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Wednesday 17 October 2018
Former Financial Advisor Convicted of All Federal Charges Related to $20 Million Ponzi SchemeRead the Press Release
Greenbelt, Maryland – After deliberating for fewer than five hours, a federal jury today convicted Dawn J. Bennett, age 56, of Chevy Chase, Maryland, on all 17 federal charges including conspiracy, securities fraud, wire fraud, bank fraud, and making false statements on a loan application. Bennett remains detained pending sentencing. U.S. District Judge Paula Xinis has not yet scheduled a date for sentencing.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
“Dawn Bennett’s greed knew no bounds as she knowingly defrauded elderly retirees of their life’s savings,” said U.S. Attorney Robert K. Hur. “This conviction—and the years in federal prison that she is facing—holds her accountable for her actions.”
According to the information presented at her nine-day trial, Bennett is the owner and operator of DJB Holdings, LLC, d/b/a DJBennett.com, an Internet retail website for luxury sportswear.
According to the evidence presented at trial, between December 2014 and April 2017, Bennett solicited individuals to invest money in her Internet clothing business, offering an annual interest rate of 15% via convertible or promissory notes. In order to entice individuals to invest, Bennett made false and misleading statements, including: the risks of investing in DJB Holdings; how investors’ funds would be used; and that the loans were liquid and guaranteed by DJB Holdings’ inventory and assets, and by Bennett herself. Witnesses testified that Bennett concealed the true financial condition of her companies from investors. Bennett convinced several investors to withdraw a significant portion of their retirement accounts to invest in, and loan money to, her companies. The evidence showed that Bennett misappropriated investor funds, using them to fund a lavish lifestyle, pay her personal legal expenses, and repay previous investors with funds she received from new investors. This is consistent with a Ponzi scheme--a fraudulent investment scheme where the operator of the scheme solicits investors by promising high rates of return with little risk. The scheme operator then funds payments to the earlier investors through funds obtained through new investors. Typically, the operator of the scheme will use investment funds for purposes other than what was conveyed to the investors.
According to testimony at trial, over the course of the scheme, Bennett obtained more than $20 million from 46 investors, many of them elderly clients who knew of Bennett from a radio show she hosted. Some of those funds were used to pay earlier investors and the rest was used for her personal benefit, including: a luxury suite at a football stadium; to pay a website operator to arrange for priests in India to perform religious ceremonies to ward off federal investigators; to purchase astrological gems; and for cosmetic medical procedures.
Evidence at trial showed that in May 2015, DJB Holdings, LLC also obtained a $750,000 line of credit, with Bennett as guarantor. According to witness testimony, in support of this line of credit, Bennett made false statements to the bank, including that she had a brokerage account with a net portfolio value of over $4 million. In reality, Bennett’s net portfolio value for that same account was only $35. The loan proceeds were to be used solely for business operations, but Bennett used the funds to pay off investors and to pay her personal expenses. In February 2016, the lender declared the loan in default. Bennett told the lender that she was unaware of the default because she had been in China for the preceding eight months. According to trial evidence, there was not any international travel for Bennett during the time in which she claimed to be in China, and her personal American Express card showed numerous transactions during that time in the Chevy Chase, Maryland and Washington, D.C. area.
On August 25, 2017, the SEC filed a related action against Dawn J. Bennett and DJB Holdings, LLC d/b/a/ DJBennett and DJBennett.com alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Bennett faces a maximum of 20 years in prison for wire fraud conspiracy and for each of nine counts of wire fraud; a maximum of five years in prison for securities fraud conspiracy; a maximum of 20 years in prison for each of four counts of securities fraud; and a maximum of 30 years in prison each for bank fraud and for false statements on a loan application.
On June 18, 2018, Bennett’s co-defendant, Bradley Mascho, age 52, of Frederick, Maryland, pleaded guilty to conspiracy to commit securities fraud and to making a false statement. Mascho faces a maximum of 10 years in prison. As part of his plea agreement, Mascho is required to pay restitution in the full amount of the victim’s losses, which is at least $5,720,457, minus amounts repaid with money not derived from his criminal conduct, but in no event less than $3,650,238. No date has been set for Mascho’s sentencing.
United States Attorney Robert K. Hur commended the FBI for its work on this investigation and thanked the SEC. Mr. Hur praised Assistant U.S. Attorneys Erin B. Pulice, Thomas P. Windom, and Gregory D. Bernstein, who are prosecuting the case.
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Former Employee of Alaska Dept. of Juvenile Justice Charged with Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury returned an indictment against Dennis Weston, 54, of Anchorage, charging him with one count of sexual exploitation of a child – possession of child pornography.
The indictment alleges that in June 2018, Weston knowingly possessed, by means and facility of interstate and foreign commerce, visual depictions of minors engaging in sexually explicit conduct, located on a computer or digital device. Weston is a former employee of the State of Alaska Department of Juvenile Justice, who had previously worked at the McLaughlin Youth Center.
If the public has any further information or concerns about the activities of Weston, please contact the FBI at (907) 276-4441.
If convicted, Weston faces a maximum penalty of up to 20 years in prison, 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 offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former CFO at Two Irvine Companies Sentenced to 3 Years in Federal Prison for Embezzling over $2 Million from his EmployersRead the Press Release
SANTA ANA, California – A former executive at two Irvine-based engineering firms was sentenced today to 36 months in federal prison for embezzling more than $2 million by making over 800 unauthorized withdrawals from company accounts over a five-year period.
Deepak Kharbanda, 44, a Mission Viejo resident who formerly lived in Irvine, was sentenced by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Kharbanda to pay $1,363,496 in restitution.
Kharbanda, who was the chief financial officer at Applied GeoKinetics and Advanced Construction Technologies, stole $2,074,496 from his employers from 2010 to 2015. Kharbanda admitted in court that he made 841 unauthorized withdrawals from the companies’ bank accounts and that he used the money to pay personal expenses, including costs associated with a girlfriend, trips to Las Vegas, upgrades to his home and the lease on a Lamborghini.
Kharbanda “stole more than $2 million dollars from companies where he was a trusted C-suite executive,” prosecutors wrote in a sentencing memorandum. “He stole from them repeatedly, and did so time and time again over a five-year period.”
Prosecutors noted that the companies suffered during this time because they were forced to cut salaries and they lost some employees as a result of Kharbanda’s conduct, which included attempts to cover up the crimes by preparing phony payroll accounts and summaries.
Kharbanda pleaded guilty in September 2017 to two counts of wire fraud. Soon after entering his guilty pleas and while free on bond, Kharbanda forged a letter and sent it to a potential employer, claiming it was a communication from the court’s Pretrial Services Agency, which supervises defendants who have been freed on bond. The bogus letter claimed that Kharbanda was only a witness – not the defendant – in this case. After Pretrial Services obtained a copy of the letter, Kharbanda admitted he authored the letter and was remanded into custody by Judge Selna in December 2017.
“The illegal and fraudulent conduct of forging the seal and signature of Pretrial Services, creating a counterfeit Pretrial Service letterhead, writing a false statement on that counterfeit document, and hiding his actions from Pretrial Services is the epitome of being untruthful with Pretrial Services,” prosecutors wrote in court documents earlier this year. “In fact, Pretrial Services was able to discover defendant’s illegal conduct only because the employment background investigator contacted Pretrial Services.”
This case was investigated by the United States Secret Service.
This matter was prosecuted by Assistant United States Attorneys Daniel H. Ahn and Gina J. Kong of the Santa Ana Branch Office.
Foreign Service Officer Pleads Guilty to Submitting False Claims to the Department of StateRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tiffany Thomas, age 34, of Bowie, Maryland, has entered a guilty plea in federal court in Charleston to Submission of False, Fictitious, and Fraudulent Claims, a violation of 18 U.S.C. § 287. United States District Judge Margaret Seymour, of Charleston, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Thomas submitted false claims while she was employed in the Department of State’s Regional Security Office in Lome, Togo. The funds were managed by the Department of State's Global Financial Services Center in Charleston. As part of the scheme, Thomas submitted forged receipts for expenses related to official travel in the United States and abroad. The Government alleges the claims exceeded $100,000.
Ms. Lydon stated the maximum penalty for Submission of False, Fictitious, and Fraudulent Claims is imprisonment for 5 years, a fine of $250,000, and up to 3 years of supervised release.
The case was investigated by special agents of the Department of State, Office of Inspector General, led by Inspector General Steve A. Linick. Assistant United States Attorney Matt Austin of the Charleston Office is prosecuting the case.
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Felon in Possession of a Firearm SentencedRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Alan Lee Baky, 41, of Bayou La Batre, was sentenced in federal court for his illegal possession of a firearm as a convicted felon. Baky pled guilty to the charge in July of 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 46 months imprisonment, and ordered that Baky undergo substance abuse treatment. When Baky is released from custody, he will be required to serve a three-year term of supervised release. No fine was imposed in his case, but he was ordered to pay a $100 special assessment. The judge also ordered that the weapon which Baky illegally possessed would be forfeited to the United States.
The Bayou La Batre Police Department and the Federal Bureau of Investigations conducted the investigation in the case. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Felon Sentenced for Role in Two Armed Coffee Stand Robberies, Shooting at Pursuing Police OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man has been sentenced in federal court for his role in the Sept. 25, 2017, armed robbery of Caffé D’Arte and the attempted armed robbery of Heavenly Cup, which led to a vehicle chase during which defendant shot at one of the pursuing APD vehicles.
Myles Gonangnan, 28, of Anchorage, was sentenced yesterday by U.S. District Judge Sharon Gleason to serve 20 years in prison, followed by five years of supervised release. This sentence resulted from Gonangnan’s February 2018 guilty plea to four charges: (1) conspiracy to commit robbery affecting interstate commerce; (2) robbery affecting interstate commerce; (3) attempted robbery affecting interstate commerce; and (4) using or discharging a firearm during and in relation to a crime of violence.
Gonangnan’s co-defendant, Shane Twigg, 36, of Eagle River, is scheduled to be sentenced on Dec. 5, 2018, at 1:30 p.m. for his role in the offense.
