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13 November 2024
Tax Attorneys and Insurance Agent Sentenced in Tax Shelter SchemeRead the Press Release
Two tax attorneys and an insurance agent were sentenced today to a combined 16 years in prison for conspiring to defraud the United States and helping clients file false tax returns, based on their promotion and operation of a fraudulent tax shelter.
Michael Elliott Kohn, an attorney, was sentenced to seven years in prison. Catherine Elizabeth Chollet, also an attorney, was sentenced to four years in prison. David Shane Simmons, an insurance agent and broker, was sentenced to five years in prison.
According to court documents and evidence presented at trial, from 2011 to November 2022, Kohn and Chollet, both of St. Louis, and Simmons, who is based out of Jefferson, North Carolina, promoted, marketed and sold to clients the Gain Elimination Plan, a fraudulent tax scheme.
The defendants designed the plan to conceal clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.
Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.
Simmons earned more than $2.3 million in commissions for selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.
In total, the defendants caused a tax loss to the IRS of more than $22 million.
In addition to the terms of imprisonment, U.S. District Judge Kenneth D. Bell for the Western District of North Carolina ordered each defendant to serve three years of supervised release and to pay $22,515,615 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Caryn Finley for the Western District of North Carolina prosecuted the case.
Tax Attorneys and Insurance Agent Sentenced to Prison in Tax Shelter SchemeRead the Press Release
CHARLOTTE, N.C. – Two tax attorneys and an insurance agent were sentenced today to a combined 16 years in prison for conspiring to defraud the United States and helping clients file false tax returns, based on their promotion and operation of a fraudulent tax shelter, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael Elliott Kohn, an attorney, was sentenced to seven years in prison. Catherine Elizabeth Chollet, also an attorney, was sentenced to four years in prison. David Shane Simmons, an insurance agent and broker, was sentenced to five years in prison.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS CI), join U.S. Attorney King in making today’s announcement.
“The defendants are tax professionals that conspired to promote a fraudulent tax scheme based on deceit and fabrications to impede and impair our nation’s tax laws and cheat our tax system,” said U.S. Attorney King. “My office is committed to uncovering schemes that undermine the integrity of our tax system and bringing tax offenders to justice.”
“The use of tax schemes by the defendants were clearly intended to conceal income from the IRS,” said Special Agent in Charge Eakins. “Today’s sentencing reinforces IRS-CI’s commitment to the American taxpayer to identify and help bring to prosecution people who promote illegal schemes designed to avoid the payment of taxes.”
According to court documents and evidence presented at trial, from 2011 to November 2022, Kohn and Chollet, both of St. Louis, and Simmons, who is based out of Jefferson, North Carolina, promoted, marketed and sold to clients the Gain Elimination Plan, a fraudulent tax scheme.
The defendants designed the plan to conceal clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.
Kohn and Chollet advised clients that the plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.
Simmons earned more than $2.3 million in commissions for selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.
In total, the defendants caused a tax loss to the IRS of more than $22 million.
In addition to the terms of imprisonment, U.S. District Judge Kenneth D. Bell for the Western District of North Carolina ordered each defendant to serve three years of supervised release and to pay $22,515,615 in restitution to the United States.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte, and Trial Attorneys Kevin Schneider and Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.
St. Louis Man Sentenced to 46 Months for Preparing false Tax ReturnsRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a St. Louis, Missouri tax preparer to 46 months in prison for filing false tax returns that caused an estimated tax loss of $2.5 million.
Robert Droege, 59, pleaded guilty in June to four counts of aiding in the preparation of a fraudulent tax return and admitted preparing at least 34 false tax returns in his home office, Bob’s Tax Service, in the 6500 block of Morganford Road in St. Louis.
Droege prepared returns for clients that contained false or fraudulent information including medical expenses, charitable contributions, personal property rental expenses, non-business bad debt and other deductions. The government alleged that Droege caused a total loss to the Internal Revenue Service of an estimated $2.5 million.
“Return preparer fraud is such an egregious crime because of the trust taxpayers place in those they choose to prepare their tax returns,” said IRS Criminal Investigation Special Agent in Charge William Steenson, St. Louis Field Office. “We always hope that the possibility of prison time will be a deterrent to those thinking of playing games with the nation’s tax system.”
Internal Revenue Service - Criminal Investigations investigated the case. Assistant U.S. Attorney Linda Lane prosecuted the case.
St. Louis Felon Sentenced to 5 Years in Prison for Committing Two Arsons in 2022Read the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a convicted felon who committed two arsons in St. Louis in 2022 and was caught with two firearms during the resulting investigation to five years in prison.
Vaely Berry, now 52, threw a gasoline-filled bottle on the roof of a supermarket and grill in the 8300 block of North Broadway in St. Louis on July 15, 2022, igniting a fire that damaged the roof. The market’s ceiling suffered water damage. On Dec. 8, 2022, Berry threw two gasoline-filled aluminum bottles on the roof of a liquor store in the 5900 block of Lillian Avenue in St. Louis, damaging the roof. Surveillance video captured Berry in the act.
During the investigation of the fires, a Bureau of Alcohol, Tobacco, Firearms and Explosives special agent conducting a court-approved search of Berry’s home found a revolver and a shotgun. Berry is a convicted felon and is barred from possessing firearms.
Berry, of St. Louis, pleaded guilty in U.S. District Court in St. Louis in August to two arson charges and one count of possession of a firearm by a felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney John Ware prosecuted the case.
Sebring Man Sentenced to 22 Years in Prison for Possessing with Intent to Distribute over 8 Kilos of FentanylRead the Press Release
MIAMI – On Nov. 7, Joseph Christopher Copeland, 57, was sentenced to 264 months in federal prison, to be followed by ten years’ supervised release, by U.S. District Judge Aileen M. Cannon, for possessing with the intent to distribute fentanyl and methamphetamine.
Copeland imported 8.9929 kilograms of fentanyl from Mexico to his residence in Sebring, Fla., using a vehicle with hidden compartments. The Department of Homeland Security, Homeland Security Investigations (HSI) and Highlands County Sheriff’s Office executed a search warrant on Copeland’s residence, and discovered the fentanyl partially unloaded from the vehicle, along with 111.6 grams of methamphetamine, and two firearms.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Anthony Salisbury of the HSI, Miami Field Office, and Highlands County Sheriff Paul Blackman made the announcement.
HSI Fort Pierce and Highlands County Sheriff’s Office investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
According to the DEA’s National Drug Threat Assessment, synthetic drugs, such as fentanyl, are poisoning our nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (CDC), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida.
For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx; https://www.cdc.gov/opioids/basics/fentanyl.html#; and https://www.dea.gov/factsheets/fentanyl.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-14017.
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Roseville Man Sentenced to 132 Months for Trafficking Methamphetamine to Houghton and Mackinac CountiesRead the Press Release
Charles Lester Knuckles, Jr. led conspiracy that brought over 500 grams of methamphetamine to Michigan’s Upper Peninsula
KALAMAZOO – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Charles Lester Knuckles, Jr., 31, of Roseville, was sentenced to 132 months in federal prison for leading a conspiracy that trafficked over 500 grams of methamphetamine from Detroit to Houghton and Mackinac Counties in December 2022 and January 2023.
“Mr. Knuckles was running a drug pipeline trafficking methamphetamine from the Detroit area to northern Michigan,” said U.S. Attorney Mark Totten. “We will continue to collaborate with our local, state, and federal law enforcement partners in the U.P. and across the District to hold traffickers accountable and keep illegal drugs off of our streets.”
The Upper Peninsula Substances Enforcement Team (UPSET) and U.S. Drug Enforcement Administration (DEA) introduced a confidential informant into Samantha Short, 30, of Hancock. Short was a methamphetamine user and dealer and knew Knuckles from a prior relationship. On December 14, 2022, the confidential informant and Short called Knuckles to arrange for the sale of four ounces of methamphetamine. On December 16, 2022, Knuckles dispatched Lyric Elizabeth Stevenson, 28, of Harper Woods and David Lee Chatman, Jr., 38, of Inkster to deliver the methamphetamine to Houghton County.
Knuckles negotiated terms for the sale of an additional amount of methamphetamine with the government’s confidential informant. On December 22, 2022, Stevenson and Chatman couriered over eight ounces of methamphetamine from the Detroit area to Houghton County for Knuckles. A third shipment of methamphetamine was arranged on January 7, 2023. This time, Short traveled from Houghton County to Mackinac County to meet Stevenson and Chatman, who were also accompanied by Bernard Desean Harris, 24, of Detroit. Harris accompanied Short on the return trip to Houghton County and were stopped by Michigan State Police. A search of their vehicle yielded 241.6 grams of methamphetamine.
On December 12, 2023, Knuckles, Short, Stevenson, Chatman, and Harris were indicted on methamphetamine conspiracy and other methamphetamine tracking charges by a federal grand jury. Knuckles, Short, Stevenson, and Harris each pled guilty to the methamphetamine conspiracy. On August 13, 2024, Chief U.S. District Judge Hala Y. Jarbou sentenced Short to 41 months in prison and Harris to 46 months in prison. Co-defendant Lyric Elizabeth Stevenson is scheduled for sentencing by U.S. District Judge Paul L. Maloney on January 21, 2025. Co-defendant David Lee Chatman, Jr. has entered into a pretrial diversion agreement in which his prosecution has been deferred for a period of 12 months provided he successfully abide by a series of conditions set forth by the government and the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration, the Upper Peninsula Substances Enforcement Team, and the Michigan State Police. Assistant U.S. Attorney Joel S. Fauson is prosecuting it.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until proven guilty.
