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21 June 2024
West Texas Man Sentenced to Fourteen Years in Prison for Methamphetamine TraffickingRead the Press Release
TEXARKANA – A West Texas man was sentenced yesterday to 168 months in federal prison, followed by five years of supervised release, for methamphetamine trafficking. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, which took place in the United States District Court in Texarkana.
According to court records, on September 28, 2020, Ray Cornelius Calvert, age 43, of El Paso, Texas was the driver of a rental vehicle stopped by the Arkansas State Police on Interstate 30, in Hempstead County. During the traffic stop, a Trooper asked the vehicle’s renter, passenger Anita Marie Hughes, age 47, for consent to search it, which she granted. During the ensuing search, Troopers found approximately 1.5 pounds of pure methamphetamine in the vehicle, which Calvert and Hughes had been transporting to Memphis, Tennessee, for distribution. Subsequent investigation also revealed that, at the time of his arrest in Arkansas, Calvert was on pre-trial release for a separate federal methamphetamine indictment then pending in another state.
On July 21, 2023, Calvert pleaded guilty to Possession of Methamphetamine with Intent to Distribute in the Western District of Arkansas. Hughes also pleaded guilty and was sentenced to 72 months in prison in January 2022, followed by 5 years of supervised release.
U.S. Attorney David Clay Fowlkes made the announcement.
The Arkansas State Police and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Wallingford Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Ives Road, LLC (“Ives Road”), the owner of the building that currently houses Pacific Buffet & Grill Restaurant (“Pacific Buffet”) in Wallingford, has entered into a settlement agreement to resolve allegations that the building’s parking area did not comply with the Americans with Disabilities Act (“ADA”).
This matter was initiated by a complaint filed with the U.S. Department of Justice by an individual claiming that Pacific Buffet did not have adequate accessible parking spaces. Based on its investigation, the government found several ADA violations in Pacific Buffet’s parking area and entrance.
Under the terms of the settlement agreement, Ives Road has agreed to make changes to the building’s entrance and parking area to make them more accessible to individuals with disabilities. Among the changes required by the agreement, Ives Road will add three accessible spaces to its parking lot and remove gaps in the pavement around the accessible parking spaces. It will also lighten the pressure required to open its front door and provide more maneuvering clearance at its front door, so that its entrance is more accessible. Ives Road has a total of three months to complete these changes.
“No one should have to worry about not finding accessible parking in our state,” said U.S. Attorney Avery. “The ADA’s mandate has existed for more than a decade. I want to commend Ives Road for doing the right thing by cooperating with our investigation and agreeing to make Pacific Buffet more accessible for everyone going forward.”
The settlement agreement is effective for three years, and the U.S. Attorney’s Office will monitor compliance during that time.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700 and ask for the Civil Rights Intake Specialist.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
U.S. Attorney’s Office Seeks to Intervene in Lawsuit Against Itasca, Ill. for Refusing to Allow Treatment Center to Open in VillageRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago has sought to file a complaint in intervention in a pending lawsuit against Itasca, Ill., alleging the village engaged in unlawful disability discrimination in reviewing and ultimately denying a zoning request filed by a non-profit health care provider to use its property as a treatment center for people with substance-use disorders.
Haymarket DuPage LLC contracted in 2019 to purchase a hotel in Itasca with plans to repurpose it into a specialized treatment center offering health care services to treat substance-use disorders and related mental health disabilities. Haymarket’s main treatment center is in Chicago’s West Loop neighborhood and offers a range of services, including detoxification support, inpatient and outpatient treatment programs, primary medical and pediatric care, and a program allowing mothers in treatment to remain with their children. Haymarket has sought for years to expand into DuPage County due to the urgent need for treatment centers in Chicago’s western suburbs.
