Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 5 August 2024
Justice Department Statements on the U.S. District Court for the District of Columbia's Decision in U.S. v GoogleRead the Press Release
The Justice Department issued the following statements from Attorney General Merrick B. Garland and Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, regarding the U.S. District Court for the District of Columbia’s decision in United States v. Google:
“This victory against Google is an historic win for the American people,” said Attorney General Garland. “No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws.”
“This landmark decision holds Google accountable. It paves the path for innovation for generations to come and protects access to information for all Americans,” said Assistant Attorney General Kanter. “This victory is a reflection on the tireless efforts of the dedicated public servants at the Antitrust Division and our state law enforcement partners whose work made today’s decision possible.”
Justice Department Secures Settlement of Lawsuit Alleging Illegal Premerger Coordination by Legends Hospitality in Connection with its Acquisition of ASM GlobalRead the Press Release
The Justice Department today filed a civil lawsuit and announced a proposed settlement with Legends Hospitality Parent Holdings LLC (Legends) for an alleged violation of the Hart-Scott-Rodino Act (HSR Act).
As alleged in the department’s complaint, Legends engaged in illegal premerger coordination in connection with its proposed acquisition of ASM Global Inc. (ASM) by exercising operational control over aspects of ASM during the HSR waiting period involving venue management services for an arena in California.
“Companies must remain separate and independent before they close their merger. Our complaint alleges that Legends did not live up to that obligation,” said Deputy Assistant Attorney General Andrew Forman of the Justice Department’s Antitrust Division. “The proposed settlement requires Legends to pay a meaningful civil penalty and imposes significant obligations to try to ensure that Legends complies with the law moving forward. I commend our tremendous investigative teams who remain vigilant in trying to ensure that there is no improper coordination between parties before closing.”
The civil antitrust lawsuit against Legends for an HSR Act violation was filed in the Southern District of New York. At the same time, the department filed a proposed final judgment that, if approved by the court, would resolve the department’s lawsuit. The HSR Act prohibits companies from improperly combining operations or other aspects of their businesses before expiration of the required HSR Act waiting period.
Under the terms of the proposed settlement, among other things, Legends must pay a $3.5 million civil penalty, refrain from certain conduct, appoint an Antitrust Compliance Officer, implement an antitrust training and compliance program and submit regular compliance reporting to the department.
Legends is a global venue services company headquartered in New York.
ASM is a venue management and services company headquartered in Los Angeles.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decrees during a 60-day comment period to Chief Owen Kendler of the Antitrust Division’s Financial Services, Fintech, and Banking Section at 450 Fifth Street NW, Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the District Court for the Southern District of New York may enter the final judgment upon finding it is in the public interest.
The claims resolved by the resolution announced today are allegations only and there has been no determination of liability.
Jodi Lathrop Sentenced to 15 Months of Imprisonment for Fraud, Tax EvasionRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Jodi Lathrop, 55, of Bristol, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to charges of wire fraud and federal tax evasion. U.S. District Judge William K. Sessions III also ordered that Lathrop pay restitution totaling approximately $479,000, pay a fine of $15,000, and serve a two-year period of supervised release following completion of her prison term. The court directed Lathrop to surrender to the Bureau of Prisons on September 10, 2024 to begin serving her sentence.
In 2023, a federal grand jury returned a 19-count indictment charging Lathrop with 11 counts of mail and wire fraud; four counts of personal tax evasion; and four counts of aiding the preparation of false corporate tax returns. Lathrop pled guilty to one count of wire fraud and one count of tax evasion last December. In pleading guilty, Lathrop admitted that between 2014 and 2020, while serving as office manager and bookkeeper for Claire Lathrop Band Mill, Inc., a logging and woodchipping business in Bristol, she engaged in a scheme to embezzle from the business. Lathrop executed the scheme by using company credit cards to make personal purchases of goods and services; by using company funds to pay the personal credit card obligations of Lathrop and other family members; and by using company money to pay for other personal expenses. Lathrop concealed the embezzlement in several ways. Lathrop falsely recorded the unauthorized checks in CLBM’s books as checks for legitimate business expenses, wrote false notes on some checks so they appeared to be for legitimate business expenses, and caused CLBM to file false tax returns which falsely deducted Lathrop’s personal expenses as legitimate business expenses.
This case was investigated by the Vermont office of IRS-Criminal Investigation and by Homeland Security Investigations.
Lathrop was represented by Mark Kaplan, Esq. The prosecutor was Assistant United States Attorney Gregory Waples.
Iowa Woman Sentenced to 10 Years in Federal Prison for Drug CrimeRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux City, Iowa, woman convicted of Possession of a Controlled Substance with Intent to Distribute. The sentencing took place on July 29, 2024.
Sara Raquel Torres, age 38, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Torres was indicted by a federal grand jury in April of 2023. She pleaded guilty on May 15, 2024.
The conviction stemmed from an incident on March 11, 2023, when Torres began communicating with someone who Torres thought was interested in buying methamphetamine from her, but turned out to be an undercover law enforcement agent. Torres set up a deal to sell one to two pounds of methamphetamine to the undercover agent. On her way to make the deal, Torres was stopped by the South Dakota Highway Patrol who, after searching her vehicle, found approximately 943 grams of methamphetamine and a handgun. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Drug Enforcement Administration, the Bureau of Indian Affairs, and the South Dakota Highway Patrol. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Torres was immediately remanded to the custody of the U.S. Marshals Service.
Harrison County man charged with federal firearms violationsRead the Press Release
MARSHALL, Texas – A Marshall man has been arrested and charged in connection with federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Cameron Deshun Payton, 22 was named in a three-count indictment in the Eastern District of Texas in June 2024, charging him with possession of a machine gun, possession of an unregistered firearm, and felon in possession of a firearm. Payton appeared in federal court before U.S. Magistrate Judge Roy Payne in late July 2024, and was ordered to be detained until trial.
“In June, I announced Operation Texas Kill Switch, a statewide initiative targeting illegal machinegun conversion devices, commonly known as switches,” stated U.S. Attorney Damien M. Diggs. “As promised, my office and our law enforcement partners will find these devices and take them off of the streets.”
“Mr. Payton is now about to face the music as it relates to the illegal possession of machine gun conversion devices. Several months ago, ATF and our four Texas United States Attorney partners announced Operation Texas Kill Switch to combat the scary proliferation of these dangerous devices. These are not toys and will not by treated as such by law enforcement. I’d like to thank all of our partners, especially those in this case, for their diligence in the fight against violent firearms crime. Mr. Payton now knows these partnerships are real and are here to stay,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
“Mr. Payton’s arrest marks a significant step in addressing the rampant violent crimes within our community. His involvement in multiple car chases, deadly conduct with firearms, and the pending charge of sexual assault of a child highlights the urgency and importance of our collaborative efforts. I commend the relentless dedication of the Joint Harrison County Violent Crime & Narcotics Task Force, our officers in Marshall, the ATF, and the FBI. Together, we are demonstrating our unwavering commitment to justice and the safety of our citizens,” stated Marshall Police Department Chief Cliff Carruth.
According to information presented in court, on April 16, 2024, law enforcement arrived at Payton’s Marshall residence to serve outstanding felony warrants for sexual assault of a child and evading arrest or detention with a motor vehicle. At the time of his arrest, law enforcement found photographs of Payton with a pistol with an alleged machinegun conversion device, also referred to as a switch, installed. The weapon was located in Payton’s residence at the time of his arrest.
At only about an inch long, switches may be made of metal or plastic and can be manufactured using a 3D printer. They generally slot into the butt of a gun and allow the shooter to fire in “full auto.” Switches have been used in numerous fatal shootings, and law enforcement are finding them at a dramatically increasing rate in recent months.
If convicted, Payton faces up to 15 years in federal prison.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive strategies to address them. Among these strategies is ‘Operation Texas Kill Switch.’ Operation Texas Kill Switch is aimed at raising awareness of illegal machine gun conversion devices, which pose a serious threat to East Texas communities and law enforcement.
From now until Aug. 31, local Crime Stoppers programs will offer cash rewards for information leading to the apprehension or prosecution of those who possess switches or 3D printers being used to manufacture them. To be eligible for cash rewards, tipsters must provide information to their local Crime Stoppers program. Tipsters may also use **TIPS to be connected to a Crime Stoppers program in their area. Tips can be submitted 24 hours a day, and anonymity is guaranteed by law. Information may also be submitted directly to ATF at www.atf.gov/contact/atf-tips.
This case is being investigated by the Marshall Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Texas Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Dustin Farahnak.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Gilmer County Man Sentenced for Drug and Firearms OffensesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Duncan Currie Canter, age 30, of Glenville, West Virginia, was sentenced today to 170 months in federal prison for methamphetamine and firearms convictions.
According to court documents and statements made in court, Canter was working with others to distribute methamphetamine in Gilmer County. A semi-automatic pistol was located in Cantor’s vehicle during a traffic stop. At the time, Canter was on supervised release due to a prior methamphetamine conviction in the Northern District of West Virginia and was prohibited from possessing firearms. After the traffic stop, United States Probation Officers conducted a visit to Cantor’s home and discovered methamphetamine and drug paraphernalia.
Canter has an extensive criminal history, including drug trafficking, which caused him to be classified and sentenced as a career offender. Canter will also serve 21 months in prison for a violation of his supervised release status at the time of the crime. He will be on an additional three years of supervised release following this prison sentence.
Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mountain Region Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Five Charged with Operating Cockfighting Events in Inland EmpireRead the Press Release
RIVERSIDE, California – Four Inland Empire residents have been arrested on a federal criminal complaint alleging they organized and ran cockfighting events in San Bernardino County.
The following defendants, who were arrested Sunday at a cockfighting event, are charged with aiding, abetting, inducing, and willfully causing another person to sponsor and exhibit an animal in an animal fighting venture and are expected to make their initial appearances this afternoon in United States District Court in Riverside:
- Isidro Chaparro Sanchez, 59, of Corona;
- Luis Octavio Angulo, 61, of Rialto;
- Sergio Jimenez Maldonado, 51, of San Bernardino; and
- Eva Anilu Pastor Uriostegui, 53, of Moreno Valley.
Law enforcement is looking for Cirilo Esquivel Alcantar, 56, of San Bernardino, who also is charged in this case.
According to an affidavit filed with the complaint, the defendants organized and facilitated cockfighting events in Muscoy. The defendants held events on Sundays during the cockfighting “season,” which generally runs from January to August. Individuals brought roosters to fight (i.e., cockfighters) and spectators attended the events, which at times drew more than 100 attendees.
Attendees parked – at the cost of $20 – at a different location nearly one mile away from the event location. Attendees were then shuttled to the cockfighting location, where they paid another fee – usually $40 – to enter the arena where the cockfights took place. Attendees could also place bets on the cockfights and participate in a raffle.