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Registered Sex Offender Sentenced to Federal Prison for Attempted Enticement of a Minor, Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A registered sex offender has been sentenced to ten years in federal prison, having previously pleaded guilty to charges of attempted inducement of a minor to engage in illicit sexual activity, possession with intent to view child pornography, and attempted transfer of obscene material to a minor, announced United States Attorney Zachary A. Cunha.
Mathew Hoard, 40, of Smithfield, was sentenced today by U.S. District Court Judge Mary S. McElroy to 120 months in federal prison to be followed by eight years of federal supervised release.
In July 2020, Hoard began communicating online and by text messaging with a person he believed to be a 14-year-old girl, but who was in fact an undercover Newport Police Department Detective. According to information presented to the court, during those communications, which lasted for more than two months, Hoard sent a sexually explicit image and sexually graphic messages, repeatedly requested that the “girl” send nude pictures of herself to Hoard. He also attempted to arrange a meeting to engage in sex.
In February 2020, while conducting an unrelated investigation, the Rhode Island State Police Internet Crimes Against Children Task Force learned from the National Center for Missing and Exploited Children that an individual had uploaded child pornography to a social media platform. Members of the Task Force later determined that the upload came from an IP address utilized by Mathew Hoard. On September 29, 2020, members of the ICAC Task Force executed a court-authorized search of Hoard’s residence and seized a cell phone and a laptop computer. The devices were found to contain videos and images of child pornography. Among the images was an image exchanged between Hoard and the undercover Newport Police Department detective.
In 2011, Hoard was convicted in the State of Rhode Island for possession of child pornography, and as a result of that conviction, he was required to register as a sex offender.
This Project Safe Childhood case was prosecuted by Assistant U.S. Attorney Denise M. Barton and Julie M. White.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force, the Newport Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
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Readout of Justice Department’s Civil Rights Division Quarterly Meeting with State and Local Civil and Human Rights Stakeholders on Veterans RightsRead the Press Release
The Justice Department’s Civil Rights Division held its quarterly convening of state and local civil and human rights partners to commemorate Veterans Day and discuss efforts to protect the civil rights of servicemembers and veterans.
“We owe our servicemembers, veterans and their families a deep debt of gratitude for their service to our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through rigorous enforcement of federal civil rights laws, the Justice Department is working hard to ensure that the rights of the brave servicemembers and veterans are safeguarded from discrimination and unfair treatment.”
The Servicemembers and Veterans Initiative, housed in the Civil Rights Division, hosted today’s meeting with state and local civil and human rights partners, including representatives from various State Attorneys’ General offices and state-based civil rights agencies. . During the meeting, attendees celebrated the commitment of veterans and discussed the portability of professional licenses for servicemembers and their spouses; employment protections for servicemembers; outreach efforts by U.S. Attorneys’ Offices; federal, state, and local Veteran Treatment Programs; and federal rights relating to service and assistance animals.
This year, the Justice Department has aggressively defended the rights of servicemembers and veterans. Highlights of our work include:
- Vigorously enforcing the Americans with Disabilities Act on behalf of Veterans and other people with disabilities in Virginia Beach, Virginia, by reaching an agreement with the city to remove accessibility barriers to buildings such as police stations, libraries, technology centers, community centers and places of recreation.
- Securing over $200,000 in compensation and penalties against the City of El Paso, Texas, and its contracted towing companies to resolve allegations that the city and towing companies disposed of over 170 vehicles owned by servicemembers without first obtaining court orders, as required by the Servicemembers Civil Relief Act (SCRA). Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA.
- Enforcing the Uniformed Services Employment and Reemployment Rights Act (USERRA), which entitles servicemembers to return to their civilian employment upon completion of their military service with the seniority, status and rate of pay that they would have obtained had they remained continuously employed by their civilian employer. USERRA also prohibits discrimination based on present, past and future military service. In a recent example, the Justice Department sued Oklahoma City Public Schools to protect rights guaranteed to an Air Force Reserve Senior Airman by USERRA. The lawsuit alleges that the Oklahoma City Public Schools violated USERRA when it failed to reinstate the airman in a teacher position upon his return from a military deployment.
- Continuing to expand access to the portability of professional licenses under the Servicemembers Civil Relief Act. Military spouses previously reported difficulty transferring their professional licenses, such as licenses to practice as a realtor or massage therapist, from one jurisdiction to another, hindering their ability to find jobs when moving due to their spouse’s military orders. A new SCRA provision added by Congress in 2023 helps servicemembers and their spouses use their professional licenses and certificates in certain circumstances when they relocate due to military orders. As a result of our work in this space, at least five states have changed their policies, procedures and websites to comport with the SCRA.
- Developing a fact sheet and training presentation on service and assistance animals to inform people with disabilities of their rights to live and travel with the aid of a service animal or assistance animal.
Learn more about the Servicemember and Veterans Initiative at www.justice.gov/servicemembers.
Pleasants County Man Admits to Sex Offender Registry ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Michael Wickey, age 46, of Saint Marys, West Virginia, admitted today to failing to update his sex offender registration.
According to court documents, Wickey was living and working in Pleasants County but hadn’t updated his sex offender registration. Wickey is required to register as a sex offender for life because of two prior child molestation convictions in Indiana.
Wickey faces up to 10 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Christie Utt is prosecuting the case on behalf of the government.
The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Okfuskee County Resident Pleads Guilty to Child NeglectRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joanna Lee Higgins, age 33, of Okemah, Oklahoma, entered a guilty plea to one count of Child Neglect in Indian Country.
The Indictment alleged that between January 1, 2023, and January 31, 2024, Higgins willfully and maliciously failed to provide two children adequate nurturance, food, clothing, shelter, sanitation, hygiene, medical care, and supervision while responsible for their health, safety, and welfare.
The crime occurred in Okfuskee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Muscogee Creek Nation Lighthorse Police and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Higgins was remanded into the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Nicole Paladino represented the United States.
Ohio Man Sentenced to 35 Years in Prison for Drug TraffickingRead the Press Release
AKRON, Ohio – Seth Hoover, age 39, of Republic, Ohio, has been sentenced to 35 years in prison by U.S. District Judge John R. Adams after being found guilty at a jury trial of possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition.
According to court documents, an Ohio State Highway Patrol trooper observed Hoover make a traffic violation on U.S. Route 250 in Ashland County. During the traffic stop, Hoover presented fake identification. A search of his vehicle revealed a loaded pistol, approximately 1.8 kilograms of fentanyl, drug paraphernalia, and items associated with drug trafficking.
The investigation determined the street value of the fentanyl to be approximately $120,000.
This case was investigated by the DEA-Cleveland District Office and the Ohio State Highway Patrol. The case was prosecuted by Assistant U.S. Attorney Joseph Dangelo for the Northern District of Ohio.
Ocean Springs Man Pleads Guilty to Production of Child PornographyRead the Press Release
Gulfport, Miss. – An Ocean Springs man pled guilty to production of child pornography.
According to court documents, in January 2023, Eric Jason Fiorentino, 30, caused a minor in another state to produce visual depictions of a minor engaging in sexually explicit conduct. Using an internet chat platform for texts and live videos, Fiorentino produced and screen captured the images on his cell phone in Jackson County, Mississippi.
Fiorentino is scheduled to be sentenced on March 12, 2025, at 10:30 a.m., and faces a minimum of 15 years and a maximum of 30 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement.
The case was investigated by Homeland Security Investigations with the assistance of the Jackson County and Stone County Sheriff’s Offices and the Hesston, Kansas Police Department.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.
North Carolina man pleads guilty to his role in scheme that defrauded hundreds of companies out of millions of dollarsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Nicholas Scarantino, 30, of North Carolina, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Scarantino owned Direct Chemicals in the State of California. Between July and November 2021, he and others mailed thousands of fictitious invoices in the name of Direct Chemicals to victim companies located all over the United States. Approximately 873 victim companies were tricked and defrauded into paying these fictitious invoices, totaling of approximately $861,268.66. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.
Sentencing is scheduled for March 17, 2025, before Judge Wolford.
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Noble County Man Sentenced to Serve more than Nine Years in Federal Prison after Shooting Woman in Indian CountryRead the Press Release
OKLAHOMA CITY – JUSTIN RANDALL BROWN, 46, of Noble County, has been sentenced to serve 115 months in federal prison for committing assault with a dangerous weapon in Indian Country, announced U.S. Attorney Robert J. Troester.
On January 3, 2024, a federal grand jury returned a six-count Indictment against Brown, charging him with being a felon in possession of a firearm, two counts of assault with a dangerous weapon, assault resulting in serious bodily injury, kidnapping, and use and discharge of a firearm during and in relation to a crime of violence, all of which took place in Indian Country. According to public record, on October 27, 2023, Brown assaulted a person who visited his property in Noble County. During the violent encounter, Brown beat the victim over the head with the handle of a blade, threatened to kill her friends and family, and shot her in the thigh with a handgun. Following the assault, the victim drove herself to a hospital where she was treated for her injuries.
Public record further reflects that Brown has previous felony convictions, including convictions for assault with a deadly weapon in California, and assault and battery with a deadly weapon in Tulsa County District Court.
This case is in federal court because Brown is a member of the Otoe-Missouria Tribe and the crimes took place within the boundaries of tribal land belonging to the Otoe-Missouria Tribe.
On May 8, 2024, Brown pleaded guilty to Count 2 of the Indictment, and admitted he assaulted the victim with a dangerous weapon—a firearm—while in Indian Country.
At the sentencing hearing on November 12, 2024, U.S. District Judge Joe Heaton sentenced Brown to serve 115 months in federal prison, to be followed by three years of supervised release, and to pay the victim $17,256.43 in restitution. In announcing his sentence, Judge Heaton noted the seriousness of assault committed, Brown’s long criminal history, and the need for the public to be protected from Brown.
