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30 January 2019
Levant Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Damian A. Ouellette, 26, of Levant, Maine pleaded guilty today to being a felon in possession of a firearm.
According to court records, on November 2, 2018, deputies responded to a report of domestic violence at the defendant’s Levant residence where they recovered a 9mm pistol that he hid in a bin of clothes in his bedroom. The defendant was prohibited from possessing the firearm because he had three prior felony convictions for robbery and/or theft.
He faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Penobscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lawrence Man Pleads Guilty to Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Lawrence man pleaded guilty to a federal charge of distributing child pornography, U.S. Attorney Stephen McAllister said today.
Brian Fuchs, 49, Lawrence, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted investigators found approximately 2,000 images and 200 videos containing child pornography on his computer.
The FBI used an internet peer-to-peer file sharing program to download child pornography from Fuchs before serving a search warrant at his home.
Fuchs agreed in his plea to pay $20,000 restitution to the victims.
Sentencing is set for April 22. He faces a penalty of not less than five years, not more than 20 years and a fine up to $250,000.
McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Lamont Evans, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LAMONT EVANS, a former men’s basketball coach at the University of South Carolina (“South Carolina”) and later at Oklahoma State University (“OSU”), pled guilty in Manhattan federal court today to taking approximately $22,000 in cash bribes from athlete advisers in exchange for using his influence over South Carolina and OSU basketball players to retain the services of the advisers paying the bribes. EVANS pled guilty before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lamont Evans, formerly a men’s basketball coach at South Carolina and Oklahoma State, abused his position as a mentor and coach for personal gain. Evans took bribes from unscrupulous agents and financial advisers to steer his players to those agents and advisers. A scheme Evans apparently thought was a slam-dunk actually proved to be a flagrant foul.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
EVANS was a men’s basketball coach at South Carolina until on or about April 2016, and then at OSU until shortly after his arrest. Beginning in 2016, and continuing into September 2017, when EVANS was arrested, EVANS received approximately $22,000 in cash bribes from current and aspiring financial advisers and/or managers for professional athletes in exchange for EVANS’s agreement to exert his influence over certain student-athletes EVANS coached at South Carolina and OSU to retain the services of the bribe payers once those players entered the National Basketball Association (“NBA”).
In one meeting recorded during the investigation, Evans explained how “every guy I recruit and get is my personal kid,” and that “the parents believe in me and what I do … that’s why I say, if I need X, so if I do take X for that, it’s going to generate [business] toward you guys,” referring to the bribers. Evans also stated in a call recorded during the investigation how this arrangement was “generating more wealth” for the scheme participants, because they were “able to scratch my back, scratch yours, and help each other with different things and . . . at the same time get compensated and then . . . just go from there.” In return for the cash bribes EVANS received, EVANS facilitated a meeting between the bribe payers and a player at OSU, and a meeting between the bribe payers and a relative of a different player attending South Carolina, for the purpose of pressuring those players to retain the financial services of the bribe payers.
In addition to today’s plea, Emanuel Richardson, a/k/a “Book,” a former men’s basketball coach at the University of Arizona, and Anthony Bland, a/k/a “Tony,” a former men’s basketball coach at the University of Southern California, both previously pled guilty, pursuant to plea agreements with the Government, in connection with this scheme. Munish Sood, a financial adviser, also previously pled guilty, pursuant to a cooperation agreement with the Government, in connection with this scheme.
* * *
EVANS, 41, of Stillwater, Oklahoma, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, EVANS agreed to forfeit $22,000. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for May 10, 2019, before Judge Ramos.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert Boone, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Lab Owner Ordered to Pay $544,000 for Environmental ViolationRead the Press Release
KANSAS CITY, KAN. – The owner of the now-closed Beta Chem Laboratory in Lenexa has been ordered to pay $544,287 in restitution for storing hazardous waste without a license, U.S. Attorney Stephen McAllister said.
Ahmed El-Sherif, 63, Leawood, Kan., was found guilty in a bench trial of storing hazardous waste without a license. El-Sherif started Beta Chem in the mid-1990s, which he owned and operated. On October 4, 2013, after issuing an Emergency Order to Seize and Secure Radioactive Materials, KDHE took control of Beta Chem and secured the facility.
The Criminal Investigation Division of Environmental Protection Agency executed a search warrant at Beta Chem on Jan. 22, 2014, where agents discovered numerous containers containing hazardous wastes and contaminated with radiation.
During trial, U.S. District Court Judge Julie A. Robinson found that by 2012 Beta Chem had become a defunct operation and hazardous chemicals were being stored at the facility in lieu of a thorough decommissioning and decontamination process.
Robinson found El-Sherif not guilty on a charge of obstructing a federal investigation.
El-Sherif will serve two years on federal probation.
McAllister commended the EPA Criminal Investigation Division and the Environmental Crimes Section of the Department of Justice for their work on the case.
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. -- A Kanawha County man pled guilty to a federal drug crime, announced United States Attorney Mike Stuart. Douglas Matthew Spry, 42, entered his guilty plea to possession with the intent to distribute over 50 grams of methamphetamine. The investigation was conducted by the Nitro Police Department, with assistance from the United States Department of Homeland Security.
“Digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box,” said United States Attorney Mike Stuart. “Methamphetamine is wreaking havoc on the good people of West Virginia. Drug dealers bring pain to their victims and great harm to our communities.”
Spry admitted that on December 10, 2017, his vehicle was the subject of a traffic stop near Nitro, West Virginia. An officer with the Nitro Police Department could smell burnt marijuana emanating from the vehicle. During a search of the vehicle, officers located digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box. During the traffic stop, Spry denied knowledge of the methamphetamine but informed the officer that his fingerprints would likely be on the bag. At the plea hearing, Spry admitted that he intended to sell the methamphetamine.
Spry faces up to life in federal prison when he is sentenced in June 2019. United States District Judge David A. Faber presided over the plea hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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###KC Woman Sentenced to 13 Years for Leading Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for her role in leading a large methamphetamine conspiracy.
Yadieras Y. Contreras, also known as “Fajita,” 36, was sentenced by U.S. District Judge Greg Kays to 13 years and nine months in federal prison without parole.
Contreras was the third defendant in this case to be sentenced this month. Co-defendant David F. Bushdiecker,47, was sentenced on Jan. 24, 2019, to 20 years and five months in federal prison without parole. Co-defendant Benjamin H. McDaniel, also known as “Cowboy,” 56, was sentenced on Jan. 4, 2019, to 14 years in federal prison without parole. Additionally, nine co-defendants in this case have been sentenced and three more have pleaded guilty and await sentencing.
On Feb. 9, 2018, Contreras pleaded guilty to participating in a conspiracy to distribute methamphetamine. Contreras admitted that she sold more than 40 kilograms of methamphetamine to McDaniel from 2014 to April 2015. McDaniel then distributed methamphetamine to others.
Contreras also admitted that she sold methamphetamine to co-defendant Troy C. Hudson, 50, of Belton, Mo. Hudson delivered drugs to Contreras and collected the proceeds of drug trafficking. Hudson also transported a large amount of cash (the proceeds of drug trafficking) to Arizona. Hudson was sentenced on Nov. 16, 2018, to eight years and two months in federal prison without parole.
Contreras also received methamphetamine from Roberto W. Duran, also known as “Muchacho,” 37, a citizen of El Salvador who resided in Phoenix, Ariz. He delivered approximately 10 pounds of methamphetamine at a time to Contreras’s residence or to a garage behind a pizza restaurant in Raytown, Mo. The methamphetamine was hidden in various vehicles and removed once it arrived. Contreras paid the drivers for methamphetamine they had previously delivered, and those proceeds were then transported back to Arizona. Duran was sentenced on June 28, 2018, to 14 years and seven months in federal prison without parole.
Contreras was allowed to use the Raytown garage by the garage’s renter, co-defendant Aaron R. Plowman, 41, of Eldon, Mo. On four occasions, Plowman permitted Contreras to use the garage to receive methamphetamine shipments from her Arizona supplier. In exchange for the use of the garage space, Contreras fronted about one pound of methamphetamine to Plowman on each occasion. Plowman was sentenced on July 30, 2018, to 10 years and eight months in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kansas City, Mo., Police Department; the Jackson County Drug Task Force; the Drug Enforcement Administration; Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI); the Independence, Mo., Police Department; the Lee’s Summit, Mo., Police Department; and the Raytown, Mo., Police Department.
Justice Department Announces Court-Authorized Efforts to Map and Disrupt Botnet Used by North Korean HackersRead the Press Release
The Justice Department today announced an extensive effort to map and further disrupt, through victim notifications, the Joanap botnet – a global network of numerous infected computers under the control of North Korean hackers that was used to facilitate other malicious cyber activities. This effort targeting the Joanap botnet follows charges unsealed last year in which the United States charged a North Korean citizen, Park Jin Hyok, a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. Those charges alleged that the conspiracy utilized a strain of malware, “Brambul,” which was also used to propagate the Joanap botnet.
Assistant Attorney General for National Security John Demers, United States Attorney Nicola T. Hanna, Assistant Director in Charge (ADIC) Paul Delacourt of the FBI’s Los Angeles Field Office and the U.S. Air Force Office of Special Investigations made the announcement.
“Computers around the world remain infected by a botnet associated with the North Korean Regime,” said Assistant Attorney General Demers. “Through this operation, we are working to eradicate the threat that North Korea state hackers pose to the confidentiality, integrity, and availability of data. This operation is another example of the Justice Department’s efforts to use every tool at our disposal to disrupt national security threat actors, including, but by no means limited to, prosecution.”
“Our efforts have disrupted state-sponsored cybercriminals who used malware to establish a computer network that gave them the ability to hack into other computer systems,” said U.S. Attorney Hanna. “While the Joanap botnet was identified years ago and can be defeated with antivirus software, we identified numerous unprotected computers that hosted the malware underlying the botnet. The search warrants and court orders announced today as part of our efforts to eradicate this botnet are just one of the many tools we will use to prevent cybercriminals from using botnets to stage damaging computer intrusions.”
“Through technical means and legal process, the FBI continually seeks to disrupt the malicious cyber activities of North Korean cybercriminals, as in this case, and all cyber actors who pose a threat to the United States and our international partners,” said ADIC Delacourt. “We urge computer users to take precautions, such as updating their software and utilizing antivirus, in order to avoid being victimized by this type of malware.”
Joanap malware targeted computers running the Microsoft Windows operating system and is used to gain access to and maintain infrastructure from which the hackers can carry out other malicious cyber activities. Joanap is a “second stage” malware, one that is often “dropped” by the automated Brambul “worm” that crawls from computer to computer, probing whether it can gain access using certain vulnerabilities. Once installed on an infected computer, Joanap would allow the North Korean hackers to remotely access infected computers, gain root level (or near-total) access to infected computers, and load additional malware onto infected computers.