The complaint in intervention that the U.S. Attorney’s Office seeks to file contends that the village engaged in disparate treatment by employing a host of highly anomalous tactics to frustrate Haymarket’s application for zoning approval. The complaint alleges that village officials concocted a pretextual narrative that the treatment center would impose severe economic harms on the region, while also fanning the flames of residents’ fears by issuing numerous public statements disparaging Haymarket and its supporters. The complaint contends that the village also failed to fulfill its accommodation obligations under the Americans with Disabilities Act prior to denying Haymarket’s zoning request.
The U.S. Attorney’s Office’s motion to intervene in the lawsuit was filed Thursday in federal court in Chicago. It was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois. The government is represented by Assistant U.S. Attorneys Jordan A. Rosen, Sarah F. Terman, and Patrick W. Johnson.
Motion to InterveneTwo Men Sentenced for Commercial Bribery and Tax FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Sing, age 61, of Philadelphia, Pennsylvania, was sentenced to 27 months of imprisonment, and Mark Holmes, age 67, of Muskogee, Oklahoma, was sentenced to 18 months of imprisonment by United States District Judge Malachy E. Mannion, for commercial bribery and tax fraud offenses.
According to United States Attorney Gerard M. Karam, Danny Sing pleaded guilty to conspiring with other individuals to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Global Staffing Services, Inc. leased temporary employees to companies in Pennsylvania and New York. Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. In total, Sing and his coconspirators obtained over $16,500,000 from a Pennsylvania food services company for their staffing companies. The criminal activities occurred between 2013 and 2020. Sing further failed to file personal tax returns and pay federal income tax for years 2014 through 2020, despite spending over $1 million at local casinos during that time period. This resulted in over $390,000 in tax losses to the IRS.
Mark Holmes pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from the owners and operators of Global Staffing Services, Inc. and Penns Independent Staffing, another staffing company, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, another temporary staffing company that he owned and operated. Encore Staffing Solutions LLC leased temporary employees to manufacturing businesses throughout Pennsylvania. The criminal activities occurred between 2014 and 2020.
Five other individuals were previously prosecuted in this investigation:
- Madeline Nieves, age 49, of Plains, Pennsylvania, pleaded guilty to a tax fraud conspiracy. Nieves conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, which she owned and operated with Holmes. Nieves failed to report Encore Staffing Solutions LLC employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. Nieves was sentenced to 15 months of imprisonment.
- Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam was sentenced to three years of probation.
- Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS.
- Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, pleaded guilty to accepting, as a supervisor of the Pennsylvania food services company, approximately $150,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $13,000,000 from Bonnewell’s employer. Bonnewell also pleaded guilty to failing to disclose cash income on his personal tax returns. Bonnewell awaits sentencing.
- Jose L. Ortiz, age 48, of Drums, Pennsylvania, pleaded guilty to conspiring to commit honest services fraud. From 2014 to 2021, Ortiz was a manager and director at a Pennsylvania food services company who, along with his coconspirators accepted cash bribes and other things of value from other coconspirators who owned and operated Global Staffing Services, Inc. and Penns Independent Staffing. In exchange for the kickbacks, Ortiz and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies, paying them over $18,000,000, in exchange for hundreds of thousands of dollars in kickbacks. Ortiz received approximately $200,000 of those cash kickbacks.
The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
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Supreme Court's Rahimi Decision Important for Local Domestic Violence Initiative – Operation 922Read the Press Release
OKLAHOMA CITY – Today, the Supreme Court in United States v. Rahimi upheld the constitutionality of the federal statute prohibiting individuals subject to a domestic violence restraining order from possessing a firearm or ammunition. This law is a critical tool in our ongoing violent crime initiative – Operation 922. In 2018, the Western District of Oklahoma launched Operation 922 as the local implementation of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. The specific strategy is to reduce gun violence by targeting the subject matter of domestic violence.