Cockfighters paid a fee to enter their roosters into fights – $1,000 for four roosters – and then entered the fighting arena with their roosters when it is their turn to fight. Several cockfights took place on a given day. Before the fights, a sharp blade, known as a “gaff” and usually curved and approximately 1.5 inches in length, was often attached to each rooster’s leg. At times, the fights ended in the death of one or both roosters.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would each face a statutory maximum sentence of five years’ imprisonment.
The FBI is investigating this matter.
Assistant United States Attorneys Cory L. Burleson of the Riverside Branch Office and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.
Essex County Man Sentenced to 440 Months in Prison for His Role in Three Murders in Furtherance of Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced to 440 months in prison for his role in three murders in furtherance of a large-scale narcotics enterprise, U.S. Attorney Philip R. Sellinger announced today.
Leevander Wade, 44, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz on Feb. 22, 2024, to racketeering conspiracy. Judge Farbiarz imposed the sentence on Aug. 1, 2024, in Newark federal court.
According to court documents and evidence presented in court:
In February 2018, the drug enterprise’s leader, Michael Healy, found out that one of his conspirators in the drug trafficking enterprise was providing information about the DTE to law enforcement. Healy ordered members of the Bloods in East Orange to kill the informant, referenced in the indictment as “A.S.” At the time, Wade was a manager in the enterprise and ran a series of “stash” houses in Essex County used to package heroin and fentanyl for street-level distribution.
Wade – who shared a close relationship with one of the leaders of the East Orange Bloods – assisted Healy in contracting the East Orange Bloods to carry out the murder of the informant. On Feb. 3, 2018, members of the East Orange Bloods, acting on Healy and Wade’s behalf, shot and killed a bystander, believing the bystander was the informant. At the time of his death, the bystander was parked outside of the informant’s residence in Bloomfield, New Jersey, in a vehicle that appeared similar to the one that the informant drove. Realizing they killed the wrong person, Healy ordered the Bloods to finish the job. On March 12, 2018, in Bloomfield, the conspirators killed the informant while he was walking his dog in the area of his residence. On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also pose a risk to the enterprise, Healy shot and killed “J.C.” in Newark. Wade drove Healy to and from the murder scene, and then helped to destroy evidence by hiring someone to burn the vehicle.
In addition to the prison term, Judge Farbiarz sentenced Wade to five years of supervised release and ordered to pay restitution of $6,223.
Thomas Zimmerman, Tyquan Daniels, and Ali Hill – all members of the Brick City Brims subset of the Bloods street gang in East Orange – previously pleaded guilty to racketeering conspiracy for their respective roles in the murders of the bystander and A.S. Zimmerman was sentenced on July 6, 2023, to 37 years in prison; Daniels was sentenced on July 6, 2023, to 35 years in prison; and Hill was sentenced on July 6, 2023, to 25 years in prison.
On April 3, 2024, Healy was convicted after a jury trial of multiple counts of murder in aid of racketeering, racketeering conspiracy, and various gun and drug offenses. Healy is scheduled to be sentenced on Oct. 1, 2024. He faces multiple mandatory life sentences.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of special agent in charge James E. Dennehy in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutor’s Office; the Union County Prosecutor’s Office, the East Orange Police Department; and the Montclair Police Department.
The government is represented by Senior Trial Counsel Robert L. Frazer and Samantha C. Fasanello, Chief of the OCDETF Unit.
Erie Man Convicted at Trial of Brokering the Illegal Transfer of Fully Automatic Machineguns, Including One with an Obliterated Serial NumberRead the Press Release
PITTSBURGH, Pa. - After deliberating for four hours, a federal jury on August 2, 2024, found Erie, Pennsylvania, resident Joseph Leonard Stratton-Kiehlmeier guilty of one count of aiding and abetting the transfer of unregistered fully automatic firearms, United States Attorney Eric G. Olshan announced today.
Stratton-Kiehlmeier, 36, was tried before Senior United States District Judge David Stewart Cercone in Pittsburgh.
According to evidence presented during the four-day trial, in January 2020, law enforcement learned that Stratton-Kiehlmeier was offering to broker the sale and transfer of illegal, unregistered machineguns. Those firearms – a Yugo rifle with an obliterated serial number and a Tikkakoski submachine gun – were both operable and fully automatic. Pursuant to the National Firearms Act, machineguns must be registered in the National Firearms Registration and Transfer Record. In January 2020, a confidential source, acting under the direction and supervision of federal law enforcement, traveled with Stratton-Kiehlmeier to a barn in Erie County to receive the illegal weapons. During the meeting, which was recorded, the source paid $2,000 for the machineguns, which he turned over to law enforcement after the meeting.
“Joseph Stratton-Kiehlmeier brokered the unlawful sale and transfer of two fully automatic machineguns—weapons that are capable of unleashing devastating violence with a single pull of the trigger,” said U.S. Attorney Olshan. “The defendant sought to fuel the dangerous black market in illicit firearms, indifferent to who was acquiring these unregistered weapons and what they might do with them. This conduct poses a grave danger to the citizens of Western Pennsylvania, and our office will continue to work with our law enforcement partners to take these illegal weapons off of our streets.”
“High-powered weapons in the hands of criminals endangers our community and increases the risk for deadly violence,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “Public safety is a shared mission, and the FBI and our partners stand committed to protecting the lives of innocent citizens everywhere.”
Assistant United States Attorneys Molly W. Anglin and Shaun E. Sweeney prosecuted the case on behalf of the government.
Judge Cercone scheduled sentencing for December 2, 2024. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation’s Erie Area Gang Law Enforcement (EAGLE) Safe Streets Task Force, Pennsylvania Office of the Attorney General, and Erie Police Department conducted the investigation that led to the prosecution of Stratton-Kiehlmeier. A specialist from the Bureau of Alcohol, Tobacco, Firearms and Explosives also testified during the trial.
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 of Justice 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.
El Departamento de Justicia monitoreará el cumplimiento de las leyes federales de derechos electorales en MichiganRead the Press Release
El Departamento de Justicia anunció hoy que monitoreará el cumplimiento con las leyes federales electorales en varias comunidades en la región oeste de Michigan en las elecciones primarias del 5 de agosto. El Departamento monitoreará en Allegan County (Clyde Township y la ciudad de Fennville) y en Van Buren County (Covert Township).
El Departamento de Justicia hace cumplir las leyes federales de derechos electorales que protegen el derecho de acceso a las urnas de todos los ciudadanos. El Departamento envía su personal periódicamente a monitorear el cumplimiento con las leyes federales de derechos civiles en las elecciones de comunidades a través de todo el país. Además, la División de Derechos Civiles envía observadores federales de la Oficina de Administración de Personal de EE. UU., según autorizado por una orden judicial federal.
La Sección de Votación de la División de Derechos Civiles, en colaboración con las Oficinas de los Fiscales Federales, vela por el cumplimiento de las leyes federales civiles que protegen el derecho al voto, incluyendo la Ley del Derecho al Voto, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero.
Información adicional sobre la votación y las elecciones está disponible en el sitio web del Departamento de Justicia en Civil Rights Division | Sección de votación | United States Department of Justice. Denuncias relacionadas a posibles vulneraciones de las leyes federales de derechos electorales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en Comuníquese con la División de Derechos Civiles | Departamento de Justicia (justice.gov) (disponible en español) o por teléfono al (800) 253-3931.
Court Sentences Brewton Man to 60 Months Imprisonment for Cocaine TraffickingRead the Press Release
MOBILE, AL – On August 2, 2024, United States District Court Judge, Kristi K. DuBose sentenced Michael Anthony Woods II to 60 months imprisonment for possession with the intent to distribute cocaine.
Documents filed with the court established that on May 1, 2023, officers with the Brewton Police Department had had an active arrest warrant for Woods for violation of a protection order. During the execution of the arrest warrant, at Woods’s home in Brewton, Woods ran from the officers but was captured and arrested.
While at the scene of the arrest officers looked through the windshield of a Dodge Charger “Scat-Pack” parked in the driveway that they had seen Woods retrieve something from just before the arrest. Officers were able to see drugs in the vehicle. A later full search of the vehicle resulted in the recovery of a total of approximately 608 grams of cocaine and crack cocaine. The powder cocaine was still in the form of what was left of a kilogram brick.
The case was investigated by the Drug Enforcement Administration and the City of Brewton Police Department. The case was prosecuted by Assistant United States Attorney George F. May.
Convicted Felon Sentenced to Federal Prison for Trafficking FirearmsRead the Press Release
Salt Lake City, Utah – The lead defendant in a firearms trafficking case was sentenced to 67 months’ imprisonment, three years supervised release, and the forfeiture of multiple firearms.
Leslie Eugene Gittoes, 53, of Ontario, California, also known as “Big Craze,” was sentenced by U.S. District Court Judge David Sam, after he pleaded guilty in February 2024 to conspiracy to travel interstate with intent to engage in the business of dealing firearms without a license.
According to court documents and statements made at the change of plea hearing, from September 2020 to August 2021, Gittoes and his coconspirators, who have been sentenced or awaiting sentencing, intentionally agreed to violate federal firearms laws by conspiring to travel interstate from Utah to California with the intent to engage in the business of dealing in firearms without a license. Gittoes admitted he provided monetary compensation to Israel Luis Gonzalez, 60, of Roy, Utah, Emmette James Kibodeaux, 48, of Clearfield, Utah, and Taiesha Ann Kibodeaux, 40, of Clearfield, Utah, in exchange for firearms. Gittoes further admitted that the conspiracy involved 25 to 99 firearms.
According to court documents, the case was initiated after a 2021 shooting between rival gangs in Ontario, California. The investigation revealed that firearms were transferred from purchasers in Utah to restricted persons, including gang members in the Los Angeles and San Bernadino, California areas. Several firearms were recovered in California and one of the involved firearms was utilized in a gang-related shooting which resulted in death.
Taiesha Ann Kibodeaux and Emmette James Kibodeaux were sentenced in March 2024. The court sentenced Taiesha to 60 months’ probation and Emmette was sentenced to 52 months’ imprisonment. Gonzalez is scheduled to be sentenced September 9, 2024, at 9:30 a.m. in courtroom 8.3 at the United States District Courthouse in downtown Salt Lake City.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Riverside Field Office with assistance from the Salt Lake City Field Office.
Assistant United States Attorneys Victoria K. McFarland and Samuel S. Pead of the U.S. Attorney’s Office for the District of Utah prosecuted 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 gun violence and other violent crime, 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.
