Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 14 August 2024
Pine Ridge Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Enticement of a Minor. The sentencing took place on August 12, 2024.
Rowland Coomes, age 37, was sentenced to 10 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Coomes was indicted for the charge by a federal grand jury in February 2023. He pleaded guilty on May 30, 2024.
In February of 2022, a 14-year-old female reported that she had been provided methamphetamine and sexually assaulted by Coomes while on the Pine Ridge Reservation. During the report, the 14-year-old female disclosed that Coomes had also solicited her for nudes photographs, constituting child pornography, in exchange for transportation. The FBI applied for and received a search warrant to search Coomes’ Facebook account. Messages revealed that Coomes had in fact received images constituting child pornography. An analysis of Coomes’ Facebook account established that he was in an illegal sexual relationship with another victim – living on the Reservation. After Coomes’ arrest, he contacted a family member and urged the family member to delete his Facebook account in order to get rid of evidence establishing his guilt. The FBI, however, had already searched and seized his account at the time Coomes’ made the request to the family member.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Coomes was immediately remanded to the custody of the U.S. Marshals Service.
Omaha Man Sentenced to 235 Months in $1 Million Dollar Bank Robbery ConspiracyRead the Press Release
United States Attorney Susan T. Lehr announced that Demitrius Alston, age 34, of Omaha, Nebraska was sentenced on August 14, 2024, in federal court in Omaha for bank robbery, attempted bank robbery, and conspiracy to commit interference with interstate commerce by way of robbery. Senior United States District Judge John M. Gerrard sentenced Alston to 235 months’ imprisonment. There is no parole in the federal system. After his release from prison, Alston will be required to complete a 3-year term of supervised release. The amount of restitution to be ordered will be determined at a future hearing.
Alston was indicted in three criminal cases in 2020. He is the last defendant to be sentenced in a conspiracy to rob federally insured banks across Nebraska, South Dakota, North Carolina, and Iowa between 2015 and 2020. The first indictment returned by the grand jury charged him with conspiracy to commit interference with commerce by robbery involving four other defendants and fifteen banks. The defendants, who wore disguises and masks, would generally initiate “takeover” style robberies, establishing control of the employees and customers in the banks by brandishing firearms, enabling them to gain access to the vaults. In the conspiracy case, the defendants robbed federally insured banks of $959,147.68 between June 1, 2015, and June 22, 2018.
Next, Alston was indicted by a grand jury in the Eastern District of North Carolina. The indictment charged him with robbing a Wells Fargo Bank on July 29, 2019, in Fayetteville, North Carolina. The North Carolina case was later transferred from the U.S. District Court for the Eastern District of North Carolina to the U.S. District Court for the District of Nebraska for disposition. During that robbery, Alston and another suspect robbed the bank of over $77,000.00 in a similar “takeover” style manner, fleeing in a 1993 Chevy Lumina. On the same day, Alston entered the Fayetteville Regional Airport and approached a TSA security checkpoint. As he was being screened, TSA agents flagged his bag for inspection. The TSA agent searching the backpack located large sums of U.S. currency. Alston snatched the bag and took off running. As he ran, he dropped a large sum of currency inside the terminal and his backpack. Investigators recovered $38,110.00 in new, crisp bills (approximately half of the amount stolen from the bank). Alston also left his Nebraska identification, cellphone, and boarding pass in the security bin. The Federal Bureau of Investigation (FBI) later searched Alston’s home in Nebraska and recovered the title to a 1993 Chevrolet that was used as the getaway car and seized by the Fayetteville Police Department.
The final indictment returned by the grand jury in the District of Nebraska charged Alston and a codefendant with attempted robbery of a Metro Credit Union and a robbery of a Wells Fargo Bank in Nebraska. On September 25, 2018, Alston and codefendant Brealon Goodwin attempted to rob a Metro Credit Union located on North 72nd Street in Omaha. Alston and Goodwin wore disguises and used a stolen red Jeep to flee. On September 28, 2018, Alston and Goodwin robbed the Wells Fargo Bank of over $16,000.00. During the Wells Fargo robbery, Alston and Goodwin wore disguises and demanded money, and one of the defendants had his hand in his pocket in a manner suggesting to the teller that he was carrying a concealed firearm.
Alston was able to avoid arrest until September 27, 2021. During an interview with investigators, he admitted he participated in nearly two dozen robberies, including those charged. All the banks were federally insured.
Among the related defendants, Brealon Goodwin was sentenced to concurrent sentences of imprisonment for 69 months on each of three counts of conviction in two of the cases involving Alston. Kevin Brown was sentenced to consecutive sentences of imprisonment on two counts of conviction, totaling 128 months, Tristen Coleman was sentenced to consecutive sentences of imprisonment on two counts of conviction, totaling 100 months. Charles Ware was sentenced to consecutive sentences of imprisonment on each of two counts of conviction, totaling 170 months. The related defendants were sentenced in 2022 and 2023.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Lincoln Police Department.
Oklahoma Man Convicted of Illegal Firearms Possession after Fleeing from Oklahoma Highway Patrol TrooperRead the Press Release
OKLAHOMA CITY – A federal jury has convicted THOMAS LAMAR BROWN, 46, of Oklahoma City, of illegal possession of firearms after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On March 5, 2024, a federal grand jury charged Brown with being a felon in possession of firearms. On August 14, 2024, a federal jury convicted Brown on the charge. According to trial testimony, on April 15, 2023, a trooper with Oklahoma Highway Patrol (OHP) stopped Brown for a traffic violation on Interstate 40. The trooper spotted a sheathed knife in the passenger seat then asked Brown, the driver, to exit the vehicle. Brown began to act erratically, and the trooper noticed a firearm holster on Brown’s hip. After the trooper drew his service pistol, Brown fled on foot.
Brown was arrested following a brief chase. Inside his vehicle, OHP located four firearms, 29 loaded magazines, and thousands of rounds of ammunition.
Public record shows Brown has multiple previous felony convictions, including three counts of infliction of corporal injury to a spouse or cohabitant in cases filed in California State Court.
At sentencing, Brown faces a mandatory minimum sentence of 15 years in federal prison and up to life under the Armed Career Criminal Act.
This conviction is the result of an investigation by the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Travis Leverett and Danielle London are prosecuting 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 has 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 additional information.
Ohio Man Sentenced for Transporting Meth Through KC Aboard BusRead the Press Release
KANSAS CITY, Mo. – An Akron, Ohio, man was sentenced in federal court today for transporting more than 27 kilograms of methamphetamine through Kansas City, Mo., aboard a bus.
Rogeric Romone Clark, 40, was sentenced by U.S. District Judge Howard F. Sachs to 12 years in federal prison without parole.
On April 11, 2024, Clark pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
Members of the Missouri Western Interdiction and Narcotics Task Force (MoWIN) were conducting interdiction activities at a Kansas City, Mo., bus station on, Dec. 5, 2023. As passengers disembarked from a bus that originated in Los Angeles, California, officers used a police drug-sniffing dog, which alerted to a suitcase later identified as belonging to Clark. Investigators later identified another suitcase that belonged to Clark.
A detective contacted Clark, who confirmed a suitcase belonged to him and gave officers consent to open it. As the detective opened the suitcase, Clark fled on foot through the rear parking area. Clark fell during the chase and was taken into custody.
Officers searched both of the suitcases and found 30 one-pound bundles in each suitcase that contained a total of 27.2 kilograms of methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
North Tonawanda man pleads guilty to using stolen credit card numbers to purchase tens of thousands of dollars worth of gasRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Kingsley Brown, 22, of North Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that between August 2022, and July 2023, Brown, along with co-defendant Cross Malik Williams, purchased approximately 570 stolen bank cards from various online marketplaces. Williams and Brown then used a card-making device to load the stolen banking card information onto blank plastic bank cards with magnetic strips, which allowed purchases to be made using the victims’ funds from the victims’ bank accounts. Williams and Brown used, or allowed others to use, the stolen bank card information to purchase gas for other individuals. The gas customers would then pay Williams and/or Brown an amount of money less than the cost of the gas. As part of his plea agreement, Brown agreed that he was responsible for $192,673 of total loss.
Cross Malik Williams was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for December 11, 2024, before Judge Sinatra.
New York Man Sentenced to 18 Years in Prison for Sex Trafficking a Minor and Forced LaborRead the Press Release
BOSTON – A New York City man was sentenced today in federal court in Boston for brutally sex trafficking a minor. Defendant trafficked the minor victim nearly every single day and forced her to work at a strip club.
Sherriff Cooper, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 years in prison to be followed by five years of supervised release. Cooper was also ordered to pay $97, 200 in restitution to the minor victim. In February 2024, Cooper was convicted by a federal jury of sex trafficking of a minor by force, fraud and coercion; transportation of a minor with intent to engage in criminal sexual activity; and forced labor.
“Sherriff Cooper viciously and cruelly exploited a vulnerable minor who was half his age – taking advantage of his position of trust to abuse her into submission. When he lost his job, Mr. Cooper decided he would rather sex traffic a vulnerable child for financial gain than seek legitimate employment – all the while physically abusing and threatening her. Her bravery and courage in holding this defendant accountable is truly remarkable. Mr. Cooper’s refusal to accept any responsibility for his crimes or show remorse for the lifelong harm he inflicted underscores why he is truly deserving of this significant sentence,” said Acting United States Attorney Joshua S. Levy.
“Our thoughts today are with the victim in this case who suffered horrific abuse and courageously came forward and told investigators and the jury what Sherriff Cooper did to her. As a result, Sherriff Cooper was sent to prison for 18 years. No child should ever be subjected to sex trafficking, especially by someone in a position of trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence removes a dangerous threat from our community, and sends a clear message that human trafficking will not be tolerated.”
In 2017, Cooper was working as a security guard at a residential program for pregnant teens when he met the victim – a then 15-year-old pregnant minor who had run away from Massachusetts Department of Children and Families’ custody. Cooper began a sexual relationship with the victim and, after losing his job in early 2018, began sex trafficking her around Boston, posting advertisements for her on commercial sex websites and taking all the proceeds. He used violence, threats of violence and coercion to make the victim engage in commercial sex for his financial benefit, trafficking the minor victim every single day except for when she was menstruating and on her birthday.
Cooper transported the victim across state lines to sex traffic her in New York. While in New York, Cooper obtained a fake ID for the minor victim and forced her to strip at a club – keeping all the proceeds for himself. Cooper continued to use threats of violence, violence and coercion to keep the victim working at the club for his financial benefit. Cooper’s violence against the victim increased when she could not strip as often because he impregnated her.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and SAC Cohen made the announcement. Special assistance was provided by the FBI New York Field Division and the Arlington and Malden Police Departments. Assistant U.S. Attorneys Torey B. Cummings, Stephen W. Hassink and Lauren A. Graber of the Criminal Division prosecuted the case.
New Haven Resident Who Made False Statements During Citizenship Process is SentencedRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MOHAMED NAJM KAMASH, also known as Mohamed Najm Mohamed Ali Kamash, 33, of New Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to approximately two months of imprisonment, time already served, and two years of supervised release, for making false statements during his citizenship process.
According to court documents and statements made in court, Kamash is a lawful permanent resident of the U.S., having immigrated to the U.S. from Iraq in 2014. On August 17, 2021, Kamash appeared in Hartford for a U.S. Citizenship and Immigration Services (“USCIS”) interview about his pending Application of Naturalization (Form N-400), and was placed under oath. During the interview with a USCIS agent, Kamash knowingly and falsely stated that he did not know anyone involved with a terrorist organization and that no member of his family was involved with a terrorist organization.
Kamash was arrested on a criminal complaint on May 5, 2022, and was released on bond on June 30, 2022. On March 25, 2024, he pleaded guilty to making a false statement in a naturalization proceeding.
This matter was investigated by the Federal Bureau of Investigation and U.S. Citizenship and Immigration Services. The case was prosecuted by Assistant U.S. Attorneys Patrick Doherty and Konstantin Lantsman.
