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29 January 2019
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Claude Charles Iron Thunder, 42, of Lincoln, was sentenced today to seven years (84 months) in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine between June of 2014 and March of 2018. Following his prison term, Iron Thunder will serve four years on supervised release.
Information provided to law enforcement indicated that Iron Thunder was responsible for the distribution of at least 200 grams (approximately seven ounces) of methamphetamine mixture in the Lincoln area. In March of 2018, an undercover officer purchased a small amount of methamphetamine from another individual in Iron Thunder’s apartment. Iron Thunder was asleep in the apartment at the time. The seller told the officer that the seller and Iron Thunder were working together to sell methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Jury convicts Cleveland man on all 14 counts related to using a firearm to deal fentanyl, heroin and other drugsRead the Press Release
A jury convicted a Cleveland man on all 14 counts related to using a firearm to deal fentanyl, heroin and other drugs.
Tyler Hall, 28, is scheduled to be sentenced May 17th. He was convicted of possessing a firearm in furtherance of drug trafficking, being a felon in possession of a firearm and multiple counts of distribution of fentanyl, heroin, cocaine, crack cocaine marijuana.
Hall had 1.46 grams of fentanyl, 22 grams of crack cocaine and a Walther 9 mm semiautomatic pistol during a search of his home and business on the west side of Cleveland last year, according to court documents.
Hall was a person of interest in relation to three non-fatal opioid overdoses. Two of the victims had information that their supplier’s name was Tyler and that he worked, resided and sold drugs in the area of West 104th Street and Lorain Avenue, according to court documents.
Law enforcement on July 3 searched Hall’s residence at 10400 Lorain Ave. and business, at auto body shop at 3179 West 104th Street. Hall was detained and found to be carrying two cellular phones, $1,152 in cash and a set of keys to both his residence and business, according to court documents.
Inside his residence was a desk where it appeared drugs were prepared and packaged for sale. Also nearby were 1.46 grams of fentanyl, 22 grams of crack cocaine, a Walther 9 mm semiautomatic pistol and approximately $6,000 in cash, according to court documents.
Hall was prohibited from having a firearm because of previous felony convictions, including for aggravated robbery, robbery, intimidation of a crime victim or witness and multiple drug trafficking and possession convictions, according to court documents.
This case was investigated by the Cleveland Division of Police, Drug Enforcement Administration and Ohio High Intensity Drug Trafficking Area (HIDTA). It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Jury Finds Local Plaintiff’s Attorney Guilty of Corruptly Obstructing an IRS AuditRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found Stephen J. Dougan, 59, formerly of Granite Bay, guilty of one count of corruptly endeavoring to impede the due administration of the Internal Revenue Laws, U.S. Attorney McGregor W. Scott announced.
According to evidence admitted at trial, during an Internal Revenue Service audit of his 2006 and 2007 tax returns, Dougan made false statements and provided false and misleading documents to the IRS that substantially underrepresented his income in 2006 and 2007. He also made false statements and provided false and misleading documents to the IRS in order to substantiate various business expenses he claimed on Schedule C of his 2006 tax return.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Michael M. Beckwith, Chi Soo Kim, Matthew M. Yelovich and Amy Schuller Hitchcock are prosecuting the case.
Dougan is scheduled for sentencing on April 22, 2019. He faces a maximum statutory penalty of three years in prison and a $5,000 fine or a fine of twice the value of the gross gain or loss from the tax violation, which, in this case, exceeded $320,000.
Jury Finds Iowa Man Guilty of Two Counts of Murder-for-HireRead the Press Release
A man who was serving a fifteen year federal prison sentence when he tried to hire a “hitman” to murder two people in Northeast Iowa was convicted by a jury today after a six-day trial in federal court in Cedar Rapids.
Jason Harriman, age 44, formerly of Traer and Independence, Iowa, was convicted of two counts of murder-for-hire. The verdict was returned this afternoon following about four hours of jury deliberations.
The evidence at trial showed that in 2011, Harriman was sentenced to serve fifteen years in federal prison for unlawfully possessing a gun and ammunition. While in federal prison in Arkansas, Harriman made multiple phone calls and sent multiple emails to an individual he thought was a hired killer, but was actually an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. After meeting with the “hitman” in person in the prison, Harriman signed a contract calling for the murders of two people who were living in Northeast Iowa. Harriman agreed to pay the “hitman” $21,000 and had already given the “hitman” a 1969 Dodge Charger as a down payment.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Harriman remains in custody of the United States Marshal pending sentencing. Harriman faces a possible maximum sentence of twenty years’ imprisonment, a $500,000 fine, and six years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Anthony Morfitt and Kyndra Lundquist and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bureau of Prisons Special Investigative Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2033-LRR.
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Jury Convicts Tulsa Man of Shooting a Police OfficerRead the Press Release
Following a two day trial, a federal jury returned a verdict of guilty on Tuesday in the prosecution of a 35-year-old Tulsa man for shooting and wounding a Tulsa police officer at a local Quik Trip on July 3, 2018, announced U.S. Attorney Trent Shores.
The jury deliberated two hours before finding John Terry Chatman, Jr., guilty of three federal counts, which included being a felon in possession of a firearm and ammunition, obstruction of justice by attempting to kill a witness, and carrying, using, and discharging a firearm during and in relation to a crime of violence.
“Our case was strong, and our cause was just. Guilty on all counts was the right result. I am thankful to the jury for their service,” said U.S. Attorney Trent Shores. “John Chatman won’t be shooting anymore police officers. We will seek the maximum sentence allowed under law.”
On July 3, 2018, Tulsa police officers discovered Chatman driving a mini-van with a license plate that was registered to a different vehicle. Officers explained the traffic violation and asked for identification. Chatman repeatedly refused to identify himself and questioned the officers’ jurisdiction. Chatman escalated the situation by refusing to exit the vehicle and demanding to speak to a supervisor.
The United States presented evidence from police body cameras showing officers directing Chatman to exit the vehicle and repeatedly explaining the traffic and obstruction violations to him. Eventually, Tulsa Police Sergeant Mike Parsons arrived on scene and explained to Chatman that he was obstructing an investigation.
The video further showed that Sgt. Parsons again ordered the man to leave the vehicle, explaining to Chatman he would use PepperBalls to make him exit the vehicle. As the sergeant deployed his PepperBall gun into the vehicle, Chatman shot him with a handgun from within the mini-van, striking Sgt. Parsons. An officer returned fire, and Chatman was eventually arrested. The prosecution showed that the sergeant’s injuries could have been far more severe, potentially shattering his femur or hitting an artery, if a challenge coin in his pocket had not deflected the bullet.
A .32 caliber revolver was recovered from the scene with four spent cartridge casings in the firearm, and two live rounds. As a felon, Chatman was not allowed to possess firearms under federal law.
U.S. District Judge Claire V. Eagan presided over the trial and will sentence Chatman on April 30, 2019. Chatman potentially faces a maximum penalty of 10 years up to life imprisonment and a $250,000 fine for the felon in possession of a firearm and ammunition charge; a maximum penalty of 30 years imprisonment and a $250,000 fine for the obstruction of justice by attempting to kill a witness charge; and a mandatory minimum penalty of 10 years imprisonment, consecutive to any other term of imprisonment, and a $250,000 fine for the carrying, using, and discharging a firearm during and in relation to a crime of violence charge.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department investigated the case. U.S. Attorney Trent Shores and Assistant U.S. Attorneys Allen Litchfield and Mark Morgan prosecuted the case.
Jasper County Woman Sentenced for Production of Child PornographyRead the Press Release
BEAUMONT, Texas — A 33-year-old Jasper, Texas woman has been sentenced to 320 months in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Janel Saphire Trahan pleaded guilty on Sep. 13, 2018 to production of child pornography and was sentenced to 320 months in federal prison by U.S. District Judge Thad Heartfield on Jan. 23, 2019.
According to information presented in court, on Jan. 13, 2018, Trahan took a photograph of herself performing oral sex on a 2-year-old female and sent it to her husband. On Jan. 14, 2018, she sent the photograph in a private group chat using a mobile instant messaging application. Trahan was indicted by a federal grand jury on Feb. 7, 2018.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
This case was investigated by HSI-ICE, the Beaumont Police Department and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Jackson Men Sentenced to Federal Prison under Project EJECT for Illegally Possessing FirearmsRead the Press Release
Jackson, Miss. – Cleveland Ellis, 30, and Joshua Hamilton, 29, both of Jackson, were sentenced yesterday by Chief United States District Judge Daniel P. Jordan III for illegally possessing firearms as felons, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”).
