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19 February 2019
Katy Man Sent to Prison in Fatal Shooting During Drug DealRead the Press Release
HOUSTON – A 34-year-old Katy man has been ordered to prison after discharging a firearm in the hallway of an apartment building while conducting a drug trafficking offense resulting in the death of the buyer, announced U.S. Attorney Ryan K. Patrick. James Michael Curtis Johnson pleaded guilty Feb. 6, 2017, to discharging a firearm as well as aggravated identity theft as part of a separate fraud scheme.
Today, U.S. District Judge Lynn N. Hughes handed Johnson a 120-month sentence for the firearms charge plus a mandatory and consecutive 24 months for identity theft. The total 144-month prison term will be immediately followed by three years of supervised release. At the hearing, Judge Hughes noted Johnson had a gun to perpetuate your drug deal. “That’s not self-defense,” he said. That’s defending your wrong.” He also addressed Johnson’s family. “I want y’all to love him, but don’t make excuses for him.” Hughes commented. “He knew what he was doing.”
At the time of his guilty plea, Johnson admitted that on Oct. 1, 2014, he and a friend received a request to sell narcotics at an apartment building on the 2600 block of Woodland Park in Houston. Johnson was worried that something might go wrong at the drug sale meeting, so he also brought a pistol, checking before he left to ensure it was loaded.
During the sale, an altercation arose in the hallway and one of the buyers drew a gun. Johnson ducked, drew his own pistol, fired several rounds at the buyer with the gun and fled. Authorities arrived on scene and discovered the hallway pockmarked with bullets, a partially-opened box of narcotics and a trail of blood leading to the body of the victim who was deceased.
For his participation in a conspiracy to steal money from online bank accounts, Johnson was also convicted of aggravated identity theft. In that case, Johnson and his co-conspirators possessed and unlawfully used the identification of two victims to fraudulently induce their bank to send blank checks to the conspirators. As part of this conspiracy, the conspirators wrote a fraudulent check for $91,256.73 and deposited it at BBVA Compass Bank in Houston. They withdrew the money before the bank could stop the payment.
Johnson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Houston Area Cyber Task Force, IRS-Criminal Investigation and Houston Police Department conducted the investigation. Assistant U.S. Attorney Michael Chu prosecuted the case.
Jury Convicts Man for Armed Robbery of Firearms DealerRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man today on charges of robbery and brandishing a firearm during a robbery.
According to court records and evidence presented at trial, Desmond Littlejohn, 33, and his co-conspirator robbed a firearm and ammunition dealer in Virginia Beach. On Oct. 9, 2017, the owner and an employee had returned around 3:30 a.m. from a gun show in Philadelphia. As they were unloading a truck, Littlejohn and his co-conspirator, wearing ski masks, ran up to the owner and employee brandishing firearms. The robbers took a black duffle bag which contained approximately $10,000 in proceeds from the gun show. As the robbers were fleeing in a car, they tossed items out of the black duffle bag and onto the street in an effort to get at the cash. The Virginia Beach Police discovered the discarded items which also included a cash bag next to a ski mask. Through analysis of the ski mask law enforcement was able to trace the mask back to Littlejohn.
Littlejohn faces a mandatory minimum sentence of 7 years and a maximum sentence of life in prison when sentenced on May 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Rebecca Beach Smith accepted the verdict. Assistant U.S. Attorneys William D. Muhr and William B. Jackson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-119.
Jamaican National Caught Smuggling Cocaine at Charlotte Airport Pleads Guilty to Drug Importation ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Christopher Anthony Samuels, 37, of Montego Bay, Jamaica, appeared in federal court and pleaded guilty to drug trafficking and importation related charges. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
According to filed court documents and the plea hearing, on November 6, 2018, Samuels flew into Charlotte-Douglas International Airport onboard a flight that originated in Montego Bay, Jamaica. Samuels was scheduled to connect in Charlotte, and fly the same day to New York City. Court records show that, upon entry into the United States, Samuels’ suitcase and backpack were inspected by U.S. Custom and Border Protection (CBP) officers on duty at Port of Entry in Charlotte. Samuels was sent to secondary inspection, during which time CBP officers X-rayed Samuels’ luggage. Upon further inspection, CBP officers, working jointly with Homeland Security Investigations (HSI), discovered two taped bags weighing approximately two (2) kilograms of cocaine, hidden within the suitcases’ bottom liners. As Samuels admitted today in court, he intended to deliver the cocaine to additional co-conspirators, located in New Jersey.
Samuels pleaded guilty to drug trafficking conspiracy, possession with intent to distribute cocaine, and unlawful importation of cocaine. Samuels is facing a mandatory minimum of five years in prison and a maximum of 40 years, a $5 million fine, and possible deportation. A sentencing date has not been set.
The case is the result of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Airport Drug Interdiction Initiative, that targets international drug smuggling and financial crimes, including money laundering, bulk cash smuggling, and unlicensed money transmitters/transporters that utilize air travel to further their criminal enterprise. Through this initiative, HSI incorporates the collaborative efforts of multiple law enforcement agencies, to include CBP, North Carolina Department of Public Safety’s Divisions of Alcohol Law Enforcement (ALE) and Department of Correction (DOC), and the Charlotte-Mecklenburg Police Department. In making today’s announcement U.S. Attorney Murray thanked these agencies for their joint investigation of this case.
Sanjeev Bhasker, Assistant U.S. Attorney for the Western District of North Carolina in Charlotte is in charge of the prosecution.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Justin Jamal Williams, 29, of Jackson, pled guilty Friday before Chief U.S. District Judge Daniel P. Jordan III to being a convicted 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 March 17, 2018, a Jackson Police officer conducted a traffic stop on a car with no license plate. The officer noticed that Williams, who was sitting in the back seat of the car, had a suspicious bulge in the leg of his pants and he was moving around nervously. When the officer asked Williams to step out of the car, he attempted to push past the officer and run. He was immediately taken into custody and a firearm was found on him.
Williams was charged in a federal indictment on December 11, 2018, with being a convicted felon in possession of a firearm. He has prior felony convictions in Hinds County for burglary, possession of marijuana and possession with intent to distribute marijuana.
He pled guilty before Judge Jordan on Friday, February 15, 2019, and will be sentenced on May 17, 2019. He faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
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.
Illegal Aliens Hidden in Furniture During Attempt to Circumvent Border Patrol CheckpointRead the Press Release
ORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been convicted of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick.
On Dec. 10, 2018, Yabar Ayan Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture.
BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut.
Porters-Arevalo entered a guilty plea today to transporting illegal aliens within the United States. Sentencing has been set for May 20, 2019, before Senior U.S. District Judge John Rainey. At that time, Portes-Arevalo faces up to five years imprisonment and a $250,000 maximum possible fine. He could also lose his status as a legal permanent resident.
He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.
Huntington Man Sentenced for Embezzling Veteran's BenefitsRead the Press Release
HUNTINGTON, W.Va. -- A Huntington man was sentenced to 6 months imprisonment today for embezzling over $80,000 of his brother’s Veteran’s benefits, announced United States Attorney Mike Stuart. In addition to the 6 months imprisonment, Washington will spend 6 months on home confinement following his release. He was also order to make restitution. The case was investigated by the United States Department of Veteran’s Affairs Office of Inspector General and the Federal Bureau of Investigation.
“Despicable,” said United States Attorney Mike Stuart. “It’s unimaginable to think that anyone, much less a patriot’s brother, would steal a veteran’s hard earned benefits. If you can’t trust your brother, who can you trust?”
David Washington, 55, was appointed his brother's fiduciary to receive and manage benefits from the Department of Veteran's Affairs. Washington failed to submit accounting reports, which led investigators to question his management. Washington later admitted to mismanagement, including spending his brother's benefits for his own personal expenses, most of which involved gambling debts.
United States District Court Judge Robert C. Chambers imposed the sentence. Former Assistant United States Attorney Gabe Wohl and Assistant United States Attorney R. Gregory McVey handled the prosecution.
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Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Curtis Traylor, also known as “Gurt,” 51, entered a guilty plea to an indictment charging him with distribution of heroin.
“Family Dollar is a WV institution,” said United States Attorney Mike Stuart. “You can get almost anything at the Family Dollar but you’re not supposed to be able to get heroin. A good business sullied by some bad guys.”