According to court documents, Gonangnan admitted that prior to Sept. 25, 2017, he and Twigg planned to rob Anchorage businesses, planned to use a gun to achieve compliance with their demands for money, and planned to use a combination of a bicycle and vehicle to flee from their crimes. On the morning of Sept. 25, 2017, Twigg called Gonangnan to set the plan in motion. The two met at an apartment Twigg frequented, where Twigg loaded a bicycle into the back of his girlfriend’s Buick SUV. The two then left, armed with a Roger Redhawk .44 caliber pistol.
Gonangnan and Twigg subsequently drove by Caffé D’Arte and decided to rob the coffee stand. Twigg stopped the vehicle a short distance away so that Gonangnan could depart on bike. Twigg then parked his vehicle in a nearby gas station and gave Gonangnan a “thumbs up” signal when he deemed it safe to proceed with the robbery. After receiving the signal, at about 8:22 a.m., Gonangnan biked up to one of the drive-through windows and demanded money from the barista while brandishing a firearm. The barista fearfully gave Gonangnan approximately $1,200.
Just over an hour later, Twigg and Gonangnan attempted to rob another Anchorage coffee stand, the Heavenly Cup, in the same way they robbed Caffé D’Arte. Gonangnan biked up to the drive-through window, and again demanded money and tried to brandish his firearm. Gonanagnan had some difficulty unholstering the firearm, but his attempts to do so frightened the barista, who immediately fled to the back of the stand and called 911. After finally getting the gun unholstered, Gonangnan fled on the bike with no proceeds.
Shortly after the attempted robbery of Heavenly Cup, Anchorage police saw the Buick SUV traveling on Dimond Blvd. The vehicle refused to stop and a chase ensued. After one police vehicle hit the Buick’s back end in an attempt to disable it, Gonangnan shot out of the back of the Buick at the police officer whose vehicle impacted them, hitting the police vehicle multiple times. That police vehicle became disabled, but several others continued to pursue the fleeing Buick. After Twigg drove the Buick the wrong way on a one-way road, police rammed the vehicle again, causing it to crash and disable in a parking lot.
Gonanagnan has a previous felony conviction with the State of Alaska for Burglary in the Second Degree, and was therefore prohibited from possessing a firearm. Gonangnan also has a long history of misdemeanor offenses that were sometimes assaultive or threatening.
At the sentencing hearing, Judge Gleason took into account the seriousness of the offense, including the danger posed to the baristas and their customers, the APD officers, and Anchorage citizens, as well as Gonangnan’s personal and criminal history. Judge Gleason also recommended that BOP place Gonangnan in a facility with strong mental health treatment services, and that Gonangnan avail himself of substance abuse treatment during incarceration. Gonangnan was also ordered to pay $1,200 in restitution to Caffé D’Arte for the money he stole, and $23,929 to the Anchorage Police Department for the repair work that was necessary to restore two police vehicles to service.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kimberly Sayers-Fay.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Drug Traffickers in Major Cross-Country Conspiracy Sentenced to PrisonRead the Press Release
SAVANNAH, GA: Two Savannah men are facing years in federal prison after being sentenced this week in a cross-country drug-trafficking conspiracy that funneled major amounts of cocaine and marijuana to coastal Georgia.
United States District Court Judge William T. Moore Jr. sentenced Edward “Skip” Tyler, 42, to 168 months in federal prison, and Ron Allen, a/k/a “Ron Low,” 41, to 84 months in prison, to be served consecutive to other criminal convictions in state court, said Southern District U.S. Attorney Bobby L. Christine. There is no parole in the federal system, and after their release from prison Tyler and Allen will be on supervised federal release for three years.
Tyler and Allen were part of an illegal drug trafficking organization distributing cocaine and marijuana in Savannah and beyond. As outlined in court records and in various hearings, marijuana sales were used to finance cocaine purchases, with cash proceeds hidden in candy machines and shipped to hubs in Atlanta and California. Co-conspirators in those areas shipped to Savannah via U.S. Mail and in vehicles with hidden compartments.
Tyler, who has an extensive record of violence, including drug and gun crimes, served as one of the main cocaine traffickers for the organization. During the investigation, officers observed Tyler conducting a cocaine deal in the parking lot of a Savannah business while carrying a female child. He was on state probation at the time; he pled guilty to Possession with Intent to Distribute, and is awaiting sentencing.
Allen, who was on federal court supervision after release from prison on a previous drug trafficking conviction, served as a major marijuana dealer for the organization. He also supervised the transport of money to conspirators in other states and was in frequent contact with his inmate relative and co-conspirator, Eugene Allen, a/k/a “Poncho,” who is alleged to be a ringleader of this organization. Eugene Allen is serving a life sentence for murder in a Georgia Department of Corrections facility and is alleged to have run his organization using phones smuggled into prison.
In addition to Ron Allen’s 84-month sentence for his guilty plea on the charge of Conspiracy to Possess with Intent to Distribute, he is facing revocation of his federal supervised release and additional time in prison.
This investigation culminated in the August 2017 indictments by a federal grand jury that charged 20 defendants with drug trafficking offenses. Most of them have pled guilty. In this investigation, agents seized eight firearms, more than 200 pounds of marijuana, multiple kilograms of cocaine, and hundreds of thousands of dollars.
“This operation exemplifies the united front of state and federal investigators and prosecutors in combatting major drug trafficking organizations,” said United States Attorney Bobby L. Christine. “The lead prosecutor on this case is Special Assistant United States Attorney Noah Abrams, who also serves as a state prosecutor from the Savannah District Attorney’s Office. Abrams worked in a federal capacity along with another federal prosecutor to dismantle this organization, throwing a wide net that not only took down drug traffickers in Savannah but led to the arrests of suppliers in California and Atlanta.”
“Our office appreciates the opportunity to work closely with the U.S. Attorney’s Office in getting these violent offenders off the streets of Savannah,” said District Attorney Meg Heap. “This case is just one example of how agency partnerships can be successful in using the full weight of the law to reduce crime in our community.”
“These sentences are the result of the hard work and cooperation of multiple federal state and local law enforcement agencies, as part of the FBI’s Violent Crimes Task Force,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As a result, two drug dealers, who were part of a larger organization that spread illicit drugs on our streets, will spend significant time in prison.”
Chatham-Savannah Counter Narcotics Team Director Everett Ragan said, “CNT takes great pride in dismantling drug organizations operating in Chatham County. We equally appreciate our close working partnerships with state and federal counterparts. This operation should serve as a reminder to all drug dealers, large or small, that law enforcement and prosecutors will stand united to ensure our communities are safe.”
This investigation was led by the FBI Southeast Violent Crimes Task Force and the Chatham County Narcotics Team (CNT), with the Savannah Police Department, the Chatham County Sheriff’s Office, the Effingham County Sheriff’s Office, the United States Postal Inspector’s Office, and the United States Marshal’s Service. This case is being prosecuted as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which is the premier law enforcement unit whose task is to dismantle multi-jurisdictional drug trafficking organizations. This case is being prosecuted by Special Assistant United States Attorney/Assistant District Attorney Noah Abrams, and Assistant United States Attorneys Greg Gilluly and Frank Pennington.
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Dorchester Man Pleads Guilty to Kidnapping, Loansharking and Illegal GamblingRead the Press Release
BOSTON – A Dorchester man pleaded guilty today in federal court in Boston to kidnapping, loansharking and illegal gambling.
Kim Nguyen, 25, pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means, and operating an illegal gambling business. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2019. In August 2017, Nguyen was indicted along with co-defendants Vinh Huynh, 35; Quang PT Le, 27; and Ban Tran, a/k/a “Bo,” 26, all of Dorchester.
On Nov. 14, 2016, Nguyen, Le, who was armed with a knife, and their co-conspirators kidnapped a victim from the front of the victim’s residence, drove the victim to Dorchester, and beat the victim in an attempt to collect a gambling debt of $40,000. Nguyen, Le, and their co-conspirators released the victim and demanded a payment of $10,000 the next day. That day, the victim went to law enforcement and, under the direction of law enforcement officers, made a series of controlled, recorded payments to Le. Over the course of eight months, the victim made payments totaling $22,350. In August 2017, Nguyen, Le, and others were arrested before the last payment was due.
In May 2018, Le was sentenced to six years in prison and three years of supervised release. Huynh pleaded guilty in December 2017 and is awaiting sentencing. The remaining defendant, Tran, was charged only with operating an illegal gambling business, and is scheduled to plead guilty on Oct. 31, 2018.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigations in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The remaining defendant charged in this case is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Domestic violence offender sentenced for possessing a sawed-off shotgunRead the Press Release
NEWNAN, Ga. - Robert Bentley Davis was sentenced to federal prison after pleading guilty to possessing a sawed-off shotgun. The Troup County Sheriff’s deputies discovered the weapon in Davis’s residence after responding to a domestic violence call.
“Davis has a history of committing acts of violence, so his possession of an illegal sawed-off shotgun greatly increased the potential for a fatal incident to occur in the home,” said U.S. Attorney Byung J. “BJay” Pak. “Thankfully, through the coordinated work of our federal and local law enforcement partners, this dangerous and violent offender will now serve time in federal prison.”
“Anyone who uses a firearm to intimidate, threaten or terrorize another person poses a significant danger to everyone in our community,” said Special Agent in Charge Arthur Peralta. “ATF is committed to combating violent crime in all its forms. Domestic violence destroys lives, separates families and often times results in significant physical and mental injury to its victims. As a community, we must send a strong message that we will not tolerate this kind of behavior from anyone. Mr. Davis displayed a clear disregard for our laws and his conviction and sentencing is a clear message that this conduct will not be tolerated.”
“The District Attorney’s office expresses our continued appreciation of the Project Safe Neighborhoods (PSN) initiative and values working with the United States Attorney and other participants to keep our communities safe from violent crime,” said Herb Cranford, District Attorney for the Coweta Judicial Circuit. “We sincerely believe this initiative provides our local communities a crucial layer of protection against gun violence. As a result, Robert Bentley Davis, who brutally assaulted his wife while in possession of a sawed-off shotgun, has been brought to justice.”
The Troup County Sheriff’s Office is grateful for the hard work of our investigators and the U.S. Attorney’s Office for their prosecution in this case, said Troup County Sheriff James Woodruff. “Crimes of this nature are very serious and we are dedicated to working with our local, state and federal partners to bring justice.