Moon Township Man Pleads Guilty to Filing False Tax Return, Admits to Causing $1.03 Million Tax LossRead the Press Release
PITTSBURGH, Pa. – A resident of Moon Township, Pennsylvania, pleaded guilty in federal court to a charge of willfully filing a false tax return, United States Attorney Eric G. Olshan announced today.
Albert Boyd Jr., 53, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that, for each year from 2017 to 2022, Boyd failed to report income from his company, Boyd Roll-Off Services, Inc., on the business’s tax return for the relevant tax year, causing a total tax loss of at least $1,030,000. Specifically, Boyd ensured that much of the company’s income from the sale of scrap metal went unreported by causing cash proceeds not to be deposited in the business bank account and causing checks to be deposited into accounts other than the business bank account. Boyd then failed to provide his tax return preparer with records relating to the undeposited cash and diverted checks.
Judge Schwab scheduled sentencing for December 17, 2024. The law provides for a total sentence of up to three years in prison, a fine of up to $250,000 or twice the pecuniary gain or loss of the offense, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Boyd.
Mexican National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BALTAZAR GARCIA-MENDOZA (“GARCIA”), age 33, was sentenced on August 7, 2024 to time served after previously pleading guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to court documents, GARCIA was encountered during a traffic stop on Interstate 10 in St. Tammany Parish on April 24, 2024, after being previously deported on February 3, 2014.
GARCIA was sentenced by United States District Court Judge Sarah S. Vance to time served, which was over three months. GARCIA had no previous criminal history.
Database checks indicated that GARCIA reentered the United States without permission, inspection, or parole by an immigration officer and without the express consent of the United States Attorney General or the Secretary of the Department of Homeland Security for readmission to the United States and, was encountered in the Eastern District of Louisiana by law enforcement.
U.S. Attorney Evans praised the work of the United States Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
Member of Violent New Haven Gang Sentenced to 84 Months in Federal PrisonRead the Press Release
SAMUEL DOUGLAS, also known as “Blamm,” 25, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 84 months of imprisonment, followed by three years of supervised release, for his participation in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Douglas and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, from 2018 to 2023, committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
On April 22, 2024, Douglas pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that on June 16, 2018, he and fellow Exit 8 member Kiveon Hyman shot at and attempted to kill a member and associate of a rival gang in the area of Fountain Street, Davis Street, and Lakeview Terrace in New Haven. In the shooting, the intended victim’s associate suffered seven gunshot wounds, but survived the attack. Investigators found 15 spent ammunition casings at the scene.
Investigators subsequently recovered two handguns that fired the ammunition casings that were collected at the scene. One handgun was seized in March 2019 from a now-deceased Exit 8 member. National Integrated Ballistic Information Network (NIBIN) analysis of the second handgun, which was recovered during a New Haven Police investigation in January 2020, linked it to eight other shooting incidents in New Haven in 2018.
Douglas has been detained since November 10, 2022.
Hyman pleaded guilty and, on April 1, 2024, was sentenced to 78 months of imprisonment.
This investigation has been conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Manchester, New Hampshire Man Sentenced to Prison for Elder Fraud OffenseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that on August 12, 2024, Nicholas Melanson, 42, of Manchester, New Hampshire, was sentenced by Chief United States District Judge Christina Reiss to six months’ imprisonment to be followed by a 3-year term of supervised release. Melanson previously pleaded guilty to interstate transportation of a stolen check. Chief Judge Reiss also ordered Melanson to pay $1,500 in restitution to the victim of his offense.
According to court records, over the course of nine days in May 2022, Melanson traveled on five different occasions from New Hampshire, where he lived and worked, to the residence of an elderly woman in Windsor, Vermont. Each time Melanson traveled to her residence, he picked her up and drove her to one or more banks where she had accounts. Once at the banks, she made withdrawals and conducted other transactions, and Melanson obtained checks and/or cash from her. The attempted or completed financial transactions that Melanson facilitated or conducted for the elderly woman totaled at least $392,000, though many of the transactions were ultimately stopped or reversed. Melanson received $1,500 cash and a $3,000 “bonus” payment for his role in the victimization of the woman, and he hoped to be paid $10,000 a month to continue manipulating her financial activities. Even though Melanson had never met the woman previously and only interacted with her those five times, he quickly observed that she was confused, opined that she was “starting to have Alzheimer’s,” and believed she was not able to make informed decisions about large financial transactions without guidance and instruction from someone else. Melanson’s conduct only stopped when he was arrested by the Windsor, Vermont Police Department at one of the victim’s banks on May 19, 2022.
United States Attorney Nikolas P. Kerest commended the hard work and investigatory efforts of the United States Postal Inspection Service, the United States Secret Service, and the Windsor, Vermont Police Department, and he further thanked the Windsor Police Department for its efforts on behalf of the victim in this matter.
Melanson was represented in this matter by Assistant Federal Public Defender Mary Nerino. Assistant United States Attorneys Nicole Cate and Michael Drescher handled the case for the government.
Since the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Please visit: http://www.justice.gov/elderjustice/.
Local Restauranteur Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The former owner of two restaurants was charged yesterday in connection with filing false tax returns.
Remigijus Mikelenas, 55, of Gilford, N.H., formerly of Canton, Mass. has been charged with three counts of filing false tax returns. Mikelenas was arrested yesterday and released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, Mikelenas was the owner of a café and juice bar in Canton. It is alleged that between approximately 2012 through 2020, Mikelenas deliberately failed to report more than $3.5 million in gross receipts at his businesses to the Internal Revenue Service (IRS). As a result, Mikelenas allegedly avoided paying more than $860,000 in federal income taxes.
During the investigation, Mikelenas allegedly told an undercover agent posing as a prospective buyer for the businesses, that he regularly underreported his gross receipts to the IRS and showed the agent a copy of the “real” books that reflected the businesses’ true earnings. During the meeting, it is further alleged that Mikelenas asked the agent whether he worked for the IRS, and added, “If I get caught, I’ll be screwed.”
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of $250,000. 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 and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lincoln Man Sentenced to 10 Years for Distribution of Methamphetamine and Gun ChargesRead the Press Release
United States Attorney Susan Lehr announced that Jimmy P. Nguyen, age 30, of Lincoln, Nebraska, was sentenced on August 13, 2024, in federal court in Lincoln for one count of distributing 5 grams or more of methamphetamine and one count of possessing a firearm during/in furtherance of drug trafficking. Senior United States District Judge Joseph F. Bataillon sentenced Nguyen to a total of 120 months’ imprisonment for both counts. There is no parole in the federal system. After Nguyen’s release from prison, he will begin a 5-year term of supervised release.
On December 16, 2021, Nguyen agreed to sell two semi-automatic handguns to a Confidential Informant (CI) in Lincoln. Nguyen then informed the CI that he had two ounces of meth that he could sell to the CI as well. Ultimately, Nguyen and the CI agreed that Nguyen would sell the two handguns and one ounce of meth. They agreed to meet at a parking lot of a grocery store in Lincoln. The purchase of the firearms and meth occurred in the CI’s vehicle. After the controlled buy, the firearms and baggie of crystalline substance were turned over to law enforcement. The firearms were a SCCY CPX-2 9mm handgun and a FN FNS-9 Compact 9mm handgun, which had a defaced serial number. The crystalline substance was lab tested and confirmed to be at least 25 grams meth actual.
This case was investigated by the Greater Omaha Safe Streets Task Force (GOSSTF). GOSSTF is a task force with law enforcement personnel from the Federal Bureau of Investigation, Omaha Police Department, Lincoln Police Department, Lancaster County Sheriff’s Office, and the Nebraska State Patrol.
Knott County Man Sentenced for Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. – A Vest, Ky., man, Lee Rose, 37, was sentenced on Wednesday, by Chief U.S. District Judge Danny C. Reeves, to 216 months, for distribution of 50 grams or more of methamphetamine.
According to his plea agreement, between at least September 2023 and January 2024, Rose was selling methamphetamine in Knott County. Specifically, on September 27, 2023, law enforcement made a controlled purchase of over 50 grams of methamphetamine from Rose. At the time he sold this methamphetamine, Rose was on parole, for three separate prior convictions for felony trafficking in methamphetamine. Law enforcement then engaged in additional transactions where Rose provided methamphetamine, on October 4, 2023 (for 52 grams), on October 9, 2023 (for 13 grams), and January 9, 2024 (for 56 grams).
Under federal law, Rose 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 five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Dale Richardson, Knott County Sheriff, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and Knott County Sheriff’s Office. Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.
— END —
Jury Finds Searcy Landlord Guilty of Sex Trafficking by Force, Fraud, or Coercion and Possession with Intent to Distribute MethamphetamineRead the Press Release
LITTLE ROCK—A Searcy man has been convicted of sex trafficking by force, fraud, or coercion and possession with intent to distribute methamphetamine at the conclusion of a two-day trial. On Tuesday, a federal jury found Thomas Ray Kelso, 74, guilty on all four counts for which he was indicted: three counts of sex trafficking and one count of possession with intent to distribute methamphetamine.
The jury returned their verdict after deliberating for approximately two and a half hours. United States District Judge James M. Moody, Jr. presided over the trial and will sentence Kelso at a later date. Kelso faces a minimum sentence of 15 years in federal prison.
“This defendant intentionally lured vulnerable victims to live in his apartments so that he could coerce sexual acts in exchange for some of life’s essentials—shelter and electricity,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Once they fell behind on their rent or utility payments, or refused to continue to perform sexual acts, he turned off their power until they performed sexual acts with him. The conduct exhibited by Kelso is reprehensible and the jury’s verdict sends a clear message that these crimes will not be tolerated.”
Kelso was indicted by a federal grand jury on August 1, 2023. Prior to that, an investigation by the Central Arkansas Drug Task Force revealed that Kelso frequently distributed methamphetamine at an apartment complex in Searcy. Kelso, who owned the apartment complex, exploited female residents in the complex and forced them into performing sex acts in order to keep the power on their apartment, satisfy their rent obligations, or obtain illegal narcotics.
The investigation also revealed that when one woman refused Kelso’s sexual advances, he pulled her electricity meter to cut her power. Kelso also employed one woman to recruit other women for him so he could exploit them to engage in performing sexual acts on him.
The statutory penalty for each sex trafficking by force, fraud, or coercion carries a mandatory minimum sentence of not less than 15 years and no more than 30 years in prison. The statutory penalty for possession with intent to distribute carries a maximum sentence of not more than 20 years in prison. Each sex trafficking count carries a potential penalty of not more than a $250,000 fine and not less than five years to life of supervised release. The possession with intent to distribute count carries a potential penalty of not more than a $1,000,000 fine and not less than three years of supervised release.
The investigation was conducted by the Searcy Police Department and Central Arkansas Drug Task Force, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Shelby Shelton.
# # #
Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Jefferson County Contractor Sentenced for Financially Exploiting Elderly WomanRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Wednesday sentenced a contractor from Jefferson County, Missouri to five years of probation, 90 days of house arrest and 80 hours of community service for his role in the financial exploitation of an elderly St. Louis woman.
Austin James, of Hillsboro, was also ordered to repay $94,606 to the victim’s estate.
James aided in the crimes of Gino Rives, who the 80-year-old victim hired sometime before Jan. 17, 2021, to repair her roof for $7,500. She next hired Rives, who falsely claimed to be a licensed contractor, to renovate the interior of her home. Rives told the woman to write checks to himself and others, including James, that totaled more than $550,000 for renovations on the one-bedroom, one-bath, 1,100 square-foot home.
After being contacted by concerned bank employees due to the volume of checks being written on the victims account, the St. Louis City Building Inspector’s Office determined that any work done on the house was worth at most $50,000.
James received eight checks totaling $94,606 between January 2021 and July 2021 for purportedly performing work on the victim’s, kitchen, bedroom, bathroom, basement and foundation. Photos presented during the sentencing hearing proved that he did not perform the work for which he had been paid.
James, 27, of Hillsboro, pleaded guilty to one count of identity theft.
Rives, 36, of Edmundson, in St. Louis County, was sentenced in June to 87 months in prison and ordered to repay more than $1 million to elder fraud victims.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with concerns about suspected abuse or neglect of the elderly or disabled should contact Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210.