Traylor admitted that on October 12, 2017, he met a confidential informant and drove to the Family Dollar in Huntington. He gave the informant six grams of heroin in exchange for $400.
Traylor faces up to twenty years in federal prison when he is sentenced on June 10, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Hermiston Woman Sentenced to Six Months in Federal Prison for Dealing FentanylRead the Press Release
PORTLAND, Ore. – Veronica Rivera, 46, of Hermiston, Oregon, was sentenced today to 6 months in federal prison and 3 years’ supervised release for selling fentanyl.
According to court documents, in October 2017, the Tactical Diversion Squad of the Drug Enforcement Administration (DEA) and the Blue Mountain Enforcement Narcotics Team began investigating a drug trafficking organization selling small blue pills pressed to look like 30 milligram oxycodone tablets but that actually contained fentanyl.
On two separate occasions in March 2018, Rivera sold a total of 167 of the fentanyl pills in Hermiston. In April 2018, investigators seized approximately 100 pills from a location where Rivera had hidden them and an additional 129 pills from her Hermiston residence.
On April 25, 2018, a federal grand jury in Portland returned a two-count indictment charging Rivera with distribution of fentanyl and possession with intent to distribute fentanyl. She pleaded guilty to one count of distribution of fentanyl on August 14, 2018.
This case was investigated by the DEA and Blue Mountain Enforcement Narcotics Team and prosecuted by William Narus, Assistant U.S. Attorney for the District of Oregon.
Henryetta Woman Sentenced to 30 Months, $177,000 Restitution for Theft by Bank EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stacey Becker Lawson, age 41, of Henryetta, Oklahoma, was sentenced to 30 months imprisonment, 3 years of supervised release, and ordered to pay restitution in the amount of $177,375.40 for Theft, Embezzlement Or Misapplication By Bank Employee, in violation of Title 18, United States Code, Section 656. The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment alleged that from in or about 2015, the exact date unknown to the Grand Jury, until on or about June 13, 2018, in the Eastern District of Oklahoma, the defendant being an employee of American Exchange Bank of Henryetta, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the bank, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys entrusted to the custody and care of American Exchange Bank by withdrawing cash and transferring funds from the bank and misapplying and embezzling the funds.
United States Attorney Brian J. Kuester said, “An embezzlement from a bank that serves a small community, such as the American Exchange Bank, has an impact well beyond the bank itself. The defendant’s crime struck a blow to perhaps the most important thing a community bank brings to a town, its residents, businesses, and public institutions – trust. So while this is a crime involving financial loss by a banking institution, it is really more than that to American Exchange Bank and the community that it serves.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Clay Compton represented the United States.
Hallandale Resident Sentenced to 20 Years in Prison for Enticing a Minor While a Convicted Sex OffenderRead the Press Release
Peter Robert Bobal, 42, of Hallandale Beach, was sentenced, on February 15, 2019, to a total of 240 months in prison by U.S. District Judge Beth Bloom, after having been previously convicted by a trial jury of enticing a 14-year-old to engage in sexual activity and committing a felony involving a minor while being required to register as a sex offender (Case No. 18-Cr-60072).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.
According to the court record, including evidence presented at trial, after receiving information from a concerned citizen, the FBI opened an investigation into Bobal. An undercover FBI agent posed as a 14 year-old girl and communicated with Bobal online. Over a period of twelve days in March of 2018, Bobal asked the individual he believed to be the 14 year-old minor more than 56 times to provide sexually explicit photographs and more than 70 times to meet him in person in order to engage in sexual activity. Bobal arranged to meet the 14-year old minor to commit a sexual act on March 14, 2018. On that date, Bobal was arrested when he arrived at the pre-arranged location to meet with the minor.
The jury found that Bobal committed a felony involving a minor while being required to register as a sex offender, following a 2005 conviction for enticement of a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz and Assistant United States Attorney Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guilderland Man Arrested on Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Blake Spears, age 38, of Westmere, Town of Guilderland, New York, was ordered detained today following his arrest last week on child pornography charges.
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).
Spears appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Spears detained following a hearing. A criminal complaint accuses Spears of using the Kik phone messaging application to distribute child pornography in December 2018. On February 15, FBI agents found child pornography on a thumb drive in Spears’s residence, according to the complaint. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
If convicted, Spears faces at least 5 years and up to 20 years in prison, as well as a term of post-release supervision of at least 5 years and up to life. 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.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Gaithersburg Tax Preparer Indicted for Preparing False Tax Returns and Identity TheftRead the Press Release
A Gaithersburg, Maryland, woman had her initial appearance today on an indictment charging her with ten counts of aiding or assisting in the preparation of false or fraudulent tax returns, one count of mail fraud, and one count of aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur of the District of Maryland.
“The Department of Justice will prosecute fraudulent tax return preparers and protect honest taxpayers whose identities are ensnared in tax return schemes,” said Principal Deputy Assistant Attorney General Zuckerman.
“While most tax return preparers provide excellent service to their clients, unscrupulous return preparers give the industry a black eye. IRS-CI works year round to investigate deceitful return preparers and to protect the American taxpayers’ money and personal identification information,” said Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office.
According to the indictment, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland. From at least 2012 through 2016, Espinal allegedly prepared and filed fraudulent tax returns on behalf of her taxpayer-clients with both the IRS and the Comptroller of Maryland. To generate a refund to which the client was not entitled, Espinal is alleged to have manipulated and altered Forms W-2 in the names of third parties, without their permission or authority, by replacing the listed employee’s name with Espinal’s client’s name. She would then report the third party’s wages and withholdings as those of her own clients in order to generate a fraudulent federal and state tax refund.
If convicted, Espinal faces a maximum sentence of three years in prison for each count of aiding and assisting in the filing of false returns, 20 years in prison on each count of mail fraud, and a statutory minimum sentence of two years in prison for aggravated identity theft. Espinal also faces potential fines, restitution, and forfeiture.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked Trial Attorney Carl F. Brooker, IV of the Tax Division and Assistant United States Attorney Ray McKenzie, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Four Nigerian Nationals Sentenced in Bank Fraud, Fraudulent Passport SchemeRead the Press Release
PROVIDENCE, RI – Four Nigerian nationals who admitted to participating in a large-scale bank fraud and counterfeit passport scheme in Rhode Island and Massachusetts, with an intended loss of more than $1.2 million dollars, have been sentenced in U.S. District Court in Providence, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
The four men admitted to participating in a scheme to defraud banks in Rhode Island and Massachusetts by acquiring and altering lawfully passed checks between commercial entities. The checks were altered and deposited into bank accounts opened using aliases as forms of identification created for counterfeit passports from Nigeria, Ghana, and South Africa. Funds were quickly removed from the accounts prior to the fraud being detected by the financial institutions.
According to information presented to the Court, participants in the scheme deposited fraudulent checks and wires totaling approximately $1,267,000 and successfully obtained approximately $487,000 through withdrawals and debit purchases.
On Friday, Babajide O. Awogbami, 35, who has been detained in federal custody since April 10, 2017, was sentenced by U.S. District Court Chief Judge William E. Smith to 13 months in federal prison and ordered to pay $488,745.47 restitution to banks he defrauded. He pleaded guilty on November 11, 2018, to conspiracy to commit bank fraud and false use of passports.
On July 27, 2018, Olugboyega A. Fasanya, 37, of Woonsocket, and Anthony C. Ezike, 37, of Pawtucket, were sentenced by U.S. District Court Chief Judge William E. Smith to 13 months in federal prison. Fasanya, who pleaded guilty on April 30, 2018, to conspiracy to commit bank, was ordered to pay restitution in the amount of $379,362 to banks he defrauded. Ezike, who pleaded guilty on March 8, 2018, to conspiracy to commit bank fraud, was ordered to pay restitution in the amount of $228,730 to banks he defrauded.
On February 16, 2018, Opeyemi A. Orekan, 28, of North Providence, who had been detained in federal custody since April 10, 2017, was sentenced to time served and ordered to pay $101,286.63 in restitution to banks he defrauded during his participation in the conspiracy. He pleaded guilty on September 22, 2017, to bank fraud and fraudulent use of passports.
According to court records, Olugboyega A. Fasanya and Opeyemi A. Orekan have been deported.