Computers infected with Joanap — known as “peers” or “bots” — became part of a network of compromised computers known as a botnet. Like other botnets, Joanap was designed to operate automatically and undetected on victims’ computers. Joanap uses a decentralized peer-to-peer communication system, rather than a centralized mechanism to communicate with and control the peers, such as a command-and-control domain.
In order to address that distinct feature, a court order and search warrant was obtained pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. The search warrant allowed the FBI and AFOSI to operate servers that mimicked peers in the botnet. By pretending to be infected peers, the computers operated by the FBI and AFOSI under the authority of the search warrant and order collected limited identifying and technical information about other peers infected with Joanap (i.e., IP addresses, port numbers, and connection timestamps). This allowed the FBI and AFOSI to build a map of the current Joanap botnet of infected computers. Copies of the search warrants and orders and applications are available below.
Using the information obtained from the warrant, the government is notifying victims in the United States of the presence of Joanap on an infected computer. The FBI is both notifying victims through their Internet Service Providers and providing personal notification to victims whose computers are not behind a router or a firewall. The U.S. government will coordinate the notification of foreign victims by contacting the host country’s government, including by utilizing the FBI’s Legal Attachés.
The second-stage Joanap botnet and the first-stage Brambul worm have endured since 2009, even though they have been identified in the past and a number of antivirus products defend against them. Many private cyber security research companies have also published analytical reports about Brambul and Joanap. The FBI and the Department of Homeland Security have published reports analyzing Joanap and Brambul as well, including as recently as May 31, 2018. (https://www.us-cert.gov/ncas/alerts/TA18-149A.) Moreover, a complaint was filed on June 8, 2018, charging Park Jin Hyok with a conspiracy to carry out numerous computer intrusions backed by the North Korean government. That complaint alleged how co-conspirators used Brambul to gain unauthorized access to computers, and then used those computers to carry out the charged malicious cyber activities. The Brambul worm itself was recovered from the computer networks of some victims of the conspiracy.
Joanap targets Microsoft Windows operating systems, but running Windows Defender Antivirus and using Windows Update will remediate and prevent infections by Joanap. A number of free and paid antivirus programs are also already capable of detecting and removing Joanap and Brambul, including the Microsoft Safety Scanner, a free product.
This effort to map and disrupt the botnet was led by Assistant United States Attorneys Anthony J. Lewis and Anil J. Antony of the United States Attorney’s Office for the Central District of California, and DOJ Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.
The details contained in the application for the search warrant and order and related pleadings are not charges and are merely accusations.
Justice Department Announces Court-Authorized Efforts to Map and Disrupt Botnet Used by North Korean HackersRead the Press Release
LOS ANGELES – The Justice Department today announced an extensive effort to map and further disrupt, through victim notifications, the Joanap botnet – a global network of numerous infected computers under the control of North Korean hackers that was used to facilitate other malicious cyber activities. This effort targeting the Joanap botnet follows charges unsealed last year in which the United States charged a North Korean citizen, Park Jin Hyok, a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. Those charges alleged that the conspiracy utilized a strain of malware, “Brambul,” which was also used to propagate the Joanap botnet.
United States Attorney Nicola T. Hanna, Assistant Attorney General for National Security John Demers, Assistant Director in Charge (ADIC) Paul Delacourt of the FBI’s Los Angeles Field Office, and the U.S. Air Force Office of Special Investigations (AFOSI) made the announcement.
“Our efforts have disrupted state-sponsored cybercriminals who used malware to establish a computer network that gave them the ability to hack into other computer systems,” said United States Attorney Nick Hanna. “While the Joanap botnet was identified years ago and can be defeated with antivirus software, we identified numerous unprotected computers that hosted the malware underlying the botnet. The search warrants and court orders announced today as part of our efforts to eradicate this botnet are just one of the many tools we will use to prevent cybercriminals from using botnets to stage damaging computer intrusions.”
“Computers around the world remain infected by a botnet associated with the North Korean Regime,” said Assistant Attorney General John Demers. “Through this operation, we are working to eradicate the threat that North Korea state hackers pose to the confidentiality, integrity, and availability of data. This operation is another example of the Justice Department’s efforts to use every tool at our disposal to disrupt national security threat actors, including, but by no means limited to, prosecution.”
“Through technical means and legal process, the FBI continually seeks to disrupt the malicious cyber activities of North Korean cybercriminals, as in this case, and all cyber actors who pose a threat to the United States and our international partners,” said ADIC Paul Delacourt. “We urge computer users to take precautions, such as updating their software and utilizing antivirus, in order to avoid being victimized by this type of malware.”
Joanap malware targeted computers running the Microsoft Windows operating system and is used to gain access to and maintain infrastructure from which the hackers can carry out other malicious cyber activities. Joanap is a “second stage” malware, one that is often “dropped” by the automated Brambul “worm” that crawls from computer to computer, probing whether it can gain access using certain vulnerabilities. Once installed on an infected computer, Joanap would allow the North Korean hackers to remotely access infected computers, gain root level (or near-total) access to infected computers, and load additional malware onto infected computers.
Computers infected with Joanap – known as “peers” or “bots” – became part of a network of compromised computers known as a botnet. Like other botnets, Joanap was designed to operate automatically and undetected on victims’ computers. Joanap uses a decentralized peer-to-peer communication system, rather than a centralized mechanism to communicate with and control the peers.
In order to address that distinct feature, court orders and search warrants were obtained pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure. The search warrant allowed the FBI and AFOSI to operate servers that mimicked peers in the botnet. By pretending to be infected peers, the computers operated by the FBI and AFOSI under the authority of the search warrant and order collected limited identifying and technical information about other peers infected with Joanap (for example, IP addresses, port numbers, and connection timestamps). This allowed the FBI and AFOSI to build a map of the current Joanap botnet of infected computers.
Using the information obtained from the warrants, the government is notifying victims in the United States of the presence of Joanap on an infected computer. The FBI is both notifying victims through their Internet Service Providers and providing personal notification to victims whose computers are not behind a router or a firewall. The U.S. government will coordinate the notification of foreign victims by contacting the host country’s government, including by utilizing the FBI’s Legal Attachés.
The second-stage Joanap botnet and the first-stage Brambul worm have endured since 2009, even though they have been identified in the past and a number of antivirus products defend against them. Many private cyber security research companies have published analytical reports about Brambul and Joanap. The FBI and the Department of Homeland Security also have published reports analyzing Joanap and Brambul as well, including a Technical Alert last May.
A criminal complaint filed last year charges Park Jin Hyok with being a member of a conspiracy backed by the North Korean government that carried out numerous computer intrusions. That complaint alleged how co-conspirators used Brambul to gain unauthorized access to computers, and then used those computers to carry out their malicious cyber activities. The Brambul worm itself was recovered from the computer networks of some victims of the conspiracy.
Joanap targets Microsoft Windows operating systems, but running Windows Defender Antivirus and using Windows Update will remediate and prevent infections by Joanap. A number of free and paid antivirus programs are also already capable of detecting and removing Joanap and Brambul, including the Microsoft Safety Scanner, a free product.
This effort to map and disrupt the botnet was led by Assistant United States Attorneys Anthony J. Lewis and Anil J. Antony, and Justice Department Trial Attorneys David Aaron and Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance.
The details contained in the application for the search warrant and order and related pleadings are not charges and are merely accusations.
Government's Ex Parte Application for Botnet Search Warrant Botnet Warrant & OrderJudge Denies Bond for Defendant Charged in Renasant Bank RobberyRead the Press Release
ALBANY – The man charged with holding up an Albany bank at gunpoint has been denied bond today by a Federal Magistrate Judge, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Shataz Hampton, 25, of Albany is charged with one count of Bank Robbery and one count of Possession of a Firearm, along with co-defendant Kamilyah Whitlock, 25, of Albany. The two defendants are charged in the armed robbery of the Renasant Bank at 721 N. Westover Blvd., Albany, GA on November 6, 2017. The Honorable Thomas Langstaff, U.S. District Magistrate Court, detained Mr. Hampton on January 30, 2019 until trial. No date has been set.
“I am pleased the Court granted our motion to detain Mr. Hampton, a man alleged to have brandished a gun and robbed a bank in broad daylight, with innocent customers and employees inside,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Rest assured, we will prosecute those accused of violent acts to the fullest extent of the law, and we will continue to vigorously seek the highest level of punishment for people who commit the most egregious crimes.”
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah McEwen is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jersey City Man Sentenced to 37 Months in Prison for Scamming Investors of $3.4 MillionRead the Press Release
NEWARK, N.J. – A Jersey City man was sentenced today to 37 months in prison for swindling two investors of $3.4 million by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Craig Carpenito announced.
Antonio Fasolino, 62, previously pleaded guilty before U.S. District Judge Michael Vazquez to all four counts of indictment charging him with three counts of wire fraud and one count of transacting in criminal proceeds. Judge Vazquez imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino obtained approximately $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil.
In fact, there were never any such contracts. Fasolino supplied the victims with altered bank statements and spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.
In addition to the prison term, Judge Vazquez sentenced Fasolino to three years of supervised release and ordered restitution of $3.4 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
Jefferson County man admits to destroying mailboxRead the Press Release
MARTINSBURG, WEST VIRGINIA – Derek Wayne Blanken, Jr., of Harpers Ferry, West Virginia, has admitted to destroying a mailbox, United States Attorney Bill Powell announced.
Blanken, age 20, pled guilty to one count of “Destruction of Letter Boxes or Mail.” Blanken admitted to destroying a mailbox on Upper Clubhouse Drive in Harpers Ferry in October 2018.
Blanken faces up to three years incarceration and a fine of up to $250,000. 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 Jeffrey A. Finucane is prosecuting the case on behalf of the government. The U.S. Postal Service investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Sentenced for Passport Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NEVILLE S. NICHOLSON, 62, a citizen of Jamaica last residing in the Bronx, New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to approximately 12 months of imprisonment, time already served, for passport fraud offenses.
According to court documents and statements made in court, in June 2014, Nicholson submitted an application for a U.S. passport, in the name of another individual, at the Ferguson Library in Stamford, Connecticut. With his application, Nicholson provided the passport acceptance agent with a false birth certificate, a fraudulent New York State driver’s license, and his photograph for inclusion in the passport. Nicholson then signed under oath claiming to be the other individual. The U.S. Department of State subsequently issued a passport to Nicholson.
Nicholson used the fraudulent passport to travel between New York and Jamaica in 2014 and 2016.
Nicholson has been detained since his arrest on related New York state charges on September 1, 2017. He was transferred to federal custody on January 19, 2018.
On November 1, 2018, Nicholson pleaded guilty to one count of making a false statement in a passport application, and two counts of using a passport secured by false statement.
At the conclusion of today’s sentencing, Nicholson was transferred to the custody of U.S. Immigration and Customs Enforcement (ICE) and is subject to removal proceedings.