This case is the result of an investigation by the Federal Bureau of Investigation, the Stillwater Police Department, and the Otoe-Missouria Tribal Police Department. Assistant U.S. Attorney Bow Bottomly prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of PSN and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement have learned since the program’s launch in 2001. This case is also part of “Operation 922,” the Western District of Oklahoma’s implementation of PSN, which prioritizes prosecution of federal crimes connected to domestic violence. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for further information.
New York Man Sentenced for Traveling to Louisiana to Engage in Illicit Sexual Conduct with MinorRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that PETER NEALON (“NEALON”), age 66, from Schenectady, New York, was sentenced today to 60 months in prison by United States District Judge Darrel James Papillion, after previously pleading guilty to interstate travel with intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b). NEALON was also sentenced to 5 years of supervised release and a mandatory $100 special assessment fee.
According to court documents, beginning on or about July 17, 2023, NEALON met undercover law enforcement personnel posing as a fifteen-year-old female (FM1) on Instagram. Over the next several months, NEALON engaged FM1 in overtly sexual conversations and, on multiple occasions, transmitted images and videos depicting what he claimed to be his erect penis. Beginning in about July 2023, and continuing on multiple occasions until on or about March 27, 2024, NEALON communicated his intention to visit FM1 in Louisiana for the purpose of engaging in sex with FM1, explaining in detail the sex acts he intended to perform.
In February 2024, NEALON used a messaging application to communicate with who he believed to be a fourteen-year-old female who was FM1’s friend (FM2). During
conversations with FM1 and FM2, NEALON expressed an intent and expectation to engage in various forms of sexual contact with FM1 and FM2, individually and collectively.
In March 2024, NEALON discussed the logistics of his trip with FM1 and, on about March 19, 2024, booked flight and hotel reservations from Albany, New York, to New Orleans, Louisiana. NEALON travelled by plane to New Orleans on about March 27, 2024, to his intent to engage in sexual acts with FM1 and FM2.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Briana Williams, of the Narcotics Unit, and Jordan Ginsberg, Chief of the Public Integrity Unit, were in charge of the prosecution.
New Orleans Man Sentenced for Federal Gun Control and Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – TRAVIS JACKSON (“JACKSON”), age 34, a resident of New Orleans, was sentenced on November 12, 2024, by United States District Judge Darrel James Papillion, for conspiring to distribute, and possess with the intent to distribute, fentanyl and, being a felon in possession of a gun, announced U.S. Attorney Duane A. Evans.
According to court records, the Federal Bureau of Investigation (FBI), made several controlled purchases of drugs from JACKSON and his co-defendant. The FBI then conducted wire intercepts of two phones belonging to the co-defendant. During the wiretaps, the FBI heard multiple calls related to drug trafficking, including calls with buyers and larger-scale dealers, as well as calls warning other dealers of police activity. The FBI later executed search warrants, arresting the co-defendant with a gun and fentanyl and, also, arresting JACKSON with a gun. JACKSON’s prior felony convictions prohibited him from possessing a firearm.
Judge Papillion sentenced JACKSON to 60 months imprisonment on each count to run concurrently, 4 years of supervised release on the drug count and 3 years of supervised release on the felon in possession of a firearm count, and a mandatory special assessment fee of $200.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel and PSN Coordinator.
New Jersey Man Sentenced for Robbing Lewiston Postal Carriers, Burglarizing Paris and North Monmouth Post OfficesRead the Press Release
PORTLAND, Maine: An Orange, New Jersey man was sentenced today in U.S. District Court in Portland for burglarizing two Maine post offices and robbing at knifepoint two U.S. Postal Service letter carriers.
U.S. District Judge Nancy Torresen sentenced Winston McLeod, 31, to 57 months in prison followed by three years of supervised release. McLeod pleaded guilty on July 23, 2024.
According to court records, during a one-week period in January 2024, McLeod and Lance Funderburk, 31, also from Orange, New Jersey, broke into the Paris and North Monmouth post offices and stole money order printers, mail, computers, post office box keys, and other items. The two men then robbed two Lewiston postal carriers in quick succession on January 20, 2024, threatening to stab each of them with a knife unless they turned over their postal keys.
McLeod and Funderburk were arrested by law enforcement following a traffic stop. A search of the occupants and the vehicle, a white Jeep that matched a vehicle seen in videos from each crime scene, revealed a black butterfly knife, black ski mask, large sums of cash, and several checks determined to have been stolen from the Paris post office. When responding to the Paris location, Postal Inspectors also found two iPhones in the snow directly beneath the broken window used to access the post office. Investigators were able to identify McLeod through a photo of him on the lock screen of one of the phones. Investigators recovered additional stolen items at and near the address where the two men had been staying.
Lance Funderburk pleaded guilty to his role in the crime spree on October 29, 2024, and awaits sentencing. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case, with assistance from FBI’s Safe Streets Task Force and the Rumford, Lewiston, Paris, and Monmouth police departments.
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New Bern Bloods Gang Member Sentenced for Illegal FirearmRead the Press Release
RALEIGH, N.C. - A New Bern man was sentenced to nearly five years in prison for possessing a firearm as a felon. On August 15, 2024, Kevin Martell Johnson a/k/a “Stoney J”, age 28, pled guilty to the charge.
According to court documents and other information presented in court, on March 17, 2023, officers with the New Bern Police Department conducted a traffic stop on a vehicle in which Johnson was a passenger after it ran a stop sign. The vehicle pulled into the Wells Fargo parking lot, and Johnson fled on foot. As Johnson was fleeing, he dropped a .40 caliber handgun. Officers discovered approximately five grams of crack cocaine stuffed in the trigger guard of the firearm. Johnson was eventually apprehended, and during a search of his person, officers found marijuana and eight oxycodone pills.
Officers swabbed the firearm to obtain a DNA sample from Johnson, which was then sent to the lab for comparison. The lab confirmed that Johnson’s DNA was present on the firearm. Johnson is identified as an active member of the Bloods street gang in New Bern.
“The New Bern Police Department is proud to be part of a partnership dedicated to addressing violent street gangs, felony drug offenses, and other acts of violence. Collaborating with the U.S. Attorney’s Office, the FBI, and other local and state law enforcement agencies, we have combined personnel, technology, and resources to hold offenders accountable for these serious crimes. We remain committed to creating a safe, crime- and drug-free community where everyone can live without fear,” said New Bern Police Chief Patrick Gallagher.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI and New Bern Police Department investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:24-CR-20-FL.
Multi-Kilogram Methamphetamine and Fentanyl Dealer Sentenced to 19 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced George Pherai-Bogeajis (35, Orlando) to 19 years and 7 months in federal prison for conspiring to distribute methamphetamine and fentanyl and possessing firearms in furtherance of drug trafficking. The court also ordered Pherai-Bogeajis to forfeit four vehicles and four firearms used in the offense, along with $867,265 of drug proceeds. Pherai-Bogeajis entered a guilty plea on June 18, 2024.
According to court documents, Pherai-Bogeajis was engaged in kilogram-level methamphetamine transactions for years. In March 2024, a co-conspirator was stopped after conducting a pickup from Pherai-Bogeajis’s residence and found to be carrying $149,785 of drug proceeds (see images below):
On April 9, 2024, the DEA executed a search warrant at Pherai-Bogeajis’s home and seized 48.9 kilograms of methamphetamine, more than 5,500 grams of MDMA, more than 2 kilograms of cocaine, 978 grams of fentanyl, hallucinogens, marijuana, oxycodone pills, four firearms, and $717,480 in cash. Additional drugs and two vehicles containing “traps” to conceal drugs and proceeds for transport were located during a search of an address in Ocoee.
This case was investigated by the Drug Enforcement Administration, with assistance from the Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, U.S. Customs and Border Patrol, the Ocoee Police Department, the Orlando Police Department, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, and the Oveido Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justicegov/OCDETF.
This case is also 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Motorcycle gang member pleads guilty to illegally possessing a firearmRead the Press Release
RICHMOND, Va. – A Fayetteville, North Carolina, man pled guilty today to being a felon in possession of a firearm.
According to court documents, on April 28, Kevin T. Christian II, 35, was operating a motorcycle on I-295 Northbound in Hanover County without taillights after dark. When Virginia State Police (VSP) attempted a traffic stop, Christian did not immediately pull over, continuing for two minutes with VSP behind him with lights and sirens activated. Christian eventually stopped on the shoulder of an exit ramp.
Christian’s motorcycle had an expired registration tag, tape covering one of the digits on its license plate, and at the front of the motorcycle a large wooden club was strapped to the handlebars. The club was broken on one end and on the other end was a metal nail or screw protruding from the bottom. Christian was wearing a vest with “Wheels of Soul” and “1%er” markings indicating his membership in a motorcycle gang.
Christian had a .38 caliber handgun in his pocket, which was discovered and recovered during a pat down. In October 2018, Christian was convicted of unlawful wounding. As a previously convicted felon, Christian cannot legally possess firearms or ammunition.
Christian is scheduled to be sentenced on March 13, 2025, and faces up to 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.
Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Jessica L. Wright 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-110.
Monroe County Man Charged with Firearm and Drug Trafficking OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Stull, age 46, of Saylorsburg, Pennsylvania, was indicted by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that Stull possessed with the intent to distribute over 500 grams of methamphetamine, over 500 grams of cocaine, and a quantity of marihuana on September 12, 2024, in Saylorsburg, Pennsylvania. The indictment also alleges that on the same date, Stull possessed multiple firearms in furtherance of his drug trafficking offenses, and that he possessed one firearm with an obliterated serial number.