“The Supreme Court’s decision today is vital to our office’s ongoing commitment to address domestic violence through enforcement of federal firearms laws,” said U.S. Attorney Robert J. Troester. “We cannot have safe neighborhoods without first having safe homes. By bringing the power of federal prosecution to hold domestic abusers accountable, particularly when they possess a firearm, we are protecting the lives of women and children in abusive relationships, and the police officers who respond to domestic calls.”
Domestic abusers are found in all neighborhoods, regardless of race, ethnicity, socio-economic status, educational level, employment status, or geographic area. When domestic violence escalates to involving firearms, the threat to physical safety increases significantly for the intimate partner, child of a partner, and law enforcement officers responding to domestic calls. Operation 922 prioritizes prosecutions of repeat domestic abusers and particularly violent offenders in domestic settings who violate federal law (primarily firearms offenses). It brings law enforcement, prosecutors, and non-profit entities together with common purpose and clear direction – to protect victims of domestic violence and hold abusers accountable.
Since Operation 922 was launched in 2018, the U.S. Attorney’s Office for the Western District of Oklahoma has charged 338 individuals with federal offenses stemming from domestic violence. To date, 321 have already been determined guilty through trial or plea, and 291 have already been sentenced to an average of more than 74 months in federal prison. Cases have originated in 26 different counties in the Western District of Oklahoma.
Stoughton Man Sentenced to over 11 Years for Role in Cocaine Trafficking Conspiracy and Bank and Wire Fraud Scheme Related to COVID-19 Pandemic Relief ProgramRead the Press Release
BOSTON – A Stoughton man was sentenced yesterday in federal court in Boston for his role in a drug trafficking organization (DTO) that shipped dozens of parcels containing kilograms of cocaine from Puerto Rico to various addresses throughout Eastern Massachusetts and Rhode Island. The defendant was also sentenced for his role in a bank and wire fraud scheme to fraudulently obtain COVID-19 pandemic relief funds.
Patrick Joseph, 42, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 138 months in prison followed by five years of supervised release. In March 2024, Joseph pled guilty to one count each of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and cocaine base, wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.
From February 2020 to May 2021, Joseph facilitated the transportation of 10-20 kilograms of cocaine from the Dominican Republic to Puerto Rico, and eventually to Massachusetts via the U.S. Mail. The cocaine seized by investigators was found concealed in two-kilogram quantities inside air fryers and locking cash boxes before being sent through the U.S. Mail. The investigation led to the search of several drug stash locations and the seizure of dozens of kilograms of cocaine.
During the investigation it was learned that Joseph was involved in a scheme to defraud a COVID-19 pandemic relief program. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and co-conspirator Yves Montima submitted 12 fraudulent PPP loan applications, both in their own names and on behalf of others, at several financial institutions. The fraudulent loan applications claimed independent contractor income that did not exist and substantiated that non-existent income through falsified tax documents. In addition to receiving the proceeds from the loans submitted in their own names, Joseph and Montima received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications. In November 2021, Montima pleaded guilty to one count of bank fraud conspiracy and was sentenced in September 2023.
Acting U.S. Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Massachusetts State Police Colonel John Mawn; and Boston Police Commissioner Michael Cox made the announcement today. The Drug Enforcement Administration, New England Field Division and Homeland Security Investigations in Boston provided valuable assistance with the investigation. Assistant U.S. Attorneys Philip C. Cheng and Christopher Markham of the Criminal Division prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
St. Charles Man Sentenced to 40 Years in Prison for Recording Sexual Abuse of 2 GirlsRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a St. Charles, Missouri man who recorded his sexual abuse of two young girls for years to 40 years in prison.
Ronald C. Lawrence sexually abused two girls for years, starting when one was just 7 years old. He recorded that abuse and shared those images with others online.
The victims’ mother spoke in court, saying Lawrence had destroyed their lives and violated the trust they once had in him.
Lawrence also downloaded and possessed child sexual abuse material involving other children, and Judge Pitlyk ordered him to pay restitution of $3,000 to one of those children whose identity is known. Lawrence directed a third juvenile victim that he met via social media to create and send him videos of child pornography and asked the victim and another person to send him exploitative images of their younger siblings.