According to U.S. Attorney Pak, the charges and other information presented in court: On September 12, 2017, Troup County Sheriff’s deputies responded to a residence in LaGrange, Georgia concerning a domestic dispute between Davis and his wife. Upon arrival, the deputies encountered Davis’s wife crying hysterically, and observed heavy bleeding from several areas of her head and severe bruises around her eyes. Davis continued to verbally assault of his wife after the deputies arrived on the scene.
Davis’s wife informed the deputies that her husband was concealing a firearm inside the residence. Officers subsequently recovered a half-cocked, Stevens Model 94C, .410 gauge sawed-off shotgun under a pillow in a couch in the living room. Officers then arrested Davis for the assault of his wife and for his unlawful possession of an unregistered sawed-off shotgun.
Robert Bentley Davis, 60, of LaGrange, Georgia was sentenced to one year in prison, to be followed by three years of supervised release. Davis entered a guilty plea on June 29, 2018, to the offenses of unlawful possession of an unregistered firearm in violation of the National Firearms Act, and unlawful possession of a sawed-off shotgun.
This case was investigated as a part of the Project Safe Neighborhoods (PSN) initiative and exemplifies the collaborative work done by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Troup County Sheriff’s Office, and the Coweta County Judicial Circuit District Attorney’s Office to assist the U.S. Attorney’s Office in the successful prosecution of this case. In keeping with the U.S. Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
Assistant U.S. Attorney Phyllis Clerk prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Sex Offender Sentenced to 40 Years in Prison for Plot to Bomb Target StoresRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton today sentenced Mark Charles Barnett (50, Ocala) to 40 years in federal prison for attempted arson, possession of an unregistered National Firearms Act (NFA) destructive device, and making an unregistered NFA destructive device. A federal jury found Barnett guilty on July 27, 2018.
According to testimony and evidence presented at trial, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs inside Target stores along the east coast of the United States. Barnett purchased the bomb components and assembled at least 10 of the destructive devices, which he disguised inside the packaging of common grocery items. Barnett had theorized that the company’s stock would plunge after the explosions, allowing him to cheaply acquire shares of Target stock before an eventual rebound in prices. Barnett told the CS, “If someone has to die so that I can make some money, so be it.”
Barnett delivered the devices to the CS with instructions to put them on the shelves of Target stores from New York to Florida. The CS, however, promptly surrendered the destructive devices to authorities, and Barnett was arrested on February 14, 2017.
Federal explosives experts subsequently determined that the resulting fire and explosion from each of the devices would have been capable of causing property damage, serious injury, and death. Searches of Barnett’s house, cellphone, and computer revealed pictures of the grocery items that he had turned into bombs, as well as leftover bomb components and articles describing stock options.
Barnett, a registered sex offender, had been conditionally released from state prison in 2013, following multiple felony convictions for sexual assault, kidnapping, and grand theft. He was also previously convicted of kidnapping in Mississippi.
“As subject matter experts in explosives, this case represents ATF’s urgency in responding to information that someone would be planning a crime that had the potential to harm numerous people in a retail setting. ATF’s proactive response negated this immediate threat,” said ATF Special Agent in Charge, Daryl McCrary. “This collaborative effort between the Florida Department of Law Enforcement, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives highlights the importance of immediate communication sharing between law enforcement agencies to ensure public safety.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Marion County Sheriff’s Office, the Florida Department of Corrections - Probation and Parole, and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Columbia Man Sentenced to 30 Years in Connection with 2008 Torture, Robbery, and Murder in AikenRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated that Antonio Miller, age 40, of Columbia, South Carolina, was sentenced in federal court to 360 months (30 years) imprisonment, to be followed by 5 years of supervised release. Miller plead guilty last year in connection with the torture, robbery, and murder of Fred Tucker in Aiken. Specifically, Miller plead guilty to using a firearm to commit murder in furtherance of a crime of violence and drug trafficking, kidnapping resulting in death; and conspiring to distribute crack cocaine resulting in death. United States District Judge Mary Geiger Lewis imposed the sentence.
Court hearings revealed that on September 15, 2008, Miller and three co-confederates targeted Fred Tucker to rob him of drugs and drug proceeds to further their ongoing efforts to distribute crack cocaine. Miller and the others drove in a rental car to Tucker’s house in Aiken. Carrying multiple firearms, these four men entered Tucker’s home, subdued and restrained Tucker, binding his hands and feet with duct tape, before repeatedly burning him with a scalding flathead screwdriver. After torturing Tucker in order to learn the location of hidden drugs and drug proceeds, Tucker was fatally shot in the chest. Through the work of local law enforcement, searches of the rental car and Miller’s own residence revealed crack cocaine taken from Tucker and firearms that ballistically matched those used to murder Tucker.
After his co-defendants pleaded guilty, a state-court jury convicted Miller of kidnapping, murder, and related charges before South Carolina Circuit Judge Doyet A. (Jack) Early, III. On appeal in 2016, the South Carolina Supreme Court reversed the conviction. As part of a longstanding history of cooperation with Second Circuit Solicitor Strom Thurmond Jr., federal authorities indicted Miller in 2017. After United States District Judge Lewis denied Miller’s attempts to suppress evidence of the murder, Miller agreed to plead guilty and be sentenced to 30 years in federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Federal Bureau of Investigation (FBI), the Aiken County Sheriff’s Office, the Richland County Sheriff’s Department, the Aiken Department of Public Safety, the North Augusta Department of Public Safety and the United States Marshal’s Office. Assistant U.S. Attorney J.D. Rowell prosecuted the case, along with assistance from Special Assistant United States Attorney Beth Ann Young of the Second Circuit Solicitor’s Office.
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Collin County Man Sentenced for Mortgage Fraud SchemeRead the Press Release
PLANO, Texas – A 50-year-old Plano, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James Gerard Temme pleaded guilty on Oct. 11, 2017, to wire fraud and was sentenced to 78 months in federal prison on Oct. 16, 2018 by U.S. District Judge Marcia A. Crone. Temme was also ordered to pay restitution in the amount of $2,933,667.48.
According to information presented in court, in 2011, Temme engaged in wire fraud by inducing individuals to invest in a package of mortgages, misrepresenting that he had the ability to sell the package to the investors. Temme provided a forged signature to induce the investment, eventually receiving over $3 million from the investors, when in fact he never actually sold the package of mortgages to the investors. Temme was indicted by a federal grand jury on Sep. 21, 2016 and charged with federal violations.
“White collar theft often hurts victims just as much as thefts that happen with a gun,” said U.S. Attorney Joseph D. Brown. “This was a lot of money. I am proud of the FBI investigators for pursuing it aggressively, and a prison sentence was wholly justified in this case.”
“Mr. Temme, knowingly acted in an unscrupulous and reckless manner to entice many innocent people into making investments that were unsound,” said Eric K. Jackson, FBI Special Agent in Charge of the Dallas Division. “Economic fraud is becoming common place, but we will continue to target the offenders and bring the appropriate charges, while protecting the citizens’ rights to fair and trustworthy services.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas.
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Clinton Man Pleads Guilty to Armed CarjackingRead the Press Release
Jackson, Miss. – Omar Bankhead, of Clinton, pled guilty yesterday before U.S. District Judge Henry T. Wingate to armed carjacking, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigations.
On April 2, 2017, officers with the Clinton Police Department responded to a carjacking at Mississippi College. The victim reported sitting in the parking deck at Mississippi College when Bankhead entered her 2015 Kia Optima and ordered her out of the vehicle. Officers later recovered the vehicle in Illinois and Bankhead in Iowa.
Bankhead, a previously convicted felon, will be sentenced by Judge Wingate on January 14, 2019, and faces a maximum penalty of fifteen years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Clinton Police Department. It is being prosecuted by Assistant United States Attorney Candace Mayberry.
Cleveland man indicted for robbing five banks in August and SeptemberRead the Press Release
A Cleveland man was indicted for robbing five banks in August and September.
Anthony Jones, 59, was indicted on five counts of bank robbery.
He is accused of robbing the following banks: U.S. Bank at 1350 Euclid Ave. in Cleveland on Aug. 27; Huntington Bank at 905 Euclid Ave. in Cleveland on Aug. 30; Fifth Third Bank at 600 Superior Ave. in Cleveland on Sept. 4; Citizen’s Bank at 2175 Warrensville Center Road in University Heights on Sept. 6; and Woodforest National Bank at 3400 Steelyard Drive in Cleveland on Sept. 8.
This case is being prosecuted by Assistant U.S. Attorney Ranya Elzein following an investigation by the Federal Bureau of Investigation, Cleveland Division of Police and University Heights Police Department.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Boise Man Sentenced to 25 Years in Prison on Federal Gun and Drug ChargesRead the Press Release
BOISE – Danny Ray VanZandt, 40, of Boise, was sentenced today to 300 months in prison followed by ten years of supervised release for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted VanZandt on May 15, 2018.
According to court records, law enforcement used a confidential informant to purchase methamphetamine from VanZandt on two separate occasions. Upon VanZandt’s arrest, officers located seventy grams of methamphetamine and a loaded handgun in his truck. VanZandt has a lengthy criminal history that dates back twenty years and includes two prior controlled substance offenses and numerous parole violations.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
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. 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.
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Beckley Firefighter Sentenced to PrisonRead the Press Release
BECKLEY, W.Va. – A Beckley firefighter was sentenced today to 8 months in prison for committing mail fraud, announced United States Attorney Mike Stuart. Michael Cowger, 50, fraudulently received over $20,000 from the City of Beckley, West Virginia University, and Beaver Volunteer Fire Department. The sentence was imposed by United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the West Virginia Commission on Special Investigations and the Beckley Police Department.
"As a first responder, Cowger held a position of trust. He abused that trust when he engaged in his fraudulent scheme,” said United States Attorney Mike Stuart. “Although the resulting losses were not overwhelming in value, Cowger’s scheme to defraud was not a one-time occurrence, but rather an extended series of deceptions. Any amount of fraud or deceit committed by those in positions of public trust is always significant.”
