patrol investigators tracked financial transactions conducted by Mendez-Brahan’s children in the United States to money service businesses located in Tijuana and ultimately, to Luis Antonio Mendez-Brahan. The three Mendez-Brahan children used family members in Mexico and the U.S. to send and receive their ill-gotten smuggling proceeds.
This case is the result of ongoing efforts by the United States Border Patrol –San Diego Sector to dismantle active transnational criminal organizations involved in alien smuggling along the U.S.-Mexico border in the Southern District of California.
DEFENDANTS Case Number 19cr1570-JLS
Luis Antonio Mendez-Brahan Age: 55 Tijuana, Baja California, Mexico
Christopher Mendez Age: 28 Wasco, California
Wendy Monserrath Mendez Age: 24 Wasco, California
Nancy Jacqueline Suarez Age: 31 Madera, California
SUMMARY OF CHARGES
Count 1 (All Defendants) – Conspiracy to Bring in Illegal Aliens for Financial Gain; to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity – Title 18, U.S.C., Section 371 and Title 18 U.S.C. Section 2 –Aiding and Abetting.
Maximum penalty: Five (5) years’ imprisonment and $250,000 fine
Counts 2-6 (Luis Antonio Mendez-Brahan) - Bringing in Aliens for Financial Gain: - Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2 - Aiding and Abetting.
Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three (3) years and a maximum of ten (10) years for the first or second violation. Any additional violations carry a mandatory minimum term of imprisonment of five (5) years and a maximum of fifteen (15) years,
AGENCY
United States Border Patrol
San Diego Sector/El Cajon Station Intelligence Team
United States Border Patrol -BORTAC – Special Operations Division
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Staten Island Heroin Dealer Convicted in Manhattan Federal Court for Overdose Death of 26-Year-Old ManRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PAUL VAN MANEN was found guilty yesterday of conspiring to distribute heroin and fentanyl that resulted in the death of Michael Ogno, a 26-year-old man from Staten Island, New York and the serious bodily injury of another individual. A unanimous jury convicted VAN MANEN after an eight-day trial before United States District Judge Paul A. Crotty. Kenneth Charlton, who was tried with VAN MANEN, was acquitted of the charge against him.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Paul Van Manen peddled poison to the community of Staten Island and its vicinity, causing one of his many victims to die from a tragic overdose, despite knowing of a non-fatal overdose just two months earlier from the group’s drugs. Today’s verdict should send a message to those who flood our community’s streets with lethal drugs. We will continue to work with our law enforcement partners to prosecute and convict criminals seeking to profit from the current public health crisis afflicting our city.”
According to court documents and the evidence at trial:
From at least in or about 2013 up to and including in or about January 2018, VAN MANEN sold heroin, including heroin laced with fentanyl, to customers in Staten Island and New Jersey. On October 4, 2017, VAN MANEN drove a co-conspirator (“CC-1”) to Brooklyn, New York, where they both obtained heroin from the conspiracy’s primary supplier, MEDIN KOSIC. The next morning, CC-1 overdosed after using some of the narcotics, which were subsequently found to be laced with fentanyl. Despite knowing about this overdose, VAN MANEN continued to sell heroin – including heroin laced with fentanyl – to members of the Staten Island community. On December 1, 2017, VAN MANEN sold heroin to Michael Ogno, a 26-year-old resident of Staten Island. Ogno used the heroin, which again was laced with fentanyl, and died from an overdose. VAN MANEN continued to sell heroin after Ogno’s death.
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PAUL VAN MANEN, 51, of Staten Island and South Amboy, New Jersey, faces a maximum sentence of life in prison, and a mandatory minimum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A sentencing date for VAN MANEN before Judge Crotty has not yet been set.
In addition to VAN MANEN, ten other defendants have been convicted in connection with the conspiracy. MEDIN KOSIC was sentenced to 168 months in prison. MIRSAD BOGDANOVIC was sentenced to 160 months in prison. MICHAEL NUNEZ was sentenced to 150 months in prison. ALEXANDER BUCCI was sentenced to 50 months in prison. The remaining defendants have yet to be sentenced.
U.S. Attorney Geoffrey S. Berman praised the outstanding work of the New York Drug Enforcement Administration Strike Force, the New York City Police Department, and the Richmond County District Attorney’s Office.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Catherine Ghosh, Ryan Finkel, Jessica Fender, and Stephanie Lake are in charge of the prosecution.
St. Francis Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Abraham Joseph Crane, a/k/a Abraham Joseph Pretty Voice, a/k/a Sam Crane, age 64, was indicted on May 14, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2018, and November 16, 2018, in Todd County, South Dakota, Crane knowingly engaged in, and attempted to engage in, a sexual act with a child under the age of 12.
The charge is merely an accusation and Crane is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Crane was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Springfield Federal Firearms Licensee Pleads Guilty to Falsifying RecordsRead the Press Release
DAYTON – James A. Mayhugh, Jr., 61, of Springfield, Ohio, pleaded guilty in U.S. District Court to crimes related to falsifying firearms sales records for more than 200 firearm sales. Mayhugh lied in his records concerning the identity of the purchaser and then actually sold the firearms to unknown individuals on the black market.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the plea entered into before U.S. District Judge Walter H. Rice.
Mayhugh owned and operated Jim’s Sports in Springfield. According to court documents, ATF Industry Operation Investigators (IOI) noticed unusual trends in Mayhugh’s sales records. Identical firearm sales to an identical group of individuals had been recorded between 2008 and 2018. Also, while federal law required the purported purchaser to personally complete and sign forms before acquiring a firearm, each document instead bore Mayhugh’s handwriting.
While further reviewing Mayhugh’s records, ATF IOIs discovered one customer had died in 2014, even though Mayhugh’s records reflected gun purchases as recently as early 2018. Other customers had actually purchased from Mayhugh on one occasion 15 to 20 years ago, but records showed repeated buys in recent years.
Subsequent to a court-authorized search, agents discovered documents reflecting more than 200 firearm sales to fictitious customers.
Mayhugh pleaded guilty to willfully violating federal requirements to provide the name, age and address of firearms purchasers. This crime is punishable by up to five years in prison.
Mayhugh also agreed to surrender his federal firearms license and no longer operates a business.
U.S. Attorney Glassman commended the investigation of this case by ATF and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Six Akron men sentenced to federal prison for their roles in a conspiracy to bring more than 200 pounds of methamphetamine from California and sell it in the Akron areaRead the Press Release
Six Akron men were sentenced to federal prison for their roles in a conspiracy to bring more than 200 pounds of methamphetamine from California and sell it in the Akron area.
Ugunda Sanders, 46, was convicted following trial and was sentenced more than 15 years in prison.
Rashaad M. Thomas, 41, was sentenced to more than 14 years in prison. Michael E. Davis, 49; was sentenced to more than 10 years in prison. James E. Sanders, 52, was sentenced to 10 years in prison; Christopher J. Proctor, 51, was sentenced to more than three years in prison and Reuben Simmons, 32, was sentenced to less than three years in prison.
All five previously pleaded guilty to their crimes related to methamphetamine distribution. Members of the conspiracy traveled between Cleveland and Los Angeles to obtain large amounts of methamphetamine, which they distributed in the Akron area, according to court documents.
“Methamphetamine is a growing threat in Northern Ohio,” U.S. Attorney Justin Herdman said. “We are now seeing meth that is cheaper and more pure than versions of the drug seen in the past. We will continue to work with our law enforcement partners to stem the flow of this dangerous narcotic into our community and prosecute those who profit from it.”