Convicted Felon Sentenced to 45 Years in Federal Prison for Drug Distribution and Gun Possession CrimesRead the Press Release
Memphis, TN – Kendrick Watson, 44, of Memphis, has been sentenced to 540 months in federal prison after being convicted by a federal jury of multiple drug distribution and firearm offenses. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to the information presented in court, law enforcement officers intercepted a package containing cocaine sent from Houston, Texas and set for delivery to Watson’s residence. After a search of the residence, officers found fentanyl, methamphetamine, drug-distribution materials and proceeds, multiple firearms, ammunition, and gun magazines. In February 2024, a federal jury found Watson guilty of one count of possession of fentanyl with the intent to distribute, three counts of possession of a gun in furtherance of a drug trafficking crime, and three counts of possession of a gun as a convicted felon.
The conviction mandated a 300-month sentence, consecutive to any other sentence, based on Watson’s prior conviction for possession of a firearm during a crime of violence. Watson was also designated as a career offender under the federal sentencing guidelines due to his prior convictions for a crime of violence and controlled substance offenses in Memphis. On August 1, 2024, United States District Court Judge Thomas L. Parker sentenced Watson to a total of 45 years of imprisonment, followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by the United States Postal Inspection Service with assistance from the Drug Enforcement Administration - Memphis Resident Office and the Shelby County Sheriff’s Office.
United States Attorney Kevin G. Ritz thanked Assistant United States Attorneys Gregory Allen and Naya Bedini, who prosecuted this case, as well as the law enforcement partners who investigated this case.
###
For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Charleston Man Sentenced to 20 Years in Federal Prison for Producing and Possessing Child Sexual Abuse MaterialRead the Press Release
CHARLESTON, S.C. — Evan Riley Bucci, 23, of Charleston, was sentenced to 20 years in federal prison after pleading guilty to two counts of production of child pornography* and one count of possession of child pornography.
Evidence presented to the court showed that in 2022 law enforcement was alerted that Bucci had been seeking out minors on social media apps, such as Omegle and Instagram, and was engaging in sexually explicit conversations centering around bondage and sexual servitude. There were multiple female victims ranging in age from 12 to 16 years old. Bucci cultivated relationships with these minors, gained their trust, and then coerced them into sending him sexually explicit images and videos of themselves. Bucci would threaten to harm or kidnap the child’s family members if they did not send the materials.
United States District Judge Richard Gergel sentenced Bucci to 240 months' imprisonment, to be followed by a lifetime of court-ordered supervision. There is no parole in the federal system. Bucci was also ordered to pay restitution to the victims of his crimes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Homeland Security Investigations, with valuable assistance the Steamboat Springs, Colorado Police Department. Assistant U.S. Attorney Katie Orville is prosecuting the case.
HSI’s Know2Protect: Together We Can Stop Online Child Exploitation campaign offers valuable resources to combat the escalating crisis of online child sexual exploitation and abuse. Visit www.dhs.gov/know2protect to learn strategies to stop future victimization.
###
NOTE: While the current federal statutes still contain the term “child pornography,” experts in the field now recognize “child sexual abuse material” as the more accurate terminology.
Burlington Man Sentenced to 11 Months in Prison in Pharmacy BurglaryRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on August 5, 2024, Manuel Francis, 48, of Burlington, Vermont, was sentenced by United States District Judge William K. Sessions III to a term of 11 months’ imprisonment to be followed by a two-year term of supervised release. Francis previously pleaded guilty to burglary of a pharmacy.
According to court records, late in the night on January 5, 2023, Francis broke into the Lakeside Pharmacy on Pearl Street, in Burlington, Vermont. Francis broke through the window of the pharmacy’s back door and kicked his way through the drywall to access the stock area where he stole: 37 60-mg tablets of buprenorphine; 55 packets of various dosages of Suboxone (buprenorphine); one vial of testosterone; and more than 400 tablets of various doses of clonazepam.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Drug Enforcement Administration and the Burlington Police Department.
The case was prosecuted by Assistant United States Attorney Colin Owyang. Francis was represented by Assistant Federal Public Defender Mary Nerino.
Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder in Aid of RacketeeringRead the Press Release
SACRAMENTO, Calif. — Pat Brady, 53, of Lake Forest, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.
According to Brady’s plea agreement, on July 28, 2018, Brady murdered an inmate at High Desert Prison as part of an AB-related killing. Brady admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Brady willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.
On Jan. 17, 2024, Brady’s co-defendant in the murder, Jason Corbett, 52, pleaded guilty to the same murder in aid of racketeering. His sentencing is set for Nov. 25, 2024.
In April 2024, following a nine-week trial, a federal jury found three of Brady’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 61, Danny Troxell, 71, and Billy Sylvester, 55, are scheduled to be sentenced by Judge Mueller on Sept. 11, 2024.
Charges are pending against Kevin MacNamara, 44, of La Palma, and Kathleen Nolan, 69, of Calimesa. A status conference is set for Sept. 23, 2024. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Another charged with selling fentanyl resulting in death in LaredoRead the Press Release
LAREDO, Texas – A federal grand jury has returned an indictment against a 31-year-old former resident of Laredo for conspiracy to distribute fentanyl which caused the death of another, announced U.S. Attorney Alamdar S. Hamdani.
Authorities have arrested Rene Antonio Melendez in Appleton, Wisconsin. He will make his initial appearance before a U.S. magistrate judge in the Eastern District of Wisconsin, after which authorities will transport him to Laredo for all subsequent proceedings.
The three-count indictment, returned July 9, alleges Melendez conspired with other people to distribute fentanyl, a schedule II controlled substance, to another individual March 11, 2023. That person subsequently died after using the drug, according to the charges.
The indictment also charges Melendez with one count of distributing fentanyl that resulted in death as well as one count of possession with the intent to distribute fentanyl.
If convicted, Melendez faces up life in federal prison as well as a possible $1 million maximum fine.
Melendez is the third federal indictment in Laredo in the last year charging someone with distributing fentanyl resulting in death. There others were in August 2023 and December 2023.
The Drug Enforcement Administration, Homeland Security Investigations, Customs and Border Protection, Border Patrol, Laredo Police Department and Webb County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Brian Bajew and Leslie Cortez are prosecuting the case.
This case is being prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country. 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 on the Department of Justice’s OCDETF webpage.
More information on the dangers of fentanyl can be found on the DEA’s website. #OnePillCanKill
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Saturday 3 August 2024
Omaha Man Sentenced for Methamphetamine and Firearm ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Alejandro Escamilla, 50, of Omaha, Nebraska, was sentenced August 2, 2024, in federal court in Omaha, for his involvement in a methamphetamine and firearm conspiracy. Chief United States District Judge Robert F. Rossiter Jr. sentenced Escamilla to 224 months’ imprisonment. Escamilla also agreed to the forfeiture of $9,594 and a 2014 Kawasaki Motorcycle. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On July 27, 2022, law enforcement made arrangements to buy meth from Escamilla. A controlled buy was completed and Escamilla sold law enforcement one pound of meth. During the controlled buy, Escamilla utilized his 2015 Kawasaki motorcycle to facilitate the drug deal. On December 14, 2022, law enforcement executed a search warrant of Escamilla’s residence in Omaha. Law enforcement seized $9,594 in United States currency from Escamilla’s bedroom. This currency is derived from drug proceeds and was utilized to facilitate Escamilla’s drug trafficking activities. Law enforcement also seized a Ruger handgun and multiple boxes of ammunition from the same bedroom. In a detached garage, law enforcement seized 62 pounds of meth. Escamilla admitted to law enforcement that the 62 pounds of meth was what was left over from the 120 pounds he received in a shipment roughly two weeks prior.
This case was investigated by the DEA.
Mexican National Sentenced to 14 Years in Prison for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Brayan De La Cruz Cuahutzihua, age 24, of Ixtapaluca, Mexico, was sentenced August 2, 2024, in federal court in Omaha, Nebraska, after having pled guilty to conspiracy to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter Jr. sentenced Cauhutzihua to 168 months’ imprisonment. After completing his term of imprisonment Cauhutzihua will be deported to Mexico as he is not a United States citizen.
On October 27, 2022, the FBI utilized a confidential informant who purchased one pound of meth from Cauhutzihua in the back parking lot of the Nebraska Furniture Mart located at 72nd Street, Omaha, NE. Cauhutzihua was accompanied by codefendants Francis C. Murillo and Jesus Manuel Sauceeda Perea when they arrived at the meet location in the same vehicle.
On March 03, 2023, agents obtained a federal search warrant for the defendants’ South Omaha residence that resulted in the discovery of approximately six pounds of meth, 19 pounds of marijuana, $41,784.00 in drug proceeds, and multiple cellular devices. The money has since been administratively forfeited to the government.
Murillo and Sauceeda Perea are awaiting trial at a date yet to be scheduled.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Friday 2 August 2024
Woman Charged with Attempted Smuggling of Protected TurtlesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on August 1, 2024, a federal grand jury returned a single-count indictment charging a Chinese woman, alleging she attempted to smuggle eastern box turtles, a protected wildlife species, from the United States to Canada for the illegal global pet trade.
Wan Yee Ng, 41, of Hong Kong, is charged with attempting to export merchandise contrary to law. Her arraignment has not yet been scheduled.
According to an affidavit filed with the criminal complaint in this case, Ng, a Chinese national living in Canada, came to the attention of the United States Border Patrol at the Beecher Falls Station in Canaan, Vermont, after repeatedly renting the same Vermont residence on Lake Wallace, an international body of water that has been used for human and narcotic smuggling. The United States Border Patrol also discerned that Ng’s husband was renting a separate property on the lake in Canada at the same time.
On the morning of June 26, 2024, agents observed Ng begin to prepare an inflatable kayak near the water’s edge and carry a duffle bag from the rented residence to the kayak. During this time the Royal Canadian Mounted Police notified agents that two individuals, one of which was believed to be Ng’s spouse, had launched an inflatable watercraft on the Canadian side of Lake Wallace and began to paddle south toward the United States. Before she could leave the shore, agents intercepted Ng and detained her for suspected smuggling activity. Agents then observed, through a partially opened zipper on the duffle bag, what appeared to be socks that were moving. Further inspection revealed the bag contained 29 turtles that were individually wrapped in socks to protect their shells and so they could not move. The turtles were preliminarily identified by a United States Fish and Wildlife Special Agent as eastern box turtles (Terrapene carolina carolina).
U.S. Border PatrolPhoto of box turtles, from the complaint in case U.S. v. Wan Yee Ng. Credit: USBP
The eastern box turtle is a subspecies of the common box turtle and is native to forested regions of the eastern United States with some isolated populations in the Midwest. Turtles with colorful markings are especially prized in the domestic and foreign pet trade market, particularly in China and Hong Kong. These animals are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international agreement to protect fish, wildlife and plants that are or may become threatened with extinction. The United States and Canada are parties to this agreement. Smuggling wild turtles in violation of international protocols can seriously harm wildlife and undermine conservation efforts. Confiscated turtles are often in poor health and may need to be quarantined to reduce the risk of spreading disease.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Ng is presumed innocent until and unless proven guilty. Ng faces up to 10 years if convicted. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and statutory sentencing factors.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Border Patrol, Homeland Security Investigations, and the United States Fish and Wildlife Service and their seamless cooperation with the Royal Canadian Mounted Police.