Ellis was sentenced to 21 months in federal prison, while Hamilton received a 64 month prison sentence. Each must pay a $1,500 fine and serve three years of supervised release after his release from prison.
In November 2017, Ellis and Hamilton were sitting in a parked car after midnight in a dark alley of an apartment complex in Jackson. The men were smoking marijuana, drinking, and waiting for an unnamed “friend” to come home. When an officer asked if they needed assistance, she learned that Ellis had a 9mm semi-automatic pistol under his seat and Hamilton was sitting on a .40 caliber semi-automatic pistol, which was stolen. Both men were convicted felons. Ellis has a prior conviction for manslaughter, and Hamilton has a prior conviction for aggravated assault.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (“PSN”). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Jackson Expel Crime Together.” PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Iowa Man Sentenced for Interference with Commerce by Threats and ViolenceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux City, Iowa, man convicted of Interference with Commerce by Threats and Violence was sentenced on December 20, 2018, by U.S. District Judge Karen E. Schreier.
Caleb Robert Babb, age 35, was sentenced to 44 months in federal prison, followed by 3 years of supervised release, restitution in the total amount of $3.950.28, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Babb was indicted by a federal grand jury on February 6, 2018. He pled guilty on September 24, 2018.
The conviction stemmed from an incident on November 29, 2016, when Babb robbed the Glass Palace, located in North Sioux City, South Dakota. At that time, the Glass Palace was a restaurant and casino. Babb entered the Glass Palace wearing a black ski mask, dark sunglasses, black gloves, and armed with a BB gun that looked like a real handgun. He displayed the firearm to a Glass Palace employee and ordered her to take money from the cash register and place it into a bag. Babb then took the bag with money from the register and left the premises. As part of his sentence, Babb was ordered to pay restitution for money he stole from three other businesses in South Dakota.
This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Babb was immediately turned over to the custody of the U.S. Marshals Service.
ICE most wanted illegal alien pleads guilty to illegally re-entering United StatesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico arrested in Acadia Parish pleaded guilty today to illegally re-entering the country.
Jose Melchor-Martinez, 49, of Mexico, pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of illegal re-entry of a removed alien. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, U.S. Immigrations and Customs Enforcement agents arrested Melchor-Martinez near Church Point, Louisiana, on October 12, 2018 on a criminal complaint. He had been previously removed from the United States on September 6, 2003 after a serving time for a conviction in Mecklenburg, North Carolina, for a charge of indecent liberties with a child. At the time of his arrest in October, U.S. Immigrations and Customs Enforcement considered Melchor-Martinez one of its most wanted fugitives. For more information, see www.ice.gov/most-wanted/martinez-jose-melchor.
Melchor-Martinez faces up to 20 years in prison, three years of supervised release, a $250,000 fine, and possible deportation. The court set sentencing for June 6, 2019.
U.S. Immigrations and Customs Enforcement Removal, Office of Enforcement and Removal Operations investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Ralph Wray, 36, entered a guilty plea to an indictment charging him with possession with the intent to distribute methamphetamine.
Wray admitted that on July 23, 2018, he purchased methamphetamine at a home on Oakland Avenue in Huntington. He left the home and an officer with Huntington Police Department saw what appeared to be baggies of methamphetamine hanging from his belt. The officer approached Wray and Wray admitted the baggies contained methamphetamine. The baggies contained approximately 33 grams of methamphetamine.
Wray faces up to twenty years in federal prison when he is sentenced on May 20, 2019.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Henderson Man Sentenced for Receipt of a Firearm While Under IndictmentRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever, III sentenced TYQUEL ALSTON, 19, of Henderson, North Carolina to 54 months imprisonment, followed by 3 years of supervised release.
ALSTON was named in an Indictment filed on May 16, 2018 charging him with receipt of a firearm while under indictment. On August 7, 2018, ALSTON pled guilty to that charge.
On May 9, 2018 ALSTON was pulled over leaving a known drug area by law enforcement officers with the Henderson Police Department. ALSTON was driving erratically and at a high rate of speed when law enforcement initiated the traffic stop. Officers could smell marijuana in his car and subsequently searched the car. Under the passenger seat officers found a Leinad Inc., Model M-11, 9mm pistol with an extended magazine. The magazine was loaded with 16 rounds. ALSTON is a prohibited possessor of firearms because he was under Indictment for Trafficking in Heroin, Larceny of a Motor Vehicle, Possession of a Stolen Vehicle and Possession of a Handgun by a Minor. Those charges were then pending in the Vance County Superior Court.
The Court granted the Government’s request for an upward departure in the defendant’s sentence because ALSTON was likewise under indictment for his participation in a drive by shooting that occurred on May 25, 2017. During that shooting an unintended victim, a pregnant 17 year old female, was shot in the leg when one of the bullets went into her home that was located across the street from the shooting location. ALSTON previously threatened his girlfriend with firearms in March and May 2018. On both occasions his girlfriend reported to police that ALSTON pointed a firearm at her and threatened to kill her during a domestic dispute. The indictment related to this shooting was pending in Vance County Superior Court at the time he possessed the weapon that was the subject of the federal charges.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Henderson Police Department as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Charity Wilson.
Hemet Man Sentenced to Five Years in Prison for Identity Theft Scheme that Claimed More than $800,000 in False Tax RefundsRead the Press Release
RIVERSIDE, California – An Inland Empire man has been sentenced to 60 months in federal prison for his role in scheme that stole victims’ identities and used them to claim more than $800,000 in fraudulent tax refunds.
Raymond Salazar, 55, of Hemet, was sentenced Monday by United States District Judge Jesus G. Bernal. Salazar was further ordered to pay restitution of $298,693. Salazar pleaded guilty in August 2018 to one count of wire fraud and one count of aggravated identity theft.
Three other defendants involved in the scheme have pleaded guilty to federal criminal charges and are awaiting sentencing in March. They are:
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Charlene Castrejon, 60, of Hemet;
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Rebecca Mona Sandoval, 35 of San Jacinto; and;
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Robert Manuel Gamboa, Jr., known as Paul Timothy Garcia, 31, of Highland.
As part of their scheme, which continued through April 2015, Salazar and his co-conspirators obtained the names, Social Security numbers and dates of birth of individuals without their knowledge or consent, according to Salazar’s plea agreement.
The conspirators then used their victims’ identities to prepare and file false and fraudulent federal income tax returns that contained false income, dependent, earned income credit, education credit and child tax credit information, court documents state.
For example, in January 2013, Salazar and his co-defendants used one victim’s identity to knowingly file a false income tax return for 2012 that falsely stated the victim’s income and that the victim had a dependent who purportedly was the victim’s disabled nephew, court papers state. The return falsely stated that the identity theft victim was entitled to an earned income tax credit and refund of $3,169, according to Salazar’s plea agreement.
The refund payments were mailed to addresses or deposited directly into taxpayer debit card accounts that Salazar and his co-defendants controlled. In total, Salazar and his co-conspirators succeeded in obtaining approximately $569,334.26 in federal tax refunds from the Internal Revenue Service, Salazar’s plea agreement states.
In addition, in May 2013 Salazar and his co-defendants knowingly possessed at his Hemet residence at least 15 credit and debit cards and Social Security numbers belonging to their victims and which were intended to be used to file false federal income tax returns, according to court documents.
This case was part of an ongoing investigation conducted by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. They received substantial assistance from the FBI Safe Streets San Bernardino Gang Impact Team.
The case was prosecuted by Assistant United States Attorney Joseph B. Widman, chief of the Riverside Branch Office.
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Haughton man pleads guilty to enticing a minor to travel to Louisiana for illegal sex actsRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Haughton man pleaded guilty on January 16, 2019 for convincing a minor to travel with him from West Virginia to Louisiana in order to engage in illegal sex acts.
Blake Lee Bissell, 27, of Haughton, Louisiana, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of coercion and enticement to travel to engage in criminal sexual activity. According to the guilty plea, Bissell began an online relationship with a 14-year-old in early 2018. Shortly thereafter, Bissell traveled to West Virginia on June 30, 2018, picked up the minor and transported the minor back to Louisiana where they engaged in illegal sexual activity.
Bissell faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for May 2, 2019.
The FBI and the Wheeling Police Department of West Virginia conducted the investigation. Assistant U.S. Attorneys Brian C. Flanagan and Earl M. Campbell are prosecuting the case.
Hartford Man Sentenced to 3 Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MIGUEL MARTINEZ, also known as “Nitro,” 34, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by four years of supervised release, for firearm and drug offenses.