Immigration and Customs Enforcement detainers have been issued against Babajide O. Awogbami and Anthony C. Ezike. Both men will face deportation proceedings upon completion of their terms of incarceration.
The cases were prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations, with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket, and Warwick Police Departments.
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Fort Thompson Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on February 19, 2019, by U.S. District Judge Roberto A. Lange.
Craig Ross, age 29, was sentenced to 26 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ross was indicted by a federal grand jury on September 11, 2018. He pled guilty on November 27, 2018.
The conviction stemmed from an incident on July 29, 2018, when Ross, having previously been convicted of a felony, was apprehended by law enforcement in possession of a firearm. Law enforcement had heard gun shots and located Ross and another individual with a rifle.
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 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.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Ross was immediately turned over to the custody of the U.S. Marshals Service.
Fort Pierce Felon Convicted of Unlawfully Possessing a Firearm and More Than Two Pounds of MarijuanaRead the Press Release
On February 14, 2019, Jose Antonio Morales, 33, of Fort Pierce, was convicted, by a federal jury in West Palm Beach, of being a felon unlawfully in possession of a firearm and possessing marijuana with the intent to distribute the controlled substance.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
According to the court record, including evidence introduced at trial, in June 2018 law enforcement seized two pounds of high-grade marijuana and a loaded firearm from a safe in Morales’ bedroom while executing a search warrant at his residence in Fort Pierce. Morales is a convicted felon and was prohibited, by law, to possess a firearm and/or ammunition.
Morales faces a statutory maximum sentence of 10 years in prison on each count of conviction (Case No. 18-Cr-14056). He is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg on April 29, 2019 at 11:00 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and St. Lucie County Sheriff’s Office in this matter. The case is being prosecuted by Assistant U.S. Attorneys Michael D. Porter and Marton Gyires.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Rochester CEO Indicted on Multiple Charges for Defrauding His Own CompanyRead 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 a federal grand jury has returned a 15-count indictment charging Michael Margiotta, 48, of Rochester, NY, with wire fraud, money laundering, and filing a false tax return. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, between May 2011 and January 2014, the defendant was Chief Executive Officer of eHealth Global Technologies, Inc. As eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. According to the contract, HCNA received a fee totaling 20% of an eHealth employee’s base salary for the first year for each employee referred by HCNA and hired by eHealth. The defendant caused HCNA to issue fraudulent invoices to eHealth and then directed subordinate employees at eHealth to pay the invoices.
In addition, Margiotta caused an individual, identified as Consultant A, to submit fraudulent invoices to eHealth for services actually provided to an unrelated entity known as Action Against Child Maltreatment, Inc. (AACM) that Margiotta controlled. Once again, the defendant directed subordinate employees at eHealth to pay the invoices.
In total, the defendant caused eHealth to pay approximately $455,000 in false and fraudulent invoices. A substantial portion of those funds were transferred into Margiotta’s personal brokerage accounts.
Furthermore, for the tax years 2011-2014, on his personal income tax returns, the defendant falsely overstated his business expenses and/or understated his business income, among other misstatements, and as a result, he evaded approximately $341,000 in taxes owed to the United States. Margiotta also filed false tax returns for his charity, AACM, for tax years 2013-2014, in order to conceal the improper transfer of $80,000 of AACM’s assets to himself.
The defendant was arraigned before U.S. Magistrate Judge Marian W. Payson and was released on conditions.
The indictment is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Public Utility Manager Sentenced to 7 Years in Prison for Theft of More Than $6 Million from Public Utility and CustomersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN FARCHIONE, a former manager at a public utility company, was sentenced last Friday to seven years in prison for fraud and identity theft offenses in connection with his theft of more than $6 million from his employer and its customers. FARCHIONE pled guilty on August 6, 2018, following the commencement of trial, before United States District Judge J. Paul Oetken, who also imposed the sentence.
U.S. Attorney Geoffrey S. Berman said: “John Farchione exploited his position to steal millions of dollars from his employer, a public utility company relied upon by millions of New Yorkers. His conduct was corrosive to the integrity of the utility, and today’s sentence sends an important message to any other person in a position of financial trust that fraud and abuse of those positions will lead to severe consequences.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court at sentencing:
From at least 2005 through November 2016, FARCHIONE engaged in fraudulent schemes resulting in the theft of more than $6 million from his public utility employer (the “Public Utility”) and its customers.
FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations, devised and implemented the schemes using his knowledge of the Public Utility’s billing and payment processes. FARCHIONE carried out the scheme with a co-conspirator who also has pled guilty in connection with the scheme. FARCHIONE’s co-conspirator operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility. FARCHIONE conspired to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash believing the payments would be submitted to the Public Utility on their behalf.
In fact, however, FARCHIONE and his co-conspirator kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility. FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.
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In addition to the prison term, Judge Oetken ordered FARCHONE, 66, to pay restitution in the amount of $7,223,641.46. FARCHIONE was also sentenced to three years of supervised release.
FARCHIONE pled guilty on August 6, 2018, to one count each of honest services fraud, mail fraud, conspiracy to commit honest services and mail fraud, and aggravated identity theft.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Sidhardha Kamaraju are in charge of the prosecution.
Former Presidio County Officials Sentenced to Federal Prison on Bribery Related ChargeRead the Press Release
In Pecos today, a federal judge sentenced two former Presidio County officials–67-year-old Carlos Eduardo Nieto and 57-year-old Lorenzo Padilla Hernandez–to 30 months and 24 months imprisonment, respectively, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered each defendant to pay a $10,000 fine and be placed on supervised release for a period of three years after completing their prison terms. Judge Counts also ordered that Hernandez forfeit to the government $19,800; Nieto, $8,300. Judge Counts allowed both defendants to remain on bond pending notification from the U.S. Bureau of Prison regarding the date and location to report to in order to begin serving their prison terms.
On October 23, 2018, Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Nieto admitted that he and Hernandez, former Presidio County Precinct 3 Commissioner, conspired since May 10, 2016, to defraud Presidio County and its citizens of money by corruptly ensuring, through their positions and influence, that a particular company would be awarded a County contract for a document management system. Hernandez and Nieto solicited and received $19,800 and $8,300, respectively, for their efforts. On May 9, 2017, Hernandez voted to award the contract to that particular company. On August 3, 2018, Hernandez pleaded guilty to the same charge.
“This office is serious about combatting public corruption. If you violate the public trust for personal gain, you can expect to go to prison,” stated U.S. Attorney Bash.
“The sentencing of these two defendants illustrates El Paso FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Presidio County and other jurisdictions accountable,” stated El Paso FBI SAC Buie. “The FBI encourages the public to continue to support our active and ongoing efforts to deter and prevent corruption in West Texas by reporting such activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”
The FBI, with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division, investigated this case. Assistant U.S. Attorneys Monty Kimball and William F. Lewis prosecuted this case on behalf of the Government.
Former Pediatric Medical Assistant Pleads Guilty to Child Sexual ExploitationRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Cameron Carlucci, 27, of Philadelphia, PA, entered a guilty plea today to a federal indictment which charged him with two counts of distribution of child pornography, and one count of possession of child pornography. The indictment stemmed from an investigation that determined Carlucci was trafficking in child pornography over the Internet for almost four years, from 2015 through his arrest in 2018. During that time, he amassed more than 56,000 images and videos that depicted mostly prepubescent boys, infants, and toddlers being sexually abused and exploited.
At the time that Carlucci distributed these images and videos over the Internet, he worked at Valley Pediatrics in Warminster, PA as a medical technician. To obtain employment with Valley Pediatrics, Carlucci falsified his application by denying his criminal history, which included a 2011 Pennsylvania conviction for possession of obscene materials and other sexual materials.
As a result of his guilty plea, Carlucci faces a statutory maximum of 60 years’ imprisonment, a 5-year mandatory minimum sentence of imprisonment, 5 years up to a lifetime of supervised release, a $750,000 fine, and $15,300 special assessment.
“Carlucci’s years of taking advantage of our community’s most vulnerable victims is reprehensible, but it is intensified by the fact that he had daily contact with children in a job he never should have had in the first place,” said U.S. Attorney McSwain. “Child exploitation is a pervasive problem – one that demands an aggressive response. We stand ready with our federal partners to identify and dismantle online forums that perpetuate this abuse.”