The prosecutor is Assistant United States Attorney Thomas J. Aliberti with assistance from Senior Counsel for Wildlife Programs Elinor Colbourn of the Justice Department’s Environmental Crimes Section. Ng is represented by Mark Kaplan, Esq.
Washington man who scammed pandemic relief programs sentenced to over five years in prisonRead the Press Release
ALEXANDRIA, Va. – A Washington man was sentenced today to five years and three months in prison for wire fraud.
According to court documents, from at least June 2020 through at least June 2021, Clayton Rosenberg, aka Kenneth Clayton and Kobe, 31, and his co-conspirators submitted fraudulent applications to defraud multiple COVID-19 relief programs. Rosenberg used these stolen funds to increase his typical lifestyle, including luxury vehicle purchases and $1,800 for beard care products.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided emergency financial assistance expeditiously to Americans suffering the economic effects caused by the pandemic. The Paycheck Protection Program (PPP) authorized forgivable loans to small businesses for such expenses as making payroll payments to remain afloat. Federal programs also expanded unemployment insurance (UI) eligibility and increased unemployment benefits during the pandemic to assist those who lost their jobs or were otherwise unable to work through no fault of their own.
Rosenberg and his co-conspirators prepared and submitted at least 16 fraudulent PPP loan applications for businesses or purported businesses. In the applications, Rosenberg and his co-conspirators grossly inflated employee numbers and monthly payroll costs. They also created and submitted false tax returns and fake bank statements in support of the applications.
After the financial institutions approved and funded the loan applications, the business owners would share the loan proceeds with Rosenberg and his co-conspirators. During this time, Rosenberg and a co-conspirator controlled various shell companies to which the business owners often would transfer a percentage of the PPP loan proceeds. The payout of these fraudulent PPP loans and the wire fraud conspiracy caused a total loss of at least $9.3 million, of which Rosenberg received at least $1,666,290.
Rosenberg and his co-conspirators also submitted fraudulent UI applications using other individuals' personal identifying information (PII) that they obtained online. The benefits were issued on prepaid debit cards mailed to addresses the conspirators listed on the applications. Along with individuals' PII, the conspirators included false information in the applications and certifications, including false employment and wage history as well as false contact information. Rosenberg applied for and received over $110,308 in UI and pandemic unemployment assistance benefits.
Rosenberg also possessed device-making equipment in his residence, including equipment to create fraudulent documents, black check paper, card stock for IDs, holograms used for passports and driver licenses, at least six fraudulent Social Security cards, and at least eight fake driver licenses. Rosenberg made at least two fake Burkina Faso passports and at least one unauthorized United States passport.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; Matt McCool, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General (OIG) Philadelphia Field Division; Charles “Andy” Penn, Arlington County Chief of Police; Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General; and Jason J. Scalzo, Special Agent in Charge of the Electronic Crimes Unit for the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Kathleen Robeson and Zachary H. Ray prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-61.
U.S. District Judge Sentences Three Men from Central Arkansas to Federal Prison on Firearms ChargesRead the Press Release
LITTLE ROCK— Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentencing of Terry Lydell Cook, Derrick Owens, and Howard Jerome Jenkins, to be incarcerated in federal prison on firearm related charges. All three defendants illegally possessed firearms after being convicted of numerous violent offenses and drug offenses, including domestic batteries, attempted rape, and robbery. The sentences for Cook, Owens, and Jenkins of 120 months, 102 months, and 96 months, respectively, were handed down on Wednesday by United States District Judge Brian S. Miller.
Terry Lydell Cook, 33, Little Rock, Arkansas
Cook, a previously convicted felon, was indicted on March 2, 2022, in a one-count indictment for possession of a firearm by a felon. On June 2, 2023, Cook pled guilty to the charge in the indictment.
On March 27, 2021, the Little Rock Police Department was dispatched to a residence after reports of a shooting. When police arrived, witnesses stated that Cook was involved in physical altercation with a female, causing visible injury, and fired multiple shots in the air from a handgun. A witness stated Cook had a handgun and was threatening to shoot whoever drove up to the house. Cook was gone when police arrived.
After investigation, the Little Rock Police Department obtained an arrest warrant for Cook. On April 2, 2021, officers with Arkansas Community Correction located Cook at a residence and during a subsequent search, officers located a firearm.
An investigation revealed that Cook had numerous prior convictions for residential burglary, as well as convictions for simultaneous possession of drugs and firearms. Cook also has convictions for terroristic threatening, possession of a firearm by certain persons, and domestic battery, as well as more than a dozen incidents alleging domestic violence.
Judge Miller sentenced Cook to serve 10 years in federal prison, the maximum permitted under the law, and also sentenced Cook to three years’ supervised release. There is no parole in the federal system.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Little Rock Police Department. Assistant United States Attorney Chris Givens prosecuted the case.
Derrick Owens, 44, Little Rock, Arkansas
Owens, a previously convicted felon, was indicted on August 8, 2019, on one count for possession of a firearm by a felon. On July 27, 2020, Owens pled guilty to the superseding indictment.
On April 25, 2017, Little Rock Police Department officers responded to an area on Colonel Glenn Road for a disturbance where shots were fired. Officers made contact with a witness who stated a black male, later identified as Owens, assaulted a female at the apartment complex. The witness stated she yelled for Owens to stop and as the female victim ran towards the witness’ vehicle, Owens followed behind the victim and pulled out a firearm, pointing it at both the witness and the victim. During the assault on the victim, Owens threatened to shoot her before she was able to flee the area.
Officers saw Owens in the parking lot of the complex in a vehicle being driven by a family member and initiated a traffic stop. Owens was aware he had an active warrant for failure to register as a sex offender and during questioning, he gave officers his brother’s name. Owens did provide officers consent to search the vehicle where a firearm was located in a bag in the floorboard on the passenger’s side where Owens had been sitting.
The investigation revealed that prior to this offense, Owens had previously been convicted of robbery, possession with intent to distribute cocaine, possession of PCP, possession of drug paraphernalia, and criminal attempt to commit rape. He also has convictions for escape, failure to register as a sex offender, possession of firearms by certain persons, and possession of prohibited articles.
Judge Miller sentenced Owens to serve 102 months in federal prison and also sentenced Owens to three years’ supervised release.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Little Rock Police Department. Assistant United States Attorney Edward Walker prosecuted the case.
Howard Jerome Jenkins, 33, North Little Rock, Arkansas
Jenkins, a previously convicted felon, was indicted on October 26, 2021, for illegally possessing a firearm, and pled guilty to the charge on September 16, 2022.
On April 22, 2021, a North Little Rock Police Department officer responded to a one-vehicle accident at the intersection of Donovan Briley and Military Road. An investigation revealed that Jenkins was the driver and determined to be impaired at which time he was arrested. At the time of his arrest, Jenkins was in possession of a firearm.
Jenkins had previously been convicted of delivery of cocaine, first-degree battery, terroristic threatening, possession of methamphetamine, and domestic battery.
Judge Miller sentenced Jenkins to 96 months in federal prison and also sentenced Jenkins to three years’ supervised release.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the North Little Rock Police Department. Assistant United States Attorney Jana Harris prosecuted the case.
# # #
This news release, as well as 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
Two Montana men charged with illegally killing a brown bearRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging two men with illegally killing a brown bear on a national wildlife refuge in Alaska, violating the Lacey Act.
According to court documents, between May 9 to May 12, 2022, Richard McAtee, 46, and Arlon Franz, 51, both of Montana, conspired together to possess and transport a brown bear that they illegally killed in the Alaska Peninsula National Wildlife Refuge. McAtee was arrested Wednesday night in Montana.
The indictment alleges that one of the men was a nonresident hunting without a contract with a master guide, and that the bear was shot and killed before the legal season to hunt brown bear had opened and the same day the hunter had been airborne, in violation of state and federal laws. It also alleges the defendants salvaged the hide of the illegally taken brown bear in the field and transported it from the Alaska Peninsula to a local hunting lodge, and from there to Port Moller and then to Anchorage.
The National Wildlife Refuge System consists of federal land set aside by Congress as, “a national network of lands and waters for the conservation, management, and where appropriate, restoration of fish, wildlife, and plant resources and their habitats within the United States for the benefit of the present and future generations of Americans.”
The defendants are charged with one count conspiracy in violation of 18 U.S.C. § 371 and two counts of violating the Lacey Act, 16 U.S.C. §§ 3372(a)(1) and 3373(d)(1)(B). McAtee made his initial court appearance yesterday before the U.S. District Court for the District of Montana. If convicted, they each face up to five years in prison and a $100,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Senior Federal Wildlife Officer Joshua Macri of the U.S. Fish and Wildlife Service, Alaska Region, and Alaska Wildlife Trooper Colonel Bryan Barlow made the announcement.
The U.S. Fish and Wildlife Service and the Alaska Wildlife Troopers, with assistance from the U.S. Forest Service, are investigating the case.
Assistant U.S. Attorneys James Klugman and William Taylor are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Two Knoxville Men Convicted of Methamphetamine Conspiracy and DistributionRead the Press Release
KNOXVILLE, Tenn. – On August 2, 2024, following a five-day jury trial in United States District Court in the Eastern District of Tennessee at Knoxville, a jury convicted Cumecus Cates, 48, and Grady Chandler, 43, both of Knoxville, Tennessee, of Conspiracy to Distribute over 50 grams of Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841()(1)(A) and multiple counts of Distribution of over 50 grams of Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A) and 18 U.S.C. § 2.
The sentencing date for Cates and Chandler will be set later this year before the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court at Knoxville. Cates and Chandler both face sentences of up to life in prison.
The evidence presented at trial included FBI recorded drug transactions, witness testimony, and seized narcotics, and showed that Cates and Chandler were distributing large quantities of methamphetamine in the Knoxville area throughout 2022 and 2023.
United States Attorney Francis M. Hamilton, III of the Eastern District of Tennessee made the announcement.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Cates and Chandler included the Federal Bureau of Investigation (FBI) HIDTA Task Force. The FBI HIDTA Task Force includes the Roane County Sheriff’s Office, Knoxville Police Department, Knox County Sheriff’s Office, Blount County Sheriff’s Office, and Sevier County Sheriff’s Office. The Drug Enforcement Administration also assisted in this investigation by conducting drug analysis on seized narcotics in the case.