According to court documents and statements made in court, this matter stems from a law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. In May 2018, Martinez and nine other alleged members and associates of the Almighty Latin Kings Nation were charged with offenses related to the distribution of heroin, fentanyl and crack cocaine in Hartford. Four of the defendants, including Martinez, were charged with firearm offenses.
On June 8, 2017, Martinez sold a Taurus 9mm pistol, loaded with 10 rounds of ammunition, to an individual working with law enforcement. At the time of the sale, Martinez was a convicted felon and stated that the gun had been used to pistol whip someone and that it may still have blood on it. On June 23, 2017, Martinez sold heroin and fentanyl to the same individual.
Martinez was arrested on May 10, 2018. On August 9, 2018, while he was released on bond and wearing an electronic monitoring device, Martinez sold crack cocaine to an undercover police officer. His bond was revoked on August 22, 2018. On October 16, 2018, he pleaded guilty to one count of possession of a firearm by a convicted felon, and one count of possession with intent to distribute, and distribution of, heroin and fentanyl.
The FBI’s Northern Connecticut Violent Crimes Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Man Admits to Sex Trafficking of Two MinorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HIRAN SANCHEZ, also known as “Ivan” and “Pablo,” 21, of Hartford, pleaded guilty today in Hartford federal court to one count of sex trafficking of a minor.
According to court documents and statements made in court, Sanchez recruited two minor victims to engage in commercial sex acts. Sanchez trafficked the first victim, who was 15 at the time, in the summer of 2016, and the second victim, who was 16, in April and May 2017. After Sanchez advertised the victims’ prostitution services on Backpage.com, he transported the victims to Hartford-area hotels to meet with clients who paid them for sex. The victims provided all of the money they earned to Sanchez.
Sanchez has been detained since his arrest on January 22, 2018.
The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Sanchez is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 8, 2019.
This matter has been investigated by the Connecticut State Police and Hartford Police Department, through the Connecticut Human Trafficking Task Force, and with the assistance of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Nancy V. Gifford.
January 2019 is National Slavery and Human Trafficking Prevention Month.
Harrison County man admits to his role in methamphetamine distribution operations in Harrison, Marion, and Monongalia CountiesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Conley, of Clarksburg, West Virginia, has admitted to his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Conley, age 35, pled guilty to one count of “Unlawful Possession of a Firearm.” Conley, being a person prohibited from having a firearm, admitted to having a 9mm pistol in April 2018 in Harrison County.Conley faces up to 10 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Greece Man Pleads Guilty to Being A Felon in PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nicholas Coia, 31, of Greece, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to being felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that the defendant admitted to possessing a shotgun and ammunition on March 28, 2018, in the area of 11 St. Pierre Drive in the Town of Greece. Coia was prohibited from legally possessing the shotgun and ammunition because of a prior felony conviction for Driving While Intoxicated.
The plea is the result of an investigation by the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.
Sentencing is scheduled for May 2, 2019, at 9:15 a.m. before Judge Siragusa.
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Gangster Disciples Member Sentenced to 30Years in Prison in Connection with Rival Gang Member's Murder in ClarksvilleRead the Press Release
NASHVILLE, Tenn., - January 29, 2019 - Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee and a member of the Gangster Disciples, was sentenced yesterday to 30 years in prison by Chief U.S. District Judge Waverly Crenshaw, Jr., announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Whitlock was indicted in June 2017 on federal drug conspiracy charges and subsequently indicted on federal racketeering charges, murder in aid of racketeering and use of a firearm resulting in death. He pleaded guilty earlier this month to the RICO conspiracy, drug conspiracy and causing death through the use of a firearm.
According to the court records, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, Tennessee, in the early morning hours of September 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
This extensive investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; and the 19th Judicial District Drug Task Force. Assistant United States Attorney Ben Schrader and U.S. Department of Justice Trial Attorneys Ivana Nizich and Shauna Hale of the Criminal Division’s Organized Crime and Gang Section (OCGS) prosecuted the case.
Fort Thompson Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact of a Person Incapable of Consent, was sentenced on December 17, 2018, by U.S. District Judge Roberto A. Lange.
Darrell Touche, age 44, was sentenced to 18 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Touche was indicted by a federal grand jury on February 14, 2018. He pled guilty on October 2, 2018.
The conviction stemmed from an incident between October 20, 2016, and October 21, 2016, when Touche knowingly engaged in abusive sexual contact with an individual with the intent to abuse, humiliate, harass, and degrade them, when the victim was incapacitated.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Touche was immediately turned over to the custody of the U.S. Marshals Service.
Former Washington, D.C. Police Officer Pleads Guilty to Sex Trafficking of Two Minor GirlsRead the Press Release
Baltimore, Maryland – Chukwuemeka Ekwonna, age 29, of Glenn Dale, Maryland, pleaded guilty today in the U.S. District Court for the District of Maryland to two counts of Sex Trafficking of a Minor. Between October 2016 and February 2017, Ekwonna, who at the time was a police officer with the Metropolitan Police Department (MPD) in Washington, D.C., engaged in sexual conduct with two girls, who were 14 and 15 years old, in exchange for money.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); Chief Timothy Altomare of the Anne Arundel County Police Department; and Anne Colt Leitess of the Anne Arundel County State’s Attorney’s Office.
“Police officers are sworn to protect our communities, not prey on our youth,” said U.S. Attorney Hur. “We will continue to work with our partners to bring traffickers to justice and protect our most vulnerable.”
According to the plea agreement, beginning on or about January 24, 2016, Ekwonna worked as a police officer with MPD in Washington, D.C. Since 2010, Ekwonna has used an account on Tagged, a social media and dating platform that allows users to search for others based on location and to engage in real-time chat.
Between December 19, 2016, and April 5, 2017, Ekwonna exchanged approximately 200 text and Tagged messages with a 14-year-old girl (referenced in the plea agreement as “Girl 1”). On several occasions, Ekwonna offered to pay Girl 1 to engage in sex acts with him. Ekwonna met with Girl 1 and engaged in sex acts with her on at least five occasions, between October 18, 2016, and February 15, 2017. Ekwonna engaged in illegal sex with the underage girl in different locations in the Annapolis area, including in motel rooms and Ekwonna’s vehicle. Ekwonna typically paid Girl 1 between $30 and $40 to have sex with him. Messages between Ekwonna and the 14-year-old girl suggest that she was aware that Ekwonna was a police officer.
On January 9, 2017, Ekwonna exchanged approximately 54 Tagged messages with a second underage girl, who was 15 years old at the time (referenced in the plea agreement as “Girl 2”). In these messages, Ekwonna offered to pay the 15-year-old girl to engage in sex acts with him. Ekwonna met Girl 2 in Glen Burnie, where he gave her $80 and engaged in sex acts with her in the back of his car.
Both victims were students in the ninth grade at the time of the offenses.
Pursuant to the plea agreement, Ekwonna faces a minimum of 10 and a maximum of 20 years in prison. He also will face no fewer than five years of supervised release and be required to register as a sex offender. U.S. District Judge Catherine C. Blake has scheduled sentencing for May 10, 2019 at 12:00 p.m.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of the Task Force include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
[Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online form. Both are staffed around the clock by investigators.]
In addition, this case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended Homeland Security Investigations, the Anne Arundel County Police Department, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Ray D. McKenzie, who are prosecuting the case.
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Former Rochester Residents Going to Prison for Defrauding Manufacturing CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Kana Chanel Hill and Aaron James Dempsey, formerly of Rochester, NY, who were convicted of wire fraud, were sentenced by U.S. District Judge Charles J. Siragusa. Hill and Dempsey were sentenced to 35 and 41 months respectively. The defendants were also ordered to pay $275,000 in restitution to their victim, Nordon, Inc.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between 2014 and 2017, Hill and Dempsey worked at Nordon, Inc., a plastic manufacturing company located in Rochester. Hill, who was employed as a payroll specialist, executed a scheme with Dempsey in which Hill manually triggered Nordon to issue inflated and fraudulent paychecks to Hill, Dempsey, and others. Hill also used the personal identifying information of former Nordon employees to cause Nordon to issue paychecks in the names of those employees, without their knowledge or consent, to bank accounts owned by Hill and Dempsey.
The fraud was discovered when a former employee received a W-2 form from the IRS containing a discrepancy in the employee’s pay. This triggered an internal audit by Nordon and subsequent investigation.
The sentence is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert.
# # # #Former Richwood correctional officer pleads guilty to covering up physical assault of inmatesRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that former Richwood Correctional Center officer, David Parker, pleaded guilty on January 17, 2019 in federal court for his role in a conspiracy to cover up the physical assault of five inmates by himself and other correctional officers in violation of the Constitutional prohibition against cruel and unusual punishment.