The investigation was conducted by members of the Akron/Summit County HIDTA Initiative, which includes the Drug Enforcement Administration, Akron Police Department, Ohio State Highway Patrol, Summit County Sheriff’s Office, Summit County Drug Unit, Springfield Township Police Department, Copley Township Police Department, New Franklin Township Police Department, Stow Police Department, Barberton Police Department, Tallmadge Police Department, University of Akron Police Department, Reminderville Police Department, Silver Lake Police Department, Cuyahoga Falls Police Department, and Summit County Prosecutor’s Office.
The case was prosecuted by Assistant U.S. Attorney Payum Doroodian.
Sisseton Man Charged with Sexual Abuse and Obstruction of JusticeRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for sexual abuse and obstruction of justice.
Brendon Javon Jacob Rodlund, age 29, was indicted on September 5, 2018. He appeared before U.S. Magistrate Judge William Gerdes on May 13, 2019, and pled not guilty to the Indictment.
According to the Indictment, between on or about the 30th day of April and 1st day of May, 2016, Rodlund knowingly engaged in a sexual act with the victim, while the victim was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act. Rodlund also gave false testimony regarding the incident in tribal court.
The maximum penalties upon conviction for each count are as follows: up to life imprisonment and/or a $250,000 fine; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Rodlund is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rodlund was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Sioux Falls Woman Charged with Escape from CustodyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman has been indicted by a federal grand jury for escape from custody.
Diana Bald Eagle, age 44, was indicted on May 8, 2019. She appeared before U.S. Magistrate Judge Veronica Duffy on May 15, 2019, and pled not guilty to the Indictment.
According to the indictment, Bald Eagle was in the custody of the U.S. Marshal’s Service by virtue of a federal contract with the Yankton County Jail. Bald Eagle was granted a furlough and an extension, but failed to return to the Yankton County Jail on or about the 14th day of April 2019, therefore, Bald Eagle did unlawfully escape from such custody when she, without authorization, failed to be present at the Yankton County Jail, in Yankton, South Dakota, as ordered.
The maximum penalties upon conviction are as follows: 5 years imprisonment and/or a $250,000 fine; 3 years of supervised release; $100 special assessment for victim/witness fund; and restitution may be ordered.
The charges are merely accusations and Bald Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bald Eagle was remanded to the custody of the U.S. Marshals Service. A trial date of July 23rd has been set.
Semiconductor Engineer Arrested on Charges that He Netted Large Profits in Illegal Insider Trades of His Employer’s StockRead the Press Release
SANTA ANA, California – A former engineer at Skyworks Solutions, Inc. surrendered to law enforcement today on a federal criminal complaint alleging he obtained his employer’s non-public financial results without authorization and then illegally used the confidential information to purchase large amounts of Skyworks securities prior to the information being made public.
Yuh-Yue Chen, 52, of Taiwan, formerly of Irvine, has been charged with one felony count of insider trading. Chen is scheduled to make his initial court appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit filed with the criminal complaint, Chen worked as an electrical principal engineer from 2003 until his termination in September 2014 at Skyworks, a publicly traded, Woburn, Massachusetts-based semiconductor company with a branch office and design center in Irvine. As a Skyworks employee, Chen received regular warnings from the company against engaging in insider trading, and as an engineer he was barred from having access to the company’s non-public earnings reports before they were publicly released.
On July 14, 2014, Chen ignored these warnings and gained unauthorized access to the Skyworks finance area on four occasions, according to the affidavit. On July 15, using non-public Skyworks financial information, Chen allegedly purchased 1,300 Skyworks $48 call options – which gives a securities buyer the right to buy certain stock within a specified time frame – at an average price of $1.90. On July 17, Skyworks, which closed at a price of $46.34 per share, released its quarterly earnings report after markets closed. On July 18, Skyworks shares opened at $50.11 per share – a per-share gain of $3.77 – in response to the earnings announcement. On the same day, Chen sold his Skyworks calls for an average price of $3.36, resulting in profits of approximately $484,645, the affidavit states.
Shortly after 9 p.m. on September 15, 2014, two Skyworks employees – in the parking lot outside the company’s Irvine office – caught Chen rifling through documents in the restricted accounting and finance office, the complaint alleges. When one of the employees entered the building and asked Chen to stop, Chen allegedly ran out of the office through a side door and escaped, running through nearby bushes. Chen did not return to Skyworks after this encounter, the affidavit states.
Five days later, Chen flew from Los Angeles International Airport to Taipei, Taiwan without informing anyone at Skyworks, court documents state. Chen was fired on September 30, 2014 for his actions 15 days earlier and after Skyworks had conducted an investigation where Chen was deemed to have been evasive. When Chen returned his work laptop computer by mail to Skyworks, the computer did not have any files or documents on it, the affidavit states.
Law enforcement interviewed Chen at LAX on March 29, 2019, where he confessed to committing insider trading, the complaint states.
If convicted, Chen faces a statutory maximum sentence of 20 years in federal prison.
Chen also faces civil charges in a lawsuit filed last month by the Securities and Exchange Commission that alleges insider trading.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office.
Schenectady Felon Sentenced to 120 Months for Illegally Possessing Handgun and AmmunitionRead the Press Release
ALBANY, NEW YORK – John Coffin, aka “Body,” age 49, of Schenectady, New York, was sentenced on Tuesday to 120 months in prison for illegally possessing a handgun and ammunition.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Coffin, who has multiple, prior felonies for drug and assault offenses, was convicted of possessing the handgun and ammunition after a 5-day jury trial in November 2018. The evidence at trial showed that Coffin provided a Walther P22 .22 caliber firearm, which he described as “the murderer’s gun,” and 9 rounds of ammunition, to another man in Schenectady. The jury acquitted Coffin on a second charge, of possessing a separate firearm, a 9mm Hi-Point rifle, in furtherance of a drug trafficking crime.
Senior United States District Judge Thomas J. McAvoy also sentenced Coffin to 5 years of supervised release, to begin following his term of imprisonment.
This prosecution resulted from an investigation by the FBI and its Capital District Safe Streets Task Force, which includes members of the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the New York State Police, the Schenectady Police Department, the Schenectady County District Attorney’s Office, the New York State Department of Corrections and Community Supervision, the Albany County Sheriff’s Office, and the New York Air National Guard.
The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
SENTENCESRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced RYDER STORM JENKINS, 19, of Riverton, Wyoming on May 3, 2019 for two counts of assaulting and resisting persons assisting federal law enforcement officers. Jenkins was arrested in Casper, Wyoming. He received twenty-three months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $2,353.89 and a $200.00 special assessment. The Natrona County Sheriff’s Office and US Marshals Service investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced TERRANCE FONDER, 46, of Benton Harbor, Michigan on May 9, 2019 for being a felon in possession of a firearm. Fonder was arrested in Spokane, Washington. He received twelve months and one day of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced LUIS FERNANDO MUNOS-RIVERA, 30, on May 14, 2019 for illegal re-entry of a previously deported alien into the United States. Munos-Rivera was arrested in Casper, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment. The U.S. Department of Homeland Security Investigations investigated this case.
Rosebud Woman Indicted for Assault and Child Abuse ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Child Abuse.
Victoria Smashed Ice, age 26, was indicted on May 14, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on May 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 3 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 1, 2019, Smashed Ice assaulted a child with shod feet, she repeatedly kicked the child while wearing cowboy boots with the intent to do bodily harm. The Indictment further alleges that Smashed Ice abused, exposed, tortured, tormented, and cruelly punished the child.