Assistant U.S. Attorneys Cynthia Davidson and Michael Gilmore represented the United States at trial.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest-level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
###
Tri Cities Man Who Attempted to Escape Law Enforcement Sentenced to More Than 13 Years in Federal Prison for Trafficking FentanylRead the Press Release
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Sharte Dashon Kimble, age 32, has been sentenced after pleading guilty to conspiracy to Possession with Intent to Distribute 400 Grams or More of Fentanyl. Senior United States District Court Judge Edward F. Shea imposed a sentence of 165 months in federal custody. At the time of the offense, Kimble was on supervised release following a conviction on federal drug and firearms charges. As a penalty for the supervised release violation, Senior Judge Shea imposed a penalty of 25 months which will be served consecutively to the 165-month sentence imposed in this case.
According to court documents and information presented at the sentencing hearing, in June of 2023, the Missouri River Drug Task Force in Helena, Montana, developed information that Kimble was a large source of supply of illegal narcotics. Law enforcement arranged a controlled buy of fentanyl pills from Kimble at the Walmart in Kennewick, Washington.
On June 15, 2023, Kimble was identified as the driver of gray Mercedes E350 that was parked in the Walmart parking lot. As the controlled buy was underway, multiple law enforcement vehicles approached the Mercedes, with the occupants wearing marked vests and their emergency lights activated.
Kimble saw the units moving in and took off running towards Highway 395. Kimble tossed a bag of fentanyl pills and a cell phone away as he attempted to escape law enforcement. Investigators located the bag and phone. Inside the bag were two one-gallon-sized plastic bags that contained approximately 20,283 fentanyl pills.
Investigators searched the Mercedes and located a loaded Glock .380 caliber pistol that had been reported stolen, a loaded magazine, cocaine packed in small plastic bags, almost $40,000 in cash, more than 1,000 fentanyl pills, as well as receipt for a storage unit in Yakima, Washington.
Investigators searched the Yakima storage unit and located hundreds of rounds of ammunition, extended magazines, a Glock pistol, a Norinco rifle, a Colt. 22 rifle, a 2-pound brick of cocaine, and several vials of small blue pills.
“Our community is safer and stronger today because of Mr. Kimble’s sentence. Despite a prior conviction on similar charges, Mr. Kimble was undeterred and continued to supply large quantities of deadly fentanyl and other illegal narcotics, all while possessing stolen firearms. Additionally, when investigators moved in to take Mr. Kimble into custody, he attempted to escape putting members of the Tri-Cities community at risk,” stated U.S. Attorney Waldref. “Prosecutors in my office, working alongside our law enforcement partners, will continue to target those driving the fentanyl epidemic and hold them accountable.”
“This sentence is clearly warranted based on Mr. Kimble’s extensive and expansive illegal actions involving firearms and narcotics,” said ATF Seattle Special Agent in Charge Jonathan Blais. “This was not the first time ATF has investigated Mr. Kimble, in fact he was on federal probation when he was arrested for these crimes, and we hope this sentence makes him reflect on, and change, his behavior.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri River Drug Task Force, the Drug Enforcement Administration, and the Kennewick Police Department. This case was prosecuted by Assistant United States Attorneys Rebecca Perez and Stephanie Van Marter.
Tonawanda man pleads guilty to production of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael E. Swain, 36, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.
The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Stanley Edwards III.
Sentencing is scheduled for December 4, 2024, at 2:00 p.m. before Judge Vilardo.
# # # #
Tampa Man Sentenced to More Than Three Years in Federal Prison for Defrauding Biochemical Company and Diverting Products to China Using Falsified Export DocumentsRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Pen Yu (51, Taiwan) to three years and eight months in federal prison for conspiracy to commit wire fraud, followed by three years of supervised release. As part of his sentence, the court also entered an order of forfeiture in the amount of $100,000, the proceeds of the wire fraud.
Yu was found guilty on May 2, 2024. Co-conspirator Gregory Muñoz was found guilty on May 9, 2024, and co-conspirator Jonathan Thyng was found guilty on July 23, 2024.
According to court documents, beginning in at least July 2016 and continuing through at least May 2023, Yu ordered biochemical products from MilliporeSigma, a subsidiary of multinational science and technology company Merck KGaA, Darmstadt, Germany, with help from Muñoz, a MilliporeSigma salesperson, by falsely representing that Yu was affiliated with a biology research lab at a large Florida university. This fictitious affiliation led MilliporeSigma to provide Yu over $4.9 million worth of discounts and other benefits, such as free overnight shipping, not available to the public. Yu gave Muñoz thousands of dollars in gift cards for facilitating these fraudulent discounted orders. When the products arrived at the university stockroom, a stockroom employee diverted the products to Yu, who repackaged them and shipped them to China. To avoid scrutiny, Yu made false statements about the value and contents of these shipments in export documents.
This scheme continued until MilliporeSigma compliance personnel identified certain orders as suspicious, prompting the company to retain outside counsel who voluntarily disclosed the misconduct to the Department of Justice’s National Security Division only a week later. MilliporeSigma made the disclosure well before its counsel had completed their investigation and understood the full nature and extent of the scheme. MilliporeSigma offered exceptional cooperation to the prosecution team, including by proactively identifying and producing documents to the Department that established probable cause to search residences and electronic devices of culpable individuals. MilliporeSigma’s cooperation allowed investigators to quickly identify the individuals responsible for the scheme, including Yu, Muñoz, and Thyng, and secure their felony guilty pleas.
The Defense Criminal Investigative Service, the Department of Commerce, Bureau of Industry and Security, and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida and Trial Attorney Garrett Coyle of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases.
Tampa Man Sentenced on Firearm and Narcotics ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Andre Pierrie (26, Tampa) to 8 years and 10 months in federal prison for being a felon in possession of a firearm, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. The court also ordered Pierrie to forfeit a Smith and Wesson Air Rite. 38 special revolver that was seized as part of this case. Pierrie entered a guilty plea on February 29, 2024.
According to court documents, law enforcement officers attempted a traffic stop on a vehicle Pierrie was driving, but Pierrie accelerated his vehicle and fled the scene. Surveillance by law enforcement indicated that Pierrie had gone to a parking lot in an apartment complex. Officers observed Pierrie in his vehicle throwing a firearm out of the vehicle’s window. The firearm was retrieved by law enforcement and Pierrie eventually pulled over. Officers located methamphetamine and marijuana inside the vehicle.
At the time of the offense, Pierrie had multiple prior felony convictions including delivery of cocaine and escape from law enforcement. As a convicted felon Pierrie is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Maria Guzman.
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.
Tahlequah Resident Sentenced to 30 Years for Child Sex Abuse and ExploitationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gregory Neil Bias, age 41, of Tahlequah, Oklahoma, was sentenced to 30 years in prison for nine separate counts of child sex abuse crimes, eight separate counts of child sexual exploitation crimes, and one federal firearm crime.
Bias was sentenced to 360 months on nine counts of Aggravated Sexual Abuse in Indian County, 360 months on two counts of Sexual Exploitation of a Child, and 360 months on two counts of Sexual Exploitation of a Child by a Parent. Bias was also sentenced to 240 months for one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor, 240 months in prison for one count of Receipt of Certain Material Involving the Sexual Exploitation of a Minor, 240 months in prison for one count of Distribution of Certain Material Involving the Sexual Exploitation of a Minor, 240 months in prison for one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor, and 120 months in prison for illegal possession of a firearm. The sentences are to be served concurrently.
On January 18, 2023, Gregory Neil Bias pleaded guilty to 18 counts of the Indictment.
On March 21, 2024, Bias’s co-defendant, Leiloni Blake Smith, age 30, of Tahlequah, Oklahoma, was found guilty by a federal jury of eight counts of aggravated child sexual abuse, two counts of Sexual Exploitation of a Child, two counts of Sexual Exploitation of a Child by a Parent, and one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor. Smith awaits sentencing in the custody of the U.S. Marshal Service.
The charges arose from an investigation by the Oklahoma State Bureau of Investigation (OSBI), Homeland Security Investigations (HSI), and the Federal Bureau of Investigation.
According to investigators, in 2020 the National Center for Missing and Exploited Children (NCMEC) alerted law enforcement to a Tahlequah-area internet user exchanging electronic files containing images of child sexual abuse. Agents identified, located, and arrested Bias in January of 2022 for distributing child sexual abuse materials. At the time of arrest, Bias resided with Leiloni Blake Smith. During the investigation, searches of electronic devices belonging to Bias and Smith uncovered multiple depictions of sexual abuse perpetrated by Bias and Smith on two children. Agents also located a firearm in the home which Bias could not legally possess because he had previously been convicted of a crime punishable by more than one year imprisonment. Bias was subsequently indicted by a federal grand jury in February 2022 of aggravated sexual abuse, sexual exploitation of a child, distributing, receiving, and possessing sexual abuse materials, and felon in possession of a firearm.
The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“Gregory Neil Bias committed heinous crimes against innocent and vulnerable children, and his sentence marks a significant step in bringing a measure of justice for his victims, and making our communities safer,” said United States Attorney Christopher J. Wilson. “This case was the product of the great collaborative work done by federal prosecutors and OSBI, HSI, and FBI agents to ensure that child predators have no place to hide.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Bias will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the tab “resources”.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
Tahlequah Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Billy Lee Murphy, age 76, of Tahlequah, Oklahoma, was sentenced to a five year term of probation for one count of Possession of a Firearm with the Serial Number Removed.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On October 12, 2023, Murphy pleaded guilty to the charge. According to investigators, on January 19, 2023, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant at Murphy’s residence in Tahlequah, Oklahoma, and found Murphy in possession of a Taurus revolver with the serial number removed or obliterated.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Edith A. Singer represented the United States.
South Texas felon convicted for possessing firearmsRead the Press Release
McALLEN, Texas – A 27-year-old resident of Alamo has pleaded guilty to illegally possessing two rifles, announced U.S. Attorney Alamdar S. Hamdani.
The investigation began after law enforcement learned narcotics would be in the home of Hector Tellez-Hernandez. On April 5, they conducted a search. At that time, they found two rifles and body armor in a bedroom as well as 16 grams of cocaine.
Tellez-Hernandez admitted ownership. However, as a previously convicted felon of alien smuggling, he is prohibited from possessing firearms or ammunition per federal law.
Chief U.S. District Judge Randy Crane will impose sentencing Oct. 16, at which time Tellez-Hernandez faces up to 15 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alamo Police Department conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Six people charged in bank fraud scheme involving an insider sharing account information that caused more than $345,000 in theftRead the Press Release
Seattle – Six people were indicted for conspiracy to commit bank fraud, six counts of bank fraud, and six counts of aggravated identify theft for their scheme to steal more than $345,000 from a western Washington credit union, announced U.S. Attorney Tessa M. Gorman. One of the defendants, 31-year-old Aneicia Ford, allegedly used her brief employment with the credit union to steal account information of credit union customers so that conspirators could take over the accounts and steal the funds. The credit union has fully reimbursed customers who lost money to the co-schemers.