Cowger served as a firefighter at the Beckley Fire Department, worked as a part-time instructor for West Virginia University’s College of Engineering and Mineral Resources, and volunteered at the Beaver Fire Department, where he held the position of Fire Chief. Cowger admitted that he submitted reimbursement requests for supplies, travel, and training expenses to those entities, when he knew he had already sought reimbursements for the same expenses or another entity had already paid the expenses. For example, Cowger used his West Virginia University Purchasing Card (“P-Card”), a credit card that WVU paid directly, to purchase gas and rent a vehicle for certain trainings, yet also requested mileage from the City of Beckley for those same trainings, falsely indicating that he used his personal vehicle for the same travel, when in fact he had used a vehicle rented via the P-Card. Cowger also admitted that to complete his scheme, at times he created fictitious and duplicate receipts on his computer. He also admitted that he manipulated his hotel and training reservations and payments at times to ensure that he received two receipts with two different credit card numbers for the same events to conceal from the City of Beckley that he had used a WVU P-Card to pay for the events.
Cowger was ordered to pay restitution in the following amounts: $15,618.47 to the City of Beckley; $5,107.88 to West Virginia University; and $204.85 to the Beaver Volunteer Fire Department.
Assistant United States Attorney Meredith George Thomas handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Beaumont Residents Guilty in Violent Crime SpreeRead the Press Release
BEAUMONT, Texas – The final defendant in a Jefferson County violent crime spree has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Darrion Tyrell Kimble, 19, pleaded guilty to Hobbs Act robbery, attempted Hobbs Act robbery and brandishing a firearm in relation to a crime of violence. Kimble appeared before U.S. Magistrate Judge Keith Giblin today for his plea hearing.
Tavori Terrell Jackson, 19, pleaded guilty on Oct. 16, 2018, to two counts of Hobbs Act robbery, attempted Hobbs Act robbery, and discharging a firearm during a crime of violence.
Damien Earl Kimble, 35, pleaded guilty on Aug. 21, 2018, to Hobbs Act conspiracy.
Kamren Terezz Lewis, 19, pleaded guilty on Oct. 10, 2018, to attempted Hobbs Act robbery and Hobbs Act robbery.
According to information presented in court, on July 29, 2017, Jackson, and Darrion Kimble robbed Fertitta's Finer Foods, in Beaumont. Both Jackson and Kimble brandished firearms, with Jackson jumping over the clerk’s counter and demanding money. Later that day, Jackson and Kimble attempted to rob a game room located in Beaumont, but were deterred and fled when a security guard fired three rounds at them. Both Kimble and Jackson brandished firearms during the course of those robberies. In early March 2018, Jackson and Kimble resurfaced, and with the assistance of Lewis and Damien Kimble, attempted to rob a game room in Port Arthur, Texas. During the robbery, Jackson and Lewis, entered the game room and demanded money. In an effort to intimidate patrons and employees of the game room, Jackson fired two rounds into the floor of the game room as Lewis stood as a lookout. Darrion Kimble served as the group’s get-away driver. Later that same day Jackson, Darrion Kimble, Damien Kimble, and Lewis robbed a Dollar General store in Beaumont, Texas. During this robbery, Jackson and Lewis entered the store, with Lewis standing near the door as lookout. Jackson jumped over the counter, brandished a firearm, and demanded money. After his demands were met, Jackson and Lewis fled in different vehicles driven by Damien Kimble and Darrion Kimble. During the investigation it was discovered that on July 26, 2017, Jackson robbed the Sunshine Grocery located in Port Arthur. Jackson brandished a firearm during that robbery.
The Hobbs Act prohibits actual or attempted robbery that has a substantial effect on interstate and foreign commerce by reason of their repetition and aggregate effect on the economy. Under federal statutes, the defendants each face up to 20 years for each robbery violation and a minimum of seven additional years for each firearms violation. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Port Arthur Police Department. This case is being prosecuted by Assistant U.S. Attorneys Russell E. James and John B. Ross.
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Ashburn Woman Pleads Guilty to $5 Million FraudRead the Press Release
ALEXANDRIA, Va. – After two days of jury trial, an Ashburn woman pleaded guilty today to wire fraud, money laundering, conspiracy to impersonate a federal agent to demand money, and obtaining confidential phone records.
According to court documents and the evidence at trial, Keisha L. Williams, 43, solicited over $5.4 million from more than 50 victims by telling them that she had paid a lot of money for a certain healthcare-related software overseas in Austria; that the software was being held in “escrow” because she still owed taxes, attorney’s fees, and other debt associated with the purchase; and that if they would just give her a short-term loan to get this software out of escrow and bring it to the United States, the software would be a huge success and everyone would be quickly repaid, with interest.
In truth, Williams spent over 95 percent of the victims’ money on creating a lifestyle of luxury for herself, including millions on international travel, retail purchases at stores like Chanel and Gucci, and close to half a million on maintaining her girlfriend. Williams also recruited others to pose as federal law enforcement agents in order to demand money from several individuals to whom she sent proceeds of the software fraud. Williams recruited still other individuals to purchase private telephone records of one of the extortion victims from T-Mobile retail stores.
Four other individuals entered guilty pleas in connection with this case before trial. See table below for details.
Name, Age
Hometown
Charge(s)
Sentencing
Christian D’Andrade, 69
California
Wire Fraud
December 14
Carla McPhun, 50
Maryland
Wire Fraud
December 10
Arthur Robinson, 53
Manassas
Conspiracy to Impersonate a Federal Agent
December 10
Ruben Gresham, 53
Maryland
Conspiracy to Impersonate a Federal Agent
December 10
Williams faces a maximum penalty of 20 years in prison when sentenced on Jan. 18, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Grace L. Hill and Jack Hanly are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-160.
Appleton Man Indicted on Firearm and Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 10, 2018, a two-count federal indictment was issued against Craig R. Webb (age: 42) of Appleton, Wisconsin.
The indictment alleges that Craig R. Webb possessed in excess of 50 grams of methamphetamine with the intent to distribute the controlled substance and did so while in the possession of a firearm, contrary to Title 18 United States Code, Section 924(c). If convicted of the charges alleged, Webb faces a mandatory 15 year prison sentence and up to a life sentence. Webb will be arraigned on October 19, 2018, in Green Bay federal court.
Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Lake Winnebago Area MEG Unit and the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Algoma Sex Offender Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on October 10, 2018, a federal grand jury returned an indictment against Sean R. Evansen (age: 35) of Algoma, Wisconsin.
According to the indictment, between June 6, 2018, and September 13, 2018, Evansen received and possessed images of child pornography including images of children under 12 years of age. The indictment further reflects that Evansen was convicted on June 19, 2000, in Calumet County Circuit Court, for the crime of First Degree Sexual Assault of a Child.
Evansen faces one charge of receipt of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2), and possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). He faces a mandatory minimum sentence of 15 years and up to 40 years of incarceration in federal prison. He is scheduled for arraignment in Green Bay federal court on October 17, 2018.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Dean Puschnig, 414-297-1700
14 Defendants Indicted in Jamestown Methamphetamine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 42-count indictment charging 14 defendants with methamphetamine conspiracy. Named in the indictment are:
• Zackiel Fields, Jr.;
• Ernest Cauley, Jr., a/k/a L.A., a/k/a Ernie;
• Jamell Trapp, a/k/a K.S.;
• Ramael Fields;
• Stephanie L. Harrison;
• Marcus Martin Bowman;
• Danny W. Michael, Ill;
• Alexis V. Hall;
• Destiny J. Hare;
• Andrew C. Bennett;
• Searcy E. Fields;
• Jacob A. Motherwell;
• Michael A. Davis; and
• Stacie N. YancerThe charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine. Some defendants are also facing other charges including: possession with intent to distribute, and distribution of, methamphetamine; using and maintaining a drug-involved premises; possession of firearms in furtherance of drug trafficking; and being a felon in possession of a firearm and ammunition.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendants are accused of operating a drug trafficking organization, primarily involving methamphetamine, in the Jamestown area, since March 2017.
During the execution of search warrants throughout the investigation, law enforcement officers recovered 10 firearms and multiple rounds of ammunition, over 20 cellular telephones, drug paraphernalia, and U.S. currency.
The defendants were arraigned before U.S. Magistrate Judge Michael J. Roemer. Defendants Danny W. Michael III, Destiny J. Hare, Andrew C. Bennett, Searcy E. Fields, Michael A. Davis, Stacie N. Yancer, Ramael O. Fields, Jamell Trapp, and Zackiel Fields, Jr. are being detained. Defendants Marcus Martin Bowman, Ernest Cauley, Jr., Jacob A. Motherwell, Alexis V. Hall, and Stephanie Harrison were released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Tuesday 16 October 2018
Woodall Man Pleads Guilty to Firearm, Ammunition Possession by Illegal AlienRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Baudel Lopez-Rodriguez, age 41, of Woodall, Oklahoma, entered a guilty plea to Illegal Alien In Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about December 2, 2016, within the Eastern District of Oklahoma, the defendant, then being an alien illegally and unlawfully in the United States, did knowingly possess in and affecting commerce, firearms and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Cherokee County Sheriff’s Office, Immigration and Customs Enforcement of the Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Christopher Wilson represented the United States.
Wilkinsburg Man Pleads Guilty in Scheme to Distribute Heroin and Fentanyl AnalogueRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and a fentanyl analogue, United States Attorney Scott W. Brady announced today.
Termane Thomass Eleam, age 32, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Eleam conspired with other individuals to possess with intent to distribute over 100 grams of heroin and furanyl fentanyl, an analogue of fentanyl.
The Court was further advised that on November 3, 2016, Department of Homeland Security, the Pennsylvania State Police, and the Monroeville Police executed a search warrant on Rooms 238 and 305 of the Days Inn, located in Monroeville, Pennsylvania. During the search of Room 238, investigators seized suspected heroin, gloves, and distribution paraphernalia, including packaging materials, blenders, and multiple cell phones. Wilfredo Torres and Donte Spence were in Room 238. A cousin of Eleam was in Room 305 bagging the suspected heroin in exchange for payment. The drugs recovered from both rooms tested positive for a total of approximately 200 grams of furanyl fentanyl and heroin.
Eleam had departed the Days Inn just prior to the execution of the search warrant, and returned to the hotel as the search warrant was being executed. When officers searched both his person and vehicle following the execution of the search warrant, a small amount of marijuana and related paraphernalia were recovered.