The charges are merely accusations and Smashed Ice is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Smashed Ice was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault of a Dating Partner by Strangulation.
Geordie Long, age 18, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 26, 2019, Long did unlawfully assault an intimate partner and dating partner, by strangulation and suffocation.
The charge is merely an accusation and Long is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Long was released pending trial. A trial date has not been set.
Remarks by United States Attorney William M. McSwain at the Anti-Terrorism Advisory Council Conference on BioterrorismRead the Press Release
PHILADELPHIA – Earlier this week, United States Attorney William M. McSwain was honored to deliver opening remarks at the Eastern District of Pennsylvania’s annual Anti-Terrorism Advisory Council (ATAC) Conference in Philadelphia. The conference drew attendees from a variety of fields, including medicine, public health, and law enforcement. U.S. Attorney McSwain was introduced by Ronald Stanko, Deputy Director, Pennsylvania Department of Homeland Security.
Remarks as Prepared for Delivery
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Thank you, Ron, for that introduction, and thank you all for traveling to Philadelphia to be here today. On behalf of my Office, we are honored to host today’s annual ATAC conference. The Eastern District’s Anti-Terrorism Advisory Committee was created in the aftermath of 9/11, when the U.S. Department of Justice directed each United States Attorney’s Office to form an Anti-Terrorism Advisory Council whose charge was clear: to promote information sharing between federal, state, and local authorities; to serve as a coordinating body for carrying out the anti-terrorism plan; and to provide an organizational structure for responding to any future terrorist incidents in that district.
And we gather here today to continue to carry out that mission.
I would like to thank those who made this conference possible. From my Office, thank you to Tom Perricone and Christine Sykes, Chief and Deputy Chief, respectively, of our National Security unit; Michele Mucellin, our Law Enforcement Coordinator; and Mickey Pease, our Intelligence Analyst.
From outside of the U.S. Attorney’s Office, thank you to Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Field Office and Kevin Bosch, Special Agent and Weapons of Mass Destruction Coordinator of the FBI’s Philadelphia Field Office; Nancy Baron Baer, Regional Director, and Jeremy Bannett, Associate Regional Director of the Anti-Defamation League; Stacy Irving, Senior Advisor for Homeland Security Planning Programs and Strategic Partnerships at the Delaware Valley Intelligence Center (or the DVIC); and last but certainly not least, everyone from the Pennsylvania Department of Homeland Security, especially Col. Marcus Brown, the Director, Ron Stanko, the Deputy Director, and Kristin Daniels, Outreach Coordinator, who have been a real driving force in organizing this conference. This day would not have been possible without all of your dedication and hard work. Please join me in giving the conference planners a big round of applause.
There is no question that we live in dangerous times. Safeguarding our national security is – and always must be – the number one priority of the U.S. Department of Justice and every United States Attorney’s Office in the country.
Our law enforcement and intelligence communities have no greater responsibility than the safety and security of the American people. Every citizen should both feel safe and be safe, whether at their place of work, traveling on an airplane, or gathering to worship. We are blessed to live in the strongest, freest and most resilient country in the history of the world, and we thrive because of our shared values of freedom and liberty. It is our solemn duty to protect those values and the American way of life by prevailing over our enemies. We can only succeed in confronting and combatting terrorism with the collaboration and partnership of every person in this room.
As we will hear today, some of the most urgent threats to our safety and security involve biothreats. Whether a natural outbreak, an accidental release, or a deliberate attack, biological threats can present grave health, economic, and national security impacts. Therefore, promoting our health security must be a national security imperative.
As biothreats continue to evolve in the 21st century, so must our biodefense capabilities. Conceptually speaking, biodefense entails a range of coordinated actions to counter biothreats, reduce risks – and prepare for, respond to, and recover from incidents. Today’s conference brings together thought-leaders in several key fields involved in this critical task. Today you will hear from experts in the fields of public health, epidemiology, medicine, and law enforcement. They all share the same goal: to manage the risks to human life posed by biothreats that could cause catastrophic harm. And, as you will see from the distinguished group of speakers gathered today, the knowledge and expertise drawn from each field plays a critical role in our continued health security.
First, we must understand the nature of the biothreats that presently exist. Several of our speakers will touch on that topic, but it will be explored in detail in two presentations: the morning presentation entitled “The Inevitable Threat of Bioterrorism and Pandemics,” by Dr. Ali Khan, Dean, College of Public Health at the University of Nebraska Medical Center; and in the afternoon presentation on Agroterrorism by Dr. Gary Smith, from the University of Pennsylvania’s School of Veterinary Medicine.
Second, we must identify best practices for mobilizing and coordinating federal, state, and local law enforcement’s response to a bioterrorism attack or disease outbreak. Several presentations will touch on that topic, but the panel discussion, “Elements of Emergency Response,” with Rhona Cooper, Clinical Coordinator from the Pennsylvania Department of Health; Kristin Faust, Countermeasures Coordinator from the Pennsylvania Department of Health, and John Wojtowicz, Senior Inspector, U.S. Marshals Service, will address that topic in depth.
Third, we must draw on past experiences so that we can develop a deeper understanding of how to respond to future health security crises from a public health point of view. We will hear from Samuel Shartar and Sharon Vanairsdale, senior administrators from Emory University Hospital, who will discuss the lessons learned from the hospital’s remarkable handling of its treatment of four patients suffering from the Ebola virus. Over the past year, Emory physicians, nurses, and scientists have worked with the Centers for Disease Control and other institutions to share lessons of preparedness, prevention, and treatment with groups (like ours) throughout the United States.
And finally, we will hear from several speakers that will bring the law enforcement perspective to bear on these threats, highlighting some of the investigatory tools we have to address bioterrorism and health safety preservation.
- Supervisory Special Agent Edward You of the FBI’s Weapons of Mass Destruction Directorate will discuss “Safeguarding the Bioeconomy”;
- FBI Special Agent Kevin Bosch, Weapons of Mass Destruction Coordinator, and Elizabeth Negron, of the Bureau of Epidemiology, Pennsylvania Department of Health, will discuss “Principles of Joint Criminal and Epidemiological Investigation of Biological Agents and Toxins”;
- FBI Special Agent Thomas Stewart, Weapons of Mass Destruction Coordinator, will review the investigation and prosecution of U.S. v. Betty Jean Miller, a case in which a 70-year old woman was charged with possession of ricin in her home.
- And finally, Paul Nardella, Assistant Area Port Director, Area Port of Philadelphia, and Douglas Wiegelt and Jennifer Torres, both from the Centers for Disease Control, will end the day with their presentation entitled “Enhancing Health Security at our US Borders and Beyond.”
While I’m on the topic of law enforcement, there is one group among us, in particular, that deserves special recognition today for working tirelessly to keep our communities safe. Actually, this group deserves our thanks every day, but especially today – as we are in the midst of National Police Week.
That group, of course, is our police officers. If you are a police officer in attendance today, please stand up. To you, I say this: You are our mightiest counterterrorism tool. You are the heroes – those among us who put your lives on the line, every day, to keep our communities safe. Thank you for your service.
In conclusion, the goal of this year’s ATAC conference is to improve our District’s readiness and response capabilities to combat biologic and pathogenic threats. The breadth of disciplines represented here today attests to the myriad ways our nation is fighting terrorism. The fact that there are over 300 medical professionals attending this conference today, alongside an almost equivalent number of law enforcement officers in the audience, confirms the need for these kinds of opportunities to share insight and information. I look forward to the exchange of ideas and opinions that today’s conference will bring.