Inmate Who Enticed Child into Sexually Explicit Video from Behind Bars Sentenced to 28+ YearsRead the Press Release
A 26-year-old inmate who used a video-visitation kiosk to entice a teenager into making sexually explicit videos from behind bars was sentenced this week to more than 28 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Obadiah Fraser was indicted in September 2022 and pleaded guilty in May 2023 to production of child pornography. He was sentenced Wednesday to 340 months in federal prison by U.S. District Judge Brantley Starr, who also ordered him to register as a sex offender.
“This defendant willfully exploited a minor by coercing the victim into producing sexually explicit material without any regard for the mental and physical anguish his offenses would cause,” said Lester R. Hayes Jr., Special Agent in Charge of HSI Dallas. “I’m grateful for the collaborative efforts between HSI and our law enforcement partners in ensuring another child predator is brought to justice.”
While incarcerated in Dallas County Jail on an unrelated charge of possession of child pornography, Mr. Fraser used the jail’s video visitation kiosk to communicate with a 17-year-old girl.
Because the video visitation platform requires users to be 18 years of age or older, the child used Mr. Fraser’s cellmate’s wife’s account to communicate with him.
During their calls – which were monitored by a third-party company – Mr. Fraser instructed the girl to make sexually explicit videos of herself. When she hesitated, he yelled and cursed at her.
When Dallas County Jail officials confronted him about the videos, Mr. Fraser admitted to making them and said he knew the child was only 17.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with the assistance of the Dallas County Sheriff’s Office and the full cooperation of Dallas County Jail. Assistant U.S. Attorneys Sarah Douglas and Camille Sparks (fmr.) prosecuted the case.
UPDATE: The United States Attorney's Office initially misidentified the technology Mr. Fraser used to communicate with the victim. He spoke to her via a video-visitation kiosk inside the jail, not via a jail-issued tablet.
Indictment Charges California Man for Unlawfully Procuring Aircraft Components on Behalf of IranRead the Press Release
WASHINGTON – U.S.-Iranian national Jeffrey Chance Nader, 66, of Arcadia, California, was arrested on an indictment charging him with crimes related to the procurement of U.S.-manufactured aircraft components, including components used on military aircraft, in violation of U.S. economic sanctions and other federal laws. The charges were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, FBI Assistant Director David Sundberg of the Washington Field Office, and Assistant Secretary for Export Enforcement Matthew S. Axelrod.
According to the indictment, beginning at least in 2023, Nader and others conspired to purchase and export – and attempted to export – from the United States to Iran four types of aircraft components, totaling nearly three dozen individual pieces. Some of these components are for use on military aircraft operated by Iran’s armed forces, including the F-4 fighter jet.
Nader, acting on purchase orders he received from customers in Iran, would coordinate the purchase of relevant aircraft components with business associates in Iran, by which they would reach out to U.S.-based suppliers of such components. In several instances, Nader identified himself and his company, California-based Pro Aero Capital, to these U.S.-based suppliers as the end-user of these items. Victim companies in this procurement scheme were located across the United States.
Once the aircraft components were obtained, Nader attempted to export the items on multiple separate occasions. The items were then transshipped to the ultimate customer in Iran. None of the transactions discussed in the indictment were successfully exported; they were detained on export by a Special Agent with the Department of Commerce.
“Attacks by Iran and its proxies on U.S. allies in the Middle East and its ongoing supply of Russia with drones and other technology to be used in its illegal war against Ukraine demonstrate why we must do all that we can to stop Iran from acquiring U.S. parts, services, and technology.” said U.S. Attorney Matthew M. Graves. “The charges announced today represent the latest step in our ongoing effort to hold accountable those who illegally funnel goods and services to Iran and to deter others from doing the same.”
"Today's action demonstrates the Justice Department's commitment to keeping military-grade equipment out of the hands of the Iranian regime," said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“Today’s indictment alleges that this defendant circumvented U.S. sanctions and illegally procured aircraft components on behalf of Iran,” said FBI Assistant Director in Charge David Sundberg, of the Washington Field Office. “These violations not only undermine the impact of U.S sanctions but can also adversely affect national security. The FBI and our law enforcement partners at the Department of Commerce will continue to identify and disrupt those who seek to violate U.S. law and steal our technology on behalf of hostile nations.”
“Iran has no business using U.S.-manufactured parts and components to keep their planes and drones in the sky,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Stopping these items before they get to our adversaries – like we did here – reflects the real-world impact we’re having through the Disruptive Technology Strike Force.”
Nader was arrested yesterday and had an initial appearance in the Central District of California.
This case is being investigated by the FBI’s Washington Field Office and the Commerce Department's Bureau of Industry and Security. Significant assistance was provided by the FBI’s Los Angeles Field Office.
The case is being prosecuted by Assistant U.S. Attorney Steven B. Wasserman for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section. Significant assistance was provided by the U.S. Attorney’s Office for the Central District of California.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Husband and Wife Arrested for Fraud, Money Laundering, and Tax OffensesRead the Press Release
KNOXVILLE, Tenn. – On August 8, 2024, a federal grand jury in Knoxville returned a 14-count indictment against Kenneth Francis Lee, 53, and Susan Amie Lee, 54, of Knoxville, TN. Kenneth Lee was indicted on seven counts of wire fraud, one count of money laundering, and three counts of tax offenses, in violation of 18 U.S.C. §§ 1343; 1956(h), 26 U.S.C. §§ 7201 and 7203. Susan Lee was indicted on three counts of money laundering offenses, in violation of 18 U.S.C. §§ 1956/1957. Kenneth and Susan Lee appeared in court today before the Honorable Judge Debra C. Poplin, United States Magistrate Judge and entered pleas of not guilty to the charges in the indictment. Trial has been set for October 22, 2024, before the Honorable Judge Thomas A. Varlan, United States District Court Judge in United States District Court, in Knoxville, Tennessee.
The filed indictment alleges that from March 2019 through August 8, 2024, Kenneth Francis Lee executed a scheme to defraud investors and obtain funds by falsely claiming that Lee was in litigation to sell a company to a large U.S. based investment firm. Victims wired funds to Kenny Lee for “legal fees” to help procure the settlement funds. In exchange, the victims were promised a percentage of the sale proceeds. The indictment alleges that there was no settlement and Lee used the funds for personal expenses, including funding his gambling habit. It is further alleged that Kenneth Lee did not report any of this income to the Internal Revenue Service (IRS), despite being required to do so. Susan Lee, for her part, is alleged to have assisted in collecting the fraud proceeds into accounts in her name and then spending those funds.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, IRS Supervisory Special Agent Meredith Louden, and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico made the announcement.
If convicted, Kenneth Lee faces a maximum term of 20 years in prison, a fine, restitution, forfeiture, and a maximum five-year term of supervised release for the fraud and money laundering offenses, and a maximum term of five years imprisonment, a fine, a term of supervised release and restitution. Susan Lee faces a maximum of 20 years in prison, a fine, or twice the amount involved in the money laundering transactions, forfeiture, and a maximum term of supervised release of three years.
This indictment is the result of an investigation by IRS Knoxville and FBI Knoxville.
Assistant U.S. Attorney Anne-Marie Svolto will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
###
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Steven Patrick Crabtree, 35, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on March 4, 2024, law enforcement officers responded to reports of an individual shooting at others outside of a Buffington Street residence in Huntington. Officers encountered Crabtree, who matched the description of the shooting suspect. Officers recovered a loaded Smith & Wesson model SD9VE 9mm pistol from Crabtree, and later determined that the firearm had been stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Crabtree knew he was prohibited from possessing a firearm because of his prior felony convictions for conspiracy to deliver not less than 10 grams nor more than 100 grams of heroin in Wayne County Circuit Court on May 30, 2018, and attempt to commit a felony in Cabell County Circuit Court on March 21, 2017.
Crabtree is scheduled to be sentenced on November 25, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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.
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. 3:24-cr-86.
###
Houston resident heads to prison for decades for trafficking minorRead the Press Release
HOUSTON – A 21-year-old man has been sentenced to federal prison for sex trafficking of a 16-year-old girl for commercial sex, announced U.S. Attorney Alamdar S. Hamdani.
Antonio Dario Osorio-Avelar aka Pressure pleaded guilty April 18, 2023.
U.S. District Judge George C. Hanks Jr. has now ordered Osorio-Avelar to serve 375 months in federal prison. In handing down the prison term, the court heard additional information about his significant criminal history. He also gave a different minor victim to a criminal associate. The court also heard testimony from the victim who, with grace and strength, detailed how Osorio-Avelar’s actions destroyed her familial relationships. In imposing the sentence, Judge Hanks noted although Osorio-Avelar attempted to claim immaturity, he still knew what he was doing and manipulated people and lost. Additionally, Judge Hanks noted Osorio-Avelar was a danger to those around him, and his actions will affect every relationship the victim has and will have.
Osorio-Avelar will also serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Restitution will be determined at a later date.
“Osorio-Avelar claimed immaturity caused him to force a 16-year-old to walk the Blade, a notorious area known for prostitution. There is a difference between immaturity and evil, and Osorio-Avelar is evil,” said Hamdani. “Those like Osorio-Avelar who take what they want by means of force or intimidation will never acquiesce to societal norms. Judge Hanks' 30-year sentence protects society’s most vulnerable from predators like Osario-Avelar.”
“With today’s sentence we have removed a dangerous predator from the community who used physical and sexual abuse, threats of violence and psychological manipulation to groom and control a minor victim and force her to engage in commercial sex for his own profit,” said Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI). “The unspeakable atrocities that he committed to break her down and control every aspect of her life are truly abhorrent, but unfortunately are all too common among human traffickers. HSI remains committed to continue to work alongside our law enforcement partners to aggressively pursue the vile human trafficking organizations preying on our most vulnerable populations and to help connect victims with the trauma-informed services that they need to recover from their nightmare.”
Osorio-Avelar trafficked a 16-year-old minor female for commercial sex during January 2023, with barely any clothes on in freezing temperatures. After recruiting her in Dallas, he brought her and another adult female he controlled to Houston to engage in commercial sex.
Osorio-Avelar manipulated the minor victim, provided her with a phone to track her and frequently brandished a firearm in her presence.
Throughout the time the minor victim was with him, Osorio-Avelar supplied her with drugs and condoms. He directed when she ate, slept and worked. He also set a daily quota of $500 for her and coerced her into walking the “track” and appearing in online ads for commercial sex.
When he was not causing her to engage in commercial sex, Osorio-Avelar was having violent sex with her himself, knowing she was just 16 years old. He also had the minor victim record videos of herself engaging in sex acts and sell them. Osorio-Avelar took all proceeds.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Houston Police Department, Texas Juvenile Justice Department - Office of Inspector General as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
State of Washington Man Charged with Possessing Destructive Devices
Eric Stubb, 69, Aberdeen, Washington, formerly of Wisconsin, is charged with possessing destructive devices. The indictment alleges that Stubb possessed the devices in the Western District of Wisconsin from approximately January 1, 2019, to February 1, 2023.
If convicted, Stubb faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation, Marathon County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Louis Glinzak is handling the case.
Onalaska Man Charged with Drug and Gun Crimes
Efrain Estrada, 30, Onalaska, Wisconsin, is charged in a seven-count indictment, with possessing and distributing fentanyl and methamphetamine, illegally possessing firearms and ammunition, and maintaining a drug trafficking place.
The indictment alleges that on July 25, 2024, Estrada: (1) attempted to possess 400 grams or more of fentanyl intended for distribution; (2) distributed fentanyl; (3) possessed 400 grams or more of fentanyl intended for distribution; (4) possessed 500 grams or more of methamphetamine intended for distribution; (5) possessed as a felon, five rifles, two shotguns, two handguns, and multiple types of ammunition; (6) possessed a firearm in furtherance of his drug trafficking crimes; and (7) maintained a drug trafficking place.