According to records filed in the case, between May and October 2022, Aneicia Ford worked out of her Tacoma home as a contact center employee who helped customers with account issues. In that role, she had access to personally identifying information about customers of the credit union. According to the indictment, Ford passed that information on to 21-year-old Dangelo Roberts, who allegedly used it to access and steal from customer accounts. Roberts allegedly advertised on social media that he could make false identification materials and sought to recruit co-schemers to access victims’ accounts.
In addition to Ford and Roberts, the other conspirators charged in the scheme include:
Shanna Carter-Zanders, 42 of Auburn, Washington
Kohrey Lee Bridges, 22, of Tumwater, Washington
Anthony McQueen, 36, of Seattle
Meghan Frazier, 21, of University Place, Washington
Aniecia Ford is charged in every count in the indictment. All of the defendants are charged with the conspiracy and different defendants are charged with individual counts of bank fraud and/or aggravated identity theft.
All of the defendants have appeared on the indictment or are scheduled to appear next week.
Using the stolen account information, the conspirators obtained false IDs and used them to get debit cards and to make withdrawals from the victims’ accounts, often at the credit union’s branches. After obtaining increases to the ATM withdrawal limits, the conspirators obtained as much as $25,000 in cash. The conspirators would also spend victims’ funds by ordering cashier’s checks or purchasing postal money orders that they made payable to other conspirators or their associates. They used their illegal access to transfer money between accounts and check balances on accounts.
In all the scheme stole approximately $345,014 from the credit union accounts.
Conspiracy to commit bank fraud and bank fraud are both punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to follow any other sentence imposed on other charges in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and the FBI.
The case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly.
Six Members of Transnational Fraud Network Indicted for Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
A federal grand jury in Los Angeles has returned an indictment charging six defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts.
According to court documents, Henry LoConti, 63, of Chardon, Ohio; John Flynn, 43, of Canada; Shoaib Ahmad, 64, of Canada; Timothy Munoz, 57, of Wilmington, California; Eric Crespin, 61, of Canada; and Lezli St. Hill, 53, of Canada, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Combined with a prior indictment, 19 conspirators are currently charged in the Central District of California for their participation in the scheme. Three other defendants have been convicted and/or sentenced in the District of Nevada, Southern District of California and District of Maryland.
“The scheme alleged in the indictment involved an elaborate plot to steal consumers’ hard-earned savings directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to prosecute such schemes.”
“Criminals are utilizing technology to devise increasingly sophisticated methods to steal from victims,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to use all available tools to prosecute and apprehend these fraud networks, but I also urge everyone to regularly check your accounts for any unauthorized activity – no matter how small. Prevention is key.”
“The U.S. Postal Inspection Service (USPIS), along with our partners, remain committed to shutting down these types of scammers,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “Dismantling this syndicate, and the arrests and prosecutions of those involved, should send a clear message that fraudulent schemes that exploit innocent victims, many of whom have suffered not only financial losses but also emotional distress and a breach of trust, will not be tolerated. The Postal Inspection Service will make sure that justice is served and that those responsible for these types of crimes feel the full weight of justice.”
All six defendants are charged with racketeering conspiracy and wire fraud. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ahmad was separately charged in a second indictment with conspiracy to commit bank and wire fraud related to his participation in a similarly-structured conspiracy that also stole money from U.S. consumer-victims.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP.
USPIS is investigating the case.
Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait for the Central District of California are prosecuting the case.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams and subscription traps.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Members of Transnational Fraud Network Indicted for Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
LOS ANGELES – A federal grand jury has returned an indictment charging six defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
According to court documents, Henry LoConti, 63, of Chardon, Ohio; John Flynn, 43, of Canada; Shoaib Ahmad, 64, of Canada; Timothy Munoz, 57, of Wilmington, California; Eric Crespin, 61, of Canada; and Lezli St. Hill, 53, of Canada, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
“Criminals are utilizing technology to devise increasingly sophisticated methods to steal from victims,” said United States Attorney Martin Estrada. “My office will continue to use all available tools to prosecute and apprehend these fraud networks, but I also urge everyone to regularly check your accounts for any unauthorized activity – no matter how small. Prevention is key.”
“The scheme alleged in the indictment involved an elaborate plot to steal consumers’ hard-earned savings directly from their bank accounts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will use all of the tools at its disposal to prosecute such schemes.”
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Combined with a prior indictment, 19 conspirators are currently charged in the Central District of California for their participation in the scheme. Three other defendants have been convicted and/or sentenced in the District of Nevada, Southern District of California, and District of Maryland.
“The U.S. Postal Inspection Service (USPIS), along with our partners, remain committed to shutting down these types of scammers,” said Inspector in Charge Eric Shen of USPIS’ Criminal Investigations Group. “Dismantling this syndicate, and the arrests and prosecutions of those involved, should send a clear message that fraudulent schemes that exploit innocent victims, many of whom have suffered not only financial losses but also emotional distress and a breach of trust, will not be tolerated. The Postal Inspection Service will make sure that justice is served and that those responsible for these types of crimes feel the full weight of justice.”
All six defendants are charged with racketeering conspiracy and wire fraud. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Ahmad was separately charged in a second indictment with conspiracy to commit bank and wire fraud related to his participation in a similarly-structured conspiracy that also stole money from U.S. consumer-victims.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at www.reportfraud.ftc.gov or at 877-FTC-HELP.
USPIS is investigating the case.
Assistant United States Attorney Monica Tait of the Major Frauds Section and Justice Department Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams and subscription traps.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Six Indicted in Scheme to Defraud D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Omolere Omomowo, 43, a resident of Laurel, Maryland and Fort Lauderdale, Florida, who led several companies that claimed to provide mental health rehabilitative services to some of the District’s most vulnerable citizens, was indicted on August 1, 2024, along with five “community support workers” (CSWs) employed by his company, on charges that they conspired to and did defraud the D.C. Medicaid program of over $10 million by engaging in a scheme to submit bills for mental-health related services that were not medically necessary, not reimbursable, and did not occur.
The indictment was announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Law enforcement arrested Omomowo earlier today in Fort Lauderdale. He made his initial appearance earlier today in the U.S. District Court for the Southern District of Florida. Co-defendant Zilah Bessem, 36, a resident of Frisco, Texas, who previously lived in Maryland, was charged in the same indictment and arrested Thursday evening at Dallas-Fort Worth International Airport. She made her initial appearance earlier today in the U.S. District for the Northern District of Texas and was detained pending trial.
The remaining four co-defendants – Gregory Clark of Washington, D.C., Ernest Ikomi of Beltsville, Maryland, Diane Mochi of Adelphi, Maryland, and Seraphine Nwufor of Bowie, Maryland – are expected to make their initial appearances in the U.S. District Court for the District of Columbia in the next week.
According to the indictment, Omomowo hatched the conspiracy in early 2020, while serving as the chief financial officer of a D.C.-based mental health provider, Prestige Healthcare Resources. After Prestige obtained certification from D.C.’s Department of Behavioral Health to start an Assertive Community Treatment (ACT) program, Omomowo took the lead in implementing the program. In the District, the ACT program provides intensive, integrated services to the most at-risk adults, individuals with an “intractable, serious, and persistent mental illness.” Under Medicaid rules, ACT providers were authorized to submit bills for a greater number of hours and at a higher rate given the seriousness of the mental-health and substance-abuse issues faced by program participants.
The indictment alleges that, shortly after Prestige obtained its ACT authorization, Omomowo orchestrated a scheme by which most, if not all, of the consumers on certain CSWs’ caseloads were stepped up from receiving standard mental health services into receiving services as part of the ACT Program. Omomowo and his co-conspirators allegedly implemented this scheme by directing the submission of false and fraudulent assessments despite knowing that ACT services were not medically necessary for the consumers. Omomowo and his co-defendants then allegedly billed Medicaid for ACT services that were not medically necessary as well as for services that did not occur.
According to the indictment, in April 2021, following an employment dispute with the CEO of Prestige, Omomowo resigned and started a new company, The Marcaulay Group, to continue the fraudulent billing scheme. At Omomowo’s direction, the co-defendant CSWs also left Prestige and joined The Marcaulay Group. The Marcaulay Group, however, was not certified with the Department of Behavioral Health, so Omomowo partnered with D.C.-based mental health service providers Affordable Home Healthcare LLC and later Goshen Healthcare Management Services LLC.
Because Affordable did not have an ACT Program, the Medicaid beneficiaries Omomowo and his CSWs sought to transfer from Prestige required medical assessments to determine whether they continued to need ACT services. The indictment alleges that Omomowo and an unnamed co-conspirator directed the CSW co-defendants to initiate a blanket ACT step-down process without regard to medical necessity and on the basis of false and fraudulent assessments. Omomowo and his co-defendants then conspired to and did submit false and fraudulent encounter notes for standard mental health services to Medicaid that (1) grossly inflated the amount of time spent conducting the mental health services; (2) were based on activities not authorized to be reimbursed by Medicaid; and (3) for mental health service encounters that did not occur.
For this conduct, the indictment charges all six defendants with conspiracy to commit health care fraud. It also charges Omomowo with an additional 10 counts of substantive health care fraud, and each of the five co-defendants with an additional two counts of health care fraud. In addition, Omomowo is charged with four counts of expenditure money laundering for making large purchases with the proceeds of the fraud scheme.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison for the conspiracy charge and lesser penalties for the other offenses. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the Federal Bureau of Investigation and the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit. Valuable assistance was provided by the Department of Health and Human Services and Internal Revenue Service Criminal Investigation.
It is being prosecuted by Assistant U.S. Attorney Christopher Howland of the U.S. Attorney’s Office for the District of Columbia and Special Assistant United States Attorney Jason Facci, on detail from the D.C. Office of the Inspector General.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Serial Bank Robber Sentenced to over Six Years in Prison for Robbing Four BusinessesRead the Press Release
BOSTON – A Boston man was sentenced on July 31, 2024 in federal court in Boston for robbing four businesses, during which he brandished two large knives, while on federal supervised release for robbery charges out of New York.
Akeem Lahens, 34, was sentenced by U.S. District Court Judge Allison D. Burroughs to 77 months in prison, followed by three years of supervised release. Lahens also was ordered to pay $1,998 in restitution to the four businesses he robbed. In April 2024, Lahens plead guilty to four counts of affecting commerce by armed robbery.