Lawrence, 25, pleaded guilty in U.S. District Court in St. Louis to two counts of production of child pornography, two counts of distribution of child pornography and one count of receiving child pornography.
The FBI, the St. Charles Police Department, the St. Charles County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springfield Man Sentenced to 30 Years in Prison for Purchasing Pornographic Images, Videos from Child VictimRead the Press Release
JEFFERSON CITY, Mo. – A Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a child.
Jason T. Bernard, 54, was sentenced by U.S. District Judge Roseann A. Ketchmark to 30 years and five months in federal prison without parole. The court also sentenced Bernard to a lifetime of supervised release following incarceration and ordered him to pay $171,000 in restitution.
On Aug. 29, 2023, Bernard pleaded guilty to one count of the exploitation of a child, one count of the coercion and enticement of a child, and one count of receiving child pornography.
The investigation began when nine CyberTips were received from the National Center for Missing and Exploited Children on April 7, 2022. The nine CyberTips involved 145 images of child pornography, some victims as young as toddlers, that Bernard uploaded for storage to the Verizon Cloud.
After investigators identified Bernard as the account holder, they received information from law enforcement in North Carolina that Bernard also was involved in one of their investigations. For two years, Bernard had been sending funds through Cash App to a child victim identified in court documents as “Jane Doe 1,” starting when she was 12 or 13 years old. In exchange, the child victim sent pornographic images and videos of herself to Bernard.
Bernard admitted that he sent sex toys and alcohol to Jane Doe, and those items were later used to produce images that he purchased from Jane Doe. Bernard possessed more than 700 images and videos of the child victim.
Bernard also admitted to having multiple conversations with Jane Doe about her traveling to Missouri to meet him for sex, offered her money for this potential meeting, and had conversations with Jane Doe about purchasing either a plane ticket or a bus ticket to facilitate her travel to Missouri.
Investigators also discovered more than 1,500 additional images and videos of child pornography on Bernard’s cell phone.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Beaufort County, North Carolina, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Bend Man Sentenced to 168 Months in PrisonRead the Press Release
SOUTH BEND – DeVante Jiggetts, 30 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to two counts of robbery affecting commerce, one count of brandishing a firearm in relation to a crime of violence, and one count of being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Jiggetts was sentenced to 168 months in prison followed by 3 years of supervised release.
and was ordered to pay $300 in restitution to the victims of the offense.
According to documents in the case, in November and December 2022, Jiggetts, along with co-defendants Smith and Harris, robbed at gunpoint several cellular telephone stores and a convenience store. The stores were spread across LaPorte, Elkhart, and St. Joseph counties. On November 29, 2022, Jiggetts drove Smith to commit a robbery of a cell phone store in South Bend. After the robbery was over, officers tracked Jiggetts to an apartment complex and attempted to apprehend him. Jiggetts fled first in a vehicle and then on foot, all while carrying a 9mm handgun that was recovered by law enforcement. Jiggetts had a 2014 felony robbery conviction which prohibited him from possessing the firearm.
Co-defendant Treveon Smith was previously sentenced to 214 months of imprisonment followed by 3 years of supervised release and was ordered to pay $300.00 in restitution.
Co-defendant Taibian Harris was previously sentenced to 84 months of imprisonment followed by 2 years of supervised release.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the St. Joseph County Prosecutor’s Office, the South Bend Police Department, the Elkhart Police Department, the Michigan City Police Department, and the LaPorte County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
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.
Sikorsky Support Services, Inc. and Derco Aerospace, Inc. Agree to Pay $70 Million to Settle False Claims Act Allegations of Improper Markups on Spare Parts for Navy Trainer AircraftRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, joins the Civil Division of the Department of Justice in announcing that Sikorsky Support Services, Inc. (“SSSI”), a Delaware corporation headquartered in Stratford, Connecticut, and Derco Aerospace, Inc. (“Derco”), a Wisconsin corporation headquartered in Milwaukee, Wisconsin, have agreed to pay $70 million to resolve False Claims Act allegations that they overcharged the Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators.