This matter was investigated by the U.S. Department of State, Diplomatic Security Service, with assistance from the New York City Police Department. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Indictment: Wichita Man Threatened Operation Rescue Workers with Rape, DeathRead the Press Release
WICHITA, KAN. – A Wichita man was indicted today on federal charges of making calls to the office of Operation Rescue in which he threatened to injure employees and their families.
Christopher M. Thompson, 22, Wichita, Kan., is charged with three counts of making threats to injure a person. The crimes are alleged to have occurred Aug. 14, 2018, in Wichita, Kan.
The indictment alleges Thompson made calls threatening to kill Operation Rescue employees and rape their daughters.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
OTHER INDICTMENTS
Salina Pharmacist and Husband Charged
Kirsty C. Hartley, 28, Salina, Kan., and Dalton R. Hartley, 28, Salina, Kan., are charged with one count of conspiring to distribute and dispense controlled substances and oneobtaining controlled substances by fraud. In addition, Kristy Hartley is charged with one count of unlawfully distributing and dispensing controlled substances.
The indictment alleges the crimes occurred while Kirsty Hartley worked as a pharmacist in charge at a CVS pharmacy in Salina. The indictment alleges Hartley diverted controlled prescription drugs by creating false prescriptions for herself and her husband and filling them. The indictment alleges they fraudulently obtained 21,289 tablets of hydrocodone with acetaminophen and 360 tablets of alprazolam.
The indictment alleges the investigation began when a loss prevention manager for CVS reported the problem to the Salina Police Department. Kirsty Hartley’s pharmacist license was suspended Sept. 23, 2017, by the Kansas Board of Pharmacy.
Upon conviction, the crimes carry the following penalties:
Conspiracy to distribute controlled substances (count one) and unlawfully distributing controlled substances (count two): Up to 20 years in federal prison and a fine up to $1 million.
Obtaining controlled substances by fraud: Up to four years and a fine up to $250,000.
The Salina Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Ohio Man Charged in Bank Robbery
Karsten D. Hardeman, 20, Dayton, Ohio, is charged with a robbery at the Sunflower Bank at 2073 N. Webb Road in Wichita, Kan. The crime is alleged to have occurred Dec. 26, 2018.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Three Project Safe Streets Indictments
Wendy L. Scearce, 35, Wichita, Kan., and Luis M. Hernandez, 38, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine (count one), one count of possession with intent to distribute methamphetamine (count two), one count of possession with intent to distribute heroin (count three), one count of possession with intent to distribute marijuana (count four), one count of maintaining a property in furtherance of drug trafficking at 306 N. Seneca in Wichita, one count of unlawful possession of a firearm in furtherance of drug trafficking,
In addition, Scearce is charged with 13 counts of unlawful possession of a firearm following a felony conviction (counts six through 18), eight counts of distributing a controlled substance (counts 33 through 40) and one count of possession with intent to distribute methamphetamine. In addition, Hernandez is charged with 13 counts of unlawful possession of a firearm by an alien illegally in the United States.
The crimes are alleged to have occurred Dec. 28, 2018, in Wichita, Kan.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $10 million.
Count two: Not less than 15 years and a fine up to $10 million.
Count three: 33 through 40 and 41: Up to 20 years and a fine up to $1 million.
Count four: Up to five years and a fine up to $250,000.
Count five: Up to 20 years and a fine up to $500,000.
Counts six through 31: Up to 10 years and a fine up to $250,000.
Count 32: Not less than five years and a fine up to $250,000.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Vickey Ewing, 63, Wichita, Kan., and Robert Ewing, Jr., 41, are charged in a superseding indictment with one count of conspiracy to distribute methamphetamine (count one), one count of possession with intent to distribute methamphetamine (count two), two counts of possession with intent to distribute methamphetamine (counts 4 and 5), two counts of maintaining a property in furtherance drug trafficking (1710 W. Walker in Wichita and 1140 S. St. Francis in Wichita, counts six and nine), and one count of possession with intent to distribute methamphetamine (count 12).
In addition, Vickey Ewing is charged with one count of possession with intent to distribute methamphetamine (count three), one count of unlawful possession of a firearm with the serial number removed (count seven), one count of unlawful possession of a firearm following a felony conviction (count eight) and two counts of aggravated identity theft (count 10 and 11).
Also charged in the case are Manda Lynch, 33, Wellington, Kan., and Leanna M. Brooker, 27, Wellington, Kan., who are charged with one count of distributing methamphetamine (count four).
The crimes are alleged to have occurred in 2018 in Wichita.
Upon conviction, the crimes carry the following penalties:
Count one: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts two, three, four and five: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts six and nine: Up to 20 years and a fine up to $5 million.
Count seven: Not more than five years and a fine up to $250,000.
Count eight: Not more than 10 years and a fine up to $250,000.
Counts 10 and 11: A mandatory two years and a fine up to $250,000.
Count 11: Not less than 10 years and a fine up to $10 million.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jesus Torres, 30, Wichita, Kan., is charged with five counts of unlawful possession of a firearm by a person not lawfully in the United States, counts one through five), one count of possession with intent to distribute methamphetamine (count six), one count of possession of a firearm in furtherance of drug trafficking (counts seven and nine), one count of possession with intent to distribute methamphetamine (count eight).
Upon conviction, the crimes carry the following penalties:
Counts one through five: Not more than 10 years in federal prison and a fine up to $250,000.
Count six: Not less than five years and not more than 40 years and a fine up to $5 million.
Count eight: Not more than 20 years and a fine up to $1 million.
Counts seven and nine: Not less than five years and a fine up to $250,000.
Count eight: Not more than 20 years and a fine up to $1 million.
The FBI and the Wichita Police Department’s Project Safe Streets Task Force investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
18-Kilo Drug Case
Deyvis Alcantara-Rios, 35, Memphis, Tenn., is charged with one count of possessing approximately 18 kilograms (almost 40 pounds) of a mixture of methamphetamine with intent to distribute. The crime is alleged to have occurred Nov. 9, 2018, in Seward County, Kan.
If convicted, she faces a penalty of not less than 10 years in federal prison and a fine up to $4 million. The Kansas Highway Patrol and Drug Enforcement Administration Assistant U.S. Attorney Jason Hart is prosecuting.
ADDITIONAL INDICTMENTS
Allan Bryan DeJesus, 39, Bakersfield, Calif., is charged with one count of possession with intent to distribute methamphetamine (count one), one count of possession with intent to distribute heroin (count two) and one count of interstate travel in furtherance of drug trafficking (count three). The crimes are alleged to have occurred Jan. 5, 2019 in Thomas County, Kan.
If convicted, he faces the following penalties:
Count one: Not less than 10 years in federal prison and a fine up to $10 million.
Count two: Not less than five years and not more than 40 years and a fine up to $5 million.
Count three: Up to five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Erik Dixon, Jr., 22, Wichita, Kan., and Adrian D. Jones-Williams, 23, Wichita, Kan., are charged in a superseding indictment with one count of one count of possession with intent to distribute marijuana (count 8), one count of possession with intent to distribute alprazolam (count 9), one count of unlawful possession of a firearm by a user of a controlled substance (count 10) and one count of unlawful possession of a firearm in furtherance of drug trafficking (count 11). In addition, Dixon is charged with two counts of possession with intent to distribute marijuana (counts 1 and 15), one count of possession with intent to distribute alprazolam (count 2), three counts of unlawful possession of a firearm by a user of a controlled substance (counts 3, 13 and 16), two counts of unlawful possession of a firearm in furtherance of drug trafficking (counts 4 and 17), two counts of unlawfully receiving a firearm while charged with a felony (counts 12 and 14), one count of unlawful possession of a silencer in furtherance of drug trafficking (count 18) and four counts of attempting to influence the testimony of a federal witness (counts 21, 22, 23 and 24). In addition, Jones-Williams, is charged with two counts of possession with intent to distribute marijuana (counts 5 and 8), one count of possession of unlawful possession of a firearm by a user of a controlled substance (count 6) and two counts of unlawful possession of a firearm in furtherance of drug trafficking (counts 7 and 20). The crimes are alleged to have occurred in 2016, 2017 and 2018 in Wichita, Kan.
Upon conviction, the crimes carry the following penalties:
Counts 1, 5, 15 and 19: Up to 20 years in federal prison and fine up to $1 million.
Counts 2 and 9: Up to five years and a fine up to $250,000.
Counts 3, 6, 10, 13 and 16: Up to 10 years and a fine up to $250,000.
Counts 12 and 14: Up to five years and a fine up to $250,000.
Counts 4, 7, 11, 17, and 20: Not less than five years and a fine up to $250,000.
Count 18: Not less than 30 years and a fine up to $250,000.
Counts 21, 22, 23 and 24: Up to 20 years and a fine up to $250,000.
The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Darick Charles Byrd, 34, who is in federal custody, is charged with four counts of making false statements on Form 4473, which is a report required by the Bureau of Alcohol, Tobacco, Firearms and Explosives to lawfully purchase a firearm from a licensed firearms dealer.
The indictment alleges Byrd bought the guns at Dave’s Guns in Abilene, Kan., Bob’s Pawn Shop East in Salina, and Nick’s Pawn Shop in Salina.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Joshua D. Halstead, 32, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction (count one), one count of unlawful possession of a firearm by a user of a controlled substance (count two) and one count of possession of methamphetamine (count three). The crimes are alleged to have occurred May 19, 2017, in Sedgwick County, Kan.
If convicted, he faces the following penalties:
Counts one and two: Up to 10 years in federal prison and a fine up to $250,000.
The Sedgwick County Sheriff’s Office investigated Assistant U.S. Attorney Ryan McCarty is prosecuting.
Deonte L. Jordan, 20, Wichita, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction (counts one and two) and two counts of unlawful possession of a firearm by a user of a controlled substance (counts three and four). The crimes are alleged to have occurred June 16, 2018, in Sedgwick County.
If convicted, the faces the following penalties
Counts 1 and 2: Up to 10 years in federal prison and a fine up to $250,000.
Counts 3 and 4: Up to 10 years and a fine up to $250,000.
The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Ryan McCarty is prosecuting.
Juan Gama Acosta, 48, Wichita, Kan., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act.
If convicted, he faces a penalty of up to 10 years. The U.S. Marshals Office investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Ronnie Domnick, 48, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Aug. 4, 2017, in Sedgwick County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $4 million. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Eugenio Serrano-Ramirez, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Jan 7, 2019, in Sedgwick County, Kan.
If convicted, if faces up to two years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
ICYMI: Oregon Man Sentenced to Life in Prison for Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
EUGENE, Ore.—On January 18, 2019, Daniel Stephen Johnson, 40, of Coos Bay, Oregon, was sentenced to life in federal prison for repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia.
In a jury trial ending on May 16, 2018, Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with a child. He was sentenced to 30 years in prison on each count of illicit sexual conduct in a foreign place, 30 years for traveling with the intent to engage in illicit sexual conduct, and life in prison for aggravated sexual assault with children. The sentences for engaging in illicit sexual conduct in a foreign place will run consecutively.