The matter is being investigated by the Federal Bureau of Investigation (FBI), the Office of the Attorney General of Pennsylvania, the Pennsylvania State Police, and the Monroe County District Attorney’s Office. Assistant United States Attorney James Buchanan is prosecuting the case.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Missouri Man Sentenced to 75 Months in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a man who admitted possessing child pornography and participating in online discussions about the rape of children to 75 months in prison.
Stephen E.R. Marez, 32, of St. Francois County, was also ordered to pay $9,000 in restitution.
Marez pleaded guilty in U.S. District Court in St. Louis in August to one count of receiving child pornography. He admitted exchanging child pornography and discussing the rape of children with two people online. The Indiana State Police were investigating one of the men participating in those discussions, who led them to Marez. On July 14, 2023, a Missouri State Highway Patrol trooper conducted a traffic stop and seized Marez’ cell phone, which contained child sexual abuse material. A July 19, 2023, court-approved search of his home recovered electronic devices that contained more than 2,000 files containing child pornography, including 249 images and 137 videos depicting minors who have been identified by law enforcement, his plea agreement says.
The Missouri State Highway Patrol, the Missouri State Technical Assistance Team, the St. Francois County Sheriff’s Office, the Farmington Police Department, the Park Hills Police Department and the Indiana State Police investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Sentenced to Serve a Decade in Federal Prison after Transporting Methamphetamine into OklahomaRead the Press Release
OKLAHOMA CITY – SIMON VELAZQUEZ HERNANDEZ, 35, a Mexican National living in California at the time of his arrest, has been sentenced to serve 120 months in federal prison following a trial on a charge of possession of methamphetamine with intent to distribute, announced U.S. Attorney Robert J. Troester.
Hernandez was indicted by a federal grand jury on January 17, 2024, with possession of methamphetamine with intent to distribute. He proceeded to trial on June 18, 2024, where a federal jury heard evidence that on December 28, 2023, Hernandez was pulled over by an Oklahoma City Police officer on I-40 with approximately 40 pounds of methamphetamine in the vehicle. When initially stopped, Hernandez told the officer he was traveling from California to Arkansas to deliver Christmas presents, and the 40 pounds of methamphetamine was found inside gift wrapped boxes in the vehicle.
At the sentencing hearing on November 12, 2024, U.S. District Judge Joe Heaton sentenced Hernandez to serve 120 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge Heaton noted the nature and circumstances of the offense.This case is the result of an investigation by the FBI Oklahoma City Field Office, the Oklahoma City Police Department, and the Oklahoma County Sheriff’s Office. Assistant U.S. Attorneys Travis Leverett and Stephen Hoch prosecuted the case.
Reference is made to public filings for additional information.
Meridian Woman Pleads Guilty to Theft of Social Security FundsRead the Press Release
Jackson, Miss. – A Meridian woman pled guilty to stealing social security benefits intended for two elderly victims totaling $25,364.
According to court documents, Taruars Santae Grace, 46, admitted that she stole Social Security Administration (SSA) retirement benefits intended for two elderly victims. Grace diverted the SSA benefits into bank accounts to which she had access and control. Grace admitted that she spent the benefits for her personal use despite knowing that she was not entitled to the money.
Grace was indicted by a federal grand jury in August 2024. She pled guilty today to theft of government funds.
Grace is scheduled to be sentenced on February 11, 2025, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Rodregas “Rod” Owens of the Social Security Administration Office of Inspector General - Atlanta Field Division made the announcement.
The Social Security Administration Office of the Inspector General is investigating the case.
Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.
Member of Violent Gang Sentenced to 15 Years in Prison for Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston area man was sentenced yesterday for his role in Cameron Street, a violent Boston gang.
Eric Correia, aka “Bubba,” 26, of Boston, was sentenced by U.S. Senior District Court Judge William G. Young to15 years in prison followed by three years of supervised release. In April 2024, Correia pleaded guilty to conspiracy to participate in a racketeering enterprise, more commonly known as RICO conspiracy, and distribution of marijuana.
Correia was identified as a member Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street members use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Correia pleaded guilty to committing a March 2019 attempted murder with a firearm of a rival gang member in Dorchester. The victim was transported to a nearby hospital with life-threatening injuries.
In addition to this attempted murder, Correia admitted to his role in an armed robbery with a firearm of a drug customer and admitted that he distributed $1,400 worth of marijuana to a cooperating witness. While he wore a mask during the drug deal, Correia was identified through a “C” tattoo on his hand. Cameron Street members often have tattoos or wear sports jerseys that employ the letter “C.”
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuted the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Store Owner Pleads Guilty to Tax EvasionRead the Press Release
A Maryland man who owns a retail store pleaded guilty today to evading his income taxes by not reporting cash taken from his business.
According to court documents and statements made in court, for over 20 years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.
In total, for the years 2017 through 2021, Bundy had additional taxes due of $672,558.
Bundy is scheduled to be sentenced on Feb. 21, 2025. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division and Assistant U.S. Attorney Coreen Mao for the District of Maryland are prosecuting the case.
Maryland Store Owner Pleads Guilty to Tax EvasionRead the Press Release
Greenbelt, Maryland – A Maryland man who owns a retail store pleaded guilty to evading his income taxes by not reporting cash taken from his business.
The guilty plea was announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and statements made in court, for over twenty years, William M. Bundy of District Heights owned and operated Bab’s Inc., a store located in District Heights, Maryland, that only accepted cash payments. From 2017 through 2021, Bundy received wages from Bab’s but also took cash from the business without reporting that cash as income on his tax returns. He used the cash for personal expenditures, including gambling. Over a five-year period, Bundy gambled and lost over $3 million at two Maryland-area casinos, funded in part by $2.2 million in cash from Bab’s.
In total, for the years 2017 through 2021, Bundy owes federal income taxes of $672,558.
Bundy is scheduled to be sentenced on February 21, 2025. He faces a maximum of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the IRS Criminal Investigation for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Coreen Mao and Trial Attorney Michael C. Vasiliadis of the Tax Division who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man Sentenced to 20 Years in Prison for Fatal University City Drug DealRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man to 20 years in prison for his role in a fatal shooting sparked because he believed a man purchased marijuana with counterfeit money.
Nathaniel Anthony Brown-Shatto, 22, was one of three people involved in a conspiracy to sell marijuana and had told the others that the victim had previously purchased marijuana from him using counterfeit currency. On Feb. 19, 2022, the three were together in a vehicle, armed and selling marijuana. When the victim contacted Brown-Shatto to buy more marijuana, the three drove to his home in the 7800 block of Birchmont Drive. Carlos Albert Castellanos Jr. was driving, Brown-Shatto was in the passenger seat and the third man was in the rear of the vehicle.
When the victim stepped out of his home, Brown-Shatto shot him with a handgun while the third man began shooting him through the vehicle’s sunroof with an AK-style rifle, Brown-Shatto and Castellanos’ plea agreements say. Investigators found a total of 22 spent cartridge casings from both weapons.
Three days after the shooting, University City police stopped Castellanos and Brown-Shatto in a vehicle that matched the description of the one used by the shooters. They were both armed with handguns and had about one pound of marijuana in a backpack in the car.
Brown-Shatto pleaded guilty to one count of knowingly discharging a firearm in furtherance of the commission of a drug trafficking crime resulting in death. Castellanos, 22, has pleaded guilty to one count of conspiracy to possess one or more firearms in furtherance of a drug trafficking crime and awaits sentencing.
“The U.S. Postal Inspection Service mission is to protect the nation’s mail system. With the collaborative efforts of our federal law enforcement partners, Postal Inspectors investigate those utilizing the U.S. Mail for illicit activities, including distribution of narcotics. Postal Inspectors seek justice for victims, including the victim in this case who tragically lost his life.” Today’s sentencing reflects the diligent investigative work by Postal Inspectors and our law enforcement partners,” said Inspector in Charge, Ruth Mendonça, who leads the Chicago Division, which includes the St. Louis Field Office.
Emanuel Benito Vasquez, 22, has not yet been arrested. He is facing a marijuana conspiracy charge as well as charges of discharging a firearm in furtherance of the commission of a drug trafficking crime resulting in death and conspiracy to possess firearms in furtherance of a drug trafficking crime. Charges are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the University City Police Department and the U.S. Postal Inspection Service.
Luzerne County Man Charged with Drug Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Verbitsky, age 37, of Wilkes-Barre, Pennsylvania, was indicted by a federal grand jury for a drug trafficking offense.
According to United States Attorney Gerard M. Karam, the indictment alleges that on April 4, 2024, in Luzerne County, Pennsylvania, Verbitsky distributed 50 grams and more of methamphetamine.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Kingston Police Department, the Wilkes-Barre Police Department, the Pittston Police Department, the Luzerne County Drug Task Force, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney James M. Buchanan is prosecuting the case.
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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is imprisonment for forty years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Louisiana Company Sentenced for Making False StatementsRead the Press Release
NEW ORLEANS, LOUISIANA – LOUISIANA SWAMP TOURS, LLC, a company based in Marrero, Louisiana, was sentenced on November 12, 2024, by U.S. District Judge Darrel James Papillion, to pay a $53,200 fine, after previously pleading guilty on August 27, 2024, to making false statements, in violation of Title 18, United States Code, Section 1001(a)(2). The Court also ordered that LOUISIANA SWAMP TOURS, LLC be placed on probation for 1 year, and pay a $400 mandatory special assessment fee.
According to court documents, on or about February 25, 2022, LOUISIANA SWAMP TOURS, LLC told investigators from the United States Coast Guard that the hull of a watercraft vessel had been repaired after being damaged in a storm when, in fact, a new hull was built for the watercraft vessel with similar materials and measurements and, the required plans were not submitted to the United States Coast Guard for approval.