A series of commercial armed robberies occurred in Boston in late April and early May 2023: the armed robbery of Metro PCS in Roxbury on April 21, 2023; the armed robbery of Boost Mobile in Jamaica Plain on April 26, 2023; the armed robbery of Cricket Wireless in Jamaica Plain on April 27, 2023; and the armed robbery of Dunkin Donuts in Dorchester on May 4, 2023. Law enforcement believed that the robberies were connected and the perpetrator was likely the same person, as the suspect’s appearance in surveillance footage and witnesses descriptions was the same. Additionally, in each of the robberies, the suspect brandished two large knives, made a verbal demand for money, forcibly took money from the store and forced or attempted to force the victims into a rear room or bathroom of the store.
On May 5, 2023 Lahens was arrested on state charges related to the armed robberies. During a search of Lahens’ residence in Dorchester on May 6, 2023 two knives and sandals worn by the robber in the April 26, 2023 robbery were recovered.
At the time of the armed robberies, Lahens was on federal supervised release for a 2021 conviction in the Southern District of New York of five counts of robbery, for which he was sentenced to 30 months in prison.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Michael A. Davis, Vice President Campus Safety and Chief of Police at Northeastern University made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Sedgwick Man Faces up to 60 Years in Prison for Producing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Sedgwick man pleaded guilty today in U.S. District Court in Bangor to producing child sexual abuse material.
According to court records, in May 2021, Travis Bessey, 29, participated in a Kik chat room dedicated to the distribution of child sexual abuse material. A Homeland Security Investigations (HSI) special agent monitoring the chat observed a user, later identified as Bessey, share images of an adult man sexually abusing young children. The U.S. Attorney’s Office does not identify victims of crime and is limiting identifying information, including gender, age and location, to protect the minor victims’ privacy. The Maine State Police and HSI executed a search warrant at Bessey’s residence. During the investigation, Bessey admitted to sending and receiving child sexual abuse material in the Kik group, and images of Bessey sexually abusing children were recovered from his phone.
Bessey faces 15-30 years in prison on each of the two counts, a fine up to $250,000 and mandatory restitution to the victims. Any sentence would be followed by a minimum of five years of supervised release.
HSI investigated the case with assistance from the Maine State Police.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal term as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
###
Rochester businessman pleads guilty to tax chargeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Jeffrey Tome, 62, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to filing a false tax return, which carries a maximum penalty of three years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Tome owns Tome Enterprises Inc., which provides gutter repair and installation services in Rochester. For the tax years 2017 through 2021, Tome failed to deposit approximately 1,679 customer checks totaling $1,719,283.45 into Tome Enterprises Inc.’s business bank account, instead, cashing the checks at a local check cashing business. Tome then intentionally failed to advise the business’s tax return preparer of the money that was received from cashing the business checks, resulting in the $1,719,283.45 not being reported on the business’s corporate income tax returns. In addition, Tome failed to include the net profits from the corporation as income on his personal federal income tax returns, which resulted in Tome failing to pay personal income taxes totaling $330,137. Also, Tome paid his employees $407,573.60 in cash, which represented wages for which payroll taxes should have been paid. The payroll taxes that Tome failed to pay totaled $62,358.76.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso.
Sentencing is scheduled for December 11, 2024, at 2:00 p.m. before Judge Geraci.
# # # #
Pullman, Washington Father, Who Allegedly Took Child from Washington to Mexico, Indicted on Federal Kidnapping ChargesRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aaron Aung was charged by criminal complaint on one count of International Parental Kidnapping. Aung was arraigned in federal court on August 2, 2024.
According to the complaint, on June 3, 2024, Aung was supposed to travel to the Pullman Police Department for a custody exchange of the victim with the victim’s mother. Aung and the victim never arrived for the custody exchange. Instead, agents with the FBI and U.S Customs and Border Protection (CBP) obtained photos of a vehicle Aung was allegedly driving, which had crossed into Mexico on June 1, 2024, at the Andrade, California, Port of Entry.
The complaint further alleges that on July 4, 2024, Aung, the victim, and Aung’s fiancé, Nadia Cole, were contacted by Mexican officials in Mexico. Cole later was deported from Mexico to the United States, while Aung and the victim remained in Mexico at that time. Three days later, on July 7, 2024, Aung and the victim were encountered by Mexican officials near the United States-Mexico border in Nogales, Mexico. Aung and the victim were then deported by Mexican officials to the port of entry near Nogales, Arizona, where they were presented to CBP officials. CBP then took custody of both Aung and the victim. CBP also detained Aung on an outstanding felony warrant issued out of Whitman County, Washington for custodial interference first degree.
“Children deserve to live in a world where they are safe, surrounded by adults who love and care for them,” stated U.S. Attorney Waldref. “Our office prioritizes offenses against our community’s youngest and most vulnerable victims and will continue to aggressively prosecute those who harm children.”
This case is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorneys Rebecca Perez and Michael J. Ellis.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Phoenix Man Charged for Role as Recruiter and Coordinator of Alien SmugglersRead the Press Release
TUCSON, Ariz. – Nathan Espinoza Jr., 22, of Surprise, was arrested last week for his role in recruiting a driver and coordinating the transportation of two undocumented noncitizens in March 2024, one of whom suffered fatal injuries after jumping out of the driver’s vehicle while it was moving. Espinoza was charged by criminal complaint with one count of Conspiracy to Transport Illegal Aliens for Profit.
The complaint alleges that, since at least March 2024, Espinoza has conspired with others to recruit drivers to transport undocumented noncitizens, in exchange for which he received approximately $1,000 per person transported into the United States. The complaint further alleges that Espinoza has acted as a middleman for other smuggling coordinators and has helped coordinate numerous smuggling loads, including the March 2024 smuggling event that resulted in the death of one of the noncitizen passengers.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This arrest is a result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. This work was recently expanded to Panama and Colombia. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 24-MJ-03713-TUC-N/A (EJM)
RELEASE NUMBER: 2024-107_Espinoza# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Pennsylvania Man Sentenced to Life Imprisonment for Kidnapping and Death of Woman Whose Body Was Found in Nevada DesertRead the Press Release
LAS VEGAS – A Pennsylvania man who was convicted by a federal jury was sentenced to life imprisonment for kidnapping a woman in Pennsylvania then driving her to Nevada and killing her in the desert.
Following an eight-day jury trial in May 2024, John Matthew Chapman, was found guilty of one count of kidnapping resulting in death. United States District Judge James C. Mahan presided over the trial and sentenced Chapman to the maximum penalty.
“The defendant violated the victim’s trust by luring her away from her family and friends in Pennsylvania and out into the Nevada desert where he viciously killed her,” said United States Attorney Jason M. Frierson for the District of Nevada. “This sentence should send a clear message to others that kidnapping and killing another person will result in a substantial prison sentence. Thank you to our federal and local law enforcement partners for their hard work in bringing justice for the victim’s family.”
“Today’s sentencing holds the defendant accountable for the callous and brutal murder of an innocent young woman,” said Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Field Office. “We hope it will bring a sense of closure to the victim’s family, while affirming the FBI and our law enforcement partners' commitment to pursuing justice for those affected by violence.”
According to court documents and evidence presented during trial, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim in approximately two months, but they had observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found identification cards with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.
On November 15, 2019, Bethel Park Police Department detectives arrested and interviewed Chapman. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania, to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim before their departure to Nevada. Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a bondage photo shoot, Chapman bound the victim’s hands and feet with plastic zip ties and affixed her to a signpost. Then he applied duct tape to her mouth and nose and watched her die from asphyxiation.
The joint investigation revealed that Chapman returned to Pennsylvania. He pretended to be the victim, including using the victim’s Facebook messenger account, and he continuously used the victim’s residence and money following her death.
The FBI, the Lincoln County Sheriff’s Office in Nevada, and the Bethel Park Police Department in Pennsylvania investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Steven Rose prosecuted the case.
###
Owner of Great Falls firearms business charged with filing false income tax returnsRead the Press Release
GREAT FALLS — The owner of firearms business in Great Falls was charged with filing false income tax returns after an undercover investigation determined the owner did not report 20 percent, or approximately $1.4 million, of his gross receipts, resulting in a tax loss of almost $500,000, U.S. Attorney Jesse Laslovich said today.
A grand jury indictment filed on Aug. 1 in U.S. District Court charges the defendant, Tommy Michael VanHoose, 66, with five counts of submitting a false tax return. If convicted, VanHoose faces a maximum of three years in prison, a $250,000 fine, and one year of supervised release on each count.
A summons was issued for VanHoose to appear for arraignment on Sept. 10 before U.S. Magistrate Judge John T. Johnston in Great Falls.
An indictment is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
“The indictment alleges VanHoose, by his own claims, skimmed cash from his firearms business and did not report 20 percent of his gross receipts to the IRS, which resulted in a substantial underpayment of income taxes to the United States. After a thorough investigation conducted by the IRS, we allege VanHoose’s own statements to an undercover agent were accurate, which is why he is charged with multiple counts of submitting a false federal tax return,” U.S. Attorney Laslovich said.
The indictment alleges that VanHoose owned and operated Highwood Creek Outfitters LLC, a firearms distributor and shooting range in Great Falls. VanHoose, through a real estate agent, listed the business for sale for $1,750,000. An IRS undercover agent, posing as a potential buyer, inquired about the list price by calling the real estate agent in February 2023. The real estate agent told the undercover that, “[N]ot everything flows to the tax returns.” In a later conversation, the real estate agent told the undercover that they would not identify in writing any “off the books” income but the actual amount of income was “substantial.”
As further alleged, the undercover toured Highwood Creek Outfitters with VanHoose in May 2023. During the tour, VanHoose stated that he skimmed approximately $450,000 in cash and repeatedly stated he did not report 20 percent of the gross receipts to the IRS. Based on his own claims and on records obtained through a search warrant, VanHoose underreported approximately 20 percent, or about $1,486,404, of his income for tax years 2018 through 2022, resulting in him owing the IRS approximately $492,254.
In addition, the indictment alleges that when individuals purchase firearms from Highwood Creek Outfitters, they are required to complete a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473, which identifies the firearm purchased. The undercover asked VanHoose how underreporting of income was possible when ATF tracked gun sales by serial number through ATF Form 4473s. VanHoose responded, “It’s easy.” VanHoose further stated, “they don’t know what I’m paying for or I’m getting in income off those guns.” VanHoose therefore confirmed to the undercover that he accurately detailed sales through the ATF Form 4473 but underreported his income to the IRS. IRS agents executed a search warrant on June 14, 2023, at Highwood Creek Outfitters to obtain, among other items, the ATF Form 4473s to determine the amount of unreported income. The actual gun prices were attached to the ATF Form 4473s and confirmed that VanHoose skimmed cash and underreported his gross receipts to the IRS.