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he started and ran in Phnom Penh, Cambodia. Johnson funded the orphanage by soliciting donations from church groups in Oregon, California, Texas and elsewhere. Ten Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims described a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On December 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the U.S. by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on December 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
This case was investigated by the FBI with the assistance of the Toledo, Oregon Police Department. It was prosecuted by Jeffrey S. Sweet and Ravi Sinha, Assistant U.S. Attorneys for the District of Oregon, and Lauren E. Britsch, Trial Attorney for the Justice Department’s Child Exploitation and Obscenity Section. Amy E. Potter, Assistant U.S. Attorney for the District of Oregon, assisted with the prosecution.
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 U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Holland Man Pleads Guilty to Marijuana Manufacturing and Money Laundering ChargesRead the Press Release
BOSTON – A Holland man pleaded guilty today in federal court in Worcester to drug and money laundering charges.
Peter Molle Jr., 36, pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 29, 2019. Molle was arrested in December 2017.
In February 2017, federal agents executed a search warrant at Molle’s residence in Holland where they discovered a commercial-style marijuana grow operation with more than 100 marijuana plants. Even after the execution of the search warrant, Molle continued to engage in substantial black-market marijuana cultivation. In December 2017, agents executed another search warrant at Molle’s house and again located a significant commercial-style marijuana grow operation. The investigation also found that Molle used cash derived from the sale of marijuana to pay for expenses relating to his marijuana business, including to pay down the balance on a credit card that he used to purchase marijuana-related cultivation supplies.
Molle faces a minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million on the drug charges. The charge of money laundering provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.
Great Falls man sentenced in fraud, money laundering schemeRead the Press Release
GREAT FALLS – Great Falls resident Jay Nash, who admitted defrauding four persons of more than $800,000 in real estate schemes, was sentenced on Tuesday to three and one-half years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said today.
U.S. District Judge Brian M. Morris, who presided at sentencing, also ordered $842,729 in restitution.
Nash, 50, pleaded guilty in May 2018 to wire fraud and to money laundering.
Prosecutors said Nash took advantage of elderly persons, widows and friends, defrauding them and spending the money on boats, furniture and his mother’s house.
In one of the cases, Nash obtained a warranty deed in August 2011 on a house owned by one of the victims. The parties entered into a promissory note, which was secured by a mortgage on the property. The mortgage, however, was never filed with Cascade County. Four months later, without the victim’s knowledge, Nash took out two loans totaling more than $180,000 on the property. Nash then sold the property and did not give the proceeds to the victim.
As a result of the sale, $246,763 was wire transferred from Mann Mortgage. Nash then deposited $47,823, which represented the proceeds of the sale of the house after previous mortgages were paid.
Investigators determined that Nash spent the victim’s money from the two mortgages and ultimate sale of the house on boats, furniture, his mother’s house and other unrelated living expenses. None of the expenditures was approved by the victim.
The investigation also found that Nash had defrauded three other victims in similar schemes by entering promissory notes with the individuals and spending the money on unauthorized purchases.
Prosecutors said the fraud loss was more than $800,000.
U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and IRS.
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Grand Jury Returns Indictments Charging Gun & Drug CrimesRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Nekoosa Man Charged with Possessing Sawed-Off Shotguns
Jere Wipfli, 47, Nekoosa, Wisconsin, is charged with two counts of possessing a sawed-off shotgun. The indictment alleges that on May 28, 2018, he possessed a Remington 12 gauge shotgun and a Hiawatha 20 gauge shotgun, and that each firearm had a barrel of less than 18 inches in length.
If convicted, Wipfli faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by the Rome Police Department, Juneau County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Madison Man Charged with Gun Crime
Juan Longino, 45, Madison, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on January 9, 2019, Longino possessed a loaded .22 caliber pistol.
If convicted, Longino faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Dane County Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
The indictments against Wipfli and Longino have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Richland Center Man Charged with Drug Crime
Joshua Clarke, 31, Richland Center, Wisconsin, is charged with possessing methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on November 11, 2018.
If convicted, Clarke faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the Richland Center Police Department, Richland County Sheriff’s Office, Richland County District Attorney’s Office, and Drug Enforcement Administration. The prosecution of this case is being handled by Special Assistant U.S. Attorney Chadwick Elgersma.
Gallatin, Tennessee Man Pleads Guilty to Violent Crime SpreeRead the Press Release
NASHVILLE, Tenn. – January 30, 2019 – Harold Powell, aka “Goddi,” 31, of Gallatin, Tennessee, pleaded guilty yesterday in U.S. District Court to federal firearms and robbery charges relating to a violent crime spree in 2017, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The plea agreement calls for a 22-year prison sentence, if approved by the court.
Powell was indicted in March 2018 and charged with two counts of Hobbs Act Robbery; one count of using, carrying and brandishing a firearm during a crime of violence; discharging a firearm during a crime of violence; and three counts of being a convicted felon in possession of a firearm. These charges followed a violent crime spree in Gallatin and Nashville, Tennessee, which began in January 2017 and continued through the middle of June 2017.
According to records filed with the court, on January 30, 2017, Powell accompanied another individual to a park in Gallatin for the purpose of buying marijuana. The meeting with the marijuana dealer had been pre-arranged and when they arrived, Powell and the other individual went to the dealer’s car. Powell then pointed a gun at the dealer’s head and demanded the marijuana, money, his phone and necklace. As he walked away, Powell turned and pointed the gun at the dealer again and said, “I should kill you.”
On February 13, 2017, after communicating with another individual about obtaining cocaine, Powell kicked in the door of an apartment in Gallatin, which was occupied by the cocaine dealer and two other persons, one of which was the same individual he robbed on January 30, 2017. Powell shouted his intentions to rob them and began firing a pistol, striking the cocaine dealer in the arm and leg. Powell backed out of the apartment and continued firing the weapon.
On June 6, 2017, Powell entered the Bargain Lot, a used car lot in Nashville. Several individuals were sitting on a small porch in front of the office and Powell called to them for help. When no one left the porch to assist him, Powell walked up to the porch and began firing a pistol. One of the individuals fell backward off the porch and broke his leg but continued to crawl under the porch to avoid being shot, but Powell continued firing and struck the individual in the shoulders and leg. Powell continued to shoot at him until he ran out of bullets and then calmly walked away.
Powell was subsequently arrested at a Nashville hotel on June 15, 2017, by Metro Nashville Police Detectives, who also recovered several firearms and rounds of ammunition and digital scales.
Powell is scheduled to be sentenced on April 19, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Metropolitan Nashville Police Department; the Gallatin Police Department. Assistant U.S. Attorneys Katy Risinger, Amanda Klopf and Ben Schrader are prosecuting the case.
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Franklin, Tennessee Man Indicted for Impersonating a Deputy U.S. MarshalRead the Press Release
NASHVILLE, Tenn. – January 30, 2019 – Tooraj Sohrabi Sedeh, 50, of Franklin, Tennessee, has been indicted by a federal grand jury in Nashville and charged with three counts of impersonating a Deputy U.S. Marshal and making a false statement in connection with the investigation into his affiliation with the U.S. Marshal’s Service (USMS), announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the indictment and court records, on November 21, 2018, a Deputy U.S. Marshal was at the Home Depot on Powell Avenue, in Nashville, when he observed Sedeh walking out of the store wearing a shirt with USMS markings, including embroidered markings, patches and collar insignia. Sedeh was also observed to have a badge holder on a neck chain with a USMS patch attached to it and was wearing a holstered firearm and handcuffs on his hip.
The Deputy Marshal followed Sedeh from the store and asked him if he worked for the U.S. Marshal’s Service. Sedeh answered yes and stated he was assigned to the Nashville office. Sedeh was asked to produce his credentials and stated that he did not have them. The deputy U.S. Marshal then identified himself and upon further inquiry, Sedeh stated he worked for the Williamson County Sheriff’s Department and was also a “freelance” bail bondsman and had worked for Grumpy’s Bail bonds. These claims were found to be false and Sedeh had no affiliation with these agencies or the USMS. The Deputy U.S. Marshal also observed Sedeh’s vehicle to have a law enforcement association sticker on it and shirts hanging inside with law enforcement insignias as well as ballistic vest carriers with U.S. Marshal insignias attached.
On November 28, 2018, the U.S. Marshal’s Service executed a federal search warrant at Sedeh’s home in Franklin, Tennessee and recovered a variety of clothing items marked with USMS insignias and other law enforcement tactical and service equipment.
The indictment also alleges that Sedeh impersonated a Deputy U.S. Marshal on other occasions, including between September 28, 2018 and October 4, 2018; November 15, 2018; and between November 25, 2018 and December 10, 2018.
If convicted, Sedeh faces up to three years in prison on each count of impersonation and up to five years in prison for making false statements and a $250,000 fine on each count. His trial is scheduled for March 19, 2019.
This case was investigated by the U.S. Marshal’s Service and is being prosecuted by Assistant U.S. Attorney Chris Suedekum.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Fort Pierce Resident Sentenced to Prison for ISIS Related ThreatsRead the Press Release
A Fort Pierce resident was sentenced to prison yesterday for making ISIS related threats.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office made the announcement.
Charlton Edward LaChase, 28, of Fort Pierce, Florida, was sentenced yesterday to 18 months in prison, to be followed by three years of supervised release, by U.S. District Judge Robin Rosenberg, after previously pleading guilty to two counts of transmitting threats through interstate or foreign commerce (Case No. 18-24011-CR).
According to the court record, LaChase sent text messages professing his support for ISIS and threatening to kill several people while committing acts of terrorism and mass murder. A search warrant for LaChase’s Facebook account revealed several attempts by LaChase to purchase firearms, as well as threats to commit mass murder, threats to kill politicians, and statements of support for ISIS.
LaChase received an enhancement at sentencing for obstruction of justice because he disposed of the cellphone he used to send the text messages, shortly after becoming aware that he was under investigation by the FBI.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF). The case was prosecuted by Assistant United States Attorneys Rolando Garcia and Michael Porter.
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.
Former Springfield Man Pleads Guilty to Bomb Threat at Veterans ClinicRead the Press Release
SPRINGFIELD, Mo. – A former Springfield, Mo., man pleaded guilty in federal court today to making a bomb threat at the Veterans Affairs Clinic in Mount Vernon, Mo.
Richard Leslie Turner III, 48, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Aug. 14, 2018, federal indictment.
By pleading guilty today, Turner admitted that he threatened on July 13, 2018, to blow up the Community Based Outpatient Clinic located at 600 N. Main St. in Mount Vernon.
Turner arrived at the clinic on July 13, 2018, for an appointment but was told the appointment had been changed. Turner became angry and left the clinic. Shortly afterward another patient informed a staff member that Turner was in the parking lot making statements about obtaining explosives and blowing up the clinic. When authorities contacted Turner by phone later that day, he became angry that the clinic had called the police and stated that he really intended to blow up the clinic because the police had called him.