This case was investigated by the United States Coast Guard and the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by Assistant United States Attorney Troy Bell of the Violent Crimes Unit.
Lincoln County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – James Evans Hughes, 51, of Sumerco, was sentenced today to nine years in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, on June 28, 2018, Hughes sold a quantity of methamphetamine to a confidential informant in the South Charleston area of Kanawha County. Hughes admitted to that transaction and further admitted to selling methamphetamine to the confidential informant on seven other occasions between July 2018 and November 2018.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
Senior States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Lesley C. Shamblin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-83.
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Leader of Large Scale Drug Trafficking Operation Sentenced to 60 Years in Federal PrisonRead the Press Release
BAY CITY – A Detroit man was sentenced to 60 years in federal prison today for his role in a large-scale drug trafficking operation in the Saginaw-Bay region, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office.
The 720-month sentence imposed on Ricardo Delgado, II, 51, by United States District Court Judge Thomas L. Ludington, followed a week-long trial in June in which the jury found Delgado guilty of conspiracy to possess with intent to distribute and to distribute at least five kilograms of cocaine; possession with intent to distribute at least five kilograms of cocaine; possession with intent to distribute at least 400 grams of fentanyl; possession of a machinegun in furtherance of a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; possession of a machinegun; felon in possession of a firearm; possession of an unregistered silencer; and, use of communication facility to commit a drug offense.
Evidence at trial established that Delgado was the leader of a large-scale drug conspiracy that involved the importation of numerous kilograms of cocaine and fentanyl from Mexico for distribution in the Saginaw-Bay region. During the course of the investigation, FBI agents learned from a court-authorized wiretap that Delgado was seeking retaliation for the theft of his drugs from a subordinate and that he ordered that subordinate to exact revenge. However, this plan was thwarted by authorities. In addition, following Delgado’s arrest, law enforcement officers seized 13 kilograms of cocaine, two kilograms of fentanyl, 12 firearms, including two machineguns, two silencers, and over $200,000 in cash from Delgado’s residence.
“This defendant endangered countless individuals by trafficking in large quantities of deadly fentanyl and cocaine. He also sought to use violence to protect his trade in illicit drugs,” stated U.S. Attorney Ison. “This sentence should serve as a stark warning that our office will zealously pursue those who seek to bring illegal drugs and violence into our community.”
"Today's sentencing of Ricardo Delgado, a notorious drug trafficker, marks a critical milestone in our ongoing efforts to combat the fentanyl crisis and protect the public from its devastating effects," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI Michigan remains firmly committed to addressing the dual threats of illegal firearms trafficking and drug distribution that endanger the safety of our communities. Through collaborative efforts with our local and state law enforcement partners, we continue dismantling criminal networks and disrupting the flow of harmful substances. I sincerely thank the dedicated professionals at FBI Michigan, the Bay City Department of Public Safety, the Saginaw Police Department, the Bay Area Narcotics Enforcement Team, and the Michigan State Police. Our collective determination to safeguard Michigan residents and uphold justice remains unwavering as we work to hold those who threaten public safety accountable."
This investigation was conducted by special agents of the FBI Detroit Division (Bay City Office), special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosive (ATF), and law enforcement officials from Michigan State Police, Midland Police Department, Saginaw Police Department, Saginaw Township Police Department, Bridgeport Police Department, the Bay Area Narcotics Enforcement Team (BAYANET), and the Strike Team Investigative Narcotics Group (STING).
The case was prosecuted by Assistant U.S. Attorneys Tim Turkelson and Will Orr.
Lawrence Man Pleads Guilty to Making False Statements in Passport Application and Aggravated Identity TheftRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to falsely claiming to be a United States citizen in a passport application.
Ruben Dario Guerrero, 44, pleaded guilty to one count of making a false statement in a passport application and one count of aggravated identity theft. Chief U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 5, 2025.
On Aug. 25, 2023, Guerrero submitted an application for a U.S. passport at a post office in Lawrence, Mass. Guerrero used the name, date of birth and social security number of a U.S. citizen who died in Puerto Rico in 1997, and signed the application under an attestation in which he declared under penalty of perjury that he was a United States citizen. In fact, however, identity documents from the Dominican Republic show Guerrero to be a Dominican citizen.
The charge of making a false statement in a passport application provides for a maximum sentence of 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison that must run consecutive to any other sentence, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Matthew O’Brien, Special Agent in charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today.
Lawrence Man Pleads Guilty to Drug, Firearms and Money Laundering ChargesRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to fentanyl, cocaine, firearms and money laundering charges.
Joseph Correa, 34, pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl, five kilograms or more of cocaine, and other controlled substances; possession with intent to distribute and distribution of cocaine; possession of a firearm in furtherance of a drug trafficking offense; and conspiracy to commit money laundering. U.S. District Court Judge Angel Kelley scheduled sentencing for March 5, 2025. Correa was indicted by a federal grand jury in February 2022 along with 20 co-conspirators.
Correa was the target of a long-term investigation into a network of fentanyl and cocaine distributors based in and around Lawrence. Correa obtained fentanyl from local suppliers and he and co-defendants and brothers, Jose Martinez and Luis Martinez, regularly traveled to Puerto Rico to purchase wholesale quantities of cocaine, which they mailed to addresses in New England for redistribution in Massachusetts and New Hampshire. Correa employed co-defendants, and an uncharged co-conspirator, to store and process drugs at their residences and distribute drugs on his behalf. Correa was regularly intercepted over court-authorized wiretaps discussing distribution of fentanyl and cocaine and obtaining, possessing and using firearms. He and co-defendant Mayi Rosario conspired to launder drug proceeds via various financial transactions and purchases. During the course of the investigation, fluorofentanyl, fentanyl, cocaine and drug proceeds were seized from Correa and his associates and from packages mailed by or for Correa. On Dec. 15, 2021, Correa was arrested in Caguas, Puerto Rico. At the time of his arrest, Correa was holding a loaded firearm that had a Glock slide and a privately manufactured grip, and that had been converted into a fully automatic weapon.
In May 2024, Jose Martinez was sentenced to 90 months in prison, to be followed by four years of supervised release. Luis Martinez pleaded guilty in August 2024 and is scheduled to be sentenced on Jan. 24, 2025. Rosario was sentenced to 30 months in prison, to be followed by one year of home detention and 26 months of supervised release.
The drug conspiracy charge provides for a mandatory minimum sentence of 10 years and up to a life term in prison, a mandatory minimum of five years and up to a life term of supervised release and a fine of up to $10 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a sentence of up at least five years and up to life in prison, to run consecutive to the sentence imposed on the drug conspiracy count, up to five years of supervised release and a fine of up to $250,000. The cocaine possession and money laundering charges provide for a sentence of up to 20 years in prison, to be followed by supervised release of at least three years and up to life on the drug charge and maximum of three years on the money laundering charge and fines of up to $1 million on the drug charge and up to $500,000 or twice the value of the funds laundered on the money laundering charge. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Special assistance was provided by the Lawrence Police Department; U.S. Postal Inspection Service; Massachusetts State Police; Federal Bureau of Investigation; and Essex County Sheriff’s Office. Assistant U.S. Attorneys Katherine Ferguson and J. Mackenzie Duane of the Narcotics and Money Laundering Unit are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Knife-Wielding Felon Convicted for Assaulting a U.S. MarshalRead the Press Release
TULSA, Okla. – A federal jury returned a guilty verdict on Preston James Campbell for Assaulting a Federal Officer with a Deadly or Dangerous Weapon.
According to court documents and evidence presented at trial, Campbell, 41, was previously convicted in federal court for being a felon in possession of a firearm and assault resulting in serious bodily injury. After being released from prison in 2024, Campbell violated his supervised release after testing positive for methamphetamine, failing to report at drug treatment, and failing to report to the U.S. Probation office, resulting in two federal warrants issued for his arrest.
On July 1, 2024, the U.S. Marshals received a tip leading to Campbell’s location. Body camera video presented to the jury showed that when Marshals attempted to arrest Campbell, he ran towards a Deputy with a knife in his hand. The Deputy was able to block and deflect the knife, preventing serious injuries. Campbell further resisted and escaped into a wooded area. He was ultimately detained three weeks later.
Campbell is a member of the Muscogee (Creek) Nation. He will remain detained while awaiting sentencing for assaulting the Deputy U.S. Marshal and the two pending revocation proceedings for his supervised release violations.
The U.S. Marshals, Creek County Sheriff’s Office, Oklahoma Highway Patrol, Muscogee (Creek) Nation Lighthorse Police, Bristow Police Department, and Kellyville Police Department investigated the case. Assistant U.S. Attorneys George Jiang and Elliot Anderson prosecuted the case.
Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jason Todd Painter, 40, of Clendenin, was sentenced today to five years in prison, to be followed by three years of supervised release, for conspiracy to distribute a quantity of methamphetamine.
According to court documents and statements made in court, from March 15, 2023 through June 24, 2023, Painter received 11 packages containing methamphetamine sent by a co-conspirator from New York to Painter’s residence in Clendenin. Painter kept some of the methamphetamine for himself and held the rest for the co-conspirator to pick up. The co-conspirator occasionally directed Painter to deliver methamphetamine to other individuals in the Kanawha County area.
On July 15, 2023, the co-conspirator shipped a package through the United States Postal Service from New York to Painter’s residence in Clendenin. Law enforcement intercepted the package and discovered that it contained approximately 4.2 kilograms of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney JC MacCallum prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-182.