If convicted of the drug charges involving 400 or 500 grams, Estrada faces minimum penalties of 10 years and maximum penalties of life in prison. If convicted of the felon in possession of firearms charge, he faces a maximum penalty of 15 years in prison. If convicted of the charge alleging that he possessed a firearm in furtherance of his drug trafficking crimes, he faces a minimum penalty of 5 years in prison and a maximum penalty of life, and the sentence imposed must run consecutively to any other prison term. Both the distribution charge and the maintaining a drug trafficking charge carry a maximum penalty of 20 years.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charges against Estrada are the result of an investigation by the United States Postal Inspection Service, Wisconsin Department of Justice, Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, La Crosse Sheriff’s Office, La Crosse Police Department, and the Madison Police Department. Assistant U.S. Attorneys David Reinhard and Steven Ayala are handling the case.
Madison Man Charged with Illegally Possessing Firearms, Including Machinegun
Donald R. Spivey, Jr., 22, Madison, Wisconsin, is charged with possessing firearms as a felon and possessing a machinegun. The indictment alleges that Spivey possessed a loaded Glock 19 handgun and a loaded Glock 20 handgun on July 17, 2024. The indictment further alleges that the Glock 20 handgun that Spivey possessed had a machine gun conversion device. A machine gun conversion device is an illegal after-market device that converts a semi-automatic handgun into a fully functioning machinegun.
If convicted, Spivey faces a maximum penalty of 15 years in prison on the felon in possession charge and a maximum of 10 years on the machine gun charge.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charges against Spivey are the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the case.
Janesville Man Charged with Fentanyl Trafficking
D'Angelo Chenoweth, 27, Janesville, Wisconsin, is charged with distributing fentanyl. The indictment alleges that Chenoweth distributed fentanyl on February 15, 2024, and distributed 40 grams or more of fentanyl on February 29, 2024.
If convicted of distributing 40 grams or more of fentanyl, Chenoweth faces a minimum penalty of 5 years and a maximum penalty of 40 years in prison. The other distribution charge carries a maximum penalty of 20 years in prison.
The charges against Chenoweth are the result of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Wisconsin Department of Justice Division of Criminal. Assistant U.S. Attorney Louis Glinzak is handling the case.
Georgia Man Indicted for Pandemic-Related Fraud and Stolen Identity Tax Refund FraudRead the Press Release
ATLANTA - Mycheal Arnell Brady, also known as “Michael Brady,” has been indicted on federal charges of wire fraud and aggravated identity theft, for stealing COVID-19 relief funds and submitting fraudulent federal tax refunds using the stolen identities of multiple individuals. Brady has also been charged with possession of unauthorized access devices that contained dozens of the identity theft victims’ personal information, including their Social Security numbers.
“Brady’s alleged scheme defrauded programs designed to support legitimate businesses struggling during the COVID-19 relief pandemic,” said U.S. Attorney Ryan K. Buchanan. “To further perpetrate his fraud, he also allegedly used stolen personal information from unsuspecting victims to file fraudulent tax returns and obtain refunds.”
“This case demonstrates our unwavering commitment to protecting the integrity of COVID-19 relief programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Fraudulent activities undermine the purpose of these essential programs, designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to ensuring that those who exploit federal programs are held accountable.”
“Mycheal Brady’s alleged theft of funds under the CARES Act and other criminal activity led to his indictment today,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “It is only a matter of time before IRS Criminal Investigation special agents and our law enforcement partners uncover the crimes of many others who defrauded the American people during the COVID-19 pandemic.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Mycheal Brady allegedly submitted several fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to authorized lenders and the Small Business Administration. The applications contained fraudulent information regarding gross revenues and fake employees at his various companies and sought over $1.9 million in funding. He also allegedly submitted fraudulent tax forms and bank statements to support his loan applications. Brady allegedly received more than $330,000 from the fraudulent EIDL and PPP loans, which were not used for authorized business purposes.
In connection with his fraudulent schemes, Brady also allegedly possessed dozens of Social Security numbers belonging to the stolen identity theft victims, which Brady then used to apply for federal tax refunds. The victims were not aware of Brady’s use of their personal identifying information nor did they consent to his filing of their federal tax refunds on their behalf.
Mycheal Arnell Brady, also known as “Michael Brady,” 36, of Peachtree City, Georgia was arraigned before U.S. Magistrate Judge J. Christopher C. Bly on August 5, 2024. He was indicted by a federal grand jury on July 23, 2024. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and U.S. Small Business Administration Office of Inspector General.
Assistant U.S. Attorneys Natasha Cooper and Samir Kaushal are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Gallatin Gateway man unlawfully in the country admits illegal possession of firearmRead the Press Release
MISSOULA — A Gallatin Gateway man accused of illegally possessing firearms and ammunition because he was in the United States unlawfully admitted to a firearms charge today, U.S. Attorney Jesse Laslovich said.
The defendant, Oscar Enrique Ruiz Rojas, 25, pleaded guilty to prohibited person in possession of firearms and ammunition. Rojas faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 18 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Rojas was detained pending further proceedings.
In court documents, the government alleged that law enforcement was investigating Rojas for cocaine distribution and observed him outside his house with a pistol on his hip on two days in April. On April 24, law enforcement served a search warrant on his residence and located several firearms and ammunition. Rojas admitted that he had been in the United States illegally for the past six years after crossing the southern border at Nogales, Arizona. Rojas further stated that he had purchased a .22-caliber firearm for $400 from an individual.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration conducted the investigation.
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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
XXX
Four Flight Attendants Plead Guilty to Smuggling Drug Money to the Dominican RepublicRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that four flight attendants charged in connection with smuggling drug money to the Dominican Republic have pled guilty to operating an unlicensed money transmission business. SARAH VALERIO PUJOLS pled guilty before U.S. District Judge Naomi Reice Buchwald on July 23, 2024; CHARLIE HERNANDEZ pled guilty before U.S. District Judge Ronnie Abrams on July 25, 2024; EMMANUEL TORRES pled guilty before U.S. Magistrate Judge Sarah Cave on August 12, 2024; and JAROL FABIO pled guilty before U.S. District Judge Arun Subramanian on August 13, 2024.
U.S. Attorney Damian Williams said: “These four flight attendants abused their privileges as flight attendants to move money for drug traffickers. My Office is committed to staunching the illicit flow of narcotics proceeds in all of its forms. These guilty pleas show that the sky is not the limit when it comes to law enforcement’s reach.”
According to the allegations in the Complaints, the Informations, court filings, and statements made in Court:
During the relevant period, all of the defendants were employed as flight attendants with different international airlines that operated routes between New York City and the Dominican Republic. All of the defendants had “Known Crewmember” (“KCM”) status with the Transportation Security Administration, which allowed them to pass through a special security lane at John F. Kennedy International Airport and other airports with less scrutiny than normal passengers.
Before or in about October 2021, a cooperating witness (“CW-1”) operated a significant money laundering organization (“MLO”) in New York City, specializing in the movement of cash proceeds from narcotics sales from New York City to the Dominican Republic. One method that CW-1 used in furtherance of their MLO was corrupting flight attendants, like the defendants, who worked routes between New York City and the Dominican Republic. In exchange for a fee – which generally amounted to a small percentage of the amount of money that they would be smuggling – the defendants accepted bulk cash from CW-1 in New York City, got it past airport security via the KCM lane, and passed it off to other members of CW-1’s MLO in the Dominican Republic, including another cooperating witness (“CW-2”). After CW-1 and CW-2 began cooperating with law enforcement, Homeland Security Investigations (“HSI”) and the New York City Police Department (“NYPD”) orchestrated a number of sting operations in which CW-1 provided law enforcement funds represented to be narcotics proceeds to the defendants, who then smuggled it down to the Dominican Republic and handed it off to CW-2, who returned the funds to law enforcement.
* * *
PUJOLS, 42, of the Bronx, New York; HERNANDEZ, 42, of West New York, New Jersey; EMMANUEL TORRES, 34, of Brooklyn, New York; and JAROL FABIO, 35, of New York, New York, each respectively pled guilty to one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison. PUJOLS will be sentenced by Judge Buchwald on November 14, 2024; HERNANDEZ will be sentenced by Judge Abrams on November 15, 2024; TORRES will be sentenced by U.S. District Judge Colleen McMahon on January 6, 2025; and FABIO will be sentenced by Judge Subramanian on November 15, 2024. As part of their guilty pleas, PUJOLS, HERNANDEZ, TORRES, and FABIO each agreed to forfeit property involved in their commission of the offense.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin A. Gianforti and Jaclyn Delligatti are in charge of the prosecution.
Former Town Clerk and Town Council Member Pleads Guilty to Stealing More Than $195,000 from Town of CusickRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Luke Michael Servas, a former public official for the Town Cusick, Washington, pleaded guilty to Bank Fraud in connection with embezzling Town funds. United States District Judge Thomas O. Rice accepted Servas’s guilty plea and scheduled a sentencing hearing for November 13, 2024, in Spokane, Washington.
According to the plea agreement and other court filings, Servas embezzled more than $195,000 while employed as the Town Clerk for the town of Cusick, Washington between October 2022 and March 2023. During that time period, Servas was also an elected member of the town council.
Like many cities and towns, Cusick residents elect a town council, which selects a town clerk. The clerk is responsible for managing Cusick’s finances and financial accounts. Cusick’s account also had two credit cards issued to make expenditures on behalf of the town: one issued to Cusick’s elected mayor, and one issued to Servas as town clerk.
Servas fraudulently and without authority used the mayor’s town credit card, as well as his own town credit card, to embezzle and transfer more than $190,000 in public town funds from Cusick’s bank account to PayPal accounts owned and controlled by Servas and his spouse, and to a cryptocurrency account owned and controlled by Servas.
In March of 2023, other town officials expressed concern that funds were missing from the town’s account. Servas contacted the Pend Oreille County Sheriff’s Office to report that between $150,000 and $200,000 had been stolen from the Town of Cusick’s operating bank account. Servas indicated that these funds were stolen using the mayor’s credit card account and falsely stated that only the mayor had access to the account. After making this report, Servas wrote a fraudulent $4,961 check from Cusick’s account to himself, forged the mayor’s signature as well as that of another town official, and cashed the check on or about March 20, 2023.
“Mr. Servas not only carried out a fraudulent scheme to rob a town of its financial resources, but when his colleagues noticed the money missing, Mr. Servas filed a report with law enforcement to hide his theft.” stated U.S. Attorney Waldref. “Mr. Servas took these actions while an elected public official with a moral duty and legal obligation to protect that money. Our communities trust elected officials to serve others, rather than to look after only their own self-interest. When elected officials abuse this trust by committing theft and lining their own pockets with taxpayer money, these officials devastate our communities and undermine our democratic system of government. I commend the exceptional work done by the FBI and the Washington State Auditor’s Office to root out the fraud. We will continue to work closely with our law enforcement partners to expose and prosecute public corruption, self-dealing, and fraud.”
“I’m sure a small town like Cusick could have used the nearly $200,000 Mr. Servas embezzled,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Even more disturbing, Mr. Servas served in a position of trust as the Town Clerk when he committed his fraud. Investigating the corruption of public officials remains one the FBI’s most important priorities.”
This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency, with investigative and logistical support from the Pend Oreille County Sheriff’s Office and the Washington State Auditor’s Office. This case is being prosecuted by Assistant United States Attorney Dan Fruchter.
Former San Luis Obispo County Sheriff’s Deputy Sentenced to Seven Months in Federal Prison for Abusing Jail Inmate While on DutyRead the Press Release
LOS ANGELES – A former San Luis Obispo County sheriff’s deputy was sentenced today to seven months in federal prison for abusing a county jail inmate by dragging the victim by her hair on the ground from one cell by several feet and then throwing her into another jail cell.
Joshua Fischer, 42, of Grover Beach, was sentenced by United States District Judge André Birotte Jr.
At today’s hearing, Judge Birotte said Fischer’s actions toward the victim showed a “level of callousness” and “disdain” toward the victim and that his use of force was “unreasonable.”
Fischer pleaded guilty on April 2 to one misdemeanor count of deprivation of rights under color of law. As part of his plea agreement, Fischer agreed to not seek future employment as a sworn law enforcement officer.