Under federal statutes, Turner is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the Mount Vernon, Mo., Police Department, the Veteran’s Affairs Police Department and the Department of Veterans Affairs, Office of Inspector General.
Former High School Counselor Pleads Guilty to Mail Fraud SchemeRead the Press Release
BECKLEY, W.Va. -- Mellissa Krystynak, 49, of St. Lucie, Florida, pled guilty to a mail fraud scheme she executed while employed as a counselor at Greenbrier West High School, in Charmco, Greenbrier County, West Virginia. The investigation was conducted by the Office of Inspector General, United States Department of Education.
“This takes cheating to a whole new level,” said United States Attorney Mike Stuart. “We expect to find students cheating. We don’t expect a parent abusing a position of authority to inflate her daughter’s grades and, adding even more harm, to use those fake grades to obtain federal benefits and, potentially, keep a deserving student from a legitimate opportunity. I think it’s fair to say that Krystynak might not be the best role model to emulate. Very, very sad.”
Krystynak, was a school counselor at Greenbrier West from 2011 until 2017. While she was employed there, two of her children attended the school. Krystynak used her position as a counselor to gain access to the school’s computerized grading programs to inflate at least thirty-four of her daughter’s grades. Her daughter then used the inflated grades to apply for and receive over ten different college scholarships with a potential benefit of over $20,000. These scholarships were based on applications containing the fraudulent report cards and transcripts.
Krystynak facts up to 20 years’ imprisonment, a $250,000 fine and 3 years of supervised release when she is sentenced on May 16, 2019. United States District Judge Irene Berger presided over the plea hearing. Assistant United States Attorney Steve Loew is handling the prosecution.
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Former Greenfield Township Sewer Authority Manager Indicted for Clean Water Act Violations and Wire FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Bruce Evans, Sr., age 65, former Greenfield Township Sewer Authority Manager, and his son, Bruce Evans, Jr., age 37, both of Greenfield Township, Pennsylvania were indicted on January 8, 2019 by a federal grand jury for multiple violations of the Clean Water Act. Evans, Sr. is also charged with multiple counts of wire fraud.
According to United States Attorney David J. Freed, the indictment alleges that Evans, Sr. was a Greenfield Township Supervisor, a Greenfield Township Sewer Authority Board Member, and Manager of the Greenfield Township Sewer Authority. Evans, Jr. was an employee of both Greenfield Township and the Greenfield Township Sewer Authority. It is alleged that on various dates between April 2013 and December 2017, Evans, Sr. and Evans, Jr. failed to operate and manage the municipality’s waste water treatment plant in accordance with regulations and limitations specified in a permit issued by the Pennsylvania Department of Environmental Protection (PADEP) and the Environmental Protections Agency (EPA). The permit required that the permittee at all times maintain in good working order, and properly operate and maintain all facilities and systems, which were installed and used by the permittee to achieve compliance with the terms and conditions of the permits. It is also alleged that as a result of such failures, pollutants were discharged in violation of the permit.
The indictment further alleges that Evans, Sr. engaged in a scheme to defraud the Greenfield Township Sewer Authority by fraudulently converting funds and property of the Sewer Authority for his own personal benefit and for the benefit of a family member, including unlawful payments for a personal cell phone, fueling of personal vehicles, educational expenses, and unlawful use of Greenfield Township Sewer Authority labor.
The charges stem from an investigation jointly conducted by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigation. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the Clean Water Act violations are punishable by up to 3 years’ imprisonment and a sliding scale for fines of $5,000 to $25,000 per violation, per day. The maximum penalty under the Wire Fraud statute is 20 years’ imprisonment and a $250,000 fine. Each crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Flooring Store Owner Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, KAN. – The owner of a flooring store in the Kansas City area was sentenced today to a year on federal probation for tax evasion, U.S. Attorney Stephen McAllister said. He paid $101,014 in restitution.
Randall Barker, 50, owner of Wholesale Flooring, Inc., in Stilwell, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he failed to report the full amount of income from his business in 2011, 2012, 2013 and 2014. He admitted he took direct payments from customers, removed cash from business deposits and altered invoices to show less income for the business.
McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.
Five Miami Residents Sentenced to Prison for Tax Fraud SchemeRead the Press Release
Five residents of Miami were sentenced to federal prison for their participation in a tax fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.
Jamal Dyer, 32, of Miami, was sentenced to 28 months in prison, to be followed by 3 years of supervised release. Jorge Alfonso Osorio Rodriguez, 35, of Miami, was sentenced to 28 months in prison, to be followed by 3 years of supervised release. Tramaine Das Sealy, 34, of Miami, was sentenced to 14 months in prison, to be followed by 3 years of supervised release. Jonathan Charles Edwards, 33, of Miami, was sentenced to 12 months in prison, to be followed by 3 years of supervised release. The final defendant, Daniel Alvaro Murias, 28, of Miami, was sentenced today to 14 months in prison, to be followed by one year of supervised release. Dyer, Osorio, Das Sealy, and Edwards previously pled guilty to one count of conspiracy to aid and assist the preparation of false tax returns, in violation of Title 18, United States Code, Section 371, and Murias previously pled guilty to one count of aiding and assisting the preparation of a false tax return, in violation of Title 26, United States Code, Section 7206(2) (Case No. 18-20581-CR-SCOLA).
According to the court docket, including the agreed upon factual proffer, from February of 2015 through May of 2017, the defendants operated a tax preparation business called “The Tax Firm Miami” in Miami, Florida. While operating out of The Tax Firm Miami, all five defendants knowingly and willfully submitted thousands of false statements and claims on their clients’ tax returns, including false claims to the Education Credit, the American Opportunity Credit, and the Residential Energy Credit, resulting in a greater tax refund being paid from the IRS to their clients, or a lesser tax liability owed by their clients to the IRS. Collectively, through the submission of tax returns claiming these false credits, the defendants stole more than $12 million on behalf of themselves and their clients.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI in this matter. Assistant U.S. Attorney Daniel J. Marcet prosecuted this case.
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.
Federal jury finds Monroe felon guilty of possessing pistol, ammunitionRead the Press Release
MONROE, La. – Daryon D. Kelley, age 23, of Monroe, Louisiana, was found guilty today in United States District Court following a three-day trial, announced United States Attorney David C. Joseph.
After deliberating this afternoon, the federal jury found Kelley guilty of possession of a firearm by a convicted felon. Evidence admitted at trial revealed that West Monroe police conducted a traffic stop October 2, 2017 on the vehicle Kelley was driving. During a search of the vehicle, police officers found a Ruger .9 mm-caliber pistol and ammunition, $10,400 and a partially smoked marijuana cigar in the center console. Daryon Kelley was previously convicted on April 9, 2015 for a drug distribution charge.
“Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition,” stated U.S. Attorney David C. Joseph. “We are committed to working with our law enforcement partners in keeping our neighborhoods safe and we will continue to work together towards a safer Monroe in 2019.”
The defendant faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentencing has been set for May 15, 2019.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and the West Monroe Police Department conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Earl M. Campbell are prosecuting the case.
Federal Jury Convicts Honduran Citizen of Being Found in the United States After Having Been DeportedRead the Press Release
DAYTON – A jury has convicted Oscar Lopez Acosta, 41, a citizen of Honduras, with being found in the United States, without authorization, after having twice been deported.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Rebecca Adducci, Field Office Director, United States Immigration and Customs Enforcement (ICE), announced the verdict reached yesterday evening, after a trial that began on Monday before U.S. District Judge Walter H. Rice.
According to records and trial testimony, in 2009, U.S. Immigration authorities encountered Acosta in Florida, an Immigration Judge in Pompano Beach, Fla., ordered that he be deported, and immigration authorities deported Acosta to his home country of Honduras. Acosta was banned from reentering the United States for 10 years.
He returned without authorization, and in 2012, immigration officials encountered Acosta again, this time near Brownsville, Texas. Acosta was convicted in federal court in Texas of illegally entering the country, a misdemeanor, and following his conviction, Acosta was again deported to Honduras. This time, Acosta was banned from reentering the United States for 20 years.
In October 2018, immigration officials encountered Acosta in Riverside, Ohio, after local police responded to a crash involving an uninsured car owned by Acosta and in which he was a passenger.
The jury convicted Acosta of one count of being found in the United States after deportation and without authorization, a crime punishable by up to two years in prison. Sentencing is scheduled for April 30, 2019.
U.S. Attorney Glassman commended the investigation by ICE and the assistance of the Riverside Police Department, as well as Assistant United States Attorney Andrew J. Hunt and First Assistant United States Attorney Vipal J. Patel, who are representing the United States in this case.
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Federal Judge Sentences Charlotte Man to Nine Years in Prison for Drug Trafficking and Money Laundering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Shi Yun Zhou, 27, of Charlotte, to 108 months in prison and four years of supervised release on drug trafficking conspiracy and money laundering conspiracy charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, beginning in 2015, law enforcement began to investigate a Drug Trafficking Organization (DTO) responsible for trafficking large quantities of marijuana and other narcotics between California and Charlotte. Court records show that from 2013 to 2018, Zhou was involved in the DTO, and engaged in extensive drug trafficking and money laundering activities. As Zhou previously admitted in court, during the relevant time period, Zhou trafficked more than 770 kilograms of marijuana and 500 grams of cocaine in and around Mecklenburg County, and used the drug proceeds to buy multiple residences and luxury vehicles. On April 3, 2018, law enforcement executed a search warrant at one of Zhou’s residences, and seized narcotics, three firearms and ammunition, a digital scale and other drug paraphernalia, and $215,106 in cash.
Zhou pleaded guilty in April 2018 to drug trafficking conspiracy, money laundering conspiracy, and possession with intent to distribute cocaine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and IRS-CI for their investigation of this case.
Assistant U.S. Attorneys Sanjeev Bhasker and Ben Bain-Creed, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Executive Wallace Tang and Three Corporations Sentenced for Defrauding NASA, National Science Foundation, and Energy Department MatterRead the Press Release
United States Attorney Ron Parsons announced that multiple corporate defendants convicted of Conspiracy to Commit Wire Fraud and one individual defendant convicted of Wire Fraud were sentenced on January 14, 2019, by U.S. District Judge Karen E. Schreier.
Wallace Tang, age 55, of Alamo, California, was sentenced to 2 years of probation and ordered to pay $1,084,418.60 in restitution jointly with three Bay Area corporations. Tang was also ordered to pay $100 to the Federal Crime Victims Fund. Laserlith Corporation, Black Hills Nanosystems Corporation, and Blue Sky Engineering Inc., were also sentenced by and through Tang, Gina Kim, and Sine Chao, respectively, who were the corporate representatives.