In a lawsuit filed in the United States District Court for the Eastern District of Wisconsin, the United States alleged that SSSI and Derco, which were both wholly-owned subsidiaries of the same parent company, knowingly entered into an improper cost-plus-percentage-of-cost (“CPPC”) subcontract. Under that contract, SSSI agreed to purchase parts from Derco at the cost that Derco paid other suppliers for those parts, plus a fixed 32 percent markup. SSSI, in turn, submitted cost vouchers to the Navy for reimbursement of the amounts it paid to Derco. The government alleged that, by failing to disclose that the costs claimed by SSSI were the product of an illegal CPPC subcontract between SSSI and Derco, SSSI and Derco knowingly presented false and fraudulent cost vouchers to the Navy. The district court ruled that Derco’s markup violated a federal statute barring CPPC contracting, which Congress prohibited because it gives suppliers incentive to drive up government costs, as well as the terms of the prime contracts between SSSI and the Navy.
“Government contractors must ensure their subcontracting arrangements comply with the law and with their contractual obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors do not skirt the law and engage in self-dealing that may artificially inflate their charges at the expense of the American taxpayers.”
“The United States Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract while deterring future violations of the law.”
“Today’s settlement agreement should serve as a strong deterrent for those who seek to exploit the DoD’s procurement process,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service and our partners to aggressively investigate defective pricing and cost mischarging schemes that put American taxpayer dollars at risk.”
“Overinflation of parts and material costs for the repair and maintenance of aircraft affected naval air training and is a disservice to the American taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS continues to safeguard the Department of the Navy’s warfighting efforts from economic crimes by upholding the integrity of the defense acquisition process.”
The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Patzer v. Sikorsky Aircraft Corp., Sikorsky Support Services, Inc., and Derco Aerospace, Inc., Case No. 11-0560 (E.D. Wis.) and was brought by Mary Patzer, a former employee of Derco.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of Wisconsin.
Assistant United States Attorney Michael Carter of the Eastern District of Wisconsin and Trial Attorneys Alan Gale, Nelson Wagner, and Gary Newkirk of the Fraud Section of the Civil Division’s Commercial Litigation Branch handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Sikorsky Support Services Inc. and Derco Aerospace Inc. Agree to Pay $70M to Settle False Claims Act Allegations of Improper Markups on Spare Parts for Navy Trainer AircraftRead the Press Release
Sikorsky Support Services Inc. (SSSI), a Delaware corporation headquartered in Stratford, Connecticut, and Derco Aerospace Inc. (Derco), a Wisconsin corporation headquartered in Milwaukee, Wisconsin, have agreed to pay $70 million to resolve False Claims Act allegations that they overcharged the Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators.
In a lawsuit filed in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department alleged that SSSI and Derco, which were both wholly-owned subsidiaries of the same parent company, knowingly entered into an improper cost-plus-percentage-of-cost (CPPC) subcontract. Under that contract, SSSI agreed to purchase parts from Derco at the cost that Derco paid other suppliers for those parts, plus a fixed 32% markup. SSSI, in turn, submitted cost vouchers to the Navy for reimbursement of the amounts it paid to Derco. The government alleged that, by failing to disclose that the costs claimed by SSSI were the product of an illegal CPPC subcontract between SSSI and Derco, SSSI and Derco knowingly presented false and fraudulent cost vouchers to the Navy. The district court ruled that Derco’s markup violated a federal statute barring CPPC contracting, which Congress prohibited because it gives suppliers incentive to drive up government costs, as well as the terms of the prime contracts between SSSI and the Navy.