Parker, 27, of Tallulah, Louisiana, pleaded guilty to conspiring to falsify documents with the intent to obstruct and influence a matter within federal jurisdiction. According to his guilty plea, Parker worked as an officer at the Richwood Correctional Center in Richwood, Louisiana, where on October 30, 2016, he and other officers inflicted cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Parker admitted that he conspired with the other officers to hide their conduct by submitting a false story in their official reports concerning the incident.
The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000. Parker is scheduled to be sentenced on May 15, 2019.
The case was investigated by the Monroe Division of the FBI. Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice, are prosecuting the case.
Former Mount Pleasant Woman Charged with Defrauding her Employer and Identity TheftRead the Press Release
PITTSBURGH, PA – A former resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on charges of violating federal mail fraud and identity theft laws, United States Attorney Scott W. Brady announced today.
The four-count indictment charged Jennifer Lynne Clark a/k/a Jennifer Gill, age 41, formerly of Mount Pleasant, Pennsylvania and now residing in Clearwater, Florida, with two counts of mail fraud and two counts of aggravated identity theft.
The indictment charges that, from in and around April 2017 to in and around January 2018, Clark defrauded her employer by preparing falsified timesheets indicating that another person, A.G., had worked on particular projects. When paychecks for A.G. reflecting the false timesheets were mailed to Clark’s employer, Clark obtained the paychecks and deposited them herself, sometimes by endorsing A.G.’s name. The superseding indictment states that this scheme caused an additional loss of approximately $32,528.00.
The law provides for a maximum total sentence of 44 years in prison, a fine of either $1,000,000 or an alternative amount depending on the victims’ losses, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Gregory C. Melucci and Adam N. Hallowell are prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service and Homeland Security Investigations conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Lieutenant pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Former Lieutenant David Wilson, 58, of Charlton, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 2, 2019. In June 2018, Wilson was arrested and charged by criminal complaint.
Wilson, who served as the Officer-in-Charge of several overtime shifts, received overtime pay for shifts from which he left early or did not work at all.
The conduct involves overtime pay for selective enforcement initiatives, specifically the Accident and Injury Reduction Effort program (AIRE), which is intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. Wilson was required to work the entire duration of the four hour shift and truthfully report the date, time and sector of deployment on the citations issued during the shift. During the plea, Wilson admitted that he had been paid for hours he did not work, and for overtime shifts he did not work at all. Wilson concealed his fraud by submitting false paperwork and citations that were issued outside the overtime shifts that had been altered to create the appearance that they were issued during overtime shifts.
In 2016, Lt. Wilson earned approximately $259,475, which included approximately $102,062 in overtime pay, a portion of which included pay for AIRE shifts. During that year, the investigation revealed that Lt. Wilson earned approximately $12,450 in overtime pay for 124.5 AIRE overtime hours that he did not work.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. Pursuant to the plea agreement, the government has agreed to recommend a sentence of not more than 12 and not less than six months in prison.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
Former Las Vegas Valley Water District Employee Sentenced to Four Years in Prison for $6.7 Million Ink/Toner Cartridge Scheme and Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Jennifer J. McCain-Bray, aka JJ McCain, was sentenced today to 51 months in federal prison for committing mail fraud and tax evasion as part of a scheme to defraud the Las Vegas Valley Water District (LVVWD) of over $6.7 million, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI, and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
“Public service is a public trust,” said U.S. Attorney Trutanich. “Today’s sentencing demonstrates this office’s commitment to investigate and prosecute individuals who violate that trust by misusing their authority to benefit themselves at the expense of the community.”
“Ms. McCain-Bray deceived the Las Vegas Valley Water District by stealing over $6.7 million through her calculated scheme that falsely represented purchases. She then used the ill-gotten gains to fund a lavish lifestyle,” said SAC Rouse. “The FBI will continue working with our partners to investigate fraud and hold individuals in a position of trust accountable when failing to comply with the law.”
“Ms. McCain-Bray stole from our community, using Nevada taxpayer money to enrich her own life and then lied to the IRS,” said SAC Sullivan. “IRS-Criminal Investigation will continue to hold government employees to the highest standard.”
McCain-Bray, 43, of Las Vegas, previously pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return. In addition to the prison term, U.S. District Judge Kent J. Dawson ordered her to pay $6,715,531 as part of a criminal forfeiture money judgment.
McCain-Bray worked as a purchasing analyst for the LVVWD and she was responsible for transmitting orders and payments to vendors when particular products were requested from LVVWD departments and employees. She admitted that between January 1, 2007 to about December 7, 2015, she devised a scheme to defraud the LVVWD by falsely representing that purchases of ink and toner cartridges were for the LVVWD, when she knew that the products were actually purchased for a New Jersey company which received and then resold the cartridges for its own profit. McCain-Bray instructed the vendor to ship the ink and toner cartridges from California and other locations to her at her LVVWD office in Las Vegas. She then relabeled the packages and shipped them to the New Jersey company. In exchange, the New Jersey company transferred money to McCain-Bray’s personal PayPal account. Financial records indicate that McCain-Bray used the fraud proceeds for personal expenses and purchases, including extensive home remodeling and improvements, trips, gifts to family members and friends, and other lifestyle expenses. Between 2007 and 2015, McCain-Bray fraudulently purchased approximately $6.7 million in ink and toner cartridges with LVVWD funds.
McCain-Bray also failed to report her profits from the scheme on her personal tax returns for tax years 2011 to 2015. For those years, she failed to report a total of $2,339,156 in taxable income to the IRS.
The case was investigated by the FBI and the IRS-Criminal Investigation. Assistant U.S. Attorney Patrick Burns prosecuted the case.
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Former Fenton housing authority director pleads guilty to embezzling more than $33,000Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a former executive director of the Fenton housing authority pleaded guilty January 8, 2019 to embezzling more than $33,000.
Gwen Jackson, 35, of Fenton, Louisiana, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of federal program fraud. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Jackson embezzled $33,194.76 from March 31, 2017 to September 20, 2017 while she was executive director of the Fenton Housing Authority. Jackson was hired as executive director in February of 2017 and was responsible for the day-to-day operations of the housing authority complex, which included access to business checks and the accounting ledger. After receiving complaints about possible theft of funds, law enforcement agents interviewed Jackson and she confessed to fraudulently cashing numerous FHA checks for her personal benefit.
Jackson faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for May 9, 2019.
The U.S. Department of Housing and Urban Development, Office of Inspector General, and the Louisiana Legislative Auditor’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog is prosecuting the case.
Former FBI Special Agent Pleads Guilty to Embezzlement of Government FundsRead the Press Release
St. Louis, MO – Nizam Hasheem Alexander, 39, employed since 2009 as a Special Agent by the Federal Bureau of Investigation (‘FBI”) at its Little Rock, Arkansas Field Office until his resignation on January 28, 2019, pled guilty to a one count Information – embezzlement of Government property. Alexander appeared before Judge Henry Autrey today who accepted his plea and set his sentencing for April 30, 2019.
According to his plea agreement, from September 4, 2016 through June 15, 2017, Defendant was assigned to work at FBI Headquarters and the FBI Field Office in Washington, D.C. Defendant, as an FBI employee, was required to accurately report and certify his regular hours and his Law Enforcement Availability Pay (“LEAP”) hours worked, or excused with authorized leave, on a bi-weekly basis.
Defendant regularly submitted false and fraudulent time and attendance certifications falsely representing that he had worked certain regular and LEAP hours. As a result of these false and fraudulent certifications, the FBI and the United States Department of Justice paid Defendant compensation for the regular and LEAP hours which he certified he had worked. Defendant knew these certifications were false because he knew he had not worked the claimed regular and LEAP hours as represented. Defendant well knew that, in fact, he had been away from his assigned work station, engaged in unauthorized conduct and personal activities not related to his job duties. Defendant submitted these false and fraudulent certifications in order to conceal his unauthorized personal activities, and in order to get paid.
During 2016, Defendant submitted and falsely certified approximately 237.75 regular and LEAP hours. During 2017, Defendant submitted and falsely certified approximately 136 regular and LEAP hours. These false certifications resulted in Defendant receiving compensation for unworked regular and LEAP hours in the amount of approximately $24,629.87 for which he knew he was not entitled. The FBI and the United States Department of Justice paid Defendant the compensation for the unauthorized and unworked overtime by causing the compensation to be deposited electronically into an account in Defendant’s name at Navy Federal Credit Union in Little Rock, Arkansas.