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Kalamazoo Man Convicted of Fentanyl Trafficking, Distribution of Fentanyl Causing DeathRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Antjuan Pierre Jackson, 39, of Kalamazoo, of distribution of fentanyl causing death and possession of 40 grams or more of fentanyl with intent to distribute. The Court will sentence Jackson on February 27, 2024.
“Illicit street drugs claim more lives across Michigan and the United States than ever before,” said U.S. Attorney Mark Totten. “Only a speck of fentanyl can kill. And because drug suppliers are mixing fentanyl into almost every illicit drug, users may not even realize they’re taking a lethal dose of fentanyl that will leave them dead in minutes. My office is committed to disrupting the pipelines that distribute these poisons in our communities.”
The evidence at trial demonstrated that, on November 23, 2022, Jackson sold fentanyl, a synthetic opioid up to 100 times more potent than heroin, to the victim. That fentanyl caused the victim to die from an overdose. Less than three weeks later, in December 2022, investigators found Jackson with more than 80 grams of fentanyl in his home, as well as all the hallmarks of drug trafficking, including cash, a digital scale, a cell phone, and packaging materials.
The Kalamazoo Department of Public Safety (KDPS) and the Drug Enforcement Administration (DEA) investigated the case with additional assistance provided by the Michigan State Police (MSP). Assistant U.S. Attorneys Stephanie Carowan and Timothy Verhey represented the United States at trial.
Justice Department Secures Agreement with Providence, Rhode Island, Public Schools to Protect Civil Rights of Immigrant StudentsRead the Press Release
The Justice Department today announced a settlement agreement with the Providence, Rhode Island, Public School District to resolve an investigation into the district’s programs and services for new immigrant English learner students with limited or interrupted education, known in the district as “newcomers.” The Providence Public School District is the largest school district in Rhode Island, serving thousands of English learner students, including hundreds of newcomers.
“New immigrant students and families bring great promise and a wealth of strengths to school communities, but they too often face great adversity in accessing educational opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools far too frequently shut their doors to newcomers or divert them into segregated programs with few opportunities and inadequate services. Federal law is clear: all students, including immigrant students, have a right to meaningfully participate in their district’s educational programs, and the Justice Department is committed to enforcing that right in Rhode Island and across the country.”
“The Providence Public School District’s failure to meet its civil rights obligations to newcomer students is unacceptable,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island, “particularly coming as it does in the wake of an earlier, 2018 civil rights agreement that addressed the school district’s failure to accommodate English language learners. Providence’s woeful history of half measures and consistent failures to meet the critical needs of its most vulnerable students has necessitated today’s action: a more closely targeted and stringent agreement focused on the newcomer program.”
The agreement resolves the department’s investigation into complaints about civil rights violations at the district’s “Newcomer Academy,” a program intended to provide accelerated learning to newcomers aged seventeen and older. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Rhode Island found that the district had failed to provide adequate English language instruction to over 200 students at the Newcomer Academy. Indeed, dozens of students at the Newcomer Academy signed a petition during the 2023-24 school year stating that they wanted to learn English at their school. The department also found that the district failed to staff the program with qualified, trained teachers and administrators and unnecessarily segregated newcomers, depriving them of equal opportunities to receive special education and participate in programs such as career and technical education.
The district cooperated with the department during the investigation and has started to take steps to address some of the concerns identified by the department.
Under the agreement, the district will ensure that all students in newcomer programs receive adequate instruction in the English language and that teachers in newcomer programs are appropriately trained and qualified. In addition, the district will provide language translation and interpretation of important school information to parents of newcomers who are not fluent in English. The district will also ensure that newcomers have equal access to specialized programs and are appropriately integrated with other English learners and native English speakers.
The department conducted its investigation under the Equal Educational Opportunities Act of 1974 and the department’s 2018 agreement with the district (extended in 2021), addressing all of the district’s English learner services and programs. Today’s settlement, which focuses on newcomers, will supersede the previous agreement.
Enforcement of the Equal Educational Opportunities Act is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available at www.justice.gov/crt, and additional information about the work of the division’s Educational Opportunities Section is available at www.justice.gov/crt/combating-national-origin-discrimination-schools.
Members of the public can report possible civil rights violations at civilrights.justice.gov/report/ or by emailing [email protected]. Anyone in Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
View the settlement summary here.
View the settlement summary in Spanish here.
Justice Department Secures Agreement to Eliminate Voting Barriers for Native Americans in South DakotaRead the Press Release
WASHINGTON – The Justice Department has secured an agreement with Bennett County, South Dakota, and county officials to resolve claims that the county has failed to make its registration and early voting opportunities equally open to Native American voters as required by Section 2 of the Voting Rights Act.
Under the terms of the agreement, Bennett County will operate a satellite office in Allen, South Dakota, to provide in-person registration and absentee voting services during regular business hours for the full state-mandated 46-day absentee voting period prior to federal, state and county elections.
“It is time to eliminate all barriers standing between Native American voters and the ballot box across our country. An inclusive democracy must provide all of its eligible voters access to the full range of voter registration and early voting opportunities required by law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this agreement, we will ensure that Native American voters will have the same access to registration and early voting as do other voters. The Justice Department will continue to challenge discriminatory election-related laws and policies and will vigorously enforce federal law to move us ever closer to a fully enfranchised Native electorate.”
“The right to vote is fundamental to our democracy, but that right is hollow without access to registration and early voting opportunities,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “We are grateful Bennett County has agreed to improve voting access for Native Americans in South Dakota by adding and staffing a satellite office in Allen.”
The Justice Department’s investigation found that Native Americans in Bennett County did not have equal access to the in-person registration and absentee voting available under state law. American Indians who live on Tribal lands disproportionally lack the ability to travel long distances to the county seat of Martin, South Dakota, for those in-person voting services. Since 2015, the state has made Help America Vote Act funds available to counties like Bennett to establish a satellite office on Tribal lands.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931. Individuals can also contact the U.S. Attorney’s Office for the District of South Dakota either by emailing [email protected] or by calling 605-330-4400.
Justice Department Launches Disability Rights Investigation into Unnecessary Institutionalization in Michigan’s State Psychiatric HospitalsRead the Press Release
The Justice Department announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the State of Michigan unnecessarily institutionalizes adults with serious mental illness in state psychiatric hospitals. The department will investigate whether the state fails to provide necessary community-based mental health services to enable people to transition from the state psychiatric hospitals and remain stable in the community.
Prior to the announcement, the department informed the Michigan Department of Health and Human Services and the State Attorney General’s Office of the initiation of the investigation.
“The Americans with Disabilities Act protects people’s right to receive mental health services in the community, rather than remaining in hospitals when they are ready to go home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This investigation will assess whether Michigan is honoring the ADA’s promise that people with disabilities be served in the most integrated setting appropriate. The Civil Rights Division will continue to advocate for states to provide people with disabilities the services they need to avoid unnecessary institutionalization.”
“Our office is committed to investing the resources necessary to investigate these claims because we will never tire of ensuring that every citizen is afforded the full protections of the Americans with Disabilities Act,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan.
“We open this investigation as part of our mission to protect civil rights and to ensure our neighbors with mental health disabilities can succeed and thrive in their communities,” said U.S. Attorney Mark A. Totton for the Western District of Michigan.
The Justice Department has not reached any conclusions regarding the subject matter under investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected], 888-392-5415 or through the Civil Rights Division’s Civil Rights Portal at civilrights.justice.gov/.
Additional information about the Civil Rights Division’s ADA enforcement is available at www.justice.gov/crt/rights-persons-disabilities and www.justice.gov/crt/disability-rights-section.
Jury Convicts Manhattan Man of Drug Conspiracy, Acquits Brooklyn ManRead the Press Release
ALBANY, NEW YORK – Keemont Reynolds, age 25, of Manhattan, New York, was convicted yesterday of a drug conspiracy following a four-day jury trial. United States Attorney Carla B. Freedman and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. A second man from Brooklyn, New York, was acquitted of charges.
The evidence at trial established that on November 1, 2023, law enforcement stopped a Jeep Grand Cherokee in Malone, New York, as the result of a drug trafficking investigation. Tyrece Franklin was driving the Grand Cherokee; Roddrick Ingram, of Brooklyn, was seated in the front passenger seat and Reynolds was seated in the back seat. Police located a false compartment built within the front dash of the Grand Cherokee. Within the hidden compartment, police found approximately 424 grams of methamphetamine, approximately 564.89 grams of cocaine, approximately 545.77 grams of cocaine base, and approximately 4.87 grams of heroin and fentanyl. In all, the drugs had an approximate street value of $140,000 in Malone.
After three days of testimony, the jury deliberated for five hours before convicting Reynolds of the conspiracy charge but acquitting him of possession of a controlled substance with intent to distribute. The jury acquitted Ingram of both charges.
Sentencing for Reynolds is scheduled for March 20, 2025, before Senior United States District Judge Glenn T. Suddaby in Albany, at which time the defendant faces a maximum term of imprisonment of 20 years and a term of supervised release of at least 3 years. The defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Franklin previously pled guilty and is scheduled to be sentenced on January 23, 2025. He faces at least 10 years and up to life in prison, as well as a term of supervised release of at least 5 years.
HSI and the New York State Police investigated this case. Assistant U.S. Attorneys Douglas Collyer and Jeffrey Stitt are prosecuting the case.
Judge Hands Man 10 Year Prison Term for November 2021 Carjacking, Robbery, and BurglaryRead the Press Release
WASHINGTON – Kenneth Phillips, 24, of Washington, D.C., was sentenced yesterday to a total of 120 months in prison for a carjacking and subsequent burglary that took place in Northeast Washington in November of 2021, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Phillips was found guilty by a jury of carjacking, robbery, assault, burglary, first degree theft, unauthorized use of a motor vehicle, and driving without a permit on July 26, 2024, following a trial in the Superior Court of the District of Columbia. In addition to the prison term, on November 12, 2024, the Honorable Robert A. Salerno sentenced Phillips to three years of supervised release.