Again, I want to thank everyone for being here today. May God bless you and the United States of America. Thank you.
Raleigh County Man Sentenced on Federal Drug and Gun ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that a Raleigh County man was sentenced on federal drug and gun charges. Adam Pauley, 34, of Sophia, was sentenced to 84 months in prison for possession with intent to distribute methamphetamine and using and carrying a firearm during and in relation to a drug trafficking crime.
“Meth and guns,” said United States Attorney Mike Stuart. “An all too common occurrence. Meth-involved overdose deaths have increased dramatically in West Virginia. We’re working closely with law enforcement to put meth dealers behind bars.”
Pauley pled guilty on January 25, 2019, admitting that on June 13, 2018, near Sam Black Church in Greenbrier County, he possessed a quantity of methamphetamine which he intended to distribute, along with a .380 caliber pistol which he was carrying to protect the methamphetamine and himself. A West Virginia State Trooper stopped the vehicle which Pauley was driving and found the drugs and the firearm.
The case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force and the West Virginia State Police. Assistant United States Attorney John File handled the prosecution. United States District Judge Irene C. Berge presided at the plea hearing.
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Project Safe Neighborhoods Prosecutions Continue across Western PennsylvaniaRead the Press Release
PITTSBURGH, PA – United States Attorney Scott W. Brady announced today that three individuals were sentenced and three individuals entered guilty pleas in federal court in Pittsburgh this week in cases being prosecuted as part of the District’s Project Safe Neighborhoods (PSN) initiative.
"The PSN program was reinvigorated in 2017, as part of the Justice Department’s renewed focus on targeting each community’s most violent criminals," said U.S. Attorney Brady. "PSN brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone."
The following cases are products of PSN’s collaborative effort.
On Monday, May 13, Kedron Kedren Broadus, 34, of Pittsburgh, pleaded guilty before Senior United States District Judge Arthur J. Schwab. On November 13, 2017, Broadus, who has a prior felony conviction for Possession with Intent to Distribute Cocaine Base, unlawfully possessed a .40 caliber Glock 23 handgun and ammunition. Broadus was a passenger in a vehicle stopped by Pittsburgh Bureau of Police officers for a traffic violation, and he fled from the scene of the stop. During his flight, Broadus dropped the firearm. The officers eventually caught Broadus, and he had a backpack that contained multiple rounds of ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Judge Schwab scheduled sentencing for October 28, 2019 at 10 a.m. Also at that date and time, Judge Schwab will sentence Broadus because he violated the conditions of his supervised release by, among other ways, illegally possessing a firearm.
U.S. Attorney Brady prosecuted Broadus in 2005-2006 when Mr. Brady served as an Assistant U.S. Attorney. On February 16, 2006, Broadus received a sentence of 10 years in prison for trafficking crack cocaine. Despite the lengthy prison term, Broadus re-engaged in serious criminal activity after being released.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
Also on Monday, Darby Donta Tigney, 24, of Pittsburgh, pleaded guilty before Judge Schwab. On October 14, 2018, Tigney illegally possessed a 9mm Smith and Wesson handgun. Tigney had been convicted of the felony offense of Possession of a Firearm with an Altered Serial Number in the Court of Common Pleas of Allegheny County just three months earlier on July 30, 2018.
Judge Schwab scheduled sentencing for October 28, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Pittsburgh Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations that led to the prosecution of Kedron Broadus and Darby Donta Tigney.
On Wednesday, May 15, 2019, Herbert Lee Pope, 28, formerly Aliquippa, Pennsylvania, was sentenced to four years (48 months) in prison, five years of supervised release, and restitution in the amount of $3,793.25, on his conviction for violating federal bank robbery and firearms laws. United States District Judge Cathy Bissoon imposed the sentence. On February 16, 2016, Pope and another male entered the Sewickley Savings Bank in Sewickley, PA, both utilizing black semi-automatic handguns, vaulted the teller counter, and robbed the bank. The loss to the bank was $3,543.25.
Assistant United States Attorneys Jeffrey R. Bengel and Shaun E. Sweeney prosecuted this case on behalf of the government. The Federal Bureau of Investigation, the Sewickley Police Department, the Allegheny County Police Department, and the Ambridge Police Department conducted the investigation.
Also on May 15, 2019, Zackory James Sadler, 34, with former addresses in Monessen and Washington Pennsylvania, was sentenced by Senior United States District Judge Donetta W. Ambrose to three years of additional supervision and six months of incarceration, consecutive o all other sentences for escaping his federal sentence.
Sadler was back in federal prison for previously escaping from federal custody. He was back at the Renewal Center halfway house in Pittsburgh on December 19, 2018 and was given permission to meet with his federal Probation Officer (PO). Sadler did not visit his PO and then failed to return to the Renewal Center. The United States Marshals Service Fugitive Unit began an investigation and the Renewal Center contacted Sadler’s friends and family. On December 21, 2019, Sadler finally returned to the Renewal Center. He was subsequently removed from the halfway house and sent back to prison.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government. AUSA Lenhardt informed the Court that the current case is the defendant’s 17th conviction in juvenile and adult court. In recent years, Sadler was convicted of multiple cases in adult court, including a prior 2008 Washington County escape for walking away from a halfway house. In 2009, the defendant was charged in federal court with being a felon in possession of a firearm and was ultimately sentenced to five years (60 months) of incarceration. On August 9, 2013, the defendant walked away from the federal halfway house. He was later charged with escape and sentenced in 2014. Thus, the current matter actually involves his conviction for escaping from his escape sentence.
The United States Marshals Service conducted the investigation that led to the prosecution of Sadler.
On May 16, 2019, Robert Tippett, 22, of Pittsburgh pleaded guilty before United States District Judge David S. Cercone. On May 4, 2018, Tippett possessed a loaded .357 caliber Smith & Wesson revolver. It is unlawful for Tippett, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm.
Judge Cercone scheduled sentencing for September 10, 2019. The law provides for a maximum total sentence of ten years in prison, a fine of $250,000 or both. Pending sentencing, the court ordered that Tippett remain in custody.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
On May 17, 2019, Jaimere Erick Dehonney, 22, of Pittsburgh, was sentenced to four years (48 months) in prison and three years’ supervised release. United States District Judge Reggie Walton imposed the sentence. On June 8, 2017, Dehonney conspired with others in the Western District of Pennsylvania to possess with intent to distribute and distribute heroin, a Schedule I controlled substance. The Court was further advised that, on or about June 8, 2017, Dehonney unlawfully possessed two firearms – a 5.56 caliber "AK-style" pistol and a .45 caliber Springfield XD pistol (and ammunition for the same) – while he was an unlawful user of a controlled substance. Federal law prohibits the possession of a firearm and ammunition by an unlawful user of a controlled substance.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant(s).
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Previously Convicted Felon from Ocala Pleads Guilty to Federal Gun/Ammunition ChargesRead the Press Release
Ocala, Florida – Winyontis Quavari Gordon (28, Ocala) pleaded guilty yesterday to an indictment charging him with possession of a firearm and ammunition affecting commerce by a convicted felon. Gordon faces a mandatory minimum sentence of 15 years, and up to life, imprisonment for the offense. A sentencing date has not yet been set.