“Child exploitation cases are among the most disturbing the FBI works,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “They’re also some of the most impactful. We’re gratified to help take Cameron Carlucci off the street. Not only was he heavily involved with child pornography, but he purposely hid his criminal past to gain employment that allowed him daily interaction with children. If child predators can’t or won’t keep themselves away from kids, the FBI stands ready to step in and shut them down.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Former Hospital Employee Sentenced for Embezzling Hospital FundsRead the Press Release
He stole over $46,000 in a little more than a month from Pleasant Valley Hospital
HUNTINGTON, W.Va. – A Point Pleasant man was sentenced to three months in prison for embezzling more than $45,000 from the Pleasant Valley Hospital, announced United States Attorney Mike Stuart. Kevin L. Durst, 62, was also ordered to pay restitution to the Hospital in the amount of $48,782.86. Stuart commended the investigative efforts of the Department of Homeland Security.
“They trusted him and, had they not caught him, he would still be stealing from them today, “ said United States Attorney Mike Stuart. “Hospitals like Pleasant Valley are under assault financially, let alone having to protect themselves from thieves like Durst. We all pay more for healthcare to make up for the losses when unscrupulous characters steal from the very hospitals that care for us. Any amount of loss can be devastating and health care providers and patients suffer as a result.”
Durst admitted as a financial analyst at Pleasant Valley Hospital, he had access to the Hospital’s online bank accounts and could initiate wire transfers on certain of those accounts. He further admitted that he secretly wrote checks to benefit himself and to his family’s private cemetery from a Hospital account that he knew was dormant and was not scrutinized by other Hospital officials. He also admitted that he transferred funds from the Hospital’s active accounts to the dormant account to ensure that there were abundant funds for his personal use. He further admitted that he initiated wire transfers to the Internal Revenue Service out of Hospital accounts to make federal tax payments for his family’s cemetery. He embezzled the funds between July 20, 2016, and August 22, 2016.
Assistant United States Attorneys Joe Adams and Meredith George Thomas were in charge of the prosecution. United States District Judge Robert C. Chambers presided over the sentencing hearing.
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Former Hillsborough Resident Pleads Guilty to Investment Fraud SchemeRead the Press Release
SAN FRANCISCO—Michael James Frew pleaded guilty today to wire fraud, mail fraud, and money laundering charges in connection with a fraudulent real estate investment scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter. The guilty plea was accepted by the Honorable Vince Chhabria, U.S. District Judge.
According to the plea agreement, Frew, 70, formerly of Hillsborough, Calif., admitted that starting no later than 2010 and continuing through March of 2014, he solicited investments from numerous individuals on the false premise that he would invest their money in real estate. Frew sometimes claimed the real estate was in foreign countries and usually explained that the areas in which he would invest recently had been struck by a natural disaster. In truth, Frew did not invest his victims’ money in real estate. Instead, he used the money to speculate in the stock market, to make expenditures for personal expenses, and to repay other victim “investors.” Frew admitted that on several occasions he paid some of the money back to investors to make it seem like their investments were legitimate, which lulled his victims into a false sense of security that their money was properly invested. He further admitted he caused losses to his victims of up to $3.5 million.
A federal grand jury indicted Frew on July 26, 2018, charging him with two counts each of wire fraud, in violation of 18 U.S.C. § 1343; mail fraud, in violation of 18 U.S.C. § 1341; and money laundering, in violation of 18 U.S.C. § 1957. Frew pleaded guilty to all the charges except one count of mail fraud, which will be dismissed at sentencing if Frew complies with the terms of the plea agreement.
Judge Chhabria scheduled Frew’s sentencing hearing for July 17, 2019, at 10:30 a.m. The defendant faces a maximum sentence of 20 years’ imprisonment for the mail fraud count and for each count of the wire fraud counts. Frew faces a maximum sentence of 10 years’ imprisonment on each count of money laundering. In addition, Frew faces fines of $250,000 on each count in the indictment and restitution for the losses he is alleged to have caused. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with assistance from Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS-CI.
Former Employee Sentenced for Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Jennifer A. Rosenblatt, 44, formerly of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 6 months in a residential re-entry center and 6 months of home confinement by Chief United States District Judge John M. Gerrard, for wire fraud. Rosenblatt was also ordered to pay $106,604.22 in restitution and will serve 3 years on supervised release.
Between July, 2014, and October, 2016, Rosenblatt devised a scheme to defraud and to obtain money from the Jewish Federation of Lincoln. Between 2009 through June 2016, Rosenblatt served as the Treasurer of the Jewish Federation, and in that capacity, was authorized to sign checks and make electronic payments for the Jewish Federation. Rosenblatt did not have any authority to use funds for personal expenditures. However, during this time, Rosenblatt made online payments to her personal credit card accounts from funds in the Federation’s bank accounts. These payments were for personal items charged by Rosenblatt on her personal credit cards and not made for any business activities of Jewish Federation League.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Former College Student in Ithaca to Serve 24 Months on Weapons ConvictionsRead the Press Release
SYRACUSE, NEW YORK - Maximilien R. Reynolds, age 21, of Rumson, New Jersey, who resided in Ithaca, New York, while attending college, was sentenced today to serve 24 months in prison in connection with his previous guilty pleas to two felony firearms offenses.
The announcement was made by United States Attorney Grant C. Jaquith; Tompkins County District Attorney Matthew Van Houten; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); John Devito, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division; Chief Peter Tyler of the City of Ithaca Police Department; and Chief Kathy Zoner of Cornell University Police. The sentence imposed includes a 3-year term of supervised release following the defendant’s release from prison, and orders him to receive mental health services and drug treatment.
On November 13, 2018, Reynolds pled guilty to one count of willfully causing false statements to be made to a licensed firearms dealer during the purchase of a firearm (a Savage MSR-15 Multi-Caliber .223/5.56mm Patrol Rifle) and one count of possessing firearms not registered in the National Firearms Registry and Transfer Record, related to his possession of a sawed-off Savage MSR-15 Multi-Caliber 223/5.56mm Patrol Rifle, a destructive device (bomb), and a silencer. The guilty plea followed an investigation that was begun in late February 2018 after an employee at the Walmart in Ithaca notified police that Reynolds had visited the store on February 23, 2018, was acting and appearing strangely, and had purchased a large quantity of ammunition and other items.
On March 7, 2018, Ithaca Police and FBI Special Agents interviewed Reynolds in Ithaca, at which time he gave them written consent to search his apartment and car. During the search of the apartment, Ithaca Police, and FBI and ATF Agents, assisted by the New York State Police, recovered a Savage MSR-15 Multi-Caliber 223/5.56mm Patrol Rifle with a telescopic sight, 917 rounds of .223 rifle ammunition, 17 thirty-round ammunition magazines, 6 ten-round ammunition magazines, 134 rounds of 12-gauge shotgun ammunition, a silencer, a destructive device containing ball bearings, two bullet-proof vests, two gas masks, hundreds of ball bearings, wound kits (field dressings), consumer grade fireworks, chemicals for making explosives, fuse cords, a pipe section and endcap, as well as other tactical items. Reynolds was voluntarily admitted for a mental health examination at that time, and was arrested and charged on March 15, 2018.
As part of his guilty plea, Reynolds also admitted that he possessed a .25 caliber Bauer Arms semiautomatic pistol with an obliterated serial number that was located and recovered from the Cayuga Canal by New York State Police divers after friends of the defendant disposed of it there following his arrest. At the time of his arrest on March 15, 2018, Reynolds was a part-time student at Tompkins-Cortland Community College. He was previously enrolled as a full-time student at Cornell University, but was on an academic leave of absence.
This case was investigated by the FBI, ATF, the City of Ithaca Police Department, the Cornell University Police, the New York State Police and the Tompkins-Cortland Community College Campus Police, and was prosecuted by Assistant U.S. Attorney Richard Southwick with assistance from the Tompkins County District Attorney’s Office.
Former City of Wheeling employee sentenced for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Teresa D. Hudrlik, of Valley Grove, West Virginia, was sentenced today to six months incarceration for committing wire fraud while employed by the City of Wheeling, United States Attorney Bill Powell announced.