Judge Fischer scheduled sentencing for March 7, 2019. The law provides for a maximum total sentence of not less than 20 years in prison, a fine of $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Eleam’s bond.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Department of Homeland Security, the Pennsylvania State Police and the Monroeville Police Department conducted the investigation that led to the prosecution of Eleam.
Universal American Mortgage Company, LLC, Agrees to Pay $13.2 Million to Resolve False Claims Act Allegations Related to FHA Mortgage InsuranceRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Universal American Mortgage Company, LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain mortgages. UAMC is a mortgage lender headquartered in Miami, Florida, doing business across the country, including in the Eastern District of Washington.
The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.
During the period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”
United States Attorney Harrington said, “FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis. FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program. We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”
“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney for the Western District of Washington, Annette L. Hayes. “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules.”
“One of our principal responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General. “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”
“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement. “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”
The settlement resolves allegations originally brought by Kat Nguyen-Seligman, a former employee of a related UAMC entity, in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $1,980,000 as her share of the federal government’s recovery in this case.
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Washington and Western District of Washington, the Department of Housing and Urban Development, and the Department of Housing and Urban Development’s Office of the Inspector General. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene investigated UAMC’s conduct on behalf of the U.S. Attorney’s Office for the Eastern District of Washington. The case is captioned United States ex rel. Kat Nguyen-Selgiman v. Lennar Corporation, Universal American Mortgage
Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.). The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Tyler County woman admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Desiree Morgan, of Paden City, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Morgan, age 23, pled guilty to one count of “Distribution of Methamphetamine.” Morgan admitted selling methamphetamine in February 2017 in Tyler County.
Morgan faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
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.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Two Men Indicted for Theft of 366 Firearms from UPS FacilityRead the Press Release
Memphis, TN – On October 11, 2018, a federal grand jury indicted two men for firearms theft from a UPS facility. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
According to the charging instrument, on September 30, 2018, Roland Jackson, 18, of Chicago, Illinois and Taveyan Turnbo did knowingly transport and ship stolen firearms from Tennessee to Illinois, in violation of Title 18, United States Code, Section 922 (i).
On September 26, Roland Jackson and a person unknown in Illinois purchased a U-Haul van with stolen identification. On September 29, 2018, Roland Jackson and Taveyan Turnbo traveled to Tennessee from Illinois. The next day, September 30, 2018, the defendants stole 366 firearms from a shipping facility in Tennessee and transported the stolen firearms in the rented U-Haul van to Illinois.
U.S. Attorney D. Michael Dunavant said, "Cargo theft from shipping facilities that interrupts and threatens interstate commerce must be dealt with swiftly and certainly. Cargo theft of hundreds of firearms is especially dangerous, and threatens the lives of countless citizens. We are thankful that all of the stolen firearms were recovered due to the quick action and outstanding investigation by local and federal law enforcement, and we appreciate the coordination and partnership with the U.S. Attorney’s Office for the Northern District of Illinois in this disturbing case. Interstate trafficking of stolen firearms will be met with aggressive prosecution in order to protect public safety."
Count 1 charges Roland Jackson and Taveyan Turnbo knowingly conspired and agreed with each other and with other unknown individuals to transport and ship stolen firearms from Tennessee to Illinois, in violation of Title 18, United States Code, Section 371.
Count 2 charges Roland Jackson and Taveyan Turnbo knowingly transported and shipped interstate commerce from Tennessee to Illinois, specifically, 322 different Ruger .380
caliber pistols and 44 different Ruger .22 LR caliber pistols, in violation of Title 18, United States Code, Sections 922 (i) and 2.
Count 3 charges Roland Jackson and Taveyan Turnbo knowingly possessed stolen firearms, specifically, 322 different Ruger .380 caliber pistols and 44 different Ruger .22 LR caliber pistols, which had been shipped and transported in interstate commerce.
Count 4 charges Roland Jackson as a convicted felon knowingly possessed stolen firearms affecting interstate commerce, specifically, 322 different Ruger .380 caliber pistols and 44 different Ruger .22 LR caliber pistols, violation of Title 18, United States Code, Section 922 (g)(1).
If convicted, the defendants face a mandatory minimum sentence of up to 10 years imprisonment, $250,000 fine and 3 years supervised release. Both defendants have been taken into custody, and are being detained pending trial.
This case was investigated by the ATF; FBI Cargo Theft Task Force; Midlothian, Illinois Police Department and the Memphis Police Department, during which all of the stolen firearms were safely and successfully recovered.
Assistant U.S. Attorney Marques Young is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tucker County man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Brooks Ketterman, of Hambleton, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Ketterman, age 31, pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Ketterman admitted to possessing more than five grams of methamphetamine, also known as “Ice,” in Randolph County in September 2017.
Ketterman faces up to 40 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Elkins Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Trafford Man Gets Jail Time for Defrauding the U.S. Railroad Retirement BoardRead the Press Release
PITTSBURGH, PA – A resident of Trafford, Pennsylvania, has been sentenced in federal court to six months in prison, followed by three years of supervised release, on his conviction of theft of government funds, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Warren Robb, 58.
According to information presented to the court, Robb applied in 2010 for "total and permanent" disability benefits from the U.S. Railroad Retirement Board. Robb never notified the Board that his medical condition had improved or that he had performed work for any employer, and certified again in December 2016 that his disability prevented him from working. Robb in fact worked as a short-order cook at a restaurant in Level Green, Pennsylvania from October 2015 to February 2017. Starting in November 2015, Robb intentionally received and converted RRB disability benefits totaling approximately $57,821.68 to which he knew he was not entitled. Robb has a prior federal conviction from 2010 for making false statements to obtain unemployment benefits from the RRB.
Prior to imposing sentence, Judge Hornak stated that the sentence imposed was justified due to the seriousness of the offense conduct and the defendant’s prior criminal convictions.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Railroad Retirement Board, Office of Inspector General for the investigation leading to the successful prosecution of Warren Robb.
Tonawanda Man Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Patrick Washington, Jr., 34, of Buffalo, NY, pleaded guilty before Judge U.S. Magistrate Judge H. Kenneth Schroeder to possession with intent to distribute butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that beginning in March 2018, the Town of Tonawanda Police Department began investigating the narcotics distribution activities of the defendant. Investigators conducted three controlled purchases of suspected heroin from defendant between March and April of 2018. Laboratory testing confirmed the presence of butyryl fentanyl, buprenorphine, and butyryl fentanyl.
Subsequently, on May 2, 2018, the Drug Enforcement Administration executed a federal search warrant at Washington’s residence at 76 Bellah Place in Tonawanda, and recovered a quantity of a suspected controlled substance. Testing determined that the controlled substance was butyryl fentanyl.
The plea is the result of an investigation by the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Sentencing will be scheduled at a later date.
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The U.S. Attorney's Office Welcomes More Federal ProsecutorsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced and welcomed Assistant United States Attorneys Kathleen Stoughton and Elliott Daniels to her staff this week.
Katie Stoughton graduated from the South Carolina Honors College at the University of South Carolina and The George Washington University Law School. She previously served as a law clerk to the Honorable Dennis W. Shedd on the United States Court of Appeals for the Fourth Circuit and the Honorable Terry L. Wooten, Chief Judge of the United States District Court for the District of South Carolina. Prior to joining the U.S. Attorney’s Office, she served as Counsel to United States Senator Lindsey O. Graham on the Senate Committee on the Judiciary. Katie will join the Appellate Division.
Elliott Daniels obtained his undergraduate and law degrees from The George Washington University and studied law at Oxford University, where he received a diploma in international and human rights law. Prior to law school, he worked abroad and in Washington, D.C., in the international human rights field. Elliott most recently worked as a civil defense attorney at Murphy & Grantland, P.A. in Columbia, where he led the firm’s practice group representing survivors of trafficking. He will join the Criminal Division with a focus on Violent Crime.
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Texas Man Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Robert Isaac Banda, 29, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking offense arising out of the seizure of more than two pounds of methamphetamine at a U.S. Border Patrol checkpoint in southern New Mexico in Aug. 2018.
U.S. Border Patrol agents arrested Banda on Aug. 9, 2018, after seizing approximately 1.16 kilograms (2.56 pounds) of methamphetamine concealed on Banda’s body. According to the complaint, the agents found the methamphetamine after conducting a search on Banda’s person and his vehicle at the U.S. Border Patrol checkpoint on Highway 70 in Alamogordo, N.M.
During today’s proceedings, Banda pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Banda admitted that on Aug. 9, 2018, he entered a U.S. Border Patrol checkpoint in Otero County, N.M., where he consented to a canine search of his vehicle and pulled into the secondary inspection area. Banda admitted that as he got out of his vehicle, the agents noticed a bulge in his pants and subsequently found approximately 1.16 kilograms of methamphetamine concealed on his body. Banda further admitted that he intended to transport the methamphetamine from Mexico to Roswell, N.M., where he intended to distribute the drugs to others.
At sentencing, Banda faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Banda remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol station in Alamogordo. Assistant U.S. Attorney Mark A. Saltman is prosecuting the case.
Stop & Shop Supermarkets to Address ADA Compliance in All SupermarketsRead the Press Release
PROVIDENCE - Stop & Shop Supermarket Company LLC has entered into a settlement agreement with the United States, requiring it to undertake steps to address accessibility issues at check-out aisles at all of its 400 stores and bring them into compliance with the American with Disabilities Act (ADA), announced United States Attorney for the District of Rhode Island Stephen G. Dambruch.
This agreement to address accessibility compliance issues follows an investigation and findings by the United States Attorney’s Office for the District of Rhode Island under Title III of the ADA, which prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation. Although it is a private entity, Stop & Shop’s grocery stores are places of “public accommodation” within the meaning of Title III of the ADA.
The Government’s investigation resulted from a complaint by a Rhode Island resident that, in three local supermarkets, Stop & Shop failed to (a) provide an adequate number of accessible check-out aisles; (b) keep open at least one accessible staffed check-out aisle during store hours; and (c) have credit card readers in accessible check-out aisles that are located at an accessible height for customers who use wheelchairs.