According to court documents, on July 5, 2018, detectives from the Ocala Police Department attempted to arrest Gordon on an outstanding state warrant. Upon seeing the approaching detectives, Gordon exited the driver’s side of a parked car and fled on foot. Following a brief chase, the detectives took Gordon into custody and discovered a loaded .45 caliber handgun on the driver’s seat of the car, where Gordon had been sitting. During a subsequent interview with law enforcement, Gordon admitted that he had possessed the loaded firearm.
A records check confirmed that Gordon has prior state felony convictions for aggravated battery with a firearm, possession of a firearm by a convicted felon, domestic battery by strangulation, and felony battery. These felony convictions prohibit Gordon from lawfully possessing a firearm or ammunition under federal law. They will also qualify Gordon for an enhanced sentence as an Armed Career Criminal.
The Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives jointly investigated this case. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Pittsburgh Man Pleads Guilty to Possessing a Fentanyl AnalogueRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute 10 grams or more of a fentanyl analogue, United States Attorney Scott W. Brady announced today.
William Lewis, 30, pleaded guilty to one count before Senior United States District Court Judge David S. Cercone.
In connection with the guilty plea, the court was advised that, on August 5, 2017, Pittsburgh Bureau of Police executed a search warrant on the defendant’s residence in the Oakland section of Pittsburgh. Inside of the home, police found a quantity of suspected heroin and "cut" which tested positive for 56 grams of cyclopropyl fentanyl. The search also revealed 225 stamp bags of packaged cyclopropyl fentanyl, stamped "Ferrari." Lewis also had 19 stamp bags that tested positive for straight fentanyl. Packaging paraphernalia was also found.
Judge Cercone scheduled sentencing for October 9, 2019. Judge Cercone ordered Lewis to remain detained pending sentencing. The law provides for a term of imprisonment of not less than 5 years to a maximum of 40 years. A fine not to exceed $5,000,000, 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.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations, the United States Postal Inspection Service and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Lewis.
Pierre Man and Woman Indicted on Drug and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man and woman have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Andrew Bunch, age 29, and Nicole Hopkins, age 35, were indicted on May 14, 2019, for Conspiracy to Distribute a Controlled Substance. Bunch was also indicted for Possession of a Firearm by a Prohibited Person. They both appeared before U.S. Magistrate Judge Mark A. Moreno on May 16, 2019, and both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictments allege that beginning at a time unknown, but no later than on or about the 1st day of March 2018, and continuing to on or about the 1st day of February 2019, in the District of South Dakota and elsewhere, Bunch and Hopkins, did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance.
The charges are merely accusations and Bunch and Hopkins are presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Pierre Police Department, Stanley County Sheriff’s office, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Bunch was remanded to the custody of the U.S. Marshals Service and Hopkins was released on bond pending trial. A trial date has not been set.
Pennsylvania Man Sentenced under Project EJECT to over Four Years in Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – John Howard Murray, 45, of Erie, Pennsylvania, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 57 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco Firearms and Explosives.
On Monday, September 25, 2017, Murray was arrested for burglarizing a residence in Clinton, Mississippi. A search of Murray’s vehicle revealed several items stolen from the residence including a firearm.
On December 3, 2018, Murray was indicted for being a felon in possession of a firearm. He had previous convictions for receiving stolen property and burglary in Pennsylvania, and burglary in Madison County, Mississippi. Murray pled guilty before Judge Jordan on February 15, 2019.
U.S. Attorney Hurst commended the work of the Clinton Police Department and the FBI for their cooperation with ATF agents and Project EJECT task force members. Assistant U.S. Attorneys Erin Chalk and Chet Kirkham are prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Owners of Tucson Home Health Care Business Sentenced to Prison for Medicare Fraud SchemeRead the Press Release
TUCSON, Ariz. – On May 15, 2019, Stephen Allen Lamont, 61, and Elvia Lorena Lamont, 51, were sentenced by Senior United States District Judge Cindy K. Jorgenson for their involvement in a Medicare fraud scheme. Lamont previously pled guilty to Health Care Fraud and his wife, Elvia Lamont, previously pled guilty to Misprision of a Felony.
Lamont received a sentence of 30 months in prison, and Elvia Lamont was sentenced to 13 months in prison.
From 2012 to 2015, the Lamonts owned and operated Ascension In Home Medical Care NP’s Group, Inc., a home health care business that provided services to the elderly. In his plea agreement, Lamont admitted that he knowingly submitted false claims for services to Medicare. Lamont fraudulently billed for services that were provided by nurses, medical assistants and a phlebotomist as if they had been performed by a medical doctor or nurse practitioner. Lamont also fraudulently billed at the highest complexity level in order to further pad the billings. On some occasions, Lamont forged the signature of a medical doctor or other Medicare-approved provider before the claims were submitted for reimbursement. Elvia Lamont admitted that she knowingly shared in the proceeds from the Medicare fraud scheme and concealed the scheme from authorities.
In addition to imprisonment, the Court ordered both defendants to pay $1,054,839 in restitution to the Centers for Medicare and Medicaid Services.
The investigation in this case was conducted by the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. The prosecution was handled by the U.S. Attorney’s Office in Tucson.
One Convicted and Two Sentenced as Part of U.S. Attorney’s Elder Justice InitiativeRead the Press Release
LEXINGTON, Ky. – John Jerome O’Hara, of Lexington, Paul Anthony Long, II, of Lexington, and Mitzi Shawn Sears, of Nancy, Kentucky all appeared in federal court today on charges related to elder financial exploitation.
O’Hara and Long both previously pleaded guilty to fraud charges related to the theft of funds from relatives. According to his plea agreement, O’Hara used his Power of Attorney over his mother’s finances to obtain money for his personal benefit, while at the same time failing to pay his mother’s living expenses at her nursing home. Court documents indicate that while O’Hara’s mother suffered from dementia, he took over $330,000 from her accounts for his personal benefit. Judge Danny C. Reeves sentenced O’Hara to 26 months in prison and was ordered to pay $332,149.95 in restitution. Upon release from prison, O’Hara will be on supervised release for five years.
According to Long’s plea agreement, he too abused his Power of Attorney, over his grandfather’s finances, to spend his grandfather’s money for his own benefit. Court documents indicate that Long’s grandfather suffered from severe Alzheimer’s Disease and was a resident of Thomson Hood Veterans Center in Wilmore, Kentucky. From 2011 until his grandfather’s death in 2015, Long took over $600,000 from his grandfather. Neither his grandfather nor the Power of Attorney authorized any of those expenditures. Judge Danny C. Reeves sentenced Long to 42 months in prison and Long was ordered to pay $608,395 in restitution. Upon release from prison, Long will be on supervised release for five years.
In London, Kentucky, Mitzi Shawn Sears pleaded guilty to financial institution fraud. According to her plea agreement, Sears convinced a victim identified as “M.N.” to buy property in Pulaski County with her, as an investment, and then to pay legal fees associated with a fictitious lawsuit concerning that real property. She impersonated real people, in emails and phone calls to M.N., in efforts to convince M.N. that the expenses associated with the property and the lawsuit were legitimate. Sears also admitted to forging 16 checks belonging to M.N., and cashing them or negotiating them for her own benefit. In total, Sears obtained $455,977.00 from various bank accounts belonging to M.N., for her personal benefit. Further, Sears admitted she lured M.N. into applying for a $40,000 business loan to cover expenses for the property, in order to obtain even more money.