“Government contractors must ensure their subcontracting arrangements comply with the law and with their contractual obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors do not skirt the law and engage in self-dealing that may artificially inflate their charges at the expense of the American taxpayers.”
“The U.S. Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract deterring future violations of the law.”
“Today’s settlement agreement should serve as a strong deterrent for those who seek to exploit the Department of Defense's procurement process,” said Special Agent in Charge Darrin K. Jones of Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service and our partners to aggressively investigate defective pricing and cost mischarging schemes that put American taxpayer dollars at risk.”
“Overinflation of parts and material costs for the repair and maintenance of aircraft affected naval air training and is a disservice to the American taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS continues to safeguard the Department of the Navy’s warfighting efforts from economic crimes by upholding the integrity of the defense acquisition process.”
The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Patzer v. Sikorsky Aircraft Corp., Sikorsky Support Services Inc., and Derco Aerospace Inc., Case No. 11-0560 (E.D. Wis.) and was brought by Mary Patzer, a former employee of Derco.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Wisconsin, with assistance from DCIS.
Trial Attorneys Alan Gale, Nelson Wagner and Gary Newkirk of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Michael Carter for the Eastern District of Wisconsin handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementSentence Handed Down in Killing of 19-Year Old in Northwest DC in 2022Read the Press Release
WASHINGTON – Anthony Lewis, 25, of Washington D.C., was sentenced on Friday, June 21, 2024, to 135 months in prison for the killing of 19-year-old Cameron Clemons in May 2022, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department.
Lewis has been in custody since his arrest on November 20, 2022. In January of 2024, he entered a guilty plea to voluntary manslaughter while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 135 months, to be followed by five years of supervised release. The Honorable Robert Okun accepted the plea today and sentenced the defendant accordingly. The judge denied the defense’s request for a Youth Act sentence.
According to a proffer of facts submitted at the plea hearing, at around 10pm on May 28, 2022, Lewis was walking in the 600 block of Otis Place NW, when he stopped and exchanged words with a group of people on the opposite (north) side of the street, one of whom he had previously fought with. During the exchange, Lewis pulled out a firearm and fired multiple shots at another individual as that person walked toward him. Multiple individuals from the group fired back at Lewis as he ran from the scene. During the exchange of gunfire, Cameron Clemons, who had been standing on the south side of the street, was struck by a bullet. He was driven to an area hospital and treated for his injuries, but on June 4, 2022, while still at the hospital, he died from complications of the gunshot wound.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Stephanie Gilbert and Lisa Minott, and Victim/Witness Advocate Karina Hernandez.
Finally, they commended the work of Assistant U.S. Attorney Sarah Prins, who investigated and prosecuted the case.
Sebring Woman Charged for Role in Fatal Human Smuggling ConspiracyRead the Press Release
MIAMI - Yaqulelin Dominguez-Nieves, 25, of Sebring, Fla., was detained pending trial today, on an indictment charging ten counts relating to an alien smuggling venture that resulted in the death of approximately sixteen people, four of whom were recovered at sea and found to have died by drowning.
“Human smuggling ventures put people’s lives at risk for the sake of profit,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Human smugglers prey on the migrants’ hopes for a better life. Tragically, the smugglers’ exploits pose a grave danger to migrants. The U.S. Attorney’s Office will continue to work with our partners to prosecute those who carry out illicit human smuggling operations to protect vulnerable migrants and save lives.”
"The Coast Guard Investigative Service is committed to safeguarding those who are vulnerable and at risk of exploitation. The indictment and arrest of Yaqulelin Dominguez-Nieves underscore our unwavering dedication to protecting individuals from the dangers of illegal smuggling operations. These criminal activities not only violate federal law but also endanger human lives. We remain steadfast in our mission to bring those who perpetrate such heinous acts to justice and ensure the safety and security of our maritime borders." said Special Agent in Charge Matthew J. Margelot of the Coast Guard Investigative Service (CGIS) Southeast Field Office.