Alexander faces not more than ten years, fine of not more than $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Department of Justice, Office of Inspector General. Special Attorney to the U.S. Acting Attorney General Hal Goldsmith is handling the case for the U.S. Attorney's Office.
Former Erie Resident Sentenced to 5 Years in Prison for Cocaine ConspiracyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in federal prison on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today. The sentence is to run concurrent to the sentence he is currently serving from York County, South Carolina.
United States District Judge David S. Cercone imposed the sentence on Rafael Vazquez Valentin, 38.
According to information presented to the court, Valentin and two co-defendants conspired to distribute and possess with intent to distribute more than a kilogram of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Valentin.
Former Courthouse Worker Pleads Guilty to Illegally Selling Firearms to FelonsRead the Press Release
SPRINGFIELD, Mo. – A Jefferson City, Mo., man who supervised workers at the federal courthouse in Jefferson City pleaded guilty in federal court today to illegally selling firearms to convicted felons.
Victor Nahum Vargas, 40, pleaded guilty before U.S. Magistrate Judge David P. Rush to all three charges contained in an Oct. 24, 2018, federal indictment.
Vargas, who was employed as the custodial supervisor at the Christopher S. Bond Courthouse in Jefferson City, has been in federal custody since his arrest on May 11, 2018. Vargas remains detained without bond. Vargas pleaded guilty today to two counts of knowingly selling firearms to convicted felons and one count of making false statements to a federally licensed firearms dealer in order to acquire firearms.
Vargas admitted that he sold five firearms to a person he knew to be a convicted felon on April 18, 2018, and that he sold 11 firearms for $8,100 to a person he knew to be a convicted felon on May 11, 2018. In connection with his acquisition of 10 of those firearms, Vargas made a false written statement in which he claimed that he was the actual buyer of the firearms. In reality, Vargas was acquiring those 10 firearms on behalf of another person.
Vargas admitted that he knew both purchasers (confidential sources who cooperated with law enforcement) were convicted felons who are therefore prohibited by law from purchasing or possessing any firearms or ammunition.
According to court documents, Vargas was arrested immediately after the second transaction on May 11, 2018; the 11 firearms purchased by the confidential source were turned over to the officers.
Under federal statutes, Vargas is subject to a sentence of up to 10 years in federal prison without parole on each of the three counts. 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 Lawrence E. Miller. It was investigated by the Chicago, Ill., Police Department, the Jefferson City, Mo., Police Department Community Action Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Former CEO of Brentwood, Tennessee - Based WellCity, Inc. Captured by U.S. Marshals in Jacksonville, FloridaRead the Press Release
NASHVILLE, Tenn. - January 29, 2018 - George David George, 63, of Franklin, Tennessee, appeared before a U.S. Magistrate Judge in Nashville yesterday after being captured by U.S. Marshals in Jacksonville, Florida earlier this month, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. George absconded in May 2017 prior to a scheduled bond revocation hearing in U.S. District Court.
George was initially charged in May 2015 with securities fraud, mail fraud, wire fraud, and money laundering, in connection with a multimillion-dollar investment scheme. He was also charged with additional counts of wire fraud in February 2017. George was later indicted in May 2017 for failing to appear in U.S. District Court.
According to court documents, George represented himself as the founder and CEO of WellCity, Inc., a company based in Brentwood, Tenn. that purported to operate a social network devoted to wellness. Charging documents allege that George solicited millions of dollars from investors by making misrepresentations regarding the revenue and assets of the company, misrepresentations regarding collateral to secure investors’ loans, and misrepresentations regarding the status of a supposed WellCity initial public offering.
Charging documents also allege that George concealed from investors the facts that WellCity had earned very little revenue and had not successfully attracted significant corporate sponsorship; that WellCity had breached investment contracts with dozens of investors and owed millions of dollars to prior investors; that George had made repeated but unfulfilled promises, over the course of several years, that shares of WellCity stock would imminently start trading publically; and that George continued to offer supposed shares in WellCity stock even after the Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting him from doing so.
The charges are merely an accusation and George is presumed innocent until proven guilty. George is scheduled for trial on February 25, 2019. If convicted, he faces up to 20 years in prison on each fraud count; up to 10 years on the money laundering count; and up to 10 years for failing to appear. George could also face a criminal fine of up to $5,000,000.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation; the United States Postal Inspection Service; and the U.S. Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorneys Henry C. Leventis and Kathryn W. Booth.
Former CBP Officer Ordered to PrisonRead the Press Release
McALLEN, Texas – A former Customs and Border Protection (CBP) officer has been ordered to federal prison for accepting a bribe in exchange for issuing an I-94 permit, announced U.S. Attorney Ryan K. Patrick. Jose Javier “J.J.” Gonzalez, 38, of Mission, pleaded guilty Feb. 28, 2018.
Today, U.S. District Judge Randy Crane ordered Gonzalez to serve 30 months in federal prison, noting he had accepted a $500 bribe in exchange for issuing an I-94 permit to an individual in Pharr in 2014. The sentence will be immediately followed by three years of supervised release. At the hearing, Gonzalez claimed that he had served as a dedicated CBP officer for more than 10 years and had only made one mistake. The court noted, however, that another individual had made similar allegations against Gonzalez.
“The defendant not only betrayed the citizens he was sworn to protect, he also betrayed the thousands of honest, hard-working CBP and other law enforcement officers who risk their lives every day to keep us safe,” said FBI Special Agent in Charge Christopher Combs. “The FBI is committed to working with our partners to pursue corruption wherever it lies. Together, we will ensure those who tarnish the badge are held accountable.”
An I-94 permit is a travel permit that allows an individual to travel further into the interior of the United States.
The court heard that from July 2015 through November 2016, Gonzalez exceeded his law enforcement access to conduct improper queries on the Treasury Enforcement Communications System (TECS) that CBP officers use at the ports of entry. Gonzalez ran queries of a Spanish music artist, a music promoter and another individual. Despite seeing negative law enforcement information for their association to money laundering and drug trafficking, he continued to associate and communicate with them.
In addition, Gonzalez ran queries on another individual within days of his arrest at a San Diego port of entry for a drug trafficking offense and another individual who was subsequently arrested for conspiring to traffic fentanyl. Gonzalez did not have a legitimate law enforcement purpose to query either person.
Upon his arrest, authorities conducted a search warrant at his residence, at which time they found bottles of steroids and hard drives of pirated music.
Judge Crane permitted Gonzalez to remain on bond and surrender in February 2019.
The FBI conducted the investigation along with CBP - Office of Professional Responsibility. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Florida Keys Return Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
On January 17, 2019, a Monroe County, Florida tax return preparer pleaded guilty to two counts of filing fraudulent tax returns with the Internal Revenue Service.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.
According to documents filed with the court, Pedro C. Rodriguez, 51, of Marathon, owned and operated the JC Mar Tax Services tax preparation business in Marathon, Florida. From approximately 2007 through 2017, Rodriguez filed fraudulent returns for his clients seeking refunds to which the clients were not entitled by reporting fictitious itemized deductions and fraudulent education and residential energy credits. For each of the years 2013 through 2017, Rodriguez submitted between 1,900 and 2,200 tax returns on behalf of his clients. Rodriguez’s submission of false tax returns caused multi-million dollar losses to the IRS. A final calculation of the loss amount will be made at sentencing.
Sentencing is scheduled for April 1, 2019 at 9:00 a.m. before Chief Judge K. Michael Moore, in Key West (Case No. 18-10024-CR). Rodriguez faces a statutory maximum sentence of three years in prison on each false return count. The defendant also faces a period of supervised release, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and IRS-CI in this matter. Assistant U.S. Attorney Daniel J. Marcet is prosecuting the case.
Information about how the public can protect themselves from tax fraud and report criminal practices may be found at https://www.irs.gov/compliance/criminal-investigation/tax-fraud-alerts.
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.
Five Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging MAYOLO AGUILINO JIMENEZ-MARTINEZ, age 35, of Mexico, JOSE OSIEL GOMEZ-ROMERO, age 33, of Mexico, ELEAZAR IRACHETA-PADILLA, age 34, of Mexico, JOSE LUIS TORRALBA-AMADOR, age 37, of Mexico, and JAVIER CABRERA-QUIROZ, age 41, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry subsequent to a felony conviction, JIMENEZ-MARTINEZ, previously deported five times and found in Franklin County, would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry of a deported alien, GOMEZ-ROMERO, previously deported three times and found in Pitt County, IRACHETA-PADILLA, previously deported three times and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
TORRALBA-AMADOR, previously deported four times and found in New Hanover County, is alleged to have been previously deported subsequent to a felony conviction (possession of controlled substance). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CABRERA-QUIROZ, previously deported and found in Pitt County, is alleged to have been previously deported subsequent to aggravated felony conviction (attempted possession of cocaine with intent to distribute). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Firearm Possession While Under Victim Protective Order Leads to Three Years in PrisonRead the Press Release
OKLAHOMA CITY – JEREMY SHAWN PARKE, 46, of Moore, Oklahoma, was sentenced today to three years in prison for possession of a firearm while under a victim protective order, announced Robert J. Troester of the U.S. Attorney’s Office.