Sears faces up to 30 years in prison, a fine of $1,000,000, and five years of supervised release for her offense. She has agreed to forfeit the property she purchased with the money taken from M.N. She is scheduled to be sentenced by Judge Robert E. Wier on September 9, 2019.
All three cases highlight efforts by the Department of Justice and federal and state investigative agencies to combat elder financial exploitation. “The Department, and our Office, work in partnership with other law enforcement agencies to hold accountable those individuals that victimize elderly citizens,” said United States Attorney Robert M. Duncan, Jr. “These prosecutions underscore our commitment to seeking justice on behalf of this vulnerable population.”
An example of cooperation among law enforcement agencies is is the Kentucky Elder Justice Task Force, which brings together the resources of federal, state, and local agencies involved in protecting the elderly. For more information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, announced the sentences and the conviction. Resident Agent in Charge, Jon Oldham, United States Secret Service, and Chief of Police Lawrence Weathers, Lexington Police Department, join in the announcement of the sentence of O’Hara. Special Agent in Charge James Robert Brown, Federal Bureau of Investigation, joins in the announcement of the sentence of Long. FBI Special Agent in Charge Brown and Commissioner Richard W. Sanders, Kentucky State Police, join in the announcement of the conviction of Sears.
Omaha Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced today that on May 16, 2019, United States District Court Judge Robert Rossiter, Jr. sentenced Luther Gilmore, age 57, of Omaha, Nebraska, for his conviction for felon in possession of a firearm. Gilmore, who went to trial and was found guilty, was sentenced to a jail term of 71 months and was placed on supervised release for three years.
Gilmore was arrested on April 9, 2017 after being found in possession of a .22 caliber handgun by the Omaha Police Department subsequent to a traffic stop near the intersection of North 42nd Street and Spaulding in Omaha. Gilmore was a front seat passenger and the firearm was found within reach in the front console next to his seat. Gilmore was prohibited from possessing a firearm as a result of several prior felony convictions including robberies, burglary, theft and possession of a controlled substance.
This case was investigated by the Omaha Police Department.
O.C. Man Who Committed 23 Armed Robberies of Gasoline Stations and Convenience Stores Sentenced to over 8 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A Buena Park man was sentenced today to 100 months in federal prison for committing a series of armed robberies of gasoline stations and convenience stores in Los Angeles and Orange counties where he used a replica firearm to threaten and intimidate store clerks.
Gerardo Sotelo, 28, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $625 in restitution. Sotelo pleaded guilty in February 2019 to four counts of interference with commerce by robbery, and one count of attempted interference with commerce by robbery.
Sotelo’s conviction and sentence arose out of a series of robberies dating back to 2016 that targeted Shell and Chevron gas stations and 7-Eleven convenience stores. During the spree, Sotelo robbed businesses in Brea, Pico Rivera, Norwalk, La Habra, Artesia, Cerritos, Whittier, Cypress, Fullerton, and Fountain Valley.
Sotelo usually wore a hooded sweatshirt, zipped or cinched up to hide his neck during the robberies. He would select an item from the convenience store before approaching the counter, demanding money from the clerk, and brandishing what appeared to be a real semi-automatic pistol at the gas station clerk. Sotelo typically stole between $150 and $250 per robbery, and sometimes he returned to a store he previously robbed weeks before in order to rob it again.
On May 1, 2018, Sotelo was arrested moments after he robbed a Chevron gasoline station convenience store in Artesia, which he previously had robbed on April 18, 2018. Law enforcement found Sotelo in possession of the replica firearm used during the robberies and the $151 he had stolen from the Chevron gas station moments before. When authorities interviewed the clerk who was robbed at gunpoint, the victim said he recognized Sotelo as having robbed him previously at gunpoint on April 18, according to an affidavit filed with a criminal complaint against Sotelo.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Brea Police Department, with substantial assistance from the Fullerton Police Department.
This case was prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
New Orleans Man Pleads Guilty for His Role in Scheme to Defraud Medicare by Soliciting Kickback Payments for Two New Orleans-Area PhysiciansRead the Press Release
WASHINGTON – A New Orleans, Louisiana, man pleaded guilty yesterday for his role in a scheme to solicit the payment of illegal health care kickbacks to several individuals, including two New Orleans-area physicians, for the referring and certifying of individuals for medically unnecessary home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Joseph A. Haynes, 63, pleaded guilty before U.S. District Judge Barry W. Ashe of the Eastern District of Louisiana to one count of conspiracy to solicit and receive health care kickbacks and bribes. Sentencing is set for Aug. 22 before Judge Ashe.
In pleading guilty, Haynes admitted that he participated in a scheme with codefendants Muhammad Kaleem Arshad, M.D., 63, of New Orleans, Padmini Nagaraj, M.D., 61, of Kenner, Louisiana, and others, including patient recruiter Kim Ricard, 52, of Gonzales, Louisiana, and clinic owner Milton Diaz, 66, of Harvey, Louisiana. Haynes admitted that the purpose of the scheme was to solicit and receive kickbacks and bribes for the referral of Medicare beneficiaries to Progressive Home Health (Progressive), of New Orleans, owned by Diaz, and having them certified as eligible to receive home health services. In reality, the beneficiares were not eligible to receive such services. Haynes admitted that he solicited a total of approximately $331,000 in kickbacks from Diaz for Ricard disguised as marketing fees and solicited approximately $1,500 in monthly kickbacks from Diaz for Arshad and Nagaraj disguised as medical director fees.
Arshad pleaded guilty on Feb. 22, 2019 and Nagaraj pleaded guilty on May 2, 2019 before Judge Ashe, to one count each of conspiracy to commit health care fraud. Arshad’s sentencing is set for July 11, 2019, and Nagaraj’s sentencing is set for Aug. 8, 2019. As part of their pleas, Arshad and Nagaraj each admitted that in return for accepting illegal health care kickbacks, which Haynes orchestrated, Arshad and Nagaraj each referred beneficiaries that they treated at a Louisiana-based psychiatric facility for medically unnecessary home health services at Progressive, and further fraudulently certified that the beneficiaries were eligible to receive such services. Diaz, on behalf of Progressive, then submitted the fraudulent claims to Medicare and was reimbursed for the medically unnecessary home health services, he admitted.
Diaz pleaded guilty on July 13, 2017, and is scheduled to be sentenced on July 31, 2019 before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. Ricard was found guilty after a three-day trial in September 2017, and was sentenced on Jan. 4, 2018, to 51 months in prison.
This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorneys Jared Hasten, Katherine Payerle and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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New Orleans Man Charged with Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Peter Strasser announced that a federal grand jury on May 16 returned an indictment against defendant DWAYNE WINANS, JR., a/k/a “Butter,” age 25, of New Orleans, for bank robbery, in violation of Title 18, United States Code, Section 2113(a).
The indictment alleges that on August 4, 2016, WINANS entered the Fidelity Bank at 5530 Crowder Boulevard, New Orleans, Louisiana, and demanded money.
If convicted of the violation, WINANS faces a maximum term of imprisonment of twenty (20) years, a $250,000 fine, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorneys Michael E. McMahon, Melissa Bucher, and David Howard Sinkman are in charge of the prosecution.