As part of the plea agreements filed with the Court, the defendants paid restitution totaling $1,084,418.60. The restitution was paid at the time each defendant appeared to plead guilty. All of the corporations, as a result of the successful investigation and prosecution, are now defunct and no longer operational. The amount of criminal restitution represents the monies derived from the defendants’ fraudulent conduct perpetrated against the National Aeronautics and Space Administration (“NASA”), the National Science Foundation (“NSF”), and the Department of Energy (“DoE”).
“Since its inception, the space program has been a symbol of American hope and progress,” said U.S. Attorney Parsons. “When these defendants defrauded NASA and other governmental departments committed to the advancement of scientific knowledge, they were not only ripping off the American taxpayer, they were stealing a part of our future.”
“The NASA Office of Inspector General (“OIG”) will aggressively investigate any attempt to defraud NASA grants, contracts, and operations,” said NASA Inspector General Paul Martin. “The NASA OIG appreciates the cooperative efforts of the entire investigative and prosecution team during this multi-year investigation.”
“The Small Business Innovation Research Program and Small Business Transfer Technology Research Program are valuable tools in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program,” commented Allison Lerner, the Inspector General for NSF. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“The SBIR Program is an essential Department of Energy program that supports scientific excellence and technological innovation,” stated Teri Donaldson, Department of Energy Inspector General. “These sentencings serve as a reminder that fraud in the SBIR Program will not be tolerated. The Office of Inspector General remains committed to ensuring the integrity of our programs by holding accountable those who attempt to hide behind sophisticated schemes. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work aggressively with our investigative partners to pursue those who seek to defraud government programs.”
At the times relevant to this case, NASA, NSF, and DoE participated in the Small Business Innovation Research (“SBIR”) Program and Small Business Transfer Technology Research (“STTR”) Program through which Defendants sought and obtained federal funds. Federal SBIR and STTR grant and contract award payments were electronically transferred from the associated federal agency, through the U.S. Department of the Treasury, and then wired to a business bank account identified by the defendants. The defendants also used wires to transmit interstate communications to and from South Dakota.
Beginning in approximately 2012, and continuing through 2016, within the State and District of South Dakota and elsewhere, Blue Sky Engineering Inc., Black Hills Nanosystems, and Laserlith unlawfully and knowingly conspired and agreed together to devise a scheme to defraud and obtain money and property from NASA, NSF, and DoE. The defendants defrauded these federal agencies through false and fraudulent representations and by sending electronic wire communications in interstate and foreign commerce. The purpose of the corporate-defendants’ conspiracy was to obtain federally-funded projects by and through material misrepresentations, statements, and omissions, thereby depriving the United States the ability to fund other small businesses and resulting in the enrichment of Blue Sky Engineering Inc., Black Hills Nanosystems, Laserlith, and Tang.
According to the parties’ plea agreements, the corporate-defendants committed the following acts, as well as others, in South Dakota and elsewhere:
- The corporate-defendants applied for and received federal awards for essentially equivalent work, or portions thereof, concealing the existence of the awards and the relationships between related companies from the awarding agencies.
- During the application process, the corporate-defendants misrepresented the existence and use of distinct company facilities, equipment, and operations in South Dakota and North Dakota, and elsewhere outside of California. These representations and statements were false in that all of the companies were co-located in a common facility in Richmond, California, sharing the same resources and performing essentially equivalent work, or portions thereof.
- The corporate-defendants’ fraudulent conduct included the preparation and submission of proposals for awards under the NSF, NASA, and DOE programs, specifically involving costs, employees, the eligibility of principal investigators, suitability of facilities, location of facilities, subcontractors, consultants, letters of support, and certifications submitted to NSF, NASA, and DOE. As a result of the corporate-defendants’ conduct, fraudulently-obtained NSF, NASA, and DOE contracts were awarded, totaling $1,084,418.60 between Blue Sky Engineering Inc., Black Hills Nanosystems, Laserlith, and others.
As to Tang’s individual guilty plea, on January 28, 2015, Tang executed the aforementioned scheme to defraud the United States and its agencies and to obtain money and property by means of false representations, and promises relating to material facts. Specifically, Tang knowingly sent a wire communications in interstate or foreign commerce as follows: a wire communication from MicroAssembly, by and through Defendant Blue Sky Engineering Inc., as general contract, and with Black Hills Nano serving as subcontractor, containing NASA proposal numbered H8.03-8999, entitled “Low Cost Multi-Junction Photovoltaic Panels.” This proposal was fraudulent and contained material representations in that it contained “essentially equivalent work,” or a portion thereof, to proposals submitted as part of the conspiracy, as set forth above and as alleged in the Information, between Defendants Blue Sky Engineering Inc., MicroAssembly, Laserlith, and Black Hills Nano. After transmitting this wire containing fraudulent and material representations, Defendant Tang withdrew the proposal from NASA. Although NASA proposal numbered H8.03-8999 was later withdrawn, Defendant Tang submitted the proposal with the intent to defraud NASA.
This case was investigated by NASA OIG, NSF OIG, and DoE OIG. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Eight Individuals Indicted for Fraudulently Facilitating Hundreds of Foreign Nationals in Illegally Remaining in the U.S. in Immigration Fraud SchemeRead the Press Release
Three indictments were unsealed today charging eight individuals from around the country with conspiracy to commit visa fraud and harboring aliens for profit, announced United States Attorney Matthew Schneider. Six of the defendants were arrested in metro Detroit. Two others were arrested in Lake Mary, Florida; and Culpeper, Virginia.
Schneider was joined in the announcement by Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
Charged in the indictments were:
Barath Kakireddy, 29, of Lake Mary, FL
Suresh Kandala, 31, of Culpeper, VA
Phanideep Karnati, 35, of Louisville, KY
Prem Rampeesa, 26, of Charlotte, NC
Santosh Sama, 28, of Fremont, CA
Avinash Thakkallapally, 28, of Harrisburg, PA
Aswanth Nune, 26, of Atlanta, GA.
Naveen Prathipati, 26, of Dallas, TX
According to the indictments, from approximately February 2017 through January 2019, the defendants, a group of foreign citizens, conspired with each other and others to fraudulently facilitate hundreds of foreign nationals in illegally remaining and working in the United States by actively recruiting them to enroll into a metro Detroit private university that, unbeknownst to the conspirators, was operated by HSI special agents as part of an undercover operation. As part of the scheme, the defendants/recruiters assisted foreign citizen “students” in fraudulently obtaining immigration documents from the school and facilitated the creation of false student records, including transcripts, for the purpose of deceiving immigration authorities. The illegal documents obtained as a result of the conspirators’ actions were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school, nor attended a single class, and were not bona fide students. All participants in the scheme knew that the school had no instructors or actual classes. The defendants intended to help shield and hide their customers/”students” from United States immigration authorities for money and collectively profited in excess of a quarter of a million dollars as a result of their scheme.
“We are all aware that international students can be a valuable asset to our country, but as this case shows, the well-intended international student visa program can also be exploited and abused,” stated United States Attorney Matthew Schneider.
“Homeland Security Investigations special agents uncovered a nationwide network that grossly exploited U.S. immigration laws. These suspects aided hundreds of foreign nationals to remain in the United States illegally by helping to portray them as students, which they most certainly were not. HSI remains vigilant to ensure the integrity of U.S. immigration laws and will continue to investigate this and other transnational crimes,” said Special Agent in Charge Francis.
If convicted, the defendants face a statutory maximum penalty of five years in federal prison.
Since 2015, the case was investigated by special agents from the Detroit HSI field office.
The case is being prosecuted by Assistant U.S. Attorneys Ronald Waterstreet, Timothy McDonald and Brandon Helms with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dominican National Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national was sentenced yesterday for his role in a conspiracy to distribute fentanyl.
Julio Cesar Baez, 50, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 30 months in prison and three years of supervised release. In November 2018, Baez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute more than 400 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of more than 400 grams of fentanyl.
According to court records, as part of an ongoing drug trafficking investigation, law enforcement agents intercepted telephones used by Wareng Jhonny Villar-Ortiz and another member of the conspiracy, both of whom are also Dominican nationals, and determined that Villar-Ortiz was a mid-level drug distributor, who had received a kilogram of drugs in late January 2018. In February 2018, Villar-Ortiz was dissatisfied with the quality of the drugs and made arrangements to return the drugs. On Feb. 14, 2018, agents observed Villar-Ortiz’s supplier exit Villar-Ortiz’s apartment building, get into his car, and drive off. A short while later, agents observed Baez exit the vehicle and enter a second vehicle. Law enforcement officers then stopped the second vehicle and seized approximately 789 grams of fentanyl from Baez.
According to court records, Baez was as a runner responsible for delivering fentanyl from the supplier. Three other members of the conspiracy, including Villar-Ortiz, have been convicted in connection with the investigation, but have not yet been sentenced.
United States Attorney Andrew E. Lelling; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Valuable assistance was provided by the Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Domestic Violence Perpetrator Pleads Guilty to Possessing 37 FirearmsRead the Press Release
LOUISVILLE, Ky. – A Louisville, Kentucky, woman who was previously convicted of domestic violence has pleaded guilty to a Superseding Indictment charging her with unlawful possession of 37 firearms, announced United States Attorney Russell M. Coleman.
Ashlynn Marcum, 28, Louisville, was indicted by a federal Grand Jury on November 20, 2018.
According to a plea agreement, on August 29, 2018, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were investigating the theft of firearms from a building associated with a firearms dealer. During the investigation, agents approached a vehicle in the parking lot of a motel in Muldraugh, Kentucky. Marcum was seated in the passenger seat of the vehicle. An agent saw a Colt Black Stallion .380 caliber semiautomatic pistol and a loaded magazine in plain view on the floorboard of the vehicle near the defendant’s feet. After being advised of her Miranda rights, the defendant stated she obtained the pistol found in the vehicle from a guy named “Joe” and that she chose that pistol to carry because it was small. The defendant consented to a search of a motel room she was staying in at the motel. When the agents searched the room, they recovered more firearms that the defendant said were stolen from the storage building associated with the firearms dealer. According to the Superseding Indictment, Marcum has 3 previous misdemeanor domestic violence convictions in the Jefferson County, Kentucky, District Court.
Marcum faces a maximum sentence of 10 years imprisonment, a maximum fine of $250,000 and a 3-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Tom Dyke and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
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Deltoine Scott Sentenced to 200 Months for Felony Murder Related to May 2017 Loomis Armored Car RobberyRead the Press Release
NEW ORLEANS – United States District Judge Ivan L.R. Lemelle sentenced DELTOINE SCOTT, age 25, of New Orleans, to 200 months in federal prison for his role in a 2015 armored car robbery and a 2017 attempted armored car robbery in which Loomis guard James McBride was killed, announced U.S. Attorney Peter Strasser.