Fischer was a sworn law enforcement officer and San Luis Obispo County Sheriff’s Office senior correctional deputy assigned to work at the Intake Release Center in the city of San Luis Obispo between January 2017 and December 2018.
While on duty on November 18, 2018, Fischer instructed the victim, a jail inmate, to exit her cell, which she did. Fischer then directed her to enter an adjacent cell. After arguing with Fischer, the victim, who was shirtless, turned around, crossed her arms across her chest, and started to re-enter her original cell.
Fischer forcibly grabbed the victim by her hair and pulled her to the ground. He then dragged the victim across the floor by her hair several feet. Fischer then flung the victim, again by her hair, into an adjacent cell. After Fischer closed the cell door, the victim huddled in the corner of the cell.
Fischer then authored a report about the incident and saved it as “11-18-18 [victim’s last name] what a drag” on a San Luis Obispo County Sheriff’s Office computer.
In his plea agreement, Fischer admitted that he knew his use of force during the November 2018 incident was unreasonable and unnecessary. He also admitted that he acted willfully, intending to deprive the victim of her right to be free from the use of unreasonable and unnecessary force by a law enforcement officer.
Prior to the filing of charges in this case, the San Luis Obispo County Sheriff’s Office terminated Fischer’s employment.
The FBI investigated this matter with assistance from the San Luis Obispo County Sheriff’s Office.
Assistant United States Attorneys Thomas F. Rybarczyk and Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.
Former Postal Employee Pleads Guilty to Four Counts of Workers’ Compensation FraudRead the Press Release
UTICA, NEWYORK -- Christopher Gleason, age 36, of Auburn, New York appeared before U.S. District Court Judge David N. Hurd today and pleaded guilty to four counts of false statement to obtain federal employees’ compensation, announced United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge, United States Postal Service, Office of Inspector General - Northeast Region.
Gleason was employed by the U.S. Postal Service as a letter carrier. On January 20, 2022, Gleason sprained his ankle while delivering mail. Shortly thereafter, Gleason began receiving workers’ compensation benefits administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP). To continue receiving benefits, Gleason was required to electronically complete, sign and file a Claim for Compensation Form CA-7 biweekly. On each form, Gleason was instructed to report any and all earnings from employment outside his federal job during the period claimed in the CA-7. The defendant admitted to filing multiple false claims affirming that he had not worked outside of his federal job, when the defendant was in fact working and earning income performing construction work while collecting workers’ compensation benefits. As a result of the false statements, Gleason received benefits totaling $14,858.94.
At sentencing, scheduled for December 11, 2024, Gleason faces up to 5 years in prison, a fine of up to $250,000.00 a term of supervised release of up to 3 years, and Gleason will be required to pay restitution in the amount of the fraudulently obtained benefits. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
The United States Postal Service, Office of Inspector General, and the U.S. Department of Labor investigated this case. Assistant U.S. Attorney Tamara Thomson is prosecuting the case.
Former Pennsylvania Attorney Pleads Guilty to Tax EvasionRead the Press Release
A former Luzerne County, Pennsylvania, attorney pleaded guilty today to tax evasion for calendar year 2016 in connection with substantial legal fees he earned while associated with The Powell Law Group P.C., a Luzerne County-based law firm. Powell was released on an unsecured bond while awaiting his sentencing.
According to court documents and statements made in court, Robert Powell sought to evade a substantial tax that was due and owing the IRS for 2016 by using nominee bank accounts, causing an accountant to file a request for a filing extension that falsely reported zero estimated tax liability for 2016 and making false statements during an IRS audit in 2019.
Powell’s license to practice law was suspended in 2009 and he was subsequently disbarred in 2015. As a result, in 2009, he relinquished his ownership of The Powell Law Group. He nevertheless retained the right to collect 90% of the remainder of any future fees collected by the firm after the payment of firm expenses. Specifically, The Powell Law Group represented thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015 and The Powell Law Group was expected to receive approximately $120 million in attorneys’ fees from that settlement.
Prior to the attorneys’ fees disbursement, The Powell Law Group and its co-counsel used those future legal fees as collateral to obtain a series of loans totaling over $125 million. Instead of depositing the loan proceeds into The Powell Law Group’s bank accounts and using them to pay firm expenses, Powell directed the loans to nominee bank accounts that were under his control. He then used the loan proceeds for his personal debts and expenses as well as his and his former law partner’s personal benefit.
In June 2016, most of the attorneys’ fees were finally disbursed and the loans were repaid. Nevertheless, Powell did not file a personal income tax return and pay taxes on the receipt of the fees in that year. After the initial disbursement and through October 2019, an additional $12 million in attorneys’ fees was distributed and The Powell Law Group’s share continued to be directed into nominee bank accounts that Powell controlled. Powell personally received an additional $3.6 million of the fees during that time.
For the full period of tax years 2010 through 2022, Powell did not file income tax returns despite receiving and spending other personal income. Rather, he willfully attempted to evade taxes due and owing by him to the United States.
In 2019, when the IRS commenced an audit of his tax liabilities, Powell made false statements to the interviewing revenue agents to conceal his income and expenditures for tax years 2014 through 2016. Namely, Powell falsely stated that his only source of funds were loan advances, that he and his spouse did not have signature authority or control over other bank accounts and that he had no ownership in any corporations.
Ultimately, as alleged by the government, Powell received millions in income over the relevant time period resulting in substantial taxes that were due but not paid to the United States.
In the plea agreement filed with the Court, Powell agreed to pay full restitution to the IRS in an amount to be determined by the Court at a later date.
“Powell engaged in a lengthy scheme to hide his income and not pay taxes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “And when audited by the IRS, rather than step up, acknowledge his illegal conduct and pay what he owed, he chose to double down and lie to the revenue agents who interviewed him.”
“For over a decade Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors and support staff for their hard work that will allow justice to be finally served in this important case.”
“Federal income tax compliance should be equally shared among all Americans,” said Acting Special Agent in Charge Denise Leuenberger of the IRS Criminal Investigation (IRS-CI) Philadelphia Field Office. “Defrauding the government with an elaborate scheme to underreport taxable income is unlawful. Mr. Powell’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their federal income tax responsibilities.”
IRS-CI is investigating the case.
Trial Attorney Alexandra Fleszar of the Tax Division and Senior Litigation Counsel Phillip J. Caraballo and Criminal Division Chief Bruce D. Brandler for the Middle District of Pennsylvania are prosecuting the case.
Powell SOF.pdfFormer Luzerne County Attorney Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania and the Department of Justice, Tax Division announced that Robert J. Powell, age 65, of Palm Beach, Florida, appeared in federal district court today and pled guilty to a one-count criminal information charging him with tax evasion for calendar year 2016, in connection with substantial legal fees he earned while associated with The Powell Law Group, P.C., a Luzerne County-based law firm. Powell was released on an unsecured bond while awaiting his sentencing.
According to court documents and statements made in court, Powell sought to evade a substantial tax that was due and owing the IRS for 2016 by using nominee bank accounts, causing an accountant to file a request for a filing extension that falsely reported zero estimated tax liability for 2016, and making false statements during an IRS audit in 2019.
Attached hereto is a detailed statement of facts that accompanied the guilty plea. Powell’s license to practice law was suspended in 2009 and he was subsequently disbarred in 2015. As a result, in 2009 he relinquished his ownership of The Powell Law Group. He nevertheless retained the right to collect 90% of the remainder of any future fees collected by the firm after the payment of firm expenses. Specifically, The Powell Law Group represented thousands of plaintiffs in a mass tort litigation that settled for approximately $5.15 billion in 2015 and The Powell Law Group was expected to receive approximately $120 million in attorneys’ fees from that settlement.
Prior to the attorneys’ fees disbursement, The Powell Law Group and its co-counsel used those future legal fees as collateral to obtain a series of loans totaling over $125 million. Instead of depositing the loan proceeds into the Powell Law Group's bank accounts and using them to pay firm expenses, Powell instead directed the loans to nominee bank accounts that were under his control. He then used the loan proceeds for his personal debts and expenses, as well as his and his former law partner’s personal benefit.
In June 2016, most of the attorneys’ fees were finally disbursed and the loans were repaid. Nevertheless, Powell did not file a personal income tax return and pay taxes on the receipt of the fees in that year. After the initial disbursement and through October 2019, an additional $12 million in attorneys’ fees was distributed and The Powell Law Group’s share continued to be directed into nominee bank accounts that Powell controlled. Powell personally received an additional $3.6 million of the fees during that time.
Indeed for the full period of tax years 2010 through 2022, Powell did not file income tax returns for those years despite receiving and spending other personal income. Rather he willfully attempted to evade taxes due and owing by him to the United States.
In 2019, when the IRS commenced an audit of his tax liabilities, Powell made false statements to the interviewing revenue agents to conceal his income and expenditures for tax years 2014 through 2016. Namely, Powell falsely stated that his only source of funds were loan advances, that he and his spouse did not have signature authority or control over other bank accounts, and that he had no ownership in any corporations.
Ultimately, as alleged by the government, over the relevant time period Powell received millions in income resulting in substantial taxes that were due but not paid to the United States.
In the plea agreement filed with the Court, Powell agreed to pay full restitution to the IRS in an amount to be determined by the Court at a later date.
“For over a decade Robert Powell failed to file personal income tax returns and executed a sophisticated scheme to evade paying substantial taxes that were due and owing the IRS from massive legal fees his firm earned, said U.S. Attorney Karam. “The brazenness of his conduct included using nominee bank accounts, reporting zero estimated tax liability for the years in question, and repeatedly lying to IRS auditors attempting to unravel the scheme. I want to thank all the IRS agents, prosecutors, and support staff for their hard work that will allow justice to be finally served in this important case.”
“Federal income tax compliance should be equally shared among all Americans,” said Denise Leuenberger, Acting Special Agent in Charge, IRS Criminal Investigation, Philadelphia Field Office. “Defrauding the government with an elaborate scheme to underreport taxable income is unlawful. Mr. Powell’s plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their federal income tax responsibilities.”
The Acting Deputy Assistant Attorney General of the Justice Department's Tax Division, Stuart M. Goldberg, said, “Powell engaged in a lengthy scheme to hide his income and not pay taxes. And when audited by the IRS, rather than step up, acknowledge his illegal conduct, and pay what he owed, he chose to double down and lie to the revenue agents who interviewed him.”
The case was investigated by the Scranton office of the Internal Revenue Service, Criminal Investigation Division. Senior Litigation Counsel Phillip J. Caraballo, Tax Division Trial Attorney Alexandra Fleszar, and Criminal Division Chief Bruce D. Brandler are prosecuting the case.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, a fine and restitution. 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.
# # #
Statement of Facts
Defendant Robert J. Powell was an attorney, businessman, and investor. Robert J. Powell was a resident of Luzerne County, Pennsylvania, until in or about 2009, when he relocated to Palm Beach County, Florida.
Until on or about August 31, 2009, Robert J. Powell was the founder and owner of The Powell Law Group, P.C. (“Powell Law Group”), a law firm located in Luzerne County, Pennsylvania, and incorporated in the Commonwealth of Pennsylvania in or about December 2002. In or about August 2009, Robert J. Powell’s license to practice law was suspended by the Commonwealth of Pennsylvania. Robert J. Powell subsequently was disbarred from the Bar of the Commonwealth of Pennsylvania, in or about January 2015.
Prior to Robert J. Powell’s suspension from the practice of law, he owned 90% of the shares of the Powell Law Group. The remaining 10% of shares were owned by his partner, attorney Jill Moran. On or about August 31, 2009, Robert J. Powell relinquished his directorship of the Powell Law Group, and Jill Moran became the Managing Director and President of the Powell Law Group. Robert J. Powell also surrendered his shares in the Powell Law Group, leaving Jill Moran the sole shareholder.