Hudrlik, age 48, pled guilty to one count of “Wire Fraud” in October 2018. Hudrlik was the Human Resources Director for the City of Wheeling from April 2016 to March 2018. During her tenure with the City of Wheeling, she admitted to using a city-issued purchasing card to make personal purchases, without authorization. Hudrlik also admitted to altering receipts and documentation to disguise said purchases, giving herself payroll bonuses without authorization, and causing unauthorized payroll payments in the names of other city employees to be deposited into personal banking accounts Hudrlik controlled. The crimes occurred from June 2016 to March 2018 in Ohio County.
“We must hold our public employees to a high standard, expecting them to operate as hardworking and honest public servants. The vast majority meet or exceed those expectations. Ms. Hudrlik violated the sacred public trust, and was prosecuted and sentenced for that violation, in accordance with the rule of law. We commend the City of Wheeling and its cooperation in this matter,” said Powell.
The judge ordered Hudrlik to pay restitution to the City of Wheeling in the amount of $80,000 and a money judgement in the amount of $50,000. Hudrlik was also ordered to serve three years supervised release following her incarceration.
“The City of Wheeling employees are required to hold the public trust in a very sacred manner and senior members of the City’s management, being administrators, are held to an even higher standard and higher level of expectations of honesty. As public employees, we are required to operate municipal governments in a fair and fiducially prudent manner concerning the public funds. This employee violated all such levels of trust. The City of Wheeling believes that this former employee should be punished for her conduct and trusts that the Court considered an appropriate prison sentence along with restitution to the City of Wheeling,” said Robert Herron, City Manager, the City of Wheeling
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Auditor’s Office, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Former Bexar County Jail Guard Sentenced to Three Years in Federal Prison for Conspiring to Smuggle Contraband to InmatesRead the Press Release
In San Antonio today, a former detention officer at the Bexar County Adult Detention Center (BCADC) was sentenced to three years in federal prison for a scheme to smuggle methamphetamine to inmates, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Bexar County Sheriff Javier Salazar.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that 30-year-old Gabriel Robert Ortiz be placed on supervised release for a period of three years after completing his prison term. On November 20, 2018, Ortiz pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. By pleading guilty, Ortiz admitted that he and his co-defendant, 27–year-old former BCADC officer Ruben Hernandez, carried out their attempted smuggling scheme from May 4, 2018, until June 22, 2018. Both defendants were the subjects of an undercover operation carried out by federal and state authorities.
Hernandez pleaded guilty to the same conspiracy charge on January 2, 2019. He faces up to 20 years in federal prison. Sentencing is scheduled for April 8, 2019.
“This sentence shows that members of law enforcement who violate the law will be held to the same standards as any other citizens,” stated U.S. Attorney John Bash.
“I am glad to see that justice was served in this case, and I am proud to have partnered with the FBI on this sting operation. As I’ve stated in the past officer misconduct will not be tolerated within my agency and I will do everything possible to hold them accountable criminally and administratively,” stated Bexar County Sheriff Javier Salazar.
The FBI and the Bexar County Sheriff’s Office investigated this case. Assistant U.S. Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Felon in Possession of a Firearm Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Allen Malcolm Stienke, 35, of Robertsdale, Alabama, was sentenced on the charge of felon in possession of a firearm. Court documents reflect that Steinke was in a vehicle stopped by the Elberta police for displaying a switched tag. The officers recovered four guns in the vehicle, along with several items described a burglary tools. Steinke has a prior felony conviction for Unlawful Manufacturing of a Controlled Substance in Baldwin County Circuit Court, and the guns were described as three pistols and a revolver. Stienke pled guilty to the charge in September of 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 51 months imprisonment, to be followed by three years of supervised release. During his supervision, Steinke will undergo treatment for drug and alcohol abuse. The judge did not impose a fine, but ordered that Steinke pay $100 in special mandatory assessments.
The case was investigated by the Elberta Police Department, the Baldwin County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Felon Sentenced to Prison for Possessing Firearms and Drug TraffickingRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to over eight years in prison for being a felon in possession of firearms and possessing firearms in furtherance of drug-trafficking crimes.
According to court documents, Loron Barnes, 25, was pulled over for driving 67 miles an hour in a 35-mile-an-hour zone roughly a block from the local police station. After officers smelled marijuana coming from the vehicle, they conducted a search and found contraband in every part of the car, including an AK-type rifle loaded with 57 rounds of ammunition in two extended magazines taped together sitting on the back seat next to a black ski mask and suspected marijuana; a loaded, stolen handgun underneath the driver seat; heroin, cocaine, amphetamine, and a digital scale in the driver’s-side-door pocket; more heroin in the center console; more cocaine in the front passenger-side door pocket; two boxes of .45 caliber ammo on the front-passenger-seat floor; and an empty handgun magazine in the driver’s-side-door armrest. Police discovered more than 26 grams of heroin and more than 20 grams of cocaine.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert Porti, Deputy Chief of the City of Franklin Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-118.
Federal Jury Convicts Woman of Coercing Members of Church Ministry into Forced LaborRead the Press Release
CHICAGO — A federal jury in Chicago has convicted the self-appointed bishop of a Pennsylvania ministry of forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.
TRACIE DICKEY, also known as “Tracie Williams,” 55, of Pittsburgh, Pa., was found guilty Friday on one count of wire fraud and one count of labor trafficking. Each count is punishable by up to 20 years in prison. U.S. District Judge Sara L. Ellis set sentencing for Aug. 7, 2019, in federal court in Chicago.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh, Pa., field office. The government is represented by Assistant U.S. Attorneys Maureen E. Merin and Eric S. Pruitt.
Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in locations such as Pennsylvania, North Carolina, and Florida. She also purported to operate a travel agency known as World Ambassador Travel.
Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels. She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, via a bank account controlled by Dickey. In reality, the travel agency never actually booked hotel reservations on behalf of guests.
From 2005 to 2013, the hotels paid approximately $86,000 in commissions to Dickey. Dickey also collected approximately $333,000 in wages earned by members of her ministry. Dickey emotionally and physically abused the members, and coerced them into following her rules and remitting their earnings to Dickey or her church. Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules. Several of Dickey’s victims testified at trial about their ordeals.
Father and Son Sentenced in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 54, of Jackson, was sentenced today to 57 months in prison, and his son, Zachary Longgrear, 29, of Madison, was sentenced to 28 months in prison by United States District Judge Carlton W. Reeves for conspiring to reset and alter the odometers of motor vehicles, to giving or causing to be given false statements relating to odometers, and securities fraud, announced U.S. Attorney Mike Hurst and Special Agent-in-Charge Midwest Region, Kevin L. Porter with the U.S. Department of Transportation, National Highway Traffic Safety Administration. The Longgrears were also ordered to pay restitution, jointly and severally, in the amount of $1.5 million.
From 2014 through at least February 2018, Mark Longgrear, along with his son, Zachary Longgrear, both individually and under their company Southern Auto Buyers LLC, bought a large number of late model, high mileage vehicles from numerous sources, and thereafter illegally altered the odometers of these vehicles to show lower mileage. The Defendants forged and fraudulently created paperwork to secure new titles showing false lower mileage on these vehicles, and then sold the vehicles directly to individuals and automobile dealerships at much higher prices. Some of these rolled-back vehicles were subsequently sold by the dealerships to consumers in the Mississippi area and elsewhere. Over 200 vehicles have been confirmed with rolled-back odometers.
The case is the result of an investigation by the United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Odometer fraud is the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the number of miles indicated. NHTSA estimates that more than 450,000 vehicles are sold each year with false odometer readings. It costs American consumers more than $1 billion annually.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (202) 366-4761.
Eufaula Man Sentenced to 157 Months for Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Erickson Clay Ward, age 57, of Eufaula, Oklahoma, was sentenced to 97 months imprisonment and 4 years of supervised release for Possession With Intent To Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(B); and 60 months imprisonment to run consecutive to his sentence for Count 1, for Possession Of Firearm In Furtherance Of Drug Trafficking Crime in violation of Title 18, United States Code, Section 924(c). The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 3, 2018, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment also alleged that on or about May 3, 2018, the defendant knowingly possessed a firearm - a Cobra Enterprises, Inc. / Kodiak Ind., Model FS380, 380 caliber pistol, serial number FS049344 - in furtherance of a drug trafficking crime.