According to court records, on the afternoon of May 5, 2018, the Moore Police Department received a report of shots fired in a residential neighborhood. Officers contacted a resident who said she heard loud bangs from a nearby home. Police went to Parke’s home, where they had responded to previous incidents, and discovered a Ruger Model AR 556 rifle and numerous spent shell casings on Parke’s back patio and in the yard. There were apparent bullet holes in his backyard fence. Officers eventually discovered a shotgun and additional rounds of ammunition inside Parke’s home.
On May 6, 2018, a resident in an adjacent neighborhood reported to the Moore Police Department that she discovered a bullet near her infant son’s crib. An officer responded to her home, where she explained that on the afternoon of May 5, she heard a loud noise. When she checked on her sleeping baby, she noticed his crib railing was broken. The next day, while cleaning behind the crib, the mother noticed a bullet hole that aligned with the piece of broken crib railing. On the floor, she discovered the bullet. Law enforcement determined that it was the same caliber that could be fired from the AR 556 rifle they had seized from Parke the day before.
Parke’s possession of firearms and ammunition was illegal because he was subject to a Cleveland County protective order that prohibited him from harassing, stalking, or threatening a former intimate partner. It also advised him that he was prohibited from possessing firearms and ammunition. According to records obtained from a local gun dealership, Parke purchased the AR 556 on March 21, 2018. When he completed the paperwork required to purchase the rifle, Parke checked "No" in answer to the question: "Are you subject to a court order restraining you from harassing, stalking, or threatening your . . . intimate partner?"
Parke was charged by criminal complaint on May 21, 2018, and arrested shortly thereafter. On June 28, 2018, he pleaded guilty to possession of a firearm by a prohibited person. Today U.S. District Timothy D. DeGiusti sentenced Parke to three years’ imprisonment and three years of supervised release. The court also ordered him to pay $1,885 in restitution for damage the bullet caused.
This case is the result of an investigation by the Moore Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorneys Brandon Hale and Jacquelyn Hutzell, it is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to court filings for further information.
Final IDOC Correctional Officer Pleads Guilty to Crimes Stemming from FBI StingRead the Press Release
BOISE - Former IDOC correctional officer Erik Thompson, 37, pleaded guilty on January 7, 2019, in United States District Court to two counts of possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Bart M. Davis announced. Sentencing for Thompson is set for April 7, 2019 before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Thompson was one of four IDOC correctional officers charged with drug trafficking and related crimes stemming from an investigation initiated by the FBI at IDOC’s request to address concerns of corruption among IDOC correctional officers.
Thompson was charged with conspiracy to aid and abet drug trafficking crimes, distribution of cocaine, and possessing a firearm in furtherance of those drug trafficking offenses. Previously, co-defendants Richard McCollough, 37, pleaded guilty to the same firearms offenses as Thompson, while Robert Wallin, 36, and Timothy Landon, 36, pleaded guilty to conspiracy to aid and abet drug trafficking crimes. Wallin is set to be sentenced on February 12, 2019, McCollough is set to be sentenced on February 25, 2019, and Landon is set to be sentenced on February 26, 2019. Judge Winmill is the sentencing judge for all defendants.
According to court records, Thompson joined in a conspiracy to assist what he believed to be a large-scale drug organization. The drug dealers he was working for, however, were undercover FBI agents. Thompson admitted to carrying a handgun while conducting surveillance of what appeared to be a drug transaction on behalf of the undercover FBI agents. Thompson also admitted to carrying a handgun while he provided security and assisted in weighing 6 kilograms of cocaine.
No drugs were in the sole possession of the defendants, and no drugs or other contraband were brought into any IDOC facility as part of these operations.
Each count of possessing a firearm in furtherance of a drug trafficking crime, is punishable by at least five years imprisonment up to life, a maximum fine of $250,000, and at least five years of supervised release.
In addition to the FBI, the Boise Police Department, the Meridian Police Department, IDOC’s Special Investigations Unit, and the Ada County Prosecutor’s Office participated in the investigation.
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Fifth Defendant Sentenced to Prison for Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident who was extradited to the United States from the Dominican Republic was sentenced to 65 months in prison today for multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty earlier to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. De la Cruz also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De le Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to be sentenced in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the 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.
Fifth Defendant Sentenced to Prison for Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident who was extradited to the United States from the Dominican Republic was sentenced to 65 months in prison today for multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty earlier to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. De la Cruz also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De le Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to be sentenced in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Federal Judge Sentences Minister to Five Years for Tax CrimesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced a former Charlotte-area minister, William Todd Coontz, 51, of Fort Lauderdale, Florida, to 60 months in prison, for failure to pay taxes and aiding and assisting in the filing of false tax returns, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Coontz to serve one year under court supervision after he is released from prison, and to pay $755,669 in restitution.
U.S. Attorney Murray is joined in making today’s announcement by Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to filed court documents and evidence presented at Coontz’s trial, from 2010 to 2014, Coontz was the minister of Rock Wealth International Ministries (Rockwealth Ministries), and the author of numerous books on faith and finances, such as “Please Don’t Repo My Car,” and “Breaking the Spirit of Debt.” Coontz also operated two for-profit companies, Legacy Media and Coontz Investments and Insurance.
Beginning in tax year 2000 and continuing through tax year 2014, Coontz filed delinquent U.S. Federal Income Tax Returns, Forms 1040, with the IRS and consistently failed to make timely payments on the taxes he owed, despite receiving multiple letters and late notices from the IRS. For example, for tax years 2011 through 2013, Coontz filed late tax returns and did not pay the total assessed taxes, resulting in total tax liabilities of more than $326,394 for those years.
According to today’s sentencing hearing and evidence presented at trial, Coontz also filed false federal income tax returns for tax years 2010 through 2013, which underreported his income. Specifically, Coontz engaged in a check cashing scheme, involving payments for travel reimbursements for speaking engagements and the sale of books and other products. For example, during 2010 through 2013, Coontz regularly traveled to speak at various ministries, for which he was paid speaking fees and was reimbursed for his travel expenses. Coontz hid income from the IRS by claiming the travel as a business expense while simultaneously receiving travel reimbursement that he kept as personal income. Also, in order to boost his income, Coontz told his travel assistant to bill the churches for the cost of a full fare first-class ticket, even though his actual expenses for those tickets was substantially less than the amount billed. Fraudulent travel invoices were created and submitted to the ministries that falsely purported that Coontz had actually paid the full fare ticket price. As a result, the travel reimbursement checks sent directly to Coontz were for amounts in excess of the actual travel expenses incurred by Rockwealth Ministry.
According to trial evidence and other court records, during 2010 through 2013, Coontz also directed that other checks, such as payments for speeches and for the purchase of books and other products, be made payable to “Todd Coontz” and sent to his personal address. In total, Coontz concealed and cashed at least 102 checks for travel reimbursements, speeches, and books and other products, totaling at least $252,037.99 for the relevant time period, causing his total income for the relevant tax years to be underreported on his federal income tax returns. During 2014, Coontz continued to conceal and cash checks received as payments, cashing at least 32 checks totaling $105,454.90 which were not reflected in his accounting records.
Coontz also underreported his income on his tax returns for tax years 2010 through 2013, by failing to include as income payments made by his corporations and ministry for his personal expenses, including payments for the benefit of his family members, and for meals and entertainment. Contrary to the advice of his Certified Public Accountant about comingling personal and business funds, Coontz spent substantial amounts of business funds to pay for personal expenditures, which were falsely classified as business expenses. These purported business expenses included payments totaling more than $227,700 for clothing purchases, and over $140,000 to pay for meals and entertainment expenses at various restaurants, including more than 400 distinct charges at movie theaters.