As part of a plea, SCOTT admitted to conspiring with JEROME KIEFFER and ARMSTEAD KIEFFER, who are father and son, to commit two armored car robberies, a 2015 robbery at the Chase Bank on N. Board and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane. SCOTT testified against the KIEFFERs during an October 2018 trial, admitting his role and identifying JEROME KIEFFER as the other gunman in both robberies and ARMSTEAD KIEFFER as the lookout in the 2017 attempted robbery that resulted in McBride’s death. Both of the KIEFFERs were convicted on all counts at trial and face a mandatory life sentence.
SCOTT will served 200 months, to be followed by three years of supervised release after his incarceration. SCOTT was also ordered to pay in restitution the $160,000 that was stolen during the 2015 robbery, for which the KIEFFERs will be jointly and severely liable.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys David Haller and Michael McMahon were in charge of the prosecution.
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Convicted Felon Sentenced to Prison for Possessing A Firearm During Shootout in St. PetersburgRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Lavonta Hill (28, St. Petersburg) to five years and four months in federal prison for possessing a firearm as a convicted felon. Hill had pleaded guilty on October 30, 2018.
According to court documents, on January 25, 2017, at approximately 3:45 a.m., Hill was involved in a shootout in a residential area of 15th Street South and 14th Avenue South, in St. Petersburg. Shortly after the shooting, officers from the St. Petersburg Police Department (SPPD) found Hill on the ground in the parking lot of a nearby liquor store, bleeding from his wounds. Hill, who at the time was a convicted felon and prohibited from possessing a firearm or ammunition, denied knowing where the shooting occurred, who shot him, or why.
Further investigation by SPPD determined that the shooting had occurred on 15th Street South, approximately 60 shots had been fired, and bullets had struck houses, trees, and cars in the vicinity. In the front yard of one of the residences, an officer found a blue recycling container with blood smeared on it. Under the container, the officer found a firearm. Investigators discovered a trail of blood drops from that residence to the liquor store parking lot. Surveillance video from a nearby grocery store showed Hill staggering across the parking lot and crossing the street toward the liquor store at approximately 3:46 a.m., and witnesses described seeing Hill stumble and sway as he approached the liquor store. DNA from the blood on the firearm and recycling bin matched Hill’s DNA and a firearms and ballistics expert determined that two of the cartridge cases from the shooting scene were fired from the firearm linked to Hill.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Co-Conspirators in Philadelphia Crack Cocaine Trafficking Conspiracy ConvictedRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that a jury has convicted Edward Stinson and Debra Baylor of conspiracy to distribute 280 grams or more of cocaine base, in addition to several related drug charges, including one count of possession with intent to distribute cocaine (against Baylor); one count of possession with intent to distribute cocaine within a public housing project (against Baylor); two counts of possession with intent to distribute cocaine base (against Baylor); unlawful use of a communication facility in furtherance of a drug felony (multiple counts against both defendants); and one count of maintaining a drug house (against Baylor).
The Stinson Drug Trafficking Group (DTG) sold crack cocaine in and around the Norman Blumberg Apartment Complex (Blumberg) in North Philadelphia from about 2010 through September 2015. Blumberg was a public housing facility that provided housing to low income residents and contained two children’s playgrounds before it was torn down in 2016. The DTG sold crack cocaine 24 hours a day, 7 days a week, employing a large network of supervisors, sellers, lookouts, and suppliers in and around Blumberg. To protect their territory and drug trafficking activities, members of this DTG routinely carried, and sometimes used, loaded firearms.
Stinson was the leader of the DTG. He was assisted in the daily operations of the DTG by multiple individuals, including Baylor. Defendants and others obtained bulk quantities of cocaine from suppliers and arranged for it to be cooked into crack cocaine inside various apartments in Blumberg. The crack cocaine was then distributed to other members of the DTG for further re-distribution by another group of persons in the DTG. Debra Baylor, in addition to selling crack cocaine, permitted Edward Stinson and others acting on their behalf, to package, store, and distribute crack cocaine out of her apartment, which served as a “stash” house for the DTG.
“Today’s verdict ensures that Stinson and Baylor will be held accountable for the misery their drug trafficking activities caused,” said U.S. Attorney McSwain. “Today’s victory demonstrates my Office’s steadfast commitment to taking down criminal organizations like the Stinson DTG and cutting off the supply of illegal drugs like crack cocaine into our communities.”
“For years, Edward Stinson controlled the crack trade around the Blumberg Apartments through violence and intimidation. His 24-7 operation hauled in millions of dollars, at great cost to that neighborhood and the folks who lived there. The FBI and our law enforcement partners are committed to dismantling drug trafficking organizations like this and bringing those involved to justice,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division.
“Stinson and his associates were responsible for rampant drug trafficking and acts of violence that terrorized the residents of the former Norman Blumberg Apartment complex,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. “Through their criminal activities, Stinson and Baylor preyed on some of the most vulnerable members of our society through fear, intimidation, and total disregard for the residents of this public housing facility.”
This case was investigated by the FBI Philadelphia Division, the Drug Enforcement Administration's Philadelphia Field Division, and the Philadelphia Police. The case is being prosecuted by Assistant United States Attorneys Joseph Labrum and Josh Davison.
Clearwater Doctor Sentenced to Prison for Health Care FraudRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody Jr. today sentenced Jayam Krishna Iyer (66, Clearwater) to six months in federal prison for committing health care fraud, ordered Iyer to forfeit over $52,000 in health care fraud proceeds, and order her to pay restitution to the Medicare and Medicaid programs.
In addition, the court ordered Iyer to forfeit her Florida medical license, permanently excluding her from participating in the Medicare and Medicaid programs. And, Iyer agreed to surrender her DEA registration number, which had been used to prescribe controlled substances, and not to reapply for a DEA registration number for at least 20 years.
According to court documents, Iyer owned and operated Creative Medical Center, located on Druid Road East in Clearwater. The center functioned as a pain management clinic; Iyer conducted office visits and wrote prescriptions for controlled substances, including oxycodone, morphine, and fentanyl.
Beginning in July 2011 and continuing through December 2017, Iyer carried out a scheme to defraud Medicare by billing for face-to-face office visits with Medicare and Medicaid patients, when, in fact, certain patients had not gone to Iyer’s office and had not been examined by her on the claimed dates. Instead, family members of patients had visited Iyer’s office, where she issued prescriptions for Schedule II controlled substances, including oxycodone, to the family members in the patients’ names. Iyer thereby violated a Florida law requiring doctors to perform an in-person office visit and examination of each patient before issuing Schedule II controlled substance prescriptions.
Iyer also falsified her electronic medical records, including vital statistics, to make it appear that the actual patients had been present in her office for an office visit, when they had not.
Iyer submitted at least $52,000 in false and fraudulent Medicare and Medicaid claims.
This case was investigated by the Opioid Fraud and Abuse Detection Unit – one of 12 Department of Justice pilot programs created to help combat the opioid crisis that is ravaging families and communities across America. The unit focuses specifically on opioid-related health care fraud using data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Florida Office of Attorney General’s Medicaid Fraud Control Unit, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Citizen of India Charged with Operating "Provisional Credit" Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced that KISHORE BABU AMMISETTI, 30, a citizen of India, has been charged by federal criminal complaint with fraud offenses stemming from an alleged “provisional credit” scheme.
As alleged in the complaint, Ammisetti used Facebook Marketplace and other media to victimize individuals, primarily of Indian decent, who advertised items for sale or rooms for rent. Through this scheme, Ammisetti would contact a victim to express interest in purchasing an item or renting a room. He would then gather the victim’s bank account information and other personal information under the guise of making a deposit to the victim’s bank account. He also would offer to provide a “deposit” directly into the victim’s account via a Peer-to-Peer (P2P) transfer.
The complaint further alleges that Ammisetti would then contact the victim’s bank and, posing as the victim, would claim to have made an ATM deposit that did not register on the victim’s bank account. While researching the “unregistered deposit,” the bank would credit the victim’s account with a provisional credit. Ammisetti would then contact the victim and claim that the provisional credit to the victim’s bank account was a mistaken transfer by Ammisetti to the victim’s account. Ammisetti would then request either a full or partial refund of that money, which the victim would provide via a P2P transfer. After the bank determined that there was no unregistered deposit to the victim’s account, the funds provided as a provisional credit would be removed from the account.
It is alleged that Ammisetti stole at least $800,000 from more than 400 victims through this scheme. The investigation has revealed that Ammisetti often operated this scheme while staying at casino hotels in Connecticut.
Ammisetti was arrested on January 25, 2019. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
It is alleged that Ammisetti entered the U.S. in 2013 on a student visa, which was revoked in 2014.
The complaint charges Ammisetti with bank fraud, an offense that carries a maximum term of imprisonment of 30 years, and wire fraud, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by HSI with the assistance of the Mohegan Tribal Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Cincinnati Man Convicted of Conspiracy to Possess with Intent to Distribute Controlled SubstancesRead the Press Release
COVINGTON, Ky. – Trontez Mahaffey, a Cincinnati man, was convicted today by a federal jury in Covington for conspiring with Tyra Nelson, also from Cincinnati, and others, to possess with the intent to distribute marijuana and methamphetamine, which they transported in their luggage from Phoenix, Arizona to the Cincinnati/Northern Kentucky International Airport on September 8, 2017.
After slightly under one hour of deliberations following a three day trial, the jury convicted 23 year old Trontez Mahaffey of the conspiracy charge and two substantive charges of possession with the intent to distribute 80 pounds of marijuana and four pounds of crystal methamphetamine.
According to testimony at trial, Mahaffey and Nelson were drug couriers for a drug organization with connections in Evansville, Indiana and Phoenix, Arizona. They had made approximately five prior trips transporting controlled substances to the Cincinnati/Northern Kentucky International Airport from Phoenix, Arizona and paid approximately $1,500 each time. Tyra Nelson, age 21, was charged in the same indictment, and pleaded guilty prior to trial.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), and Shawn Ward, Chief, Airport Police Department jointly announced the conviction.
The investigation was conducted by the DEA and the Airport Police Department. The United States was represented by Assistant United States Attorney Laura K. Voorhees.
Mahaffey will appear for sentencing on March 9, 2019, and Nelson will appear for sentencing April 4, 2019. They each face a mandatory minimum sentence of ten years in prison due to the quantity of methamphetamine involved. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Charleston Man Pleads Guilty to Federal Drug ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that a Charleston man entered a guilty plea to four counts of distributing methamphetamine. Charles Washington-Robinson, 34, admitted that on four occasions in 2016 and 2017, he sold methamphetamine to a confidential informant. Each of the sales took place at or near the Charleston Town Center Mall.
Stuart commended the investigation conducted by the Special Enforcement Unit of the Charleston Police Department.
Washington-Robinson faces up to 20 years in prison on each of the four counts he pled guilty to when he is sentenced on June 19, 2019.
The case is being prosecuted by Assistant United States Attorney Matt Davis. United States District Judge David Faber presided over the plea hearing.