According to the government’s evidence, on November 15, 2021, at approximately 9:00 p.m., Phillips was in the 2000 block of Fourth Street NE when he approached the victim from behind, striking him in the back of the head and taking his car and house keys. Phillips crossed the street with the victim’s keys before returning to the victim, striking the victim in the face and fish-hooking him in the mouth. Phillips then fled the area in the victim’s Toyota Sienna van.
On November 16, 2021, at approximately 4:00 a.m., officers with the Metropolitan Police Department located the defendant in the 700 block of K Street NE. Phillips was sitting in the driver’s seat of the victim’s Toyota van wearing a jacket that belonged to one of the victim’s family members. Police also recovered a key fob and a college graduation ring from the defendant’s pockets. The key fob belonged to the victim of the carjacking and the college graduation ring was later determined to have been stolen from the victim’s house. In the trunk of the victim’s Toyota van, police recovered a television in an unopened box that had been taken from the victim’s home.
At 7:00 a.m., on November 16, 2021, the victim’s family reported to police that their home had been burglarized. Specifically, the front and rear doors had been left open and unlocked, interior lights and doors were on, and bedrooms had been ransacked. Several of the belongings reported missing by the victim’s family were found by police on Phillips’s person and in the car he was driving at the time of his arrest.
Detectives with the Metropolitan Police Department recovered surveillance video from the area around the carjacking that captured the suspect before and during the carjacking. At the time of Phillips’s arrest, he was wearing clothing that matched that worn by the carjacking suspect in the surveillance video.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Erin DeRiso, who investigated the case; Paralegal Specialists Antoinette Sakamsa and Crystal Waddy; Supervisory Victim/Witness Service Coordinator Katina Adams-Washington; Victim/Witness Service Coordinators Guisela Castillo and Basizette Stribling; Supervisory IT Specialist Leif Hickling; and IT Specialist Sigourney Jackson. Finally, they commended the work of Assistant U.S. Attorneys Benjamin Helfand and Sara Matar, who prosecuted the case.
Johnson County Man Sentenced for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Hagerhill, Ky., man, Gary Warick, 58, was sentenced to 120 months in prison on Tuesday, by U.S. District Judge Robert Wier, following convictions for conspiracy to distribute 50 grams or more of methamphetamine, distribution of 50 grams or more of methamphetamine, distribution of methamphetamine, and possession with intent to distribute 50 grams or more of methamphetamine.
According to evidence presented at his trial, on April 26, 2022 and again on May 3, 2022, law enforcement in Johnson County made two controlled purchases of methamphetamine involving Warick. Thereafter, on May 4, 2022, execution of a search warrant on Warick’s residence uncovered additional methamphetamine. Collectively, the purchases and search resulted in the seizure of more than 130 grams of methamphetamine. Warick had previously been convicted of felony trafficking in a controlled substance, in 2010.
Under federal law, Warick must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentencing.
The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.
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Jackson County volunteer fire chief sentenced to year in prison for mail fraudRead the Press Release
COLUMBUS, Ohio – The chief of the Coalton volunteer fire department was sentenced in U.S. District Court today to 12 months in prison for using more than $200,000 in fire department funds for personal expenses.
Johnny Baker, 38, of Wellston, Ohio, used his position as manager of the fire department’s finances to build up cash via pull tab sales. Baker raised funds from the local community through the legal form of gambling, which he initially implemented as a fundraiser. Several local businesses sold pull tabs to the community and sent the proceeds to Baker. Initially, Baker used proceeds to buy needed supplies for the department, but eventually supplemented his own income and spent money on cruises, resorts, sporting events, an ATV, firearms and more.
Baker began working for the volunteer fire department in 2009, filling various roles over the years including secretary/treasurer, assistant fire chief, and as of January 2023, fire chief.
He pleaded guilty in April to one count of mail fraud for the embezzlement, which included using fire department money to have items for his personal use shipped to his house via UPS. As part of his sentence, Baker will pay approximately $226,000 in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney David J. Twombly is representing the United States in this case.
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Idaho Man Sentenced for Computer Hacking and Extortion SchemeRead the Press Release
An Idaho man was sentenced today to 10 years in prison for hacking into the computer servers of 19 victims across the United States, stealing personally identifiable information (PII) belonging to more than 132,000 people, and attempting to extort a Florida orthodontist for payment in Bitcoin by threatening to disclose stolen patient records and other PII.
According to court documents, in June 2017, Robert Purbeck, 45, of Meridian, purchased access to the computer server of a Griffin, Georgia, medical clinic on a darknet marketplace. He then used the stolen credentials to illegally access the computers of the medical clinic and removed records that contained sensitive PII for over 43,000 individuals, including names, addresses, birth dates, and social security numbers. In February 2018, Purbeck purchased access to a City of Newnan, Georgia, Police Department server on a darknet marketplace. Purbeck used the stolen credentials to hack into the City of Newnan computer systems and stole police reports and other documents, including PII for over 14,000 people.
Purbeck also attempted to extort a Florida orthodontist in July 2018, demanding a ransom payment in Bitcoin in return for his stolen patient files, threatening to sell the patient and personal information unless the orthodontist paid the ransom. Additionally, Purbeck threatened to sell the PII of the orthodontist’s minor child. Purbeck harassed the orthodontist and his patients for 10 days with numerous threatening emails and text messages.
On Aug. 21, 2019, the FBI executed a federal search warrant at Purbeck’s home in Meridian. During the search, the FBI seized multiple computers and electronic devices, which contained personal information of over 132,000 individuals, obtained through Purbeck’s numerous data breaches.
On March 19, Purbeck pleaded guilty to two counts of intentionally accessing and obtaining information from a protected computer without authorization.
In addition to his term of imprisonment, Purbeck was ordered to serve three years of supervised release and pay restitution to his victims in the amount of $1,048,702.98.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.
The FBI Atlanta Field Office investigated the case, with valuable assistance provided by the FBI Boise Resident Agency.
Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Michael Herskowitz, Nathan Kitchens, and Alex R. Sistla for the Northern District of Georgia prosecuted the case. The U.S. Attorney’s Office for the District of Idaho also provided valuable assistance in this case.
Idaho Man Sentenced for Computer Hacking and Extortion SchemeRead the Press Release
NEWNAN, Ga. - Robert Purbeck, who hacked into the computer servers of the City of Newnan, a Griffin, Georgia, medical clinic, and 17 other victims across the United States, and stole personal information belonging to more than 132,000 people, has been sentenced to federal prison. Purbeck also attempted to extort a Florida orthodontist for payment in Bitcoin, threatening to disclose stolen patient records and other personal information.
“Purbeck’s crimes reflect the efforts of a callous and brazen cybercriminal who not only hacked into numerous computer servers and stole sensitive personal information from both private and public actors, but also threatened to extort many of his victims and disclose their data,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the tireless work of law enforcement, Purbeck’s time of hiding behind a computer to steal, threaten, and intimidate is over.”
“Cyber extortion is unfortunately a rapidly growing threat and highlights the ever-growing need for corporations to remain vigilant in cybersecurity efforts,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “This sentencing is just one example of the FBI working together to hold criminals that hide behind their computers accountable, regardless of their location.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2017, Purbeck purchased access to the computer server of a Griffin medical clinic on a darknet marketplace. He then used the stolen credentials to illegally access the computers of the medical clinic and removed records that contained the sensitive personal information of more than 43,000 individuals, including names, addresses, birth dates, and social security numbers.
In February 2018, Purbeck purchased access to a City of Newnan Police Department server on a darknet marketplace. Purbeck used the stolen credentials to hack into the City of Newnan’s computer systems and stole police reports and other documents, including personal information of more than 14,000 individuals.
Purbeck also attempted to extort a Florida orthodontist in July 2018, demanding a ransom payment in Bitcoin in return for his stolen patient files, threatening to sell the patient and personal information unless the orthodontist paid the ransom. Additionally, Purbeck threatened to sell the personal information of the orthodontist’s minor child. Purbeck harassed the orthodontist and his patients for 10 days with numerous threatening emails and text messages.
On August 21, 2019, FBI special agents executed a federal search warrant at Purbeck’s home in Meridian, Idaho. During the search, agents seized multiple computers and electronic devices, which contained personal information of over 132,000 individuals, obtained through Purbeck’s numerous data breaches, including the City of Newnan, the Griffin medical clinic, and at least 17 other victims throughout the United States. Many of these victims incurred substantial expenses, including remediation costs and disruption to business operations because of Purbeck’s conduct.
Robert Purbeck, 45, of Meridian, Idaho, was sentenced by Chief U.S. District Judge Timothy C. Batten, Sr. to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to his victims in the amount of $1,048,702.98. Purbeck was convicted of two counts of computer fraud and abuse on March 19, 2024,after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation, Atlanta Field Office, with valuable assistance provided by the FBI Boise (Idaho) Resident Agency.
Assistant U.S. Attorneys Michael Herskowitz, Nathan Kitchens, Alex R. Sistla, and Trial Attorney Brian Mund of the U.S. Department of Justice Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The U.S. Attorney’s Office for the District of Idaho also provided valuable assistance in this 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.