The United States’ investigation determined that Stop & Shop failed to keep at least one staffed accessible check-out aisle open during store hours at multiple Rhode Island locations. The investigation also determined that many Stop & Shop locations in Rhode Island did not fully comply with technical requirements of the ADA. During the course of the investigation, Stop & Shop made voluntary modifications to the accessible check-out aisles and credit card readers at all 26 of its Rhode Island stores.
Under the Settlement Agreement between the United States Attorney’s Office and Stop & Shop, Stop & Shop is obligated to take steps at all of its stores, in Rhode Island and across the country, to improve access to its check-out aisles for individuals with disabilities. Stop & Shop has also agreed to revise its policies, procedures, and training, and to perform audits of all of its grocery stores nationwide. Stop & Shop currently operates more than 400 stores throughout Rhode Island, Massachusetts, Connecticut, New Jersey, and New York.
As part of the settlement, Stop & Shop has also agreed to pay $6,500 to the Complainant and a $25,000 civil penalty to resolve this matter.
The investigation and resolution were handled by Assistant U.S. Attorney Amy R. Romero and United States Attorney’s Office investigator David Neill.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm..
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Springfield Man Sentenced to 15 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a child.
Kelly Martin Roods, 26, was sentenced by U.S. District Judge M. Douglas Harpool to 15 in federal prison without parole. The court also sentenced Roods to 15 years of supervised release following incarceration.
On April 19, 2018, Roods pleaded guilty to the sexual exploitation of a child. Roods admitted that he used his cellphone to record a video of himself and a 17-year-old minor engaged in sexually explicit conduct.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Greene County, Mo., Sheriff’s Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Seven People Sentenced to Prison on Federal Charges Following Investigation into Drug Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Antonio Spencer, 25, of Washington, D.C., was sentenced today to a five-year prison term after pleading guilty to a federal drug offense stemming from an investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington. Six co-defendants previously were sentenced to prison terms in the case.
The announcement was made by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Spencer is among eight people to plead guilty to federal charges as a result of an investigation by ATF and the MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District.
According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
All eight defendants are from Washington, D.C.
Spencer pled guilty in August 2018, in the U.S. District Court for the District of Columbia to one count of conspiring to distribute and possess with intent to distribute PCP, heroin, and crack cocaine. He was sentenced by the Honorable Senior Judge Thomas F. Hogan.
The six defendants who previously were sentenced include:
-Maurice Spencer, 20. He pled guilty to conspiracy to distribute PCP and was sentenced to 12 months and a day in prison. He is the younger brother of Antonio Spencer.
-Kione Banks, 21. He pled guilty to conspiring to distribute PCP and was sentenced to 33 months in prison.
-Raymond Boston 27. He pled guilty to conspiring to distribute PCP and was sentenced to two years in prison.
-Jerome Fuller, 33. He pled guilty to distribution of PCP and was sentenced to five years and three months in prison.
-Damion Littman, 32. He pled guilty to distribution of PCP and was sentenced to 37 months in prison.
-Morriko Washington, 24. He pled guilty to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to five years in prison.
Following their prison terms, the defendants will be placed on periods of supervised release.
The eighth defendant, Davon Warren, 22, is to be sentenced on Nov. 28, 2018.
This case was investigated by ATF and MPD. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg and William Schurmann, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Schuele Boys Gang Drug Supplier Sentenced to over 10 Years in Federal PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Julio Contreras, a/k/a Blue Demon, 34, of McAllen, Texas, who was convicted of racketeering conspiracy involving five kilograms or more of cocaine, and conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to serve 121 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant was a main source of supply of cocaine for the Schuele Boys Gang in Buffalo. The gang operated in the Schuele Avenue area of the East Side of Buffalo and was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. Contreras was arrested in July 2015 at the Anzalduas Port of Entry in Mission, Texas as he attempted to return to the United States from Mexico.
Contreras supplied the Schuele Boys with upwards of $1,000,000 of cocaine on a monthly basis. In addition, the defendant purchased and built assault rifles in Texas that he then sold or traded to Mexican sources in connection with his cocaine trafficking. Contreras traveled to Buffalo on multiple occasions to meet with co-defendants Aaron Hicks and Letorrance Travis. On December 18, 2010, Hicks and the defendant were arrested by police outside a residence belonging to Travis on Courtland Avenue.
Contreras was one of 28 Schuele Boys Gang members, associates and other individuals arrested and convicted in this case.The sentencing is the culmination of an investigation by Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the New York State Police, under the direction of Major Edward Kennedy; and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.
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Reno Man Sentenced to 15 Years in Prison for Selling Methamphetamine and HeroinRead the Press Release
RENO, Nev. – LeCharles Edward Baldon Sr. was sentenced Monday to 184 months in federal prison for distributing methamphetamine and heroin in the Reno area, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI Las Vegas Division, and Assistant Special Agent in Charge Daniel W. Neill for the DEA Las Vegas office.
Baldon pleaded guilty in May to one count of possession with intent to distribute methamphetamine. United States District Judge Larry R. Hicks presided over the sentencing hearing.
Between November 18, 2016 and January 17, 2017, Baldon possessed and distributed 339.74 grams of pure methamphetamine and 91.73 grams of heroin in the Reno area. Specifically, on November 18, 2016, Baldon sold heroin to an individual at the Winco Foods parking lot. Then, during three separate drug transactions in December, he sold heroin and methamphetamine to an individual at a Target parking lot and Winco Foods parking lot. On January 17, 2017, task force agents executed search warrants on Baldon’s residence and storage unit. During execution of the warrants, law enforcement recovered methamphetamine and heroin, a firearm, and two scales (which are known to law enforcement to aid in the distributions of narcotics).
Baldon is a multi-convicted felon. He has previously been convicted of carjacking and robbery in California, and has two additional convictions for being a felon in possession of a firearm.
The case was investigated by the Northern Nevada Safe Streets Task Force and the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.
Led by the FBI, the Northern Nevada Safe Streets Task Force pursues violent gangs through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations. The Safe Streets Task Force concept expands cooperation and communication among federal, state, and local law enforcement agencies, increasing productivity and avoiding duplication of investigative efforts.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Randolph County woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sara Payge Gibson, of Elkins, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Gibson, age 25, pled guilty today to one count of “Distribution of Methamphetamine.” Gibson admitted to selling methamphetamine, also known ‘Ice,” in Randolph County in November 2016.
Gibson faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Randolph County residents indicted for drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Three Elkins, West Virginia residents were indicted today by a federal grand jury on drug charges, United States Attorney Bill Powell announced.
Jeffrey Lynn Woods, age 57, was indicted on one count of “Conspiracy to Distribute More than 5 Grams of Methamphetamine,” two counts of “Distribution of Methamphetamine,” one count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” two counts of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Unlawful Possession of Firearm,” two counts of “Possession with Intent to Distribute Methamphetamine,” one count of “Possession with Intent to Distribute Heroin,” one count of “Possess a Firearm in Futherance of a Drug Trafficking Crime,” and one count of “Possession with Intent to Distribute Fentanyl – Aiding and Abetting.”
Christine Kay Woods, age 57, was indicted on one count of “Conspiracy to Distribute More than 5 Grams of Methamphetamine,” one count of “Maintaining Drug-Involved Premises – Aiding and Abetting,” two counts of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Fentanyl – Aiding and Abetting.”
Crystal Key Hensley, age 38, was indicted on one count of “Conspiracy to Distribute More than 5 Grams of Methamphetamine,” one count of “Distribution of Methamphetamine,” and one count of “Maintaining Drug-Involved Premises.”
The three are accused of distributing more than five grams of methamphetamine in Randolph County from the fall of 2016 6o July 2018. Jeffrey and Christine Woods are also accused of using a business called “Lost Treasures” in Elkins to distribute methamphetamine.
During the investigation, more than $3500 was seized, along with multiple firearms.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the Elkins Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man admits to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA –Mark Jay Courtney, of Montrose, West Virginia, has admitted to distributing heroin, United States Attorney Bill Powell announced.
Courtney, age 39, pled guilty today to one count of “Distribution of Heroin.” Courtney admitted to selling heroin in Randolph County in January 2018.
Courtney faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Raleigh Man Sentenced to 180 Months in Prison for Drug Trafficking, Firearms OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District James C. Dever III sentenced STEVEN WILLIAM NOWELL, a/k/a “Shoota,” 28, of Raleigh, North Carolina, to 180 months in prison, followed by 3 years of supervised release.
NOWELL was charged in a three-count Indictment that was issued by the grand jury for the Eastern District of North Carolina on January 10, 2018. The indictment charged him with two counts of distribution and possession with the intent to distribute a quantity of cocaine base (crack) and one count of possession of a firearm by a felon. On July 9, 2018, NOWELL pled guilty to one count of distribution and possession with the intent to distribute a quantity of cocaine base (crack) and possession of a firearm by a felon.
In June of 2016, the Raleigh Police Department conducted controlled purchases of cocaine base (crack) from NOWELL on Bragg Street in Raleigh. On October 27, 2017, a Garner Police Department officer conducted a traffic stop on a vehicle driven by NOWELL. NOWELL then jumped and ran from the vehicle, and he was observed placing his hands on his waist as if he was carrying a weapon. NOWELL was later found in a nearby wooded area. A subsequent search was conducted of that area, and a .40 caliber handgun was located, along with marijuana and NOWELL’s jacket.
This case was brought by the United States Attorney’s Office through partnerships with the Raleigh Police Department, Garner Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Project Safe Neighborhoods Yellowstone County shows progress in fighting violent crimeRead the Press Release
BILLINGS – In the past six months, law enforcement officers have charged 106 persons in federal and state court, seized 160 pounds of methamphetamine and confiscated 52 firearms from the Yellowstone County community as part of Project Safe Neighborhoods, a federal program to reduce violent crime through a multi-jurisdictional law enforcement effort.
Violent crime in the community is a serious problem. Billings Police Department information shows the violent crime rate has increased 75 percent from 2010 to 2017. And violent crime in Montana has increased almost 35 percent from its low in 2010 through 2016, according to the FBI’s Uniform Crime Reports.
More recently, the 2018 first quarter figures of murders, robberies and aggravated assaults in Yellowstone County were up more than 29 percent from the first quarter average of the prior two years.