In addition, instead of holding assets in his own name, Coontz utilized residences and luxury vehicles titled in the names of companies he owned and controlled. For example, luxury vehicles purchased by Legacy Media, Coontz Investments and Insurance, and Rockwealth Ministries during 2011 through 2013 included three BMWs, two Ferraris, a Maserati, and a Land Rover, and a Regal 2500 boat, among others. Coontz treated payments for those items as business expenses, even though some of them were used by family members and there were no records kept about their supposed business use. Additionally, in 2012, Rockwealth Ministries purchased a $1.5 million condominium as a parsonage for Coontz.
In announcing Coontz’s sentence, Judge Conrad said that the defendant showed “incredible” and “long term disrespect for the law.” He also noted that the defendant was “relentless,” in the “ways in which Mr. Coontz tried to cheat.”
Coontz will be ordered to the report the federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Jenny G. Sugar and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Inmate Sentenced to over 6 Years in Prison for Assaulting Correctional Officer at Federal Correctional Institution in Yazoo CityRead the Press Release
Jackson, Miss. – Brandon Lee Wright, 33, a federal inmate at the Federal Correctional Institution in Yazoo City (FCI Yazoo), was sentenced on Friday by U.S. District Judge Henry T. Wingate to 78 months in federal prison for assaulting a corrections officer at the Bureau of Prisons facility, announced U.S. Attorney Mike Hurst and Federal Bureau of Investigation Special Agent in Charge Christopher Freeze.
Wright was found guilty of this criminal offense by a jury on July 2, 2018. He was already serving time at FCI Yazoo for unrelated misconduct when he assaulted the corrections officer in the facility. The evidence at trial proved that Wright struck the officer with a closed right fist to the officer’s left eye, leaving abrasions on the officer.
Commenting on the gravity of the offense and referencing the defendant’s extensive criminal history, Judge Wingate sentenced Wright to 78 months of confinement to run consecutive to the remainder of his undischarged prison time from his earlier offense. The maximum penalty under the law for this criminal offense was eight years in prison and a $250,000 fine.
The Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant United States Attorneys Abe McGlothin Jr. and Andrew W. Eichner and Special Assistant United States Attorneys Woelke Leithart and Joshua Robles.
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Fayetteville Man Sentenced to 8 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Titus Parks, age 43, of Fayetteville, Arkansas, was sentenced today to 96 months in federal prison followed by three years of supervised release for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation into methamphetamine trafficking in the Western District of Arkansas, the Fourth Judicial District Drug Task Force identified Parks as a distributor of methamphetamine in Northwest Arkansas.
In April of 2018, investigators arranged and conducted controlled purchases of methamphetamine from Parks. A search warrant was executed for the defendant’s residence on April 12, 2018. Investigators recovered a bag containing approximately 36 grams of methamphetamine.
Parks was indicted by a federal grand jury in April 2018 and entered a guilty plea in September 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
Farm Fresh Agrees to $1 Million Settlement to Resolve Civil ClaimsRead the Press Release
NORFOLK, Va. – FF Acquisition, Inc. (Farm Fresh), headquartered in Virginia Beach, has agreed to pay $1 million to settle civil penalty claims stemming from alleged record-keeping violations by its pharmacies.
“The abuse of prescription drugs is one of the most alarming and critical issues we face today,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “To combat this problem, it is crucial that those who dispense controlled substances comply with record-keeping requirements. These requirements help to prevent the illegal diversion of prescription drugs, and holding registrants accountable serves a vital role in our office’s effort to combat every manner of the opioid crises affecting Virginia.”
Farm Fresh operated 34 pharmacies primarily in the Norfolk area. Each pharmacy was registered with the Drug Enforcement Administration (DEA), which allowed Farm Fresh to maintain and dispense controlled substances, including opioids, at those locations.
“The abuse of prescription drugs has directly resulted in the escalation of heroin addiction and related overdoses,” said Jesse R. Fong, Special Agent in Charge for the DEA’s Washington Field Division. “Today's settlement sends a clear message to all pharmacies that it is essential to dispense controlled substances in compliance with DEA's record keeping requirements. DEA is dedicated to combatting the prescription drug abuse problem in Virginia and throughout the country and to hold all DEA registrants accountable.”
The United States alleges that between Sept. 9, 2014 and Sept. 21, 2016, Farm Fresh pharmacies violated the Controlled Substances Act by failing to record dates and quantities of controlled substances shipped and received, by failing to record the DEA numbers of suppliers, and failing to timely notify the DEA of theft losses. These failures occurred despite several of the pharmacies having received Letters of Admonition from DEA for failing to properly complete and maintain the required records.
Congress passed the Controlled Substances Act (CSA), to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA’s Washington Division. The matter was investigated by Assistant U.S. Attorney Clare Wuerker.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Eleven people indicted for roles in conspiracy to distribute synthetic narcotics into federal prison by soaking paper in the drugs and then sending the drug-infused paper into prison as mail and other documentsRead the Press Release
Eleven people were indicted for their roles in a conspiracy to distribute synthetic narcotics in federal prison by soaking paper in the drugs and then sending the drug-infused paper into prison as mail and other documents.
The letters included purported legitimate legal correspondence from members of the conspiracy impersonating actual attorneys. The recipients of the mailings then distributed the drug-infused paper to other inmates at significant profit and members of the conspiracy laundered the profits.
The defendants also imported fentanyl analogues from China for distribution across the United States.
Named in the 19-count indictment are: Roy Kahn, 48; Christopher Adams, 41; Irwin Jose Vargas, 43; Manuel Lopez, 58; Wayne Fabian, 47; Giuseppe Cellura, 45; Brian Perez-Ayala, 38; Andres Garcia, 41; Jesus Parra-Felix; Miguel Forteza-Garcia, 35, and Eduardo Rivera-Ocana, 36. All the defendants except Kahn, Adams, Lopez and Cellura are currently in federal prison.
“This indictment details the disruption of a sophisticated organization that bought drugs from suppliers in China and then shipped them across the United States, including sending them into federal prisons,” U.S. Attorney Justin Herdman said. “Law enforcement worked diligently to investigate and dismantle this group.”
FBI Acting Special Agent in Charge Robert Hughes said: “Concealing dangerous, deadly, illegal drugs and smuggling into prisons by any method in order to profit from incarcerated drug users is quite crafty, but utilizing infusion methods onto paper causes extreme risks to innocent people who may handle the paper. The Bureau of Prisons Investigative Unit did an outstanding job in identifying not only the drugs, but also the method being utilized. Through collaborative law enforcement efforts, these drug dealers will answer for their crimes in federal court and innocent lives have been saved.”
According to the indictment:
Kahn controlled and operated a large multi-state conspiracy that obtained synthetic drugs from suppliers in China and distributed the drugs to inmates in federal prison. This took place between 2015 through 2018.
Kahn and Adams devised a chemical process where they infused the narcotics onto pieces of paper, which could then be cut into strips and smoked. At the height of their operation, they were infusing one kilogram of drugs a week, resulting in the creation of at least 500 drug-infused pages at a time.
Kahn’s organization then used these drug pages to create photographs, books and pamphlets, such as Harry Potter coloring books. They also used the drug pages to create legal mail such as briefs and motions bearing the names of real attorney or fictitious attorney personas they created. The purpose of these actions was to circumvent prison security.
Inmates paid Kahn, Vargas and others through the Bureau of Prisons’ payment system, money orders, wire transfers and other means. Kahn, Vargas and others engaged in a variety of money laundering techniques to make these payments appear legitimate.
Kahn then used the profits from the prison drug smuggling scheme to finance the purchase of more fentanyl analogues and other opioids from China for further distribution in the United States. Kahn and Adams had these drugs shipped to a number of cities, including Cleveland.
The indictment details how the defendants charged at least $500 for a sheet of drug-infused paper. Vargas stated: “The job is badass…they drown those sheets…and then they hang them…like photographs, they have them with clips and leave them to dry,” 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 record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being investigated by the Federal Bureau of Investigation, the Federal Bureau of Prisons Joint Information Sharing Initiative, the Ohio High Intensity Drug Trafficking Area and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin and Elliot Morrison.
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.
Eagle Butte Man Charged with Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Dee Hawk Moran, age 23, was indicted on January 23, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 1, 2015, and June 16, 2017, Moran knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and Moran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Moran was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
KT Burgee, a/k/a, Kape Teal Burgee, age 24, was indicted on December 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 28, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 18, 2016, and October 11, 2018, Burgee, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under state law, having traveled in interstate and foreign commerce, and did enter, leave, and reside in Indian country, did knowingly fail to register and update his registration.
The charge is merely an accusation and Burgee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Burgee was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to 30 Months in Prison for Federal Gun Possession ChargeRead the Press Release
WASHINGTON – Dominique N. Simms, 23, of Washington, D.C., was sentenced today to 30 months in prison on a federal firearms charge stemming from his arrest during the execution of a search warrant at a house in Northeast Washington.