United States Attorney Brian J. Kuester said, “Helping state and local law enforcement authorities combat violent crime is a priority for this office and the Department of Justice. We can maximize our impact in the communities we serve when federal, state, local and tribal law enforcement agencies recognize that we all have the common goal of public safety, and work together to achieve it. This case is a great example of the type of interagency cooperation that is a common occurrence in the Eastern District.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Enfield Man Who Sold Heroin and Fentanyl to Overdose Victim Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER FELICIANO, 29, of Enfield, pleaded guilty today in Bridgeport federal court to one count of possession with intent to distribute, and distribution, of heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 8:55 a.m., on October 8, 2017, Enfield Police and emergency medical personnel responded to a residence in Enfield and found an unresponsive 24-year-old male in the home. The victim was pronounced deceased. Officers searched the immediate area and located narcotics paraphernalia. Officers also seized the victim’s phone. An analysis of Facebook messages and telephone contacts revealed that the victim had ordered heroin/fentanyl from Feliciano the day before the victim was found deceased.
The offense carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
Feliciano is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Eastern Shore Drug Dealer Pleads Guilty to Distribution of Fentanyl AnaloguesRead the Press Release
Baltimore, Maryland – Narada Walls, age 38, of Salisbury, Maryland, pleaded guilty today to conspiracy to possess and to distribute fentanyl and fentanyl analogues. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in fall 2017, law enforcement began an investigation into a drug trafficking organization operating on the Eastern Shore of Maryland and in Baltimore, which was responsible for importing and distributing fentanyl and fentanyl analogue substances. This investigation revealed that Narada Walls was part of the conspiracy and used assumed names and a fake e-mail address to purchase methoxyacetyl fentanyl directly from suppliers in China. Walls had this product shipped to addresses of his acquaintances along the Eastern Shore of Maryland to distance himself from the packages. Walls imported more than 1.5 kilograms of methoxyacetyl fentanyl in this manner.
In September and November, 2017, a confidential source purchased fentanyl analogue substances from Walls, at the direction of law enforcement. On each occasion, Walls brought the drugs to Baltimore, where he met with the source. During their interactions Walls discussed with the source the potency of this product and how it needed to be diluted with cutting agents or offered only to experienced drug users, or else overdoses could occur.
In December 2017, law enforcement executed a search warrant at Walls’ residence in Salisbury. Inside a safe found at the home was approximately 419 grams of methoxyacetyl fentanyl and approximately $18,650 in drug proceeds. Law enforcement recovered other drug-related paraphernalia from Walls’ bedroom, including a blender, a digital scale, and packaging materials.
Walls agreed that, in June 2017, he was in a relationship with a recovering heroin user. According to a witness, on June 14, 2017, Walls asked this woman to clean up the kitchen, which was the area where Walls mixed his drug product. In the process of cleaning up the blender in the kitchen, the victim ingested some of this fentanyl analogue product. At approximately 6:15 pm, Walls found the victim on the kitchen floor. Paramedics were called, and she was later pronounced dead. An autopsy determined that the woman’s death was caused by her exposure to this fentanyl analogue product.
As part of his plea agreement, Walls will be required to forfeit any items of value seized during search of Walls’ home and vehicle, including $18,650 in cash seized from his residence in December 2017, and $11,000 in cash seized from his vehicle in June 2017.
The government and Walls have agreed that 12 years in prison is the appropriate resolution of this case and will recommend that sentence to the court. U.S. District Judge George L. Russell III has scheduled sentencing for June 21, 2019 at 11:30 a.m.
United States Attorney Robert K. Hur commended HSI and Maryland State Police Gang Enforcement Unit East for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jason D. Medinger and Burden Walker, who are prosecuting the case.
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Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Mary Etta Kessler, a/k/a/ Marietta Kessler, age 55, was indicted on February 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that at a time unknown, but no later than on April 1, 2016, and continuing to February 13, 2019, in South Dakota, Kessler knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Kessler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Kessler was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Convicted Felon Sentenced for Heroin Trafficking and Possessing FirearmRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to more than 15 years in prison for conspiring to distribute and possess heroin and for possessing a firearm as a convicted felon.
“Drug traffickers in possession of firearms pose a significant threat to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting these cases remains a top priority in the Eastern District. We would not have been able to achieve this result without the cooperation of our local and federal law enforcement partners. My thanks to Homeland Security Investigations Norfolk and the Virginia Beach Police Department for their outstanding work on this case.”
According to court documents, in June 2016, law enforcement learned that a person identified in court filings as S.D., was supplying heroin to an unidentified suspect with a (757) area code telephone number. Homeland Security Investigations Norfolk and the Virginia Beach Police (VBPD) identified the local suspect as Antonio Jerome Johnson, 37, of Virginia Beach. On October 20, 2016, HSI-Norfolk and VBPD observed S.D. enter Johnson’s residence in Virginia Beach. The next day, HSI-Norfolk and VBPD executed a search warrant at Johnson’s residence and seized nearly 800 grams of heroin, approximately $240,000 in cash, a loaded handgun, a bill money counter, digital scales, and a kilogram press. Johnson was a convicted felon at the time of this incident and was prohibited from possessing any firearm.
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, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Darryl J. Mitchell 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-17.
Ceres Man Pleads Guilty to 15-Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Jose Manuel Sotelo-Mendoza, 26, of Ceres, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.
Salazar is scheduled for sentencing on April 8, 2019, before U.S. District Judge Dale A. Drozd. Sotelo is scheduled for sentencing on May 13, 2019. They both face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
California Man Arrested Getting Off Plane in Rochester to Have Sex with A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gabriel Murillo, 44, of San Bernadino County, California, was arrested and charged by criminal complaint with attempted online enticement of a minor. The charge carries a minimum penalty of 10 years in prison, a maximum of life, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, between April 2018 and February 2019, Murillo engaged in sexually explicit online conversations with an individual who he believed was a 12 year old girl living in upstate New York. The defendant attempted to groom the child by sending her pornography, and despite acknowledging her age, requested that she meet with him for sex. On February 16, 2019, Murillo flew from Los Angeles, CA to Rochester, NY, in order to have sex with the child. Unbeknownst to the defendant, the child was actually an undercover New York State Police Investigator.
Murillo was apprehended while disembarking a plane at the Greater Rochester International Airport on February 16, 2019, by members of the New York State Police, Homeland Security Investigations, and the Federal Air Marshal Service.
The defendant made an initial appearance before U.S. Magistrate Marian W. Payson and is being held without bail pending a detention hearing.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; United States Department of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Federal Air Marshal Service, under the direction of Supervisory Air Marshal-in-Charge William Hall.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Sentenced for Selling Synthetic MarijuanaRead 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 Fawzi Al-Arashi, 41, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute a controlled substance, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the investigation began in early 2012 when the Los Angeles Field Office of the Drug Enforcement Administration (DEA) notified the DEA's Buffalo Field Office of a suspected synthetic marijuana shipment destined for Buffalo. The package was delivered to the defendant at 3407 Delaware Avenue in the Town of Tonawanda, home of Town Tobacco.
Subsequent investigation revealed that Al-Arashi sold synthetic marijuana, also known as “Spice,” under such names as “Strawberry Flavored Potpourri,” “Tiger Shack,” “Atomic,” “G-20,” and “California Dreams” out of Town Tobacco on Delaware Avenue in Tonawanda, and at Welcome Welcome on Main St. in North Tonawanda.
Throughout the investigation, police received numerous complaints regarding the stores. One woman called and stated that her son was in the Erie County Medical Center Psychiatric Ward after using synthetic marijuana that he bought at Town Tobacco.
On July 25, 2012, authorities executed a search warrant at a warehouse leased to the defendant where he stored the synthetic marijuana, and found some 75 pounds of the products, which were typically sold in small sealed packets.
As part of the plea agreement, Al-Arashi forfeited more than $290,000 seized from various of his bank accounts as well as a 2012 Toyota Tundra.In announcing the sentence, U.S. Attorney Kennedy stated, “Despite the ‘green rush’ sweeping through our region of late, today’s sentencing makes two things crystal clear: (1) the manufacture and distribution of marijuana—whether real or synthetic—remain federal crimes; and (2) proceeds from the manufacture and distribution of marijuana remain subject to federal seizure and forfeiture.”