Beginning prior to Robert J. Powell’s suspension from the practice of law and incarceration, the Powell Law Group served as counsel for approximately 4,300 plaintiffs in a mass tort litigation (the “Mass Tort Litigation”). On or about September 15, 2009, Robert J. Powell and Jill Moran entered a Memorandum of Understanding whereby they agreed that any future attorneys’ fees from the Mass Tort Litigation would first be applied to pay the Powell Law Group’s expenses, with 90% of the remaining fees disbursed to Robert J. Powell, and 10% of the remaining fees disbursed to Jill Moran. In or about April 2014, the Mass Tort Litigation settled for approximately $5.15 billion. Of that settlement, the Powell Law Group expected to receive attorneys’ fees in excess of approximately $120 million.
In or about May 2014, the Powell Law Group and two co-counsel law firms entered a loan agreement with Financing Company #1. Pursuant to that loan agreement, Financing Company #1 agreed to loan approximately $100 million to the Powell Law Group and the two co-counsel law firms. The loan was collateralized by the anticipated attorneys’ fees from the Mass Tort Litigation. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran the loan agreement with Financing Company #1, to sign on behalf of the Powell Law Group.
Pursuant to the loan agreement with Financing Company #1, and after the payment of fees and expenses, the Powell Law Group and the two co-counsel law firms were each designated to receive approximately $33 million in loan proceeds. Of the $33 million in loan proceeds designated for the Powell Law Group, approximately $9 million was sent by Financing Company #1 to three financial institution creditors holding outstanding debt-related judgments against Robert J. Powell, the Powell Law Group, and Jill Moran. The remaining Powell Law Group loan proceeds of approximately $24 million were deposited into an account held in the name of Company #1.
Robert J. Powell arranged for the Powell Law Group’s loan proceeds to be held in Company #1’s bank account, instead of transferring those funds to the Powell Law Group’s bank accounts. Robert J. Powell had the ability to request distributions of the Powell Law Group loan proceeds held in Company #1’s bank account. Robert J. Powell used funds from the Powell Law Group loan proceeds held in Company #1’s bank account for his own personal expenses and investments, including to pay down personal debts accrued by Robert J. Powell.
In or about May 2015, the Powell Law Group and the two co-counsel law firms refinanced the loan agreement with Financing Company #1, by entering an agreement with Financing Company #2. Pursuant to that agreement, Financing Company #2 agreed to repay Financing Company #1, and to distribute an additional approximate $7.6 million to the Powell Law Group and the two co-counsel law firms. The funds distributed by Financing Company #2 were collateralized by the anticipated attorneys’ fees from the Mass Tort Litigation. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran with the agreement with Financing Company #2, to sign on behalf of the Powell Law Group.
Financing Company #2 distributed the additional approximate $7.6 million to a bank account held in the name of Company #1. Robert J. Powell retained those funds in a bank account held in the name of Company #1, instead of transferring those funds to the Powell Law Group’s bank accounts.
On or about April 8, 2016, the Powell Law Group and the two co-counsel law firms entered a second amendment to the agreement with Financing Company #2. As Robert J. Powell had relinquished his ownership of the Powell Law Group, he provided Jill Moran with the second amendment, to sign on behalf of the Powell Law Group. Pursuant to the second amendment, Financing Company #2 distributed an additional $3 million to Company #1’s bank account. Robert J. Powell used funds from the $3 million for personal obligations and expenses.
Between in or about February and June 2016, the trustee overseeing the Mass Tort Litigation (the “Tort Trustee”) repaid Financing Company #2 in full, by distributing approximately $125,849,595.59 in attorneys’ fees due to the Powell Law Group. Following the payoff of Financing Company #2, all additional attorneys’ fees due to the Powell Law Group from the Mass Tort Litigation were distributed by the Tort Trustee to a bank account held in the name of a co-counsel law firm. Between in or about June 2016 to October 2019, the Tort Trustee distributed in excess of approximately $12 million to the co-counsel law firm’s bank account. Nearly all of those approximate $12 million were in turn transferred to Company #1’s bank account.
Of that approximate $12 million in additional attorneys’ fees distributed by the Tort Trustee, Robert J. Powell personally received in excess of approximately $3.6 million, between in or about June 2016 through August 2019. Robert J. Powell personally received those funds from Company #1’s bank account, including by requesting that Company #1 transfer funds to a bank account under Robert J. Powell’s control, but held in the name of 656 Hermitage Circle LLC. Robert J. Powell used the funds held in 656 Hermitage Circle LLC’s bank account for his own personal expenses and investments.
Robert J. Powell failed to file personal income tax returns for tax years 2010 through 2022, despite receiving and spending personal income during those years, and willfully attempted to evade taxes due and owing by him to the United States. For tax years 2015 through 2019, Robert J. Powell’s accounting professionals filed with the Internal Revenue Service (“IRS”) tax filing extensions that reported zero estimated tax liabilities, on the following dates:
- a tax filing extension for tax year 2015, filed on or about April 14, 2016;
- a tax filing extension for tax year 2016, filed on or about April 12, 2017;
- a tax filing extension for tax year 2017, filed on or about March 17, 2018;
- a tax filing extension for tax year 2018, filed on or about March 10, 2019; and
- a tax filing extension for tax year 2019, filed on or about July 9, 2020.
In or about August 2019, the IRS notified Robert J. Powell that he was the subject of an IRS audit. On or about October 22, 2019, Robert J. Powell was interviewed by IRS revenue agents in the course of the audit. During that interview, Robert J. Powell made several false statements to the IRS revenue agents, to conceal his income and expenditures during tax years 2014, 2015, and 2016. Those false statements included:
- that his only sources of funds were loan advances;
- that he and his spouse did not have signature authority or control over any other bank accounts; and
- that he had no ownership in any corporations.
Former Attorney Sentenced to 25 Years in Federal Prison on Embezzlement and Fraud Charges in Connection with Collapse of Washington Federal BankRead the Press Release
CHICAGO — A former attorney has been sentenced to 25 years in federal prison for embezzlement and fraud in connection with the failure of Washington Federal Bank for Savings in Chicago.
ROBERT M. KOWALSKI served a key role in an embezzlement scheme at Washington Federal. The bank, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that it was insolvent and had at least $66 million in nonperforming loans. Much of the money was transferred to Kowalski, who at the time was a licensed attorney, and two real estate developers without all of the required documentation and often without any documentation whatsoever. The embezzled funds were falsely identified in the bank’s records as loan disbursements, even though the bank never required Kowalski to repay the money.
After the collapse of the bank, the Federal Deposit Insurance Corp. attempted to collect the money and properties that Kowalski obtained as part of the embezzlement scheme. Kowalski responded by filing a fraudulent bankruptcy case, in which he attempted to conceal his possession of numerous assets. To substantiate numerous misrepresentations in his bankruptcy filings and avoid paying taxes, Kowalski filed false corporate and personal tax returns for several years. He also failed to file any returns at all for two years.
Kowalski, 62, of Robbins, Ill., was convicted last year of embezzlement, bankruptcy fraud, and tax fraud charges. In addition to the prison term, U.S. District Chief Judge Virginia M. Kendall on Tuesday ordered Kowalski to pay restitution of $7.2 million to the FDIC and $424,047 to the IRS.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office; Korey Brinkman, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The federal criminal investigation into the bank’s collapse led to charges against a total of 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees. Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.
Robert Kowalski’s sister, JAN R. KOWALSKI, also formerly an attorney, pleaded guilty and is serving a two-and-a-half-year prison sentence for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.
Former Air Force Chief Master Sergeant Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
Wilmington, Del. – Paul Michael Wilcox, 42, formerly a Chief Master Sergeant stationed at Dover Air Force Base, pleaded guilty today to possessing child sexual abuse material (“CSAM”), announced David C. Weiss, U.S. Attorney for the District of Delaware. Chief Judge Colm F. Connolly, U.S. District Court for the District of Delaware, accepted the plea.
According to statements made in open court, the investigation into Wilcox began after law enforcement received a cyber tip from the National Center for Missing & Exploited Children reporting that a Google account holder uploaded CSAM to the Internet in May 2023. Law enforcement identified Wilcox as the owner and user of the Google account. Law enforcement also searched the account and confirmed that Wilcox had uploaded CSAM to his Google account.
U.S. Attorney Weiss stated, “Prosecuting individuals who choose to prey upon and exploit the most vulnerable members of our community remains a priority for my office. We will work tirelessly with our law enforcement partners to expose the perpetrators of these heinous crimes and bring them to justice.”
The United States Air Force Office of Special Investigations investigated this case, with the assistance of Homeland Security Investigations and Delaware Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Claudia L. Pare is prosecuting this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 23.63.
Floyd County Man Sentenced to 50 Years for Production and Distribution of Child PornographyRead the Press Release
PIKEVILLE, Ky. – A Harold, Ky., man, Christopher Hall, 26, was sentenced on Wednesday, by Chief U.S. District Judge Danny C. Reeves, to 50 years in prison, for production and distribution of child pornography.
According to his plea agreement, on May 29, 2022, Hall produced a video of him sexually abusing a minor. Hall later distributed the video to others using WhatsApp.
Under federal law, Hall 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; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorney Justin Blankenship prosecuted the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
— END —
Federal Jury Convicts Felon on Supervised Release of Using A Fraudulently Obtained Social Security Number and Theft of Social Security BenefitsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Kellis Dion Jackson (63, Pinellas Park), a/k/a Chandler Dante Alexander, guilty of making a false statement to a federal agency, theft of government property, and fraudulent use of a Social Security number. Jackson faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to evidence presented at trial, Jackson stole Supplemental Security Income (SSI) disability benefits from the Social Security Administration while on federal supervision for prior federal offenses. Prior to submitting an application for SSI, Jackson obtained a Social Security number under the fictional identity of Chandler Dante Alexander by falsely reporting that he had never had a Social Security number and providing false information regarding his birthdate and parents. Jackson used the fraudulently obtained Social Security number to get a commercial driver license, work, file tax returns, get married, and open bank accounts. Jackson thereafter applied for SSI and Supplemental Nutrition Assistance (SNAP) benefits using his birth name and valid Social Security number. Jackson made false statements on the SSI application and related documents, including falsely stating that he was not married, and his application was approved. Jackson’s SSI application would not have been approved had he reported his marriage and work activity under the fraudulently obtained Social Security number. In total, Jackson received $43,755 in SSI benefits to which he was not entitled.
This case was investigated by the Social Security Administration - Office of the Inspector General, the Department of Health and Human Services - Office of Inspector General, and the United States Department of Agriculture, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Federal Court Permanently Shuts Down Texas Tax Return PreparerRead the Press Release
The U.S. District Court for the Northern District of Texas issued a permanent injunction today barring Texas tax return preparer Ruben Gonzalez and anyone acting with him or at his direction from preparing federal tax returns for others. Gonzalez consented to entry of the permanent injunction.
According to the injunction, Ruben Gonzalez is banned from using his business called “Sin Barreras Income Tax” to prepare returns for others. The government’s complaint alleged that Gonzalez or those working for him significantly overstated customers’ tax refunds in a substantial number of returns prepared at the business from 2021 to 2023, by fabricating or inflating business losses, by fabricating charitable donation deductions and by falsely claiming energy credits and coronavirus family sick leave credits to which the customers were not entitled. By repeatedly overstating customers’ tax refunds, the complaint alleges Gonzalez caused the United States harm of more than $20 million in lost tax revenue from 2021 to 2023.
The permanent injunction requires Gonzalez to send notice of the injunction to each person for whom he, or preparers at Sin Barreras Income Tax, prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2021, to the present. The permanent injunction also requires Gonzalez to post a copy of the injunction at all locations where he conducts business and post a statement on all social media accounts and websites that he is barred from preparing tax returns.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Signed PI - Gonzalez.pdfFargo, ND, Man Sentenced to Federal Prison for Robbery of a Mail CarrierRead the Press Release
Fargo – United States Attorney Mac Schneider announced that on August 14, 2024, DeShaun Holmes, age 22 from Fargo, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 114 months in federal prison, followed by five years supervised released and an order of forfeiture of a Glock 9mm pistol for the offenses of Robbery of a Mail Carrier (18 USC 2114(a)) and Brandishing a Firearm During and in Relation to a Crime of Violence.