Hunting Guides Sentenced for Violating the Migratory Bird Treaty ActRead the Press Release
Memphis, TN – Two men employed as hunting guides were recently sentenced for violating the Migratory Bird Treaty Act. The men were convicted for placing “bait”—grain, feed, or salt to serve as a lure—to attract waterfowl for the purpose of hunting. Reagan Fondren, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
A federal grand jury in the Western District of Tennessee indicted the following individuals on March 19, 2024, with placing bait to take or attempt to take a migratory game bird, violations of Title 16, United States Code, Sections 704(b)(2) and 707:
- Chase Michael Courville, 27, of Abbeville, Louisiana; and
- Dalton Harrison, 20, of Shelby County, Tennessee.
Violations of these statutes are punishable by a term of imprisonment of up to one year, a fine of $100,000, or both, and forfeiture of any firearm used to hunt the waterfowl attracted by the bait.
In early December 2023, Courville and Harrison placed corn and wheat on the ground next to a small pond in a field near Rosemark, Tennessee, a rural area in northern Shelby County. In the early morning hours of December 7, 2023, special agents of the United States Fish and Wildlife Service went to the pond and found Courville, Harrison, and several other people hunting waterfowl there. The agents saw corn and wheat on the ground and in the pond. By the time the agents arrived, the group had killed eight mallard ducks and a Canada goose. Both Courville and Harrison had worked as waterfowl hunting guides prior to this incident.
Courville and Harrison both pled guilty to the baiting charge. On September 6, 2024, Senior United States District Court Judge Jon Phipps McCalla sentenced Harrison to one year of probation and a fine of $7,500.00. On November 1, 2024, Judge McCalla sentenced Courville to one year of probation and a fine of $7,500.00. Courville and Harrison are prohibited from hunting or working as hunting guides during their probation. Courville and Harrison also agreed to forfeit the shotguns they were using on December 7 to the government.
“The U.S. Fish and Wildlife Office of Law Enforcement strives to ensure a fair and equitable hunting experience for all members of the public while protecting waterfowl populations from unsustainable methods of harvest,” said Doug Ault, the Special Agent in Charge of the Service’s Southeast Region. “We take the illegal placement of bait for the hunting of migratory birds seriously, and we will continue to work closely with the United States Attorney’s Office to investigate and prosecute these cases.”
The case was investigated by the U.S. Fish and Wildlife Service.
Acting United States Attorney Reagan Fondren thanked Assistant U.S. Attorney Joe Murphy, who prosecuted this case, as well as law enforcement partners for their role in the investigation.
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Houston dental clinic employee imprisoned for role in $6M bribery schemeRead the Press Release
HOUSTON – A 54-year-old man has been sentenced following his conviction for conspiring to pay and receive health care kickbacks and payment of kickbacks to marketers, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for an hour following a three-day trial before finding Ifeanyi Ozoh guilty on all counts Feb. 14.
U.S. District Chief Judge Randy Crane has now ordered Ozoh to serve 72 months in federal prison to be immediately followed by three years of supervised release. Ozoh was also ordered to pay restitution to Medicaid in the amount of $4.9 million. At the hearing, the court heard Ozoh was integral to the kickback scheme as he bribed marketers and parents to bring their Medicaid-insured children to a sham dental clinic. In handing down the sentence, the court noted the overwhelming evidence of Ozoh’s guilt presented at trial.
Ozoh worked at a local dental clinic known as Floss Family Dentalcare Center from January 2020 to February 2021.
At the time of trial, the jury heard how Ozoh paid marketers $20 to $100 for each Medicaid-insured child referred to Floss. The marketers testified that Ozoh secretly paid them in cash and out of sight of other witnesses, sometimes putting their illegal kickback payments on top of a vending machine down the hall from the clinic.
One clinic manager testified that she repeatedly warned Ozoh that paying marketers was illegal.
The jury also heard that Ozoh paid out over $163,000 in bribes to marketers and received bonuses for reaching a quota of patients.
From 2020 to 2021, Floss billed Medicaid over $6 million. Floss received over $4 million on those claims, most of which were predicated on a kickback paid to marketers and for dental services that were not provided.
During the trial, a representative testified that Medicaid prohibits the payment of kickbacks for referrals of medical services.
Ozoh was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI, Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti prosecuted the case.
Harlan County Man Sentenced for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
LONDON, Ky. – A Lynch, Ky., man, Steven Wayne Williams, 41, was sentenced to 180 months in prison on Tuesday, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute 500 grams or more methamphetamine.
According to his plea agreement, from December 2021 to August 31, 2022, Williams conspired with others to distribute 500 grams or more of methamphetamine. Specifically, Williams was part of a methamphetamine trafficking conspiracy that involved the importation or multiple kilos of a mixture of methamphetamine from Georgia, into Harlan County and other counties in Kentucky. Williams served as the “point man” for the source of supply in Georgia, and arranged for his co-conspirator Lawrence Lucas to travel to Georgia and return with several kilos of the drugs for distribution in Kentucky.
Under federal law, Williams must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentencing.
The investigation was conducted by the DEA and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.
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Ghostface Gangster Members, Associate Plead Guilty to Meth Trafficking Conspiracy from Georgia PrisonsRead the Press Release
ALBANY, Ga. – A Georgia inmate who is a high ranking member of the Ghostface Gangsters (GFG)—a criminal organization founded in the prison system—pleaded guilty in federal court this morning to directing a large methamphetamine trafficking conspiracy involving another prisoner and GFG member, as well as a third co-defendant.
Donald Jason Miles aka “Crash” aka “Cocho,” 39, of Valdosta State Prison and Forsyth, Georgia, pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on Nov. 13. Co-defendants Warren Frederick Courts aka “Dirty,” 38, of Rutledge State Prison and Marietta, Georgia, and Keeli Nycole Wallace, 34, of Covington, Georgia, both pleaded guilty to one count each of conspiracy to possess with intent to distribute methamphetamine on Aug. 15 and Aug. 14 respectively. All defendants face a minimum of ten years to a maximum of life in prison to be followed by ten years of supervised release and a maximum $10 million fine. Chief U.S. District Judge Leslie Abrams Gardner is presiding over the case. Sentencing dates for the defendants will be determined by the Court. There is no parole in the federal system.
“Ghostface Gangsters Jason Miles and Warren Courts were directing the distribution of large quantities of methamphetamine from two state prisons into Southwest Georgia, a dangerous conspiracy that put many people at risk,” said U.S. Attorney Peter D. Leary. “We are partnering with law enforcement at every level to root out and hold accountable violent criminal organizations whose tentacles reach beyond prison walls and jeopardize the safety and well-being of our communities.” said U.S. Attorney Peter D. Leary.
“This career criminal continued his drug trafficking activities despite being incarcerated, demonstrating his complete and wanton disregard for the safety of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA’s efforts in bringing him to justice will ensure this high-ranking gang member spends even more time in prison.”
“The Ghostface Gangsters have systematically worked to flood the communities of Georgia with dangerous drugs,” said GBI Director Chris Hosey. “The brazenness of these gang members to continue their criminal acts even behind bars must be met with decisive action to ensure justice and safety for our communities. This investigation shows that the GBI and our partners will work relentlessly to hold those who seek to poison our communities accountable.”
According to court documents and statements referenced in court, undercover Georgia Bureau of Investigation (GBI) agents conducted a drug bust at Motel 6 in Albany on Sept. 12, 2022, resulting from a larger investigation into drug trafficking from Georgia prisons. Agents learned Courts, a state prisoner, had arranged a drug transaction from behind bars and hired Wallace as a drug courier to move methamphetamine from a Mexico-based source located in metro Atlanta to Southwest Georgia. Agents arrested Wallace in the parking lot of Motel 6, finding approximately 1,400 grams of methamphetamine and her cell phones.
Investigators discovered that Miles had recruited Wallace as a drug courier several months before her arrest. Wallace admitted she had performed 10-15 deliveries of 250 grams or less of methamphetamine at Miles’s direction. Miles introduced Wallace to Courts; both Miles and Courts are members of the prison-based criminal organization, Ghostface Gangsters. Courts is a subordinate of Miles, as demonstrated by Courts giving Miles a portion of the profit he made from selling narcotics. During one transaction, Courts instructed Wallace to obtain methamphetamine from a Mexico-based source of supply near Atlanta, Georgia, and take it to meet a buyer at a Walmart in Albany. The buyer did not show up, and Miles instructed Wallace to return to Atlanta. The next day, Courts told Wallace that the intended buyer was ready. She returned to a Motel 6 in Albany, where she was subsequently arrested.
At the time, Miles was incarcerated at Valdosta State Prison, and Courts was incarcerated at Rutledge State Prison. Georgia Department of Corrections (GDC) officers searched their prison cells on Sept. 16, recovering contraband mobile phones. Search warrants were executed on the phones, and investigators discovered detailed communications between Miles, Courts and Wallace related to the drug conspiracy, including communications involving the Mexico-based source of supply and the trafficking of large quantities of methamphetamine. The investigation revealed that Wallace was just one courier recruited by Miles, and that Miles and Courts had funneled numerous redistributors to the Mexican source of supply near Atlanta, resulting in the distribution of at least 50 kilograms of methamphetamine between a two-month period as a part of this conspiracy.
Both Miles and Courts have lengthy criminal histories, including multiple felony convictions for drug distribution and trafficking. Miles was most recently convicted in the Superior Court of Gwinnett County, Georgia, on April 28, 2021, for conspiracy to traffic methamphetamine and was sentenced to serve 30 years in prison. Courts was most recently convicted in the Superior Court of Cobb County, Georgia, on Oct. 1, 2021, for possession with intent to distribute methamphetamine and was sentenced to serve a total of 15 years with eight years to be served in custody and the remainder on probation.
The case was investigated by the Drug Enforcement Administration (DEA) and the Georgia Bureau of Investigation (GBI).
Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.