The indictment also alleges that VanHoose sold firearms for a higher price than what he entered into a point of sales system for the business; gave or sold firearms to others in which he did not record the transaction; and lied to his accountant by providing incomplete records to underreport income to the IRS.
The U.S. Attorney’s Office is prosecuting the case. IRS Criminal Investigation conducted the investigation.
PACER case reference. 24-60.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX
Orlando Man Sentenced to 60 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Muhamad Almufada Adi (49, Orlando) to 60 years in federal prison for producing child sexual abuse material. The court also ordered Adi to forfeit the electronic devices used in the commission of the offense. Adi entered a guilty plea on May 14, 2024.
According to court documents, between 2018 and 2022, Adi sexually abused a minor victim and produced child sexual abuse material of the child. Adi then uploaded the child sexual abuse material to online cloud and social media accounts. Adi also sexually abused a second minor victim and forced the second child to look at the child sexual abuse material that had been produced of the first child.
This case was investigated by Homeland Security Investigations and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diane Hu.
“Protecting our children from sexual exploitation is a moral obligation for Homeland Security Investigations and our partners at the Orange County Sheriff’s Office,” said Homeland Security Investigation Tampa Special Agent in Charge John Condon. “Our mutual steadfast commitment comes with an unwavering vigilance and compassion for victims.”
This case was brought 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nicaraguan National Indicted for Making False Statements in a Passport ApplicationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on August 1, 2024, SILVIO MARTIN MENDOZA SANCHEZ (“MENDOZA SANCHEZ”), age 44, a citizen of Nicaragua, was indicted on August 1, 2024, for making false statements in an application for a United States passport, in violation of 18 U.S.C. § 1542.
According to court documents, on or about May 25, 2024, MENDOZA SANCHEZ used the identity information of a Puerto Rican citizen to apply for a United States passport. If convicted, ALVARO faces up to 10 years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Department of State, Diplomatic Security Service. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Niagara Falls man arrested on fentanyl chargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Levester Rose, 46, of Niagara Falls, NY, was arrested and charged by criminal complaint with possession with intent to distribute 40 grams or more of fentanyl, which carries a minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, during an ongoing narcotics trafficking investigation in Niagara Falls, Rose was identified as an individual engaged in narcotics trafficking. Rose has a history of narcotics trafficking, with drug convictions in 1995, 2014, and 2020. On July 31, 2024, investigators executed a search warrant at a 26th Street residence in Niagara Falls, a premises known to be utilized by Rose. During the search, law enforcement recovered packages of suspected fentanyl.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the North Tonawanda Police Department, under the direction of Chief Keith Glass, the Niagara Falls Police Department, under the direction of Superintendent Nick Ligammari, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michal Filicetti.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Newington Man Charged with Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford has returned an indictment charging MARTIN DELGADO, 29, of Newington, with narcotics distribution and firearm possession offenses.
The indictment was returned on July 31, 2024, and Delgado was arrested this morning. He appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in statements made in court, on May 13, 2024, members of the FBI’s Northern Connecticut Gang Task Force conducted a court-authorized search of Delgado’s Newington residence and seized approximately 2,500 wax paper sleeves containing fentanyl, a quantity of cocaine, and narcotics packaging materials. Delgado, who fled on foot when officers arrived at his residence, was apprehended a short time later in West Hartford. Officers located a 9mm handgun near Delgado’s residence that he appeared to have discarded as he fled. Delgado was charged with state offenses and released on bond.
It is alleged that Delgado’s criminal history includes state felony convictions for drug distribution offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Delgado with possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and unlawful possession of a firearm and ammunition by a felon, an offense that carries a maximum term of imprisonment of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Gang Task Force, the Connecticut State Police, and the West Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police, and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Christopher Lembo and Reed Durham.
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 gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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 www.justice.gov/psn.
New Orleans Man Pleads Guilty to Making False Statements to Small Business AdministrationRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that RENIC PALMER, JR. (“PALMER”), age 24, of New Orleans, pled guilty on August 1, 2024, before United States District Judge Carl J. Barbier to making or using false writings or documents to the United States Small Business Administration (SBA), in violation of Title 18, United States Code, Section 1001(a)(3).
According to court documents, PALMER, to obtain a Payroll Protection Program (“PPP”) Loan, submitted false writings and documents to the SBA. In his application, among other things, PALMER falsely represented that he was the owner of a merchant wholesale hair supply company formed in 2017 and that he was eligible for PPP funds. As a result of these false representations, PALMER obtained $20,832.00 from the SBA.
PALMER faces up to five years in prison, up to three years of supervised release, up to a $250,000 fine, a $100 mandatory special assessment fee, and restitution to the SBA for his conduct. Sentencing has been scheduled before Judge Barbier on November 7, 2024.
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 more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
U.S. Attorney Evans commended the Special Agents of the Coast Guard Investigative Service for their work on this case. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.
Mt. Juliet Man Arrested for Assaulting Law Enforcement and Other Charges During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON -- A Mt. Juliet, Tennessee, man has been arrested for allegedly assaulting law enforcement and other charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Nicholas Waldon Smotherman, 41, of Mt. Juliet is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of law enforcement during a civil disorder and assaulting, resisting, or impeding certain officers.
In addition to the felonies, Smotherman is charged with several misdemeanor offenses, including entering and remaining in restricted grounds or buildings, disorderly and disruptive conduct in restricted grounds or buildings, engaging in physical violence in restricted grounds or buildings, disorderly conduct in a Capitol building or grounds, and act of physical violence in the Capitol grounds or buildings.
The FBI arrested Smotherman today in Hermitage, Tennessee, and he will make his initial appearance in the Middle District of Tennessee.
According to court documents, it is alleged that Smotherman was identified among a crowd of rioters on Jan. 6, 2021, amassed on the Upper West Plaza of the U.S. Capitol grounds. At approximately 2:28 p.m., a Metropolitan Police Department (MPD) officer's body-worn camera captured Smotherman standing in front of the bike racks and a police line on the southwest side of the Upper West Plaza.
Here, a group of rioters had begun pulling on the bike racks. Smotherman was seen on body-worn camera next to the group, appearing to advance toward at an MPD officer. Police then commanded the rioters to move back. Instead, the rioters pulled the bike rack barricades to the ground, and Smotherman moved forward toward the police line. It is alleged that Smotherman then approached an MPD officer and pushed the officer with both hands.
The officer then attempted to push Smotherman back using a baton, but Smotherman stood upright and yelled, "Hit me with it again." When the officer again attempted to push Smotherman back, Smotherman allegedly grabbed the officer's baton and attempted to pull it away. As Smotherman acted, he yelled, "I'll f— take this" and "Come out here b—." The officer managed to prevent Smotherman from taking the baton while another officer deployed pepper spray, and Smotherman retreated.
Soon after this, rioters overran the police line on the Upper West Plaza, and officers retreated to the Lower West Terrace. A large crowd of rioters then gathered in and around the entrance to the Lower West Terrace Door, referred to as the "Tunnel," the site of some of the most violent attacks against law enforcement on January 6th. Smotherman was later identified in and around the Tunnel.
This case is being prosecuted by the U.S. Attorney's Office for the District of Columbia and the Department of Justice National Security Division's Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney's Office for the Middle District of Tennessee.
The case is being investigated by the FBI's Memphis and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department. Smotherman was identified as Assault on Federal Officer (AFO) #364.
In the 42 months since Jan. 6, 2021, more than 1,470 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 530 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
#####
Mount Airy Man Pleads Guilty to Conspiracy Charge for $1 Million Cattle Theft SchemeRead the Press Release
CHARLOTTE, N.C. – William Dalton Edwards, 25, of Mount Airy, N.C., pleaded guilty today to a conspiracy charge for his role in a $1 million scheme involving the theft of livestock, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Miles B. Davis, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG), Southeast Region, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Sheriff Alan Norman of the Cleveland County Sheriff’s Office
and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to plea documents and the plea hearing, from April 2018 to October 2022, Edwards conspired with another person to defraud livestock markets, also known as sales barns, in Iredell and Cleveland Counties, North Carolina, and in Texas, Oklahoma, and Virginia. The investigation determined that, on multiple occasions during the relevant time frame, Edwards and his coconspirator purchased cattle from sales barns in North Carolina and wrote checks to pay for the cattle. Edwards and his coconspirator wrote such checks knowing they were worthless, since there were insufficient funds to cover the checks and pay for the cattle.
According to court records, Edwards and his coconspirator arranged to transport the cattle out-of-state before the defrauded sales barns and financial institutions could determine their checks were worthless. The stolen cattle were then resold in Texas and Oklahoma. Over the course of the scheme, Edwards and his co-conspirator fraudulently obtained more than 3,000 head of cattle and caused over $1 million in losses to sales barns in North Carolina, Virginia and Texas. The sales barns—which are family-owned in North Carolina—incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock.
Edwards pleaded guilty to conspiring to defraud the United States and to violate the laws of the United States. One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division of the U.S. Department of Agriculture in its regulation of fair livestock markets. Other objects of the conspiracy included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations; to steal livestock valued at more than $10,000; and to transport stolen livestock in interstate commerce.
The statutory maximum for the charged offense is five years in prison, and any restitution or fines ordered by the Court at sentencing. Edwards is released on bond. A sentencing date has not been sent.
In making today’s announcement, U.S. Attorney King commended the USDA-OIG, the U.S. Secret Service, IRS-CI, and the Cleveland and Iredell County Sheriff’s Offices for their investigation of the case. U.S. Attorney King also thanked the Stanly County District Attorney’s Office for its assistance.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Morgantown Sex Offender Convicted After Traveling to Mexico to Purchase ChildRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scott David Bixler, 43, of Morgantown, West Virginia, has admitted to failing to update his sex offender registration.
United States Attorney William Ihlenfeld announced that Bixler, a convicted sex offender, traveled outside of the country last August without notifying the West Virginia State Police as required by his sex offender status. Bixler was arrested in Mexico, where investigators determined that he attempted to purchase a 7-year-old girl. According to court documents and statements made in court, Bixler was in possession of two tranquilizer air guns, methamphetamine, a cell phone jammer, and $5,000 in cash with which to purchase the child.
“It should be a relief to everyone, especially to parents of young children, knowing that someone as dangerous as Scott Bixler has been convicted and will be locked up for a long time,” said U.S. Attorney Ihlenfeld. “I’m grateful for the work of law enforcement to apprehend Bixler and bring him to justice.”
As a result of his guilty plea, Bixler faces up to 10 years in federal prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government, along with former Assistant U.S. Attorney Sarah Wagner.
This case was investigated by the FBI, the U.S. Marshals Services, and the West Virginia State Police.
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 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 Justice.gov/PSC.
U.S. Magistrate Judge Michael John Aloi presided.