On July 17, 2023, DeShaun Holmes robbed a postal carrier at gun point in Frontier, ND, and stole a key from the carrier to gain access to numerous post office boxes and mail receptacles with the intent to commit further crimes of bank fraud and mail fraud. Thanks to a collaborative investigation between federal and local law enforcement, Holmes was identified, arrested, and charged four days after the offense.
“This defendant targeted a mail carrier in our community because of his job,” Schneider said. “That job is an important and often difficult one, but it should never be dangerous. As this strong sentence shows, the United States Attorney’s Office will forcefully prosecute anyone who threatens the men and women of the United States Postal Service with violence. I want to thank our law enforcement partners for working with our career prosecutors to make sure this defendant faced justice in federal court.”
"The safety and security of Postal Service employees and customers are core to the mission of the United States Postal Inspection Service, and this violent incident is a tremendous example of how local, state, and federal partners can join together to quickly and safely resolve situations like this," said Denver Division Inspector in Charge Bryan Musgrove “I would like to thank all the emergency responders along with our law enforcement partners at Cass & Clay County Sheriffs as well as Fargo PD for their efforts that led to a successful investigation, arrest and prosecution of DeShaun Holmes. “
“As Sheriff, I know the importance of partnering with our local, state, and federal partners to reduce criminal activity in our communities. This is a prime example of those partnerships. The United States Postal Service was quick to respond when asked to assist with this case. Through that partnership, they worked collaboratively with our agency to identify and arrest Deshawn Holmes for his actions in an armed robbery of one of our local mail carriers in the Frontier neighborhood. The partnership, quick investigative action, and follow-through with the US Attorney’s Office assured that Holmes will be held accountable for his actions and will look to bring justice to the victim in this case. I want to thank all of those who were involved in investigating this case and the US Attorney's Office for their roles and assistance in bringing this situation to a safe successful conclusion.
This case was investigated by the United States Postal Inspection Service, Cass County Sheriff’s Office, Clay County Sheriff’s Office, and the Fargo Police Department, and prosecuted by Assistant United States Attorney Matthew Greenley.
# # #
Falconer woman pleads guilty to child pornography chargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Lily A. Brandow, 23, of Falconer, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography, which carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in June 2021, Brandow sold a video to two different Snapchat users for $20 showing her, co-defendant Yusef Myrick and a 16-year-old minor female engaged in sexual relations. In addition, while Myrick was in custody in connection with this case, he instructed Brandow to “get rid of” a cell phone, which both Myrick and Brandow knew contained child pornography. At Myrick’s instruction, Brandow also logged into and deleted Myrick’s Snapchat and Google accounts, rendering them inaccessible to law enforcement. When Brandow was arrested in January 2022, the cell phone was found in her purse. A subsequent search of phone recovered an image and three videos of child pornography.
Charges are pending against Yusef Myrick.
The plea is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone; the Jamestown Police Department, under the direction of Chief Timothy Jackson; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for February 6, 2025, at 10:00 a.m. before Judge Sinatra.
East Boston Man Sentenced to Five Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man was sentenced yesterday for possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 25, was sentenced by U.S. District Judge Richard G. Stearns to five years in prison and five years of supervised release. He was also ordered to pay $3,000 in restitution. In May 2024, Pineda pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography.
Law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. On Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups on that platform. An additional 54 videos of CSAM, involving children as young as six years old, were found within the chat platform’s application on Pineda’s personal cell phone.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit 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 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.
Convicted Felon Who Was Showing Off His Shotguns to His Friends Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that James Hilligardt (21, Brooksville) has pleaded guilty to possessing a firearm as a convicted felon. Hilligardt faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, on January 23, 2024, Hilligardt was showing his firearms off to friends, and in the process ended up with an accidental gunshot wound. Deputies with the Hernando County Sheriff’s Office responded to the scene and found him in possession of a sawed-off shotgun. The investigation revealed that Hilligardt repeatedly posted images of himself with firearms and ammunition. Detectives later recovered a second shotgun that Hilligardt owned, which had been buried in a yard. As a convicted felon Hilligardt is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Hernando County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosive. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Co-Conspirators Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – Two men were sentenced yesterday in federal court in Boston for participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Christopher Nagle, 30, of Revere and Isaac Clayton, 77, of Lynn were sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV. Christopher Nagle was sentenced to 139 months in prison and five years of supervised release. Clayton was sentenced to two months in prison to be followed by three years of supervised release, with the first six months to be served in home confinement. In February 2024, Clayton pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute controlled substances. In April 2024, Christopher Nagle pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute controlled substances and one count of possession with intent to distribute more than 500 grams of methamphetamine.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area.
Christopher Nagle, and allegedly his brother Lawrence Michael Nagle, were identified as leaders of a DTO distributing various controlled substances throughout the North Shore region of Massachusetts. It is alleged that the Nagle DTO distributed significant quantities of various controlled substances, including, Adderall (both pharmaceutical-grade pills and counterfeit pills containing methamphetamine), methamphetamine, Xanax, Oxycodone (both pharmaceutical-grade and counterfeit pills containing fentanyl), cocaine and marijuana, among others.
A search of Christopher Nagle’s apartment recovered more than 74,000 counterfeit Adderall pills containing methamphetamine, weighing more than 24 kilograms.
As part of the conspiracy, Clayton stored various controlled substances including marijuana, cocaine, cocaine base (crack cocaine) and counterfeit oxycodone pills containing fentanyl at his apartment on behalf of the DTO. A search of his apartment in October 2022 resulted in the seizure of various quantities of marijuana, cocaine base and fentanyl, as well as three loaded firearms, additional rounds of ammunition, $2,640 in drug proceeds and materials used to package and distribute controlled substances.
Lawrence Michael Nagle has pleaded not guilty and is scheduled for trial on Jan. 6, 2024.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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 details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chelsea Man Arrested for Armed Robberies of Three Local BanksRead the Press Release
BOSTON – A Chelsea man was arrested today in connection with the armed robberies of banks in Weymouth, Jamaica Plain and Hyde Park.
Keywan Kelly, 29, was charged with three counts of armed bank robbery. Kelly was arrested this morning and will appear in federal court in Boston at 2 p.m. today.
According to the charging documents, at approximately 11:52 a.m. on July 1, 2024, a male – later allegedly identified as Kelly – entered a Bank of America branch in Weymouth wearing gloves and a medical mask. Kelly allegedly approached a teller window and pushed a handwritten note towards the teller demanding $20,000 and threatened that he would “kill you all,” while pointing a firearm at the teller. It is alleged that the teller then handed Kelly $15,000, after which Kelly demanded more and the teller gave him additional cash of approximately $4,000 to $5,000 before leaving the bank. During the robbery, Kelly allegedly made verbal threats such as, “Run that s**t before I blow this place up” and “I’ll kill all of you.”
Similarly, at approximately 1:41 p.m. on July 16, 2024, a male – later allegedly identified as Kelly – entered the Rockland Trust Bank in Jamaica Plain wearing a black balaclava style mask, black clothing and white latex gloves. Kelly allegedly approached the teller window and handed the teller a note that read, “I need 20K no DyPacks I have 4 bombs I’ll Kill everyone make quick,” while brandishing a firearm. Kelly allegedly fled the bank on foot after receiving approximately $2,480 in cash from the teller.
It is further alleged that, at approximately 10:09 a.m. on July 26, 2024, a male – later allegedly identified as Kelly – entered another Rockland Trust Bank branch in Hyde Park, again wearing a black balaclava style mask and gloves. There, Kelly allegedly handed the teller a handwritten note that included words to the effect of, “you’re being robbed give me cash,” before pointing a firearm at the teller. It is alleged that Kelly verbally threatened to “shoot” and demanded $20,000. Upon receiving approximately $3,000 in cash, Kelly took back the demand note and fled the bank.
A subsequent investigation allegedly identified Kelly on the Weymouth bank’s video surveillance and identified Kelly’s fingerprints on the vehicle used as a getaway car following the Weymouth robbery. The investigation also allegedly revealed connections between Kelly and vehicles that were identified as being in the vicinity of the Jamaica Plain and Hyde Park banks at the time of the robberies. Cell phone location data allegedly revealed that Kelly’s cell phone was present in the vicinity of each of the banks near the time of the robberies.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, up to five years of supervised release and a fine of up to $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Boston and Weymouth Police Departments. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Matthew L. Farmer, 33, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 8, 2023, law enforcement officers had reason to believe Farmer was carrying a firearm and encountered him while patrolling Charleston’s West Side. Officers asked Farmer if he had a firearm, and he told them he had a firearm in his back pocket. Officers retrieved a Firearms Import Export (FIE) model Titan .25-caliber handgun from Farmer’s back pocket. The firearm had a magazine inserted that contained seven rounds of ammunition.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Farmer knew he was prohibited from possessing a firearm because of his prior felony convictions for first-degree robbery in Monongalia County Circuit Court on October 7, 2015, and grand larceny in Wetzel County Circuit Court on January 26, 2011.
Farmer is scheduled to be sentenced on December 10, 2024, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department-Special Enforcement Unit (SEU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Alexander A. Redmon 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.
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-202.
###
Carteret County Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
RALEIGH, N.C. – A Carteret County man was sentenced today to 360 months in prison followed by a lifetime of supervised release for production of child pornography, including videos in which the defendant is sexually abusing a minor. The investigation ultimately found a collection of more than 1,000 images of child pornography in the possession of the defendant. The Court ordered $56,000 in restitution for the victim. Lester David Gillberg, 33, pled guilty in March of 2023.
According to court documents and other information presented in court, the Carteret County Sheriff’s Office (CCSO) and the Department of Homeland Security launched an investigation into Gillberg in June 2022 for child exploitation offenses following a cybertip that the CCSO received from the National Center for Missing and Exploited Children. Dropbox had reported one of its users had uploaded images depicting the sexual abuse of children. The IP address used to upload the images came back to the residence in which Gillberg was living. When investigators visited Gillberg’s residence, Gillberg initially denied knowing anything about child pornography then changed his story and told investigators he received child pornography in a chat group and that he uploaded the files to his Dropbox account so he could report it to the authorities. Gillberg said he forgot to make a police report.
During the 2022 investigation, one of Gillberg’s family members told investigators that Gillberg had been investigated for child pornography in Kansas a few years prior. Gillberg was arrested on state warrants and digital devices were seized for analysis. Investigators confirmed that in 2019 law enforcement in Kansas investigated Gillberg after Dropbox reported one of its users had uploaded child pornography. The email used for the uploads was linked to Gillberg. Gillberg claimed he recently discovered his phone had been stolen months ago.
In October 2022, a family member reported to law enforcement they found a computer and cell phone they believed belonged to Gillberg that contained child pornography. Law enforcement obtained a search warrant to examine the devices. The phone turned out to be the phone Gillberg had reported stolen in the 2019 Kansas investigation. When the media files on the phone were examined law enforcement found evidence Gillberg had been taking images of videos of him sexually assaulting a child with whom he had contact. The investigation showed Gillberg had distributed the images he produced of the child and had conversations with others online about the sexual abuse of children. Investigators found that Gillberg had a collection of over 1,000 images depicting the sexual abuse of children.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge James C. Dever III presided over the sentencing. The Carteret County Sheriff’s Office, the Department of Homeland Security and the N.C. State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson 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. 4:23-CR-43-D
###
California drug trafficker sentenced to over eight years in prisonRead the Press Release
ALEXANDRIA, Va. – A California woman was sentenced today to eight years and eight months in prison for her part in a conspiracy to distribute fentanyl and methamphetamine.
According to court documents, in September 2022, Lily Marlene Contreras Lopez, 35, took over the drug-trafficking business of her romantic partner, who was arrested on firearms and narcotics charges in California. One of her customers was Chase Scott Jones, 27, who supplied drugs to Sean Michael Johnson, 26, a long-time supplier of narcotics to customers across the nation.
Law enforcement learned that, dating back to at least May 2020, Johnson had sold tens of thousands of fentanyl pills to an individual in Virginia. An undercover officer contacted Johnson to gauge his fentanyl drug supply. Law enforcement made a total of six controlled purchases from the conspiracy beginning in January 2023. Johnson negotiated the controlled purchases with the undercover officer and sent the details to Jones, who then sourced most of the drugs from Contreras Lopez.