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New Orleans Business Owner Charged with Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that KENNETH CHARITY (“CHARITY”), age 54, a resident of New Orleans, Louisiana, was charged Wednesday, May 15, 2019 with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from in or around February 2007 through April 2017, CHARITY had a banking relationship with First NBC Bank, individually and through certain entities. During that time, Bank President A acted as the loan officer for CHARITY and the loan officer to certain of CHARITY’s entities (“the Entities”). By the time First NBC Bank failed, the balances on the loans issued to CHARITY and the entities totaled more than $18 million. CHARITY, Bank President A, and others knowingly conspired to defraud First NBC Bank. According to the Bill of Information, the purpose of the conspiracy was for CHARITY, Bank President A, and others to unjustly enrich themselves, disguise the true financial status of CHARITY and the Entities, conceal the accurate performance, and misrepresenting the purpose of the loans made to KENNETH CHARITY and the Entities.
KENNETH CHARITY, Bank President A, and others provided First NBC Bank with materially false and fraudulent documents and financial statements, which, among other things, overstated the value of KENNETH CHARITY’s assets, understated his liabilities, and omitted material information. These false statements disguised his and the Entities’ true financial condition.
The Bill of Information also alleges that it was part of the conspiracy for Bank President A and others to disguise CHARITY and the Entities’ true financial condition by, among other things, issuing new loans to CHARITY and the Entities, which would pay older loans that CHARITY was unable to repay. The new loans would then appear to be current and performing, while the old loans appeared to have been paid. In reality, CHARITY had insufficient income and cash flow to support his debt at First NBC Bank. Bank President A was well-aware that CHARITY was unable to repay his loans, yet Bank President A continued to falsely represent in bank records that CHARITY and his Entities were profitable.
Additionally, the Bill of Information alleges CHARITY, Bank President A, and others, carried out the conspiracy by repeatedly lying in bank loan documents about the purpose of loans that Bank President A approved for CHARITY and the Entities. Specifically, Bank President A approved loans for CHARITY and his Entities that appeared to be for legitimate business purposes. In reality, CHARITY spent loan proceeds on personal expenses. Bank President A was aware that CHARITY did not spend the loan proceeds consistently with the purposes stated on the loan documents. For example, from in or around August 2014 through in or around December 2016, Bank President A caused three loans to be disbursed to one of CHARITY’s entities for the purpose, in part, of enclosing a patio at a beignet shop located at 620 Decatur Street. CHARITY never built the patio. The loan proceeds were used instead to pay CHARITY’s overdrafts, which included personal expenses, and made loan payments.
First Assistant United States Attorney Michael Simpson stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are in charge of the prosecution.
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Mount Pleasant Man Sentenced to Prison for Production of Child PornographyRead the Press Release
DAVENPORT, IA – On May 16, 2019, Sean Michael Kinard, age 31, of Mount Pleasant, was sentenced by United States District Court Chief Judge John A. Jarvey to 130 months imprisonment, after pleading guilty to Receipt of Child Pornography, announced United States Attorney Marc Krickbaum. Kinard was ordered to serve eight years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Compensation Fund. Additionally, Kinard was ordered to pay $2,000 to each of the 13 victims who were seeking restitution.
Kinard pleaded guilty on January 14, 2019. Kinard used a file sharing program to distribute and receive images of child pornography on the internet between January 21, 2016, and January 4, 2018. During that time, he collected over 20,000 images containing child pornography and 425 videos. The National Center for Missing and Exploited Children (NCMEC) identified over 8,000 images of known victims from Kinard’s images and videos. The goal of NCMEC is to minimize the further victimization of children and to provide notice to identified victims of the crime, if desired.
This matter was investigated by Federal Bureau of Investigation and the Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Midsouth Man Found Guilty of Kidnapping and Raping Six Women over Seven YearsRead the Press Release
Memphis, TN – Horn Lake resident Michael D. Love, 45, has been found guilty of kidnapping and raping six Memphis women, and attempting to kidnap and rape an seventh, over a period of seven years. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
The evidence presented in federal district court during a six-day trial demonstrated that between 2008 and 2015, Love traveled from Mississippi to Tennessee to find or meet a woman, hold her against her will, engage in forced sexual intercourse, and abandon her in a deserted part of the city.
The testimony at trial revealed that some of Love's victims were chosen at random and abducted. Other victims met Love, who used a false identity, through social media and chat lines. But in every case, Love took his victims to unlit dead-end coves or uninhabited industrial areas. Each victim testified that she was raped before or after being forced out of Love's car, and that as soon as he was finished, Love got in his car and sped off, leaving her without her purse, wallet, cell phone, or other personal items. One of the victims was a minor. Love was also convicted of brandishing a firearm during one of the sexual assaults. All victims reported the crimes to the police, and went to the Rape Crisis Center for treatment and the collection of DNA evidence.
Love's cases were not linked until he was arrested in 2015 and a sample of his DNA was taken as part of the arrest. A profile developed from that sample linked Love to several unsolved rape cases dating back to 2008.
A renewed effort to test all sexual assault kits (or "rape kits") for DNA evidence is ongoing. Profiles developed from the testing compared to existing DNA profiles in the Combined DNA Index System (CODIS). CODIS is a national database designed to help identify suspects in unsolved cases. Biological evidence collected during examination of a sexual assault victim is preserved in a sexual assault kit, and ultimately, sent to a laboratory for analysis. Once a DNA profile is developed, it is placed into CODIS and regularly compared to profiles already on file. Memphis Police Department's Sex Crimes Bureau, DNA Cold Case Unit, developed Love as a suspect in these seven cases in part, through use of DNA and CODIS technology.
Love also has matters pending in Shelby County Criminal Court, where he has been charged with rape, aggravated rape, aggravated kidnapping, criminal attempt - kidnapping, and robbery.
U.S. Attorney D. Michael Dunavant said, "The horrific physical violence, sexual abuse, and emotional torment suffered by the victims in this case cannot be undone, but this guilty verdict ensures that this violent and evil sexual predator will face significant consequences for his depraved actions. As a result of the outstanding investigative work of the MPD and the FBI, as well as the excellent trial presentation by our federal and state prosecutors, these victims have seen their cases solved, and justice has been achieved. "
"This investigation exemplifies the dedication of law enforcement to continue to diligently work cases, even after the cases go cold, to ensure that criminals are held accountable for their crimes," said M.A. Myers, Special Agent in Charge Memphis Field Office of the Federal Bureau of Investigation. "This verdict would not have been possible without the cooperative efforts of all of the law enforcement agencies and the prosecutive team, who worked tirelessly to ensure that the victims were not forgotten and that justice was served."
MPD Director Michael Rallings said, "This continues to demonstrate the importance of our partnership with other agencies as we move through the investigations generated by the DNA Unit of the Memphis Police Department. It takes everyone working together with the victims to achieve these results."
Love is set for sentencing on August 15, 2019, before U.S. District Court Judge Sheryl H. Lipman, where he faces a mandatory minimum sentence of 27 years and up to life imprisonment.
The Memphis Police Department (Sex Crimes, DNA Cold Case Unit); FBI and the Shelby County District Attorney’s Office investigated this case.
Assistant U.S. Attorney Debra Ireland and Special Assistant U.S. Attorney Bryce Phillips are prosecuting this case on behalf of the government.
Mexican citizen sentenced in Billings drug case in which agents seized 34 pounds of methRead the Press Release
BILLINGS—A Mexican citizen convicted in an investigation in which law enforcement seized 34 pounds of meth, worth an estimated $1.5 million, from a hotel room was sentenced to 57 months in prison and five years of supervised release on Wednesday, U.S. Kurt Alme said.
Jorge Luis Mendez-Sanchez, 35, of Mexico, pleaded guilty in January to possession with intent to distribute meth.