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in- Charge, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of under the Major Mary Clark; the Tonawanda Police Department, under the direction of Chief Jerome Uschold; the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast; the Amherst Police Department, under the direction of Chief John Askey; and the Cheektowaga Police Department, under the direction of Chief David Zack.
Buckhannon woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ann Marie Stankus, of Buckhannon, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Stankus, age 24, pled guilty to one count of “Aiding and Abetting the Possession with Intent to Distribute Methamphetamine.” Stankus admitted to working with another to distribute methamphetamine in December 2017 in Upshur County.Stankus faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Brooklyn Tax Return Preparer Pleads Guilty to Stolen Identity Refund Fraud SchemeRead the Press Release
A Brooklyn, New York, resident pleaded guilty on Friday to 42 counts of an indictment charging him with 18 counts of wire fraud, 22 counts of aggravated identity theft, one count of conspiring to commit aggravated identity theft, and one count of aiding and assisting the filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.
According to court documents, Bamgbala, the owner of Kaybamz Inc., a tax preparation business located in Brooklyn, New York, used stolen Social Security Numbers to file false tax returns with the Internal Revenue Service (IRS) to obtain fraudulent refunds. The superseding indictment also alleges that Bamgbala and others conspired to deposit the unlawfully obtained tax refund checks into a specified bank account to obtain the cash value of those checks, and created fraudulent IRS forms and New York State identification documents to facilitate the scheme.
Bamgbala faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, a maximum sentence of 20 years in prison for each count of wire fraud, a maximum sentence of five years in prison for each conspiracy count, and a maximum sentence of three years in prison for the aiding and assisting in the filing of a false tax return count. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.
Broken Bow Man Sentenced to 55 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Johnny Ray Webb, age 51, of Broken Bow, Oklahoma, was sentenced to 55 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about March 14, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “As the Department of Justice continues to make it a priority to combat violent crime, we must continue to build and strengthen the working relationships between law enforcement agencies from local, state, tribal and federal jurisdictions. As demonstrated in this case, when we are working together to combat violent crime and other criminal activity, we are making progress toward our shared goal of public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Billings man sentenced to 15 years for meth traffickingRead the Press Release
BILLINGS—Billings resident James Nevels, III, was sentenced to 15 years in prison and five years of supervised release today for trafficking methamphetamine in the Billings community, U.S. Attorney Kurt Alme said.
Nevels, 40, pleaded guilty in August to conspiracy to possess meth with intent to distribute and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
Prosecutors said evidence showed that drug investigators received information in October 2017 that Nevels and co-defendant, Nicole Waldhalm of Billings, were distributing in the Billings area meth that Waldhalm received from California. A confidential informant made meth buys from both Waldhalm and Nevels. In December 2017, the Montana Highway Patrol arrested Waldhalm, who was in possession of one ounce of meth. Waldhalm admitted that she and Nevels had brought between two and four ounces of meth from California to Montana.
Waldhalm was convicted in July 2018 in the case and sentenced last November to five years in prison.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, the Drug Enforcement Administration, FBI and Billings Police Department.
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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Berea man charged after he allegedly contacted several children between the ages of 12 and 15 and coerced them into sending him sexually explicit imagesRead the Press Release
Cody Swinnerton, 24, of Berea, was charged in federal court with sexual exploitation of children and receipt of child pornography after he allegedly contacted several children between the ages of 12 and 15 and coerced them into sending him sexually explicit images.
According to an affidavit in the case:
The Ohio Internet Crimes Against Children Task Force received a tip that Swinnerton appeared to be enticing and coercing minors to produce sexually explicit images. Swinnerton controlled multiple accounts and targeted minors between the ages of 12 and 15 on Instagram and Facebook.
Swinnerton contacted the victims’ friends and family to coerce the victims into producing more images. He also threatened the victims in an effort to get them to produce sexually explicit images. Further investigation revealed potential victims in Ohio, Tennessee, Iowa, Texas, Australia, Austria and France.
A search warrant was executed at the home where Swinnerton lives in Berea on January 25. Relatives said Swinnerton was on vacation in Australia at the time. A review of his computer revealed several images of child pornography.
“This case demonstrates how predators will target our children over social media,” U.S. Attorney Justin E. Herdman said. “Parents and trusted adults need to make it their business to know who their kids are communicating with. We will continue to work with law enforcement agencies to prosecute these predators.”
“This case is a disturbing reminder that international borders are no longer a hindrance for online predators,” said Steve Francis, special agent in charge of HSI for Michigan and Ohio. “However, this arrest should assure victims around the world that Homeland Security Investigations and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This investigation is being conducted by Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, HSI-Canberra, the Australian Federal Police and Australian Border Force. The case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
A charge is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bay Area Business Owner Pleads Guilty to Defrauding United States of More Than $500,000 of Employment TaxesRead the Press Release
SAN FRANCISCO – Herminigilda Manuel pleaded guilty today in federal court to willfully failing to account for and pay over federal employment taxes, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Kareem Carter. The plea was accepted by the Honorable Richard Seeborg, U.S. District Judge.
Manuel, 62, of San Leandro, Calif., is the former owner of three assisted living facilities in the San Francisco Bay Area. In pleading guilty, Manuel admitted that from 2010 through 2013, she willfully failed to account for and pay more than $500,000 of employment taxes (i.e., federal income, Social Security, and Medicare taxes) that were owed by the assisted living facilities. Further, Manuel admitted that to conceal her fraud, she caused her assisted living facilities to keep two sets of payroll accounting records. One set of records consisted of wages paid to employees and taxes withheld from those wages that were reported to the IRS. The second set of accounting records consisted of additional wages paid to employees that were not reported to the IRS. The employment taxes due on the additional wages totaled $512,000.
Manuel was charged by information on February 8, 2019, with twelve counts of willful failure to account for and pay over employment taxes, in violation of 26 U.S.C. § 7202. Under the plea agreement, Manuel pleaded guilty to one count; if Manuel complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Judge Seeborg scheduled Manuel’s sentencing hearing for June 11, 2019 at 2:30 p.m. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Baton Rouge Man Pleads Guilty to Trafficking More than 500 Grams of MethamphetamineRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEVONTA DUNN, age 24, of Baton Rouge, pleaded guilty Friday, February 15, 2019 to a one-count indictment charging him with trafficking 500 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A).
According to court documents, Dunn was arrested at the Louis Armstrong New Orleans International Airport after he arrived from Los Angeles with nearly four kilograms of methamphetamine hidden inside snack food boxes in his checked bag. DUNN pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine, for which he faces a term of imprisonment of at least ten years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment.
Judge Milazzo set sentencing for Wednesday, May 15, 2019.
United States Attorney Strasser praised the work of the Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, St. Charles Parish Sheriff’s Office, and Kenner Police Department. Assistant U.S. Attorney Jeffrey Sandman is in charge of the prosecution.
Ash Man Sentenced to 120 Months in Prison for Drug Trafficking & Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced VICTOR DEMETRIOUS WATSON, 27, of Ash, North Carolina, to 120 months in prison, followed by 5 years of supervised release.
WATSON was charged in a three-count Superseding Indictment filed on May 16, 2018. On August 13, 2018, WATSON pled guilty to one count of Possession with Intent to Distribute a Quantity of Heroin, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
An investigation was initiated by the Brunswick County Sheriff’s Office (BCSO) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after receiving anonymous information regarding WATSON being in possession of stolen firearms. On December 6, 2017, the BCSO received an anonymous tip that WATSON was in possession of numerous stolen firearms and was in the process of “moving” them.
On December 6, 2017, in an attempt to determine if WATSON was in possession of stolen firearms, two confidential informants, CI1 and CI2, were sent to WATSON’S home in order to conduct a controlled purchase of heroin. The CIs met WATSON at the back door of WATSON’S home and purchased 10 bindles1 (1 gram) of heroin from him for $80. Based upon the CIs’ observations, WATSON possessed an additional 40 to 50 bindles of heroin.