The announcement was made by U.S. Attorney Jessie K. Liu, Jesse R. Fong, Special Agent in Charge for the Washington Division Office of the U.S. Drug Enforcement Administration (DEA), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Simms pled guilty in October 2018, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced by the Honorable Colleen Kollar-Kotelly. Following his prison term, Simms will be placed on three years of supervised release.
According to the government’s evidence, on May 16, 2018, members of a joint MPD and U.S. Drug Enforcement Administration task force executed a search warrant at a residence in the 5300 block of Clay Terrace NE. As officers entered the premises, they saw an unknown man run through the living room and out of the back door. Simms, who was sitting on the couch, attempted to run away from the entering officers. A search of the living room area revealed a loaded Glock 43 and a loaded Smith and Wesson 9mm semi-automatic handgun underneath the seat cushion of the chair next to where Simms was sitting. The guns were easily accessible from the couch area. Throughout the house, police also discovered more than seven ounces, or approximately 195 grams, of phencyclidine (PCP).
Law enforcement tested the firearms for the presence of any fingerprints or identifiable DNA. On June 12, 2018, the District of Columbia Department of Forensic Sciences identified one fingerprint – a left palm print – of Simms on the left side of the Smith and Wesson. On July 18, 2018, DNA analysts identified Simms’s DNA on both firearms.
The Glock 43 firearm had previously been reported stolen from a firearms store located in Rockville, Md. in 2017.
Simms was barred from possessing a firearm because of prior convictions in the District of Columbia. In the District of Columbia, he was sentenced in 2013 for robbery. At the time of his arrest last May, Simms was on supervised release following his prison term in that case. According to the factual proffer of that matter, Simms pepper-sprayed a 66-year-old woman in Southeast Washington, stole her vehicle, and fled.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Fong, and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the Drug Enforcement Administration, specifically the Cross-Border Initiative Task Force. They expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked in the case from the U.S. Attorney’s Office, including Paralegal Specialists Catherine O’Neal and Teesha Tobias and Legal Assistant Emma Atlas. Finally, they commended the work of Assistant U.S. Attorney Gregory P. Rosen, who prosecuted the case.
Correctional Officer at Federal Prison Facility in Victorville Sentenced to Two Years in Prison for Sexually Abusing Female InmatesRead the Press Release
RIVERSIDE, California – A former correctional officer at the Federal Correctional Complex in Victorville has been sentenced to 24 months in prison for sexually abusing several female inmates while on duty.
Apolonio Gamez, 41, of Lake Elsinore, was sentenced late Monday by United States District Judge Jesus G. Bernal. In addition to the prison term, Judge Bernal ordered that Gamez would be on supervised release for seven years after he is released from prison. Gamez was also ordered to pay a $5,000 special assessment and to register as a sex offender when he is released from prison.
Gamez pleaded guilty in October to three felony charges: two counts of sexual abuse of a ward and one count of attempted sexual abuse of a ward.
According to Gamez’s plea agreement, he engaged in sexual activity with the inmates between September 2016 and July 2017 while he was on duty as a correctional officer and employed by the United States Bureau of Prisons.
On two occasions in the autumn of 2016, Gamez engaged in sexual activity with one inmate while he was on duty.
In May 2017, Gamez caught another inmate stealing food, threatened to send her to the “hole” (a reference to the prison’s special housing unit), and then directed her to engage in sexual activity with him, his plea agreement states. Gamez’s victim did not resist because “she felt frozen and powerless with fear,” according to court documents.
Gamez also admitted to exposing himself to a third inmate and attempted to engage in sexual activity with her during the summer of 2017.
The case against Gamez was investigated by the Department of Justice, Office of the Inspector General and the Federal Bureau of Investigation.
This matter was prosecuted by Assistant United States Attorney Sean Peterson of the Riverside Branch Office.
Columbia Man Pleads Guilty to Marijuana TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute marijuana.
Nader Robert Osama Yanis, 24, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to the charge contained in a March 1, 2018, federal indictment.
Yanis’s father, Osama Nadir Yanis, 49, of Columbia, pleaded guilty to his role in the conspiracy on Dec. 4, 2018, as well as to possessing firearms in furtherance of the drug-trafficking conspiracy. Osama Yanis was the owner of Coffee Zone, a coffee shop in Columbia.
Both men were arrested when law enforcement officers executed a search warrant at Osama Yanis’s residence on Monday, Feb. 19, 2018, after witnessing the delivery of a crate that contained 72 pounds of high-grade marijuana. Officers discovered 33 additional pounds of marijuana and eight firearms inside the residence. They also seized $72,000 from a large gun safe inside the residence (where it was found with seven of the firearms; a Smith & Wesson .38-caliber revolver was found on his desk next to the safe). Osama Yanis also turned over $20,042 that was in his possession.
Officers had been notified a few days earlier about two suspicious shipments addressed to another person at that same address. One crate contained approximately 50 pounds of marijuana and the second crate contained approximately 72 pounds of high-grade marijuana. On Feb. 19, 2018, the second crate was delivered to Osama Yanis’s residence in Columbia. Osama Yanis was observed accepting the delivery and conversing with the delivery personnel. A short time later, Nader Yanis arrived at the residence. Approximately 10 to 15 minutes later, Nader Yanis left the residence and was arrested during a vehicle stop.
Under federal statutes, Nader Yanis is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI, the Columbia, Mo., Police Department and the Drug Enforcement Administration.
Colorado Woman Pleads Guilty to Federal Wire Fraud Charge, Admits Embezzling Money from Non-ProfitRead the Press Release
WASHINGTON – Ashley Furst, 35, of Highlands Ranch, Colo., pled guilty today to a federal wire fraud charge stemming from an embezzlement scheme in which she stole more than $545,000 from a non-profit organization based in the District of Columbia.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Furst pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Furst faces a likely range of 27 to 33 months in prison and a fine of up to $100,000. She also has agreed to pay $545,594 in restitution and the same amount in a forfeiture money judgment. The Honorable Dabney L. Friedrich scheduled sentencing for May 10, 2019.
According to the government’s evidence, Furst was hired in 2011 as the office administrator for the non-profit trade association. She was later promoted to the position of Director of Communications. While employed by the non-profit, Furst’s responsibilities included public outreach, membership recruitment, and communications. She also handled duties typically performed by an office administrator, such as maintaining accounting records, reconciling the monthly bank account statements, transferring on-line donations from the PayPal account to their bank account, providing copies of the bank statements to the members of the Board of Directors, and serving as the sole point of contact for the outside auditors.
Starting in 2012 and continuing through June 2018, Furst stole money from the non-profit in a variety of ways. First, she paid her own personal credit card bills from her employer’s bank account, primarily through on-line debits from the bank account to satisfy her credit card balance, for approximately $415,202.52. Second, she wrote herself unauthorized checks drawn on her employer’s bank account, typically listing on the memo line a bogus reason for the check, for approximately $83,656.40. Third, she repaid her personal loan from her employer’s funds, for approximately $56,411.43. Fourth, although Furst was responsible for transferring donations from her employer’s PayPal account, she misdirected approximately $60,949.49 to her own account or to pay for personal items. Fifth, Furst increased her salary without authorization, by approximately $29,875.03. Through these five methods, Furst embezzled approximately $646,094. However, before the victim discovered the crime, Furst returned $100,500 to her employer, leaving a total embezzlement of $545,594.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work performed by those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the matter.
Cherry Creek Woman Charged with Tampering and Misprision of a FelonyRead the Press Release
United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, woman has been indicted by a federal grand jury for Tampering and Misprision of a felony.
Iris Dupris, age 31, was indicted on December 18, 2018. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 8, 2015, and September 16, 2017, Dupris was giving money to a minor to prevent them from communicating with law enforcement on information of a federal offense involving aggravated sexual abuse of a child and assault with a dangerous weapon. Dupris is further charged with having knowledge of the felony and not making it known to a judge or other person of civil authority.
The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Dupris was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Cherry Creek Man Charged with Child Sexual Abuse, Child Abuse, and Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Assault with a Dangerous Weapon, and Child Abuse.
Brandon Iron Shell, age 30, was indicted on December 18, 218. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 8, 2015, and September 16, 2017, Iron Shell engaged in, and attempted to engage in, sexual acts with minors who had not yet attained the age of 12 years old, and further abused and assaulted children with a dangerous weapon.
The charges are merely accusations and Iron Shell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Shell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.