Thirty four pounds of meth is the equivalent of about 123,216 doses and has an estimated street value of $1.54 million.
U.S. District Judge Susan Watters presided.
Prosecutors said in court records that a confidential informant for the Eastern Montana High Intensity Drug Trafficking Area Task Force learned in July 2018 from a source of meth named Oscar that a relative was flying to Billings from Salt Lake City to conduct the sale of 35 pounds of meth. The meth was coming from Oscar’s associates, who included Mendez-Sanchez and co-defendant, Aldo Pardini.
Agents identified another co-defendant, Jose Jesus Islava-Lopez, as Oscar’s relative and followed him from the Billings airport to a Billings hotel. Islava-Lopez checked into a room and met with Pardini in the parking lot. Pardini and Mendez-Sanchez, who were staying together in a separate room, had transported the meth for the proposed sale together from Arizona in Pardini’s car.
Agents detained Islava-Lopez in the lobby. Islava-Lopez told the agents that Oscar had directed him to fly to Billings for a job, rent a room at the hotel and meet a person in a car in the parking lot. After meeting Pardini in the parking lot, Islava-Lopez went to the room shared by Pardini and Mendez-Sanchez and took a suitcase Pardini gave him back to his own room. Investigators served search warrants on both hotel rooms and the vehicle and found about 34 pounds of meth in Islava-Lopez’s room.
Islava-Lopez and Pardini have pleaded guilty in the case and are awaiting sentencing.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Metro East Woman Sentenced for Falsifying Records in BankruptcyRead the Press Release
Dehavalon R. Cook, 46, of Fairview Heights, Illinois, has been sentenced to three years probation for falsifying records in a bankruptcy proceeding, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Cook previously pleaded guilty to the charge on January 29, 2019.
Court documents show that Cook created a fictitious document and forged the signature of an officer of the Court to obtain an automobile loan during the pendency of her bankruptcy case. The document was falsified with the intent to improperly influence the proper administration of a bankruptcy proceeding.
"Today’s sentence makes clear that abuse of the bankruptcy system by falsifying a document and forging the signature of an officer of the court for personal gain will not be tolerated," stated Nancy J. Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners for their strong commitment to combating bankruptcy-related crimes as demonstrated by this prosecution." The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana.
The charges resulted from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by the Peoria Office of the United States Trustee and the Federal Bureau of Investigation in collaboration with the Southern Illinois Bankruptcy Fraud Working Group, which is coordinated by the U.S. Trustee. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Meth possession for distribution sends Billings man to prison for 10 yearsRead the Press Release
BILLINGS—Billings resident Keith Alan Rose, who admitted to methamphetamine trafficking crimes, was sentenced to 10 years in prison on May 16, U.S. Attorney Kurt Alme said.
Rose, 48, pleaded guilty earlier to conspiracy to possess meth for distribution and to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
The prosecution said in court documents that an investigation of Rose began in November 2016 when the Billings Police Department received an anonymous email reporting that Rose, also known as “Rabbit,” had been trafficking meth in Billings. Law enforcement officers developed probable cause to search Rose’s house, which they did after getting a search warrant. Officers found meth, paraphernalia, concealment cans, ledgers, plastic baggies and a digital scale along with ammunition.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI’s Transnational Organized Crime –West Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Maryland Man Pleads Guilty to Access Device Fraud and Conspiracy to Commit Access Device FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Bryan Boley, 33, of Takoma Park, Maryland, pled guilty yesterday in U.S. District Court to conspiracy to commit access device fraud, using or attempting to use a counterfeit access device, possession of 15 or more counterfeit or unauthorized access devices, and possession of device-making equipment.
According to court records, from at least July 31, 2018, Bryan Boley conspired with others to use counterfeit credit cards at Maine retail outlets. He bought the credit card numbers online. A search of Boley’s hotel room in January led to the seizure of several dozen plastic cards, 47 of which had been fraudulently re-encoded, about 25 receipts showing purchases of gift cards and other items, as well as a credit card reader/writer, among other items. Boley was arrested after checking out of his hotel room in the early hours of January 23, 2019. He had an additional 19 cards on his person, 17 of which had been re-encoded with credit card numbers that did not belong to him.
Boley faces up to five years in prison and a $250,000 on the conspiracy charge, up to ten years in prison and a $250,000 fine on the counterfeit access device charges, and up to 15 years in prison and a $250,000 fine on the possession of device-making equipment charge. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Secret Service, the Maine State Police and the Auburn, Brunswick, Cape Elizabeth, and Yarmouth Police Departments.
Marty Man Charged with Escape from CustodyRead the Press Release
United States Attorney Ron Parsons announced that a Marty, South Dakota, man has been indicted by a federal grand jury for failure to register as a sex offender.
Raymond Lloyd Jandreau, age 61, was indicted on May 9, 2017. He appeared before U.S. Magistrate Judge Veronica Duffy on May 17, 2019, and pled not guilty to the Indictment.
According to the Indictment, Jandreau was convicted of a sex offense in South Dakota state court. This conviction requires him to register for life as a sex offender. Since July 1, 2016, Jandreau’s whereabouts have been unknown. His last known address was in Farmington, New Mexico, but that residence was vacated with no sign of Jandreau. His last known address in the District of South Dakota was in Marty, within the jurisdiction of the Yankton Sioux Tribe Reservation.
The maximum penalties upon conviction are as follows: 10 years in federal prison and/or a $250,000 fine; a mandatory minimum term of 5 years, up to life, of supervised release; $100 to the Federal Crime Victims Fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Jandreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Jandreau was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Man Sentenced for Threatening to Murder Family of FCC ChairmanRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to more than one and a half years in prison for threatening to kill the family of Ajit Pai, Chairman of the Federal Communications Commission.
“Threatening to actually kill a federal official’s family because of a disagreement over policy is not only inexcusable, it is criminal,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This prosecution shows not only that we take criminal threats seriously, but also that online threats of violence have real world consequences. I would like to thank our local, state, and federal law enforcement partners for their assistance in this investigation and prosecution.”
According to court documents, on or about Dec. 19 and 20, 2017, Markara Man, 33, of Norwalk, sent three emails to Chairman Pai’s email accounts. The first email accused Chairman Pai of being responsible for a child who allegedly had committed suicide because of the repeal of net neutrality regulations. The second email listed three locations in or around Arlington and threatened to kill the Chairman’s family members. The third email had no message in its body, but included an image depicting Chairman Pai and, in the foreground and slightly out of focus, a framed photograph of Chairman Pai and his family. The FBI traced the emails to Man’s residence in Norwalk, California, and when initially confronted in May 2018, Man admitted to the FBI that he sent the email threatening Chairman Pai’s family.
Court documents further showed that during the FBI’s search of his residence, Man factory reset a cell phone upon learning of the search and before law enforcement could seize the phone. This action caused data to be wiped from the device. When asked about the phone being in setup mode, Man lied to the FBI and claimed that he had received it a month earlier and not set it up yet.
This matter was investigated by the Washington Field Office’s Safe Streets Violent Crime Task Force, which is composed of Special Agents and detectives from law enforcement agencies within northern Virginia and the District of Columbia. The task force concentrates on investigating violent crimes and criminal threats within the Capital Region.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and M. Jay Farr, Arlington County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Alexander P. Berrang prosecuted the case.
The FBI’s Los Angeles Field Office, the Federal Protective Service, and the Arlington County Police Department provided significant assistance in this investigation.
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. 1:18-cr-308.