Since PSN began in April, violent crime in the community has decreased back to previous levels.
Montana U.S. Attorney Kurt Alme said the six-month figures, for the second and third quarters, indicate that murders, aggravated assaults and robberies are down 1 percent below the average of the previous two years.
“We believe the numbers show that PSN is working to reduce violent crime but that more work needs done,” Alme said.
Alme thanked all of PSN’s law enforcement partners for their work and commitment in investigating, arresting and prosecuting individuals accused of violent crimes.
Yellowstone County Attorney Scott Twito said PSN’s message continues to be, “If you commit armed robbery, push meth or commit a firearms offense, you will be arrested and you will be prosecuted to the full extent of the law.”
PSN is a reinvigorated U.S. Department of Justice initiative that identifies the most violent criminals in high-crime areas and works with federal, state and local law enforcement and community partners to develop a crime-reduction and substance abuse prevention and treatment strategy. DOJ celebrated PSN’s one-year anniversary earlier this month.
PSN Yellowstone County has been working to arrest armed robbers, methamphetamine traffickers and violent felons possessing firearms. Law enforcement officials have identified methamphetamine as a primary cause for the increase in violent crime.
Information from PSN Yellowstone County’s first six months shows that 106 individuals have been charged, with 87 individuals being prosecuted in U.S. District Court and 19 individuals, who face more than 40 serious felony charges, being prosecuted in state District Court. The state cases include persons charged and revocations. Federal prosecutors intend to present charges against another 14 individuals soon.
The crimes charged include drug trafficking, armed robberies, firearms violations and other offenses.
Statewide, the PSN program since January has resulted in 187 individuals being charged in federal court.
In addition, the U.S. Marshal’s Service Montana Violent Offender Task Force has served warrants on 288 individuals since April 1.
Methamphetamine seized through PSN Yellowstone County has totaled 160 pounds, which is the equivalent of about 579,840 doses and has a street value of about $7,273,200. Law enforcement also seized marijuana, heroin and cocaine.
Law enforcement has confiscated 52 firearms, including six semi-automatic assault rifles and an assortment of semi-automatic handguns and shotguns.
To help fund PSN in Montana, DOJ earlier this month awarded $136,802 to the Montana Board of Crime Control for PSN initiatives in Yellowstone and Missoula counties. The funding is part of $30 million in grants issued nationwide at PSN’s one-year anniversary. Some of the money will help the Billings Police Department analyze PSN cases to understand where and when violence is happening and who is committing it so law enforcement can better focus its resources.
PSN Yellowstone County’s partners include the U.S. Attorney’s Office; Yellowstone County Attorney’s Office; Montana Department of Justice’s Prosecution Services Division, Highway Patrol and the Division of Criminal Investigation; the Montana Department of Correction’s Adult Probation and Parole Division; the Billings and Laurel police departments; the Yellowstone County Sheriff’s Office; Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI, Homeland Security Investigations and the U.S. Marshal’s Service.
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Pleasants County man found guilty of firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a two-day trial, Willard Lee Moss, Jr., of Saint Marys, West Virginia, was found guilty by a jury of a firearms violation, United States Attorney Bill Powell announced.
Moss, age 37, was found guilty of one count of “Domestic Violence Offender in Possession of a Firearm.” Moss, having previously been convicted of two separate domestic violence offenses in Pleasants County, possessed one handgun, three rifles, and two shotguns in his home in February 2018.
Moss 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), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Davis J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Pleasants County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Pittsburgh Resident Admits Robbing Key Bank in Downtown in February 2018Read the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Darryl Leon Wilson, 61, pleaded guilty to one count before United States District Judge Nora Barry Fischer. In connection with the guilty plea, the court was advised that Wilson robbed a Key Bank.
The Court was further advised that on February 22, 2018, Wilson entered the Key Bank wearing a purple hat and scarf covering most of the defendant’s face. When the teller requested that the defendant remove the scarf and hat, the defendant stated, "If I don’t get out of here fast, someone will get hurt." The defendant then placed a note on the counter which read, "Someone will get shot if you don’t give the 100’s 50’s 20’s and 10’s, No dye packs, smile and move fast Sorry." The teller gave the defendant lose $20 and $5 bills for a total of $540.
Utilizing surveillance video from surrounding businesses, including the Warner Center, taken before, during and after the bank robbery, officers identified the defendant. When they went to the defendant’s house on March 2, 2018, Wilson answered the door with hands up and stated, "I did it." After officers identified themselves, Wilson stated, "I know why you’re here, I robbed the bank."
Wilson admitted robbing the bank, and admitted giving the teller a note that demanded money. After receiving the money, the defendant walked from the bank and discarded the scarf, knit cap and skirt. The defendant then walked through Downtown Pittsburgh and into the Warner Center before catching a bus. The defendant advised the money was used to pay back borrowed money and to purchase a cellphone. When the defendant was arrested, the defendant was wearing the same tennis shoes worn when the bank was robbed.
Judge Fischer scheduled sentencing for March 7, 2019. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Wilson remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Wilson.
Pickens Man Pleads Guilty to Child Porn ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Jeffrey Lee Harris, age 31, of Pickens, pled guilty in federal court in Spartanburg, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Donald C. Coggins, of Spartanburg, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement conducted a proactive investigation involving individuals obtaining child pornography. Law enforcement learned that Harris had used Bitcoin to purchase a membership in a foreign website that specialized in child pornography.
Officers obtained Harris’s computers and interviewed him. On the computers, officers found multiple images and videos of children, some prepubescent, engaged in sexual activity and the lascivious display of the genitals. After being given his Miranda warnings, Harris admitted that he had sought out and downloaded the child pornography found on his computer.
Ms. Lydon stated the maximum penalty Harris can receive is a fine of $250,000 and/or imprisonment for 20 years, supervised release of up to life, plus a special assessment of $100.
The case was investigated by agents with the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Owner of Pharmacies Charged with Conspiracy to Defraud IRSRead the Press Release
TRENTON, N.J. – The owner of several retail pharmacies, including a pharmacy in Piscataway, New Jersey, was arraigned today on charges he conspired to defraud the IRS, U.S. Attorney Craig Carpenito announced.
Rao Desu, 51, of Warren, New Jersey, was charged by indictment with two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns. Desu was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
Rao Desu was a 50 percent owner in DVS Pharma Inc., (d/b/a Heights Pharmacy), a retail pharmacy in Piscataway. Darshna Desai was the other 50 percent owner and worked as the lead pharmacist. From April 2004 through November 2013, Desu conspired with Desai to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme. In particular, Desu’s relative, who assisted at times in the operation of several of Desu’s businesses, instructed Desai to separate the cash earned by Heights Pharmacy from other income received, remove a portion of the cash that was paid to Desai as cash salary, and then split the remainder in two, with one portion given to Desu and the other portion given to Desai.
Desu was also a 50 percent owner of Manvihar Pharmacy (d/b/a Arthur Avenue Pharmacy) in Bronx, New York. The other 50 percent owner in Arthur Avenue Pharmacy worked at Arthur Avenue Pharmacy as the lead pharmacist. From June 2005 through November 2013, Desu conspired with the co-owner to conceal from the IRS the cash income that was earned by the pharmacy as part of a separate cash-skimming scheme. Specifically, Desu instructed the co-owner to separate the cash earned by Arthur Avenue Pharmacy from other income received, and to split the cash in two, giving half to Desu and giving half to the co-owner.
For tax years 2004 through 2012 Desu and Desai filed false corporate income tax returns, IRS Forms 1120S, for Heights Pharmacy, which failed to disclose the cash that Desai received in salary and that was split between Desu and Desai. From tax year 2005 through 2012, Desu and the co-owner filed false IRS Forms 1120S for Arthur Avenue Pharmacy, which failed to disclose the cash that was split between Desu and co-owner. Accordingly, for tax years 2004 through 2012, Desu filed false personal income tax returns, IRS Forms 1040, which failed to disclose the cash that Desu received from both Heights Pharmacy and Arthur Avenue Pharmacy.
Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is pending.
Conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a $250,000 fine. Assisting and aiding in subscribing to false tax returns carries a maximum potential penalty of three years in prison and a $100,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with for the investigation leading to today’s charge. Carpenito also thanked special agents of the U.S. Department of Justice, Office of Inspector General, under the direction of Acting Special Agent in Charge Ron G. Gardella for their role in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Karen D. Stringer of the Special Prosecutions Division.
The allegations and charges in the Indictment are only accusations and the defendant is considered innocent unless and until proven guilty.
Orange County Man Sentenced to Seventeen Years for Receipt of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Wesley Kenneth McVay, (41, Orlando) to 17 years in federal prison for receiving child pornography. McVay, a registered sex offender, was originally charged by criminal complaint on March 2, 2018, after a search warrant was conducted at his home. He pleaded guilty on June 19, 2018.
According to court documents and evidence presented at the sentencing hearing, McVay came to the attention of law enforcement after he distributed child pornography to an undercover law enforcement officer using a file-sharing program. McVay’s child pornography collection included 44 images and 38 videos. Many of these images depicted the sexual abuse of children under the age of 12.
“Wesley Kenneth McVay will be incarcerated for 17 years for his horrific acts. This case exemplifies HSI’s ability to coordinate and pursue investigative efforts with our state law enforcement partners,” said James Spero, special agent in charge of HSI Tampa. “Homeland Security Investigations is committed to bringing to justice those who sexually exploit children.”
“FDLE’s dedicated agents are committed to working with our federal partners to keep our community safe,” said FDLE Orlando Special Agent in Charge Danny Banks. “We will continue to arrest those who take advantage of our children in appalling ways, robbing them of their innocent nature.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operation Goodfellas Results in Arrests of Multiple Hampton Roads Men for $19 Million Drug Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – Nearly 150 law enforcement officers from the FBI, DEA, Norfolk Police, and the U.S. Marshals participated in Operation Goodfellas this morning in Norfolk, executing arrest warrants on five Hampton Roads men for their alleged participation in a $19 million drug trafficking conspiracy. One man remains a fugitive.
“These defendants allegedly distributed approximately $19 million of illegal narcotics in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The resources and collaborative efforts used to investigate this alleged drug trafficking organization is a prime example of the positive impact of federal, state, and local cooperation. My sincere thanks to our law enforcement partners for their outstanding efforts on this case.”