Investigators executed a search of WATSON’S home and vehicle on December 7, 2017. Law enforcement located a .40 caliber semi-automatic handgun and a 9 mm semi-automatic handgun, one box of .40 caliber ammunition, one box of 9 mm ammunition, 44 bags (4.4 grams) of heroin, 23 units of Alprazolam, 1 unit Acetaminophen/Oxycodone hydrochloride (10 milligrams), and $330 which included the $80 of buy money. Prior to being taken into federal custody, WATSON admitted the firearms and heroin were his. Law enforcement determined the firearms had not been reported stolen.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case was brought by the United States Attorney’s Office through partnership with the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Ada Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Scot Edwin Anderson, age 61, of Ada, Oklahoma, was sentenced to 188 months imprisonment and 3 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The charges arose from an investigation by the Pontotoc County Sheriff’s Office, the District 22 Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about July 31, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectible amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Methamphetamine destroys lives and communities, and Meth dealers deliver that destruction. This joint investigation and the resulting prosecution is part of our ongoing efforts to work with federal, state, local, and tribal law enforcement agencies to combat violent crime and disrupt drug distribution networks. Open lines of communications and cooperation among agencies leads to successful outcomes for the communities that we serve together.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced STEWART MILES DOTY, 62, of Big Piney, Wyoming on February 8, 2019 for manufacture, distribution, and possession with intent to manufacture and distribute marijuana, money laundering conspiracy, and laundering of monetary instruments. Doty was arrested in Big Piney, Wyoming. He received eighteen months of imprisonment as to counts 1 and 3 to be served concurrently, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $500.00. The Sublette County Sheriff’s Office, Wyoming Division of Criminal Investigation, Internal Revenue Service and US Drug Enforcement Administration investigated this case.
Beginning no later than 2011, Doty operated an organic tomato business called Wyomatoes from his residence in Big Piney. There, Doty grew tomatoes and other vegetables in greenhouses for sale at farmer’s markets and to retailers. Doty’s business fell on hard times, so he began growing and selling marijuana instead of tomatoes in 2016.
In August 2017, Sublette County Sheriff’s Office deputies and Wyoming Division of Criminal Investigation special agents served a search warrant on Doty’s Big Piney property. Deputies and agents found approximately 47 pounds of processed marijuana, several thousand dollars in cash, and marijuana stalks and root-balls. Doty was present for the search warrant and admitted he had been cultivating and selling marijuana.
Special agents with the U.S. Drug Enforcement Administration and the Internal Revenue Service reviewed Doty’s financial records. These records showed that Doty had been depositing cash from marijuana sales into his business bank account to make it appear as if he had earned the money from his tomato business.
Federal District Court Judge Alan B. Johnson sentenced JOSE BEDOLLA-VASQUEZ, 27, of Mexico on February 12, 2019 for illegal re-entry of a previously deported alien into the United States. Bedolla-Vasquez was arrested in Casper, Wyoming. He received six months of imprisonment and order to pay a $100.00 special assessment. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced STEVEN THOMAS ATWELL, 56, of Cheyenne, Wyoming on February 11, 2019 for felon in possession of a firearm and ammunition. Atwell was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JONATHON DANIEL WRIGHT, 37, of Laramie, Wyoming on February 2, 2019 for escape from custody. Wright was arrested in Laramie, Wyoming. He received eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The United States Marshals Service investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced KENNETH DARRYL WASHINGTON, 47, of Olympia Fields, Illinois on February 4, 2019 for felon in possession of a firearm and ammunition. Washington was arrested in Grand Junction, Colorado. He received forty-six months of imprisonment, to be followed by twenty-four 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 Alan B. Johnson sentenced FELIPE RODRIGUEZ-FERNANDEZ, 39, of Tamaulipas, Mexico on February 6, 2019 for illegal re-entry of a previously deported alien into the United States. Rodriguez-Fernandez 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 investigated this case.
15 February 2019
William P. Barr Confirmed as 85th Attorney General of the United StatesRead the Press Release
President Donald J. Trump participates in swearing-in of William P. Barr administered by U.S. Supreme Court Chief Justice John Roberts on February 14, 2019. Attorney General Barr's wife, Christine, holds the Bible. (Official White House Photo by Tia Dufour)
WASHINGTON – Today, William P. Barr was confirmed by the U.S. Senate to be the 85th Attorney General of the United States. Following the vote, President Donald J. Trump participated in the swearing-in of Mr. Barr during a ceremony in the Oval Office of the White House, where U.S. Supreme Court Chief Justice John Roberts administered the oath of office. Mr. Barr’s wife, his three daughters and their spouses, and his grandchildren attended the ceremony. Mr. Barr joins John Crittenden (1841 and 1850-1853) as one of only two people in U.S. history to serve twice as Attorney General.
Mr. Barr is rejoining the Department of Justice where he previously served as the 77th Attorney General of the United States from 1991 to 1993 under President George H.W. Bush. Mr. Barr also served as the Deputy Attorney General from 1990 to 1991 and as the Assistant Attorney General of the Office of Legal Counsel from 1989 to 1990. While serving at the Department, Mr. Barr helped create programs and strategies to reduce violent crime and was responsible for establishing new enforcement policies in a number of areas including financial institutions, civil rights, and antitrust merger guidelines. Mr. Barr also led the Department’s response to the Savings & Loan crisis; oversaw the investigation of the Pan Am 103 bombing; directed the successful response to the Talladega prison uprising and hostage taking; and coordinated counter-terrorism activities during the First Gulf War.
Most recently, Mr. Barr served as Of Counsel at Kirkland & Ellis. Before his work at Kirkland & Ellis, he served as Executive Vice President and General Counsel for GTE Corporation from 1994 until 2000 and as Executive Vice President and General Counsel of Verizon from 2000 to 2008.
Mr. Barr served as a law clerk under Judge Malcolm Wilkey of the U.S. Court of Appeals for the District of Columbia Circuit, and from 1982 to 1983, served on the White House Domestic Policy Staff under President Ronald Reagan. He received his A.B. in government in 1971 and his M.A. in government and Chinese studies in 1973, both from Columbia University. From 1973 to 1977, Mr. Barr served in the Central Intelligence Agency before receiving his J.D. with highest honors from George Washington University Law School in 1977.
The Department of Justice welcomes back Attorney General Barr and looks forward to his leadership in upholding the rule of law and protecting the rights of all Americans.
Vermont U.S. Attorney’s Office Collects $3,743,362.58 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
U.S. Attorney Christina E. Nolan announced today that the District of Vermont collected $3,743,362.58 in criminal and civil actions in Fiscal Year 2018. Of this amount, $704,388.04 was collected in criminal actions and $3,038,974.54 was collected in civil actions.
Additionally, the U.S. Attorney’s Office in Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $19,390.41 in cases pursued jointly by these offices, all of which were results in criminal actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens, to recover financial losses they sustain from criminal conduct, and to safeguard precious taxpayer resources,” said United States Attorney Christina E. Nolan. “Their efforts enabled us to achieve justice and recoup a significant amount of taxpayer dollars in Fiscal Year 2018.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
United States Announces Memorandum of Understanding Ensuring Compliance with Voter Registration RequirementsRead the Press Release
The Department of Justice today announced that it has entered into a Memorandum of Understanding with the State of Connecticut through the Connecticut Secretary of the State to help ensure compliance with federal law regarding maintenance of voter registration lists. Under the agreement, Connecticut will coordinate its statewide voter registration database with Connecticut Department of Public Health records to identify registered voters who have died.
Section 303 of Help America Vote Act of 2002 (HAVA) requires states to implement a computerized statewide voter registration list and, along with Section 8 of the National Voter Registration Act of 1993 (NVRA), includes requirements for maintaining this computerized list. As part of these requirements, a state must coordinate its voter registration lists with state agency records on death for purposes of removing the names of deceased voters from its voter rolls.
“The requirements of HAVA and the NVRA help ensure that voter registration records remain accurate and current,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice appreciates Connecticut’s cooperative efforts to ensure its list maintenance procedures comply with the protections and procedures of HAVA and the NVRA.”
The parties’ agreement requires the Connecticut Secretary of the State to create and implement an administrative plan that includes procedures to coordinate the State’s voter registration list with Connecticut Department of Health records on deaths. The agreement also requires the state to report certain data relating to the coordination of these databases and list maintenance activities resulting from that coordination.
More information about the Help America Vote Act, the National Voter Registration Act, and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.