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###Bullhead Man Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
Daniel Brown, age 28, was indicted on January 8, 2019. He appeared before Judge William D. Gerdes on January 10, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the indictment, on or about September 8, 2018, in Bullhead, Daniel Brown unlawfully killed another person by operating a motor vehicle recklessly, and while under the influence of alcohol and a controlled substance.
The charge is merely an accusation and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Brown was released on bond pending trial. A trial date has not been set.
Brevard County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, Florida – Roberto Oquendo (37, Brevard County) today pleaded guilty to two counts of production of child pornography. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison on each count.
According to the plea agreement, on September 15, 2016, in Melbourne, Oquendo was the subject of a traffic stop. During the traffic stop, deputies from the Brevard County Sheriff’s Office received a tip that Oquendo possibly had child pornography in his possession. As a result, task force agents with the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations interviewed Oquendo. During the interview, Oquendo admitted that, for several years, he had used a cellphone to search for and view child pornography. Oquendo also disclosed that while residing in Brevard County, he had used a cellphone to take explicit photos of two female children in his custody.
Further investigation led to the seizure of several items of computer media from a place in Brevard County where Oquendo had resided. The computer media contained thousands of images and videos of the two young girls, who were toddlers at the time, as well as other children, engaged in sexually explicit conduct. Oquendo’s collection of child pornography contained depictions of infants, toddlers, and young children engaged in sexual activity, including sadistic conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Bradenton Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Esterbann Deneus (56, Bradenton) has pleaded guilty to conspiracy to commit theft of government funds and aggravated identity theft. He faces a maximum penalty of five years in federal prison. His sentencing date has not yet been set.
According to court documents and the facts presented at the plea hearing, Deneus was involved in a scheme to deposit tax refunds checks that the IRS had issued due to the filing of false and fraudulent income tax returns submitted in the names of various victim-taxpayers. Between October 2013 and July 2014, Deneus deposited a number third-party tax refund checks into a bank account that he controlled. The investigation revealed that the IRS received fraudulent tax returns resulting in the transmission of more than $84,000 in fraudulent income tax refund checks that were ultimately deposited into Deneus’s bank account. These third-party checks, made payable to victim-taxpayers who knew nothing of the refunds or the returns that had generated them, and who did not know Deneus, were also fraudulently endorsed with forged signatures of the payees.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Box Elder Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Box Elder, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gary Lewis Halfe, age 62, was sentenced on January 4, 2019, to 33 months in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Halfe, who is a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, knowingly failed to register and update his registration between December 2017 and February 2018.
This case was investigated by the U.S. Marshal Service. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Halfe was immediately turned over to the custody of the U.S. Marshals Service.
Athens County Farmer Pleads Guilty to Having Contaminated Calf Slaughtered for BeefRead the Press Release
CINCINNATI – Cory L. Gillette, 31, of Albany, Ohio, pleaded guilty in U.S. District Court to having a medicated calf slaughtered with the intention of selling it as beef for human consumption. The calf was contaminated with Gentamicin, which is not approved for use in cattle.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office announced the plea entered into today before U.S. District Judge Timothy S. Black.
According to the statement of facts in this case, since 2009, Gillette has operated as a livestock dealer and hauler as the owner of Cory Gillette Farm in Athens County.
Gillette transported a calf from Southern Ohio to a slaughter facility in Addison, Ill., where it was intended to be sold as beef for human consumption. The calf was slaughtered and subject to random inspection. During that inspection, the calf tested positive for Gentamicin, an aminoglycoside antibiotic.
When an investigator from the FDA’s Office of Criminal Investigations interviewed Gillette about the contaminated calf, Gillette lied and said he purchased the calf at a livestock auction in Zanesville, Ohio. In fact, he had not purchased the calf there, and misled investigators in an attempt to impede their ability to trace the contamination back to its source.
“As part of his plea, Gillette admitted he often bought injured, ill and potentially medicated animals at a discounted price with the intention of selling the animals to slaughter facilities and maximizing his profit,” said U.S. Attorney Glassman.
“The FDA, in partnership with the USDA, is vigilant in keeping antibiotics and other residual animal drugs out of the human food supply in the United States by carefully monitoring food-producing animals,” said Special Agent in Charge McCormack. “We will continue to pursue and bring to justice those who put public health at risk by selling food-producing animals that do not meet federal standards.”
Gillette was charged by a bill of information in September 2018. He pleaded guilty to one count of introducing adulterated food into interstate commerce, a crime punishable by up to one year in prison, and one count of making false statements to federal agents, a crime punishable by up to five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FDA’s Office of Criminal Investigations and Assistant United States Attorney Ebunoluwa A. Taiwo, who is representing the United States in this case.
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Arlington, Texas Man Pleads Guilty to Methamphetamine, Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jalen Jewaun Glass, age 24, of Arlington, Texas, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and no more than 40 years imprisonment, up to a $5,000,000.00 fine, or both; Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and no more than 40 years imprisonment, up to a $5,000,000.00 fine, or both; and to Possession With Intent To Distribute Cocaine Base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 and no more than 40 years imprisonment, up to a $5,000,000.00 fine, or both.
The Indictment alleged that on or about August 18, 2018, within the Eastern District of Oklahoma, defendant did knowingly and intentionally possess with intent to distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The Indictment further alleged that on or about August 18, 2018, within the Eastern District of Oklahoma, defendant did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The Indictment further alleged that on or about August 18, 2018, within the Eastern District of Oklahoma, defendant did knowingly and intentionally possess with intent to distribute 28 grams or more of a mixture or substance containing a detectable amount of cocaine base, a Schedule II controlled substance.
The charges arose from an investigation by the McAlester Police Department, the District 18 Drug and Violent Crimes Task Force, and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Akron man indicted for having fentanyl and cocaineRead the Press Release
An Akron man was indicted in federal court for having fentanyl and cocaine.
Lexington Jacobs, 24, was indicted on one count of possession with intent to distribute cocaine and one count of possession with intent to distribute fentnaly.
Jacobs had the drugs on December 9, 2018, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Akron Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Peter E. Daly.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Albuquerque Woman Sentenced to 36 Months in Prison for Methamphetamine TraffickingRead the Press Release
ALBUQUERQUE – Cordelia Louisa Espinosa, 52, of Albuquerque, N.M., was sentenced in federal court today to 36 months in prison for conspiracy and distribution of at least 50 grams of methamphetamine.
According to court documents, Espinosa participated in a methamphetamine trafficking conspiracy from the beginning of April 2015 to February 9, 2017. As part of the conspiracy, she participated in a drug transaction in Albuquerque on December 7, 2016. Espinosa gave a gift bag containing approximately 553 grams of methamphetamine to another drug trafficker, who then gave the bag to an undercover law enforcement officer posing as a drug purchaser. On February 9, 2017, Espinosa participated further in the conspiracy by coordinating a drug transaction by telephone involving more than 14 kilograms of methamphetamine.
The indictment against Espinosa also charged three co-defendants. On January 3, 2019, Hector Hugo Magana, 35, of Redwood City, California, received a sentence of 70 months in prison after pleading guilty to distribution of 500 grams or more of methamphetamine.
On July 3, 2018, Efrain Espinoza-Pena, 45, of Mexico, pleaded guilty to conspiracy, distribution of at least 50 grams of methamphetamine, and possession with intent to distribute at least 50 grams of methamphetamine. On September 13, 2018, Edgar Madrid-Rascon, 33, of Mexico, pleaded guilty to distribution of 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Both of these co-defendants are awaiting sentencing.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with assistance from the Drug Enforcement Administration, the New Mexico State Police, and Immigration and Customs Enforcement. Assistant U.S. Attorneys Paul J. Mysliwiec and David Cowen prosecuted the case.
Albuquerque Woman Sentenced to 24 Months in PrisonRead the Press Release
ALBUQUERQUE – Jackie Herron, 25, of Albuquerque, N.M., was sentenced in federal court today to 24 months in prison on three counts of assault on a federal employee involving the use of a deadly weapon.
According to court documents, Herron was involved in a confrontation with postal service workers in a gated, restricted parking lot for employees only. When postal workers told her to leave, she revved the engine of her automobile and threatened to run them over. When one of the postal workers went behind her car to take photographs of Herron’s license plate, she pulled out a gun and pointed it at them in a threatening manner.
The Albuquerque office of the United States Postal Inspection Service investigated the case. Assistant U.S. Attorneys Paul J. Mysliwiec and Eva Mae Fontanez prosecuted the case.
29 January 2019
Wounded Knee Man Sentenced in Death of InfantRead the Press Release
United States Attorney Ron Parsons announced that a Wounded Knee, South Dakota, man convicted of Second Degree Murder was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Darwin Wade Red Cloud, a/k/a Darwin Raisch, age 26, was sentenced on January 3, 2019, to 4 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Red Cloud was charged on October 12, 2015. The conviction stems from Red Cloud knowingly failing to provide sufficient sustenance to an infant, which resulted in the baby’s death, between August and October 2014 at Wounded Knee.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorneys Sarah B. Collins and Ben Patterson prosecuted the case.
Red Cloud was immediately remanded to the custody of the U.S. Marshals Service.
Westerly Resident Sentenced to 87 Months in Prison on Child Pornography ChargesRead the Press Release
PROVIDENCE – A Westerly man who admitted to exchanging sexually explicit images involving minors with others online and to sending sexually explicit images to minors via social media applications has been sentenced to 87 months in federal prison.
At sentencing on January 10, 2019, Jonathan Breslin, 33, was also ordered by U.S. District Court Judge John J. McConnell, Jr., to serve 10 years supervised release upon completion of his term of incarceration. Breslin pleaded guilty on October 10, 2018, to possession of child pornography, transferring obscene material to a minor, and two counts of receipt and distribution of child pornography.
Breslin’s sentenced is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh, Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police, Westerly Police Chief Shawn M. Lacey, and Warwick Police Chief Rick Rathbun.
According to court documents, Homeland Security Investigations learned from a Canadian law enforcement agency of 78 unique users who shared and/or communicated about child pornography on a social media application. Through further investigation, Homeland Security Investigations identified one of the IP addresses as belonging to Jonathan Breslin. The investigation into Breslin’s online activities revealed a series of sexually explicit discussions about creating, distributing and the viewing of child pornography.
As part of the investigation, a Homeland Security Investigations agent, posing as an individual interested in child pornography, engaged Breslin in a series of communications. During the exchanges, Breslin discussed viewing, possessing and the attempted production of child pornography.
Additionally, the investigation determined that Breslin transferred obscene material online to a person under the age of 16 and attempted to entice minors to engage in illicit sexual activity on social media applications.
On August 9, 2017, the date of Breslin’s arrest, a court-authorized search of Breslin’s residence by agents from Homeland Security Investigations, the Rhode Island State Police Internet Crimes Against Children Task Force, and members of the Westerly and Warwick Police Departments resulted in the seizure of a computer, a digital media storage device and a cell phone, all containing child pornography. A forensic audit of the electronic devices revealed at least 275 images and 46 videos containing child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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