According to allegations in the indictment, from approximately 2009 to present, several significant drug traffickers from the Ingleside section of Norfolk have been involved in distributing large quantities of heroin, cocaine, crack cocaine and marijuana. In September 2016, law enforcement began making controlled buys of cocaine from Reginald Sam Beale, 38, of Norfolk, and continued making controlled purchases of cocaine, heroin, and crack cocaine from Beale’s co-conspirators, including Maurice Antonio Barnes, 36, of Norfolk, Brandon Jaami Williams, 37, of Virginia Beach, Breon Lashawn Dixon, 39, of Chesapeake, and Johnell Deshawn Stepney, 34, of Norfolk. Through June 2018, law enforcement made a total of 29 controlled purchases from the defendants. Evidence obtained in the Summer of 2018 established that Barnes’ local source of supply was obtaining large amounts of cocaine and heroin from a Los Angeles based source of supply. The cocaine was being trucked to Virginia and off-loaded at a public storage facility in Virginia Beach in 10 and 20-kilo loads. In June 2018, Williams was arrested with 13 kilograms of cocaine (with a street value over $500,000) when he tried to transfer the cocaine from an apartment in the luxury ICON apartments in downtown Norfolk to another luxury apartment on Granby Street.
“This investigation represents the FBI's long-standing commitment to working with our law enforcement partners at every level to strangle the source and supply of dangerous drugs in our communities,” said Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office. “No one agency can do it alone and it is now more important than ever that we work together as one team in this fight. However, to make the greatest impact we also need allies in the community. Brazen criminals who poison and terrorize our neighborhoods often hide in plain sight, and citizens who come forward with information about criminal activity help law enforcement make Hampton Roads a safer place to live, work, and raise our families.”
Additional evidence led to the arrest of two members of the California and Mexico-based drug trafficking organization, Jose Moices Luna-Abrego, 20, of Los Angeles, and Ulises Abel Garcia-Razo, 39, of Mexico, after they flew to Virginia to attempt to retrieve some of the cocaine previously shipped, and collect over $500,000 in proceeds. Luna-Abrego, who is a United States citizen, and Garcia-Razo, a Mexican citizen, were arrested in July 2018 in a successful hotel sting operation conducted by FBI, DEA and Norfolk Police.
“For years, members of this organization have allegedly distributed significant quantities of narcotics throughout Hampton Roads,” said Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division. “These indictments and arrests represent the dismantling of an allegedly prominent drug trafficking organization responsible for the smuggling, transportation and distribution of substantial quantities of narcotics from Los Angeles to Norfolk. This successful investigation demonstrates the commitment of the DEA, FBI and Norfolk Police Department working together to protect the citizens of this community.”
A conservative estimate of the amount of narcotics this drug trafficking organization is responsible for distributing is 11 1/2 kilos of crack, 436 kilos of cocaine, 54 kilos of heroin, 1 ounce of fentanyl and over 20 pounds of marijuana, with a street value over $19 million.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Goodfellas. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement. Assistant U.S. Attorney Sherrie S. Capotosto is prosecuting the case.
The U.S. Marshals provided significant assistance with the execution of arrest warrants this morning.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-156.
Omaha Woman Sentenced for Tax EvasionRead the Press Release
United States Attorney Joe Kelly announced that Becky Neeb, 37, was sentenced on Monday, October 15, 2018, in Omaha, Nebraska, by Chief United States District Judge Laurie Smith Camp for the crime of tax evasion. Judge Smith Camp sentenced Neeb to 5 years’ probation and ordered Neeb to make restitution to the IRS in the amount of $137,374, representing the total tax loss.
Neeb willfully attempted to evade and defeat the assessment of her individual income tax for years 2011, 2012, and 2013 on her Form 1040 U.S. Individual Income Tax Returns. She evaded the assessment of her income tax liability for those years by under reporting her business receipts and over reporting her business expenses for her business, Top Notch Charms, which she operated in the Westroads Mall in Omaha.
“Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system,” said Karl Stiften, IRS Criminal Investigation Special Agent in Charge.
This case was investigated by IRS Criminal Investigations.
Oklahoma Man Pleads Guilty to Armed Robbery of Columbia HotelRead the Press Release
JEFFERSON CITY, Mo. – An Oklahoma man pleaded guilty in federal court today to the armed robbery of a hotel in Columbia, Mo., on May 31, 2017.
Darrell Eugene Black, 25, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of robbery, one count of brandishing a firearm during a crime of violence, one count of being a felon in possession of a firearm, and one count of possessing a stolen firearm.
By pleading guilty today, Black admitted that he brandished a Springfield 9mm handgun when he robbed the Staybridge Suites Hotel, 805 Keene Street, Columbia, Mo., on May 31, 2017. Black entered the hotel at approximately 1:50 a.m., pointed his pistol at the clerk, jumped over the counter and demanded money. The clerk opened the desk drawer and Black took approximately $200. Black told the clerk that if she did not open the hotel safe, he would shoot her. The clerk told him that only the manager had the key to open the safe. Black got upset and told the clerk to put her hands behind her back. He disconnected the phone cord and unsuccessfully tried to tie the clerk’s hands behind her back. Then he told the clerk to lie on the ground. When Black finished searching the hotel front desk area for items to steal, he told the clerk to face the wall and not move. Black left and the clerk faced the wall for approximately 10 to 15 minutes until her feet became numb, and then called the police. The clerk’s cellphone and purse were missing.
Black was spotted by a Jefferson City, Mo., police officer later the same day. Black fled on foot but was apprehended by the officer. At the time of his arrest, Black was carrying a black bag that contained the handgun, marijuana, an ecstasy pill, and a magazine with five rounds of 9mm ammunition. As the officer was handcuffing Black, a woman ran up, grabbed the black bag and ran away. Officers were able to apprehend the woman and retrieve the bag.
Under federal statutes, Black is subject to a mandatory minimum sentence of seven years in federal prison without parole, up to a sentence of life 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbia, Mo., Police Department and the Jefferson City, Mo., Police Department.
Nomura Agrees to Pay $480 Million in Civil Penalties for Misleading Investors in Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
The United States has reached an agreement with Nomura Holding America Inc. and several of its affiliates (“Nomura”), which will pay a $480 million penalty to resolve federal civil claims that Nomura misled investors in connection with the marketing, sale and issuance of residential mortgage-backed securities (“RMBS”) between 2006 and 2007. Nomura’s investors, which included university endowments, retirement funds and federally insured financial institutions, suffered significant losses due to Nomura’s misconduct.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Jennifer Byrne, Associate Inspector General, Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), announced the settlement.
“This settlement holds Nomura accountable for its fraudulent conduct in connection with its Residential Mortgage-Backed Securities offerings, which caused substantial harm to investors and contributed to the financial crisis of 2008,” stated United States Attorney Donoghue. “The Department of Justice, this Office and our partners will continue to aggressively pursue wrongdoing in our financial markets, including, as appropriate, financial crisis-era misconduct.”
“The actions of Nomura resulted in significant losses to investors, including Fannie Mae and Freddie Mac, which purchased Nomura Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA-OIG Associate Inspector General Byrne. “We are proud to have partnered with the U.S. Attorney’s Office for the Eastern District of New York on this matter.”
The settlement stems from allegations that Nomura knowingly securitized defective mortgage loans in its RMBS and misled investors regarding the quality and characteristics of those loans. For example, the United States alleged that:
- In presentations regarding its RMBS program, Nomura claimed that its due diligence process was “extensive,” “disciplined” and “carefully developed.” Nomura also told investors that it only worked with “hand-picked industry leading” due diligence vendors, and that, as a result of its superior standards and due diligence processes, “Nomura’s loan performance should surpass industry standards.” These claims were false. Nomura knew, based on its due diligence, that thousands of loans that it securitized in its RMBS did not comply with applicable underwriting guidelines or were supported by inflated and potentially fraudulent appraisals. Nomura concealed these deficiencies from investors, securitizing many of these defective loans as “favors” to loan originators—including, for example, loans that one originator openly described to Nomura as “dogsh[*]t.” As stated by a member of Nomura’s RMBS due diligence group: “There is no such thing as a bad loan . . . just a bad price.”
- Nomura also knew that a significant number of loans that it securitized in its RMBS had not gone through Nomura’s stated due diligence process, and, more broadly, that its process had been compromised. Nomura’s head of RMBS due diligence (in the context of proposed changes to Nomura’s loan-by-loan buying program) stated that Nomura was “turning into the lemming of the mortgage business,” “following the herd” and compromising its standards “to comply with the masses in p[u]rsuit of volume.” Additionally, a member of Nomura’s RMBS group’s origination sales team, in an email to the entire RMBS group, remarked that “advertising will be a great career when all these loans finally blow up . . . . (I will be selling vacuum cleaners door to door when the market goes by the way).”
- Despite this knowledge, Nomura failed to address the weaknesses in its due diligence processes, and continued to do business with originators that, according to its own due diligence personnel, were “extremely dysfunctional,” had “systemic” underwriting issues and employed “questionable” origination practices. Indeed, Nomura’s securitization of defective loans in the subject deals—in spite of numerous red flags—reflected a conscious decision by senior Nomura personnel to compete for market share in a highly competitive RMBS market. As stated by one member of Nomura’s RMBS team, Nomura could not just “buck the entire marketplace when [it was] hammered to grow.”
- Likewise, despite knowing that its due diligence was ineffective and did not remove large numbers of defective loans from its RMBS, in mid-2006, Nomura announced new, “more liberal” underwriting guidelines for its loan-by-loan purchase program. Although Nomura’s head of RMBS due diligence warned that Nomura had already “loosened guidelines in so many areas” and that it was “at risk of giving away the proverbial store,” the prevailing view, as characterized by Nomura’s RMBS trading desk, was that Nomura’s “box [was] too restrictive.” Nomura’s new guidelines allowed for the purchase of loans that Nomura’s due diligence personnel previously described as “sheer lunacy.”
These are allegations only, which Nomura disputes, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The settlement was the result of a multi-year investigation by the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York, pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Assistant U.S. Attorney Clayton P. Solomon and former Assistant U.S. Attorney Morgan J. Brennan led the government’s investigation.