The fifth and six controlled purchases were conducted in person in California. The sixth deal involved 100 pounds of meth and 10 kilograms of fentanyl powder. On Dec. 6, 2023, before the deal took place, Contreras Lopez distributed the meth to Jones. Jones then proceeded to the deal location, with Contreras Lopez waiting nearby to complete the transactions. After Jones distributed the meth to the undercover officer, both Jones and Contreras Lopez were arrested.
During searches of Contreras Lopez’s apartment and storage, law enforcement recovered two kilograms of fentanyl powder, five handguns, a digital scale, a money counter, several empty promethazine bottles, and drug ledgers.
On Feb. 29, Johnson pled guilty to conspiracy to distribute fentanyl and meth. Johnson was sentenced on May 29 to eight years and six months in prison.
On Feb. 4, Jones pled guilty to conspiracy to distribute fentanyl and meth. Jones was sentenced on June 6 to 10 years in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Peter Newsham, Chief of Prince William County Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorney Christopher M. Carter prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
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. 1:24-cr-46.
California Man Indicted for Unlawfully Exporting Aircraft Components to IranRead the Press Release
The Justice Department unsealed an indictment charging U.S.-Iranian national Jeffrey Chance Nader, 68, with crimes related to the illicit export of U.S.-manufactured aircraft components, including components used on military aircraft, to Iran in violation of U.S. economic sanctions and other federal laws. Nader was arrested yesterday in California.
“This action demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“Attacks by Iran and its proxies on U.S. allies in the Middle East and its ongoing supply of Russia with drones and other technology to be used in its illegal war against Ukraine demonstrate why we must do all that we can to stop Iran from acquiring U.S. parts, services, and technology," said U.S. Attorney Matthew M. Graves for the District of Columbia. “The charges announced today represent the latest step in our ongoing effort to hold accountable those who illegally funnel goods and services to Iran and to deter others from doing the same.”
“Iran has no business using U.S.-manufactured parts and components to keep their planes and drones in the sky,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security. “Stopping these items before they get to our adversaries – like we did here – reflects the real-world impact we’re having through the Disruptive Technology Strike Force.”
“This indictment highlights the FBI’s commitment to enforcing export laws by holding those accountable who allegedly try to smuggle U.S.-origin military equipment to the benefit of Iran,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Any circumvention of U.S. export control law is unacceptable, and the FBI works diligently with its partners across the globe to seek out and bring to justice those who violate export laws along with any shell companies that support such activities.”
According to the indictment, beginning at least in 2023, Nader and other associates, conspired to purchase and illegally export – and attempted to export – from the United States to Iran four types of aircraft components, totaling nearly three dozen individual pieces. Some of these components are for use on military aircraft operated by Iran’s armed forces, including the F-4 fighter jet.
Nader, acting on purchase orders he received from customers in Iran, coordinated the purchase of relevant aircraft components with business associates in Iran, by which Nader and his Iran-based associates would reach out to U.S.-based suppliers of such components. In several instances, Nader falsely identified himself and his company, California-based Pro Aero Capital, to the U.S.-based suppliers as the end user of the items.
Once Nader obtained the aircraft components, he attempted to export the items on multiple occasions to the United Arab Emirates (UAE). The items were then to be transshipped to the ultimate customer in Iran. The items discussed in the indictment, however, were detained by a Special Agent with the Department of Commerce, and none were successfully exported from the United States.
The FBI Washington Field Office and the Commerce Department’s Bureau of Industry and Security is investigating the case, with assistance provided by the FBI Los Angeles Field Office.
Assistant U.S. Attorney Steven B. Wasserman for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Significant assistance was provided by the U.S. Attorney’s Office for the Central District of California.
This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cabarrus County Man Sentenced for Felon in Possession of FirearmRead the Press Release
WINSTON-SALEM – A Midland, North Carolina man was sentenced today for a felony firearm offense, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina (MDNC).
RONALD CHRISTOPHER BETHEA, JR., 34, was sentenced to a 92-month term of imprisonment by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release. He pleaded guilty on April 2, 2024, to possession of a firearm by a convicted felon, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on April 4, 2023, a Cabarrus County Deputy Sheriff conducted a traffic stop of a vehicle after the driver, BETHEA, committed a traffic infraction. The Deputy smelled marijuana upon approaching the vehicle and speaking with the driver. BETHEA admitted he had 3.5 grams of “weed” in the car and advised that he had recently gotten out of prison in South Carolina. BETHEA also admitted he had a gun, and the Deputy recovered a loaded 9mm pistol from BETHEA’s right front pants pocket. During a search of BETHEA’s vehicle, deputies found small quantities of marijuana, cocaine, and psilocybin mushrooms.
BETHEA had been previously convicted of the felony offense of Attempted Murder in the Court of General Session for the State of South Carolina, Marlboro County, and was sentenced to 12 years of imprisonment. His conviction had not been set aside or expunged, and he had not been pardoned or had his civil rights restored, and he was therefore prohibited from possessing a firearm.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cabarrus County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant U.S. Attorney Craig M. Principe.
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.
###
Bronx Man Charged with Possession of Child PornographyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced that JUAN TOMAS DIAZ was arrested yesterday and charged with one count of possessing child pornography. DIAZ will be presented later today before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “As alleged, Juan Tomas Diaz, who had access to and lived in the same building as a daycare run by a family member, possessed at least one hundred images of child pornography. Among those were graphic videos and images of children, ranging from infants to young teenagers, being raped and engaging in other sexual conduct. Our investigation into Diaz is ongoing, and we urge anyone with information about Diaz’s conduct to call HSI at 1-877-4-HSI-TIP. We will continue to tirelessly work together with our law enforcement partners to detect predators and protect our community’s children.”
Acting Special Agent in Charge Erin Keegan said: “As alleged, Juan Tomas Diaz was found to have been in possession of over 100 images and videos of child pornography at his home mere steps from a daycare. Every parent's worst nightmare, the defendant had access to a childcare facility where toddlers' and young adolescents' loved ones expected they would be safe. This arrest underscores the urgency of our commitment to collaborate with our partners in the relentless fight of safeguarding our communities. I commend HSI New York's Child Exploitation Investigations Team and the U.S. Attorney's Office for the Southern District of New York for confronting this alarming reality directly.”
According to the allegations contained in the Complaint:[1]
DIAZ lives in a basement apartment in the Bronx, located below a daycare. 11 children are currently enrolled at the daycare. DIAZ has access to the daycare, which is run by a family member of DIAZ.
On or about August 13, 2024, federal agents executed a judicially authorized search warrant of DIAZ’s apartment. Pursuant to that warrant, federal agents seized and searched DIAZ’s phone, which was found to contain what appears to be over 100 images of child pornography. DIAZ, after waving his Miranda rights and signing a written Miranda consent form, voluntarily spoke to law enforcement and admitted to having viewed videos and images of minors engaged in sexual activity.
* * *
DIAZ, 46, of the Bronx, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 10 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HSI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lauren E. Phillips is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bozeman construction company owner sentenced to prison, fined $75,000 for failing to pay taxes to IRSRead the Press Release
MISSOULA — The owner of a Bozeman construction company who admitted not paying to the IRS employee-related taxes of more than $800,000 was sentenced today to federal prison and fined $75,000, U.S. Attorney Jesse Laslovich said.
The defendant, Joseph Glen Dickey, 39, owner of Alpine Customs, Inc., pleaded guilty in April to failure to truthfully account for and pay over withholding and FICA taxes, a felony, and failure to file employer’s quarterly return and pay tax, a misdemeanor.
U.S. District Judge Dana L. Christensen sentenced Dickey to one year and one day in prison, to be followed by three years of supervised release. The court also fined him $75,000 and ordered $270,807 restitution, which is the remaining amount owed after Dickey repaid some of his outstanding balance prior to sentencing.
The government alleged in court documents that Dickey owns Alpine Customs, Inc., a commercial construction company that has employed 60 or more individuals. Dickey acted as Alpine’s general manager and exercised control over every aspect of the business, including approving company payments and overseeing company bank accounts. Alpine withheld payroll taxes from employees’ paychecks, including federal income taxes and Social Security and Medicare taxes. Alpine also was required to make quarterly deposits of those payroll taxes and additional employer payroll contributions to the IRS.
Dickey did not timely deposit several employee or employer payroll taxes from 2018 to 2021. Dickey knew of the requirements and his bookkeepers and IRS officers repeatedly advised Dickey of these legal obligations. In total, Dickey failed to timely pay $803,374 in employer and employee payroll taxes.
The U.S. Attorney’s Office prosecuted the case. The IRS Criminal Investigation conducted the investigation.
XXX
Bellevue Man Sentenced to 27 Years in Federal Prison for Sexually Exploiting ChildrenRead the Press Release
BOISE – Spencer Riding, 26, formerly of Bellevue, Idaho, was sentenced to 27 years in federal prison for sexual exploitation of children, U.S. Attorney Josh Hurwit announced today. U.S. District Judge Amanda K. Brailsford also sentenced Riding to a lifetime of supervised release to follow his prison term.
According to court records, in 2019, Riding used social media to contact a 15-year-old minor child. Through social media, Riding persuaded the child to send him topless photos. Using these photos, Riding threatened the minor child. He threatened to send the topless photos to strangers on the internet if she did not send him child pornography. The child sent him child pornography to avoid release of her explicit photos. Eventually, the child and her family came forward to law enforcement.
Law enforcement, through the report from the child and investigative efforts, secured a search warrant for Riding’s residence. The search warrant authorized law enforcement to seize and forensically analyze his digital devices. Law enforcement seized a cell phone and forensically examined it. On the phone, law enforcement discovered images of child pornography from an additional child victim. Law enforcement investigated the production of these images. They discovered that Riding engaged in a similar criminal pattern of coercion, whereby he contacted a minor child over social media, secured compromising photos, and threatened to release sexually explicit images if the child did not send additional child pornography.
Riding was indicted by a federal grand jury for the conduct above. While pending sentencing, law enforcement in Wyoming received a tip that Riding was engaged in further child pornography crimes using social media. Law enforcement secured another search warrant for his residence and executed it in 2022. Law enforcement discovered that Riding had previously contacted a minor child in another state and traveled there to record sexual acts with the child. Riding entered a subsequent plea of guilty to a superseding information that reflected criminal conduct against all known victims.
U.S. Attorney Hurwit commended the cooperative efforts of the Federal Bureau of Investigation, the Gooding County Sheriff’s Office, the Wyoming Internet Crimes Against Children Task Force, the Department of Homeland Security, and the St. Helen’s Police Department, which led to the charges. This case was prosecuted by Assistant U.S. Attorneys David G. Robins and Kassandra McGrady.
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 Child Exploitation and Obscenity Section (CEOS) of the Department of Justice, 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.
###
Atlantic County Health System Settles Matter Alleging it Received Improper Paycheck Protection Program LoanRead the Press Release
CAMDEN, N.J. – An Atlantic County health system entered into a settlement agreement with the United States resolving allegations that the non-profit company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.
According to the allegations in the complaint and the contentions of the United States contained in the settlement agreement:
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
Shore Memorial Physicians’ Group (SPG), an affiliate of the Shore Memorial Health System Inc., applied for and received a PPP loan for $2.78 million, even though it was ineligible for such a loan because it was affiliated with Shore Memorial Health System and was therefore not a small business within the meaning of the PPP program. Shore Memorial Physicians’ Group thereafter sought and received forgiveness of the total amount of the loan.
Shore Memorial Health System fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement, Shore Memorial Health System agrees to pay the United States $3.15 million. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $315,000 as his share in the recovery.
U.S. Attorney Sellinger credits special agents of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York, with the investigation.
The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Healthcare Fraud Unit.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned US ex rel. Zachary Holtzman v. Dr. David P. May; Shore Memorial Hospital d/b/a Shore Medical Center, 23-cv-3680 (JHR).
shore.settlement.pdf