According to allegations in the indictment and information presented during the detention hearing, Dominguez-Nieves facilitated a smuggling venture that resulted in death and that was for commercial gain. On Nov. 16, 2022, this smuggling venture resulted in the deaths of approximately sixteen migrants, three of whom are charged in the indictment and many of whom were children, when the boat they were being smuggled in—a boat that according to a survivor was overloaded and did not contain a single life vest—sank roughly thirty miles off the coast of Cuba while in transit to the Southern District of Florida.
Dominguez-Nieves was arrested by CGIS Special Agents.
If convicted of encouraging and inducing or attempting to bring aliens into the United States resulting in death, Dominguez-Nieves faces a maximum penalty of life in prison or death. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Matthew J. Margelot of the CGIS Southeast Field Office made the announcement.
CGIS Southeast Field Office investigated the case, with assistance from U.S. Coast Guard Sector Key West, the U.S. Border Patrol, the Monroe County Medical Examiner’s Office, and the Highlands County Sheriff’s Office.
Assistant U.S. Attorney Zachary A. Keller is prosecuting this case.
An indictment contains mere allegations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 24-CR-20223.
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Quincy Area Man Convicted of Methamphetamine DistributionRead the Press Release
Springfield, Ill. – A federal jury returned a guilty verdict on June 21, 2024, against Phillip C. Mayfield, 35, of Quincy, Illinois, for distribution of 50 grams or more of methamphetamine. Sentencing for Mayfield has been scheduled on October 29, 2024, at the U.S. Courthouse in Springfield, Illinois.
Over three days of testimony in front of U.S. District Judge Colleen R. Lawless, the government presented evidence to establish that, in February 2023, Mayfield sold over 50 grams of methamphetamine to a confidential informant in a grocery store parking lot in Quincy. Evidence established that, in March 2023, Mayfield sold over 50 grams of methamphetamine to a confidential informant in an apartment parking lot in Quincy.
Mayfield is in the custody of the United States Marshals Service, where he has been since his arrest on June 20, 2023.
At sentencing, Mayfield faces statutory penalties of not less than 10 years and up to a life term of imprisonment; at least 5 years and up to a life term of supervised releasee; up to a $10,000,000 fine; and a $100 special assessment.
The case investigation was conducted by the Illinois State Police West Central Illinois Task Force. Valuable assistance was provided by the Drug Enforcement Administration Springfield Resident Office. Assistant U.S. Attorneys Sarah E. Seberger and Matthew Z. Weir represented the government at trial.
Provider Agrees to Pay over $629,000 to Settle Allegations of False Claims Act ViolationsRead the Press Release
PORTLAND, Maine: United States Attorney Darcie N. McElwee today announced that Jamie P. Loggins, M.D. has agreed to pay $629,056.76 to settle allegations that he violated the federal False Claims Act (the “FCA”). The civil settlement agreement resolves allegations that Loggins prescribed orthotic braces that were not medically necessary to individuals with whom he had no valid prescriber-patient relationship.
Medicare statutes, regulations and guidelines make clear that participating providers may only bill for services actually provided and which are medically reasonable and necessary. As alleged by the Government, from September 2018 through November 2022, Loggins caused claims to be submitted to Medicare for payment for medical services that were not reasonably medically necessary or for which medical necessity could not be determined. More specifically, the Government alleges that Loggins worked with a telemedicine company to provide telemedicine consultations and consultation services. As part of those services, Loggins would review prepared intake forms, which included purported complaint information for a beneficiary and prepared prescriptions for orthotic braces. Frequently, the intake forms included multiple complaints and prescriptions for orthotic braces for each individual beneficiary. The Government alleges that Dr. Loggins would then electronically sign these prescriptions, despite there being no valid prescriber-patient relationship and no medical necessity for the claims.
The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. The Government alleges that by submitting claims for payment for medical services that were not medically reasonable or necessary, Loggins violated the FCA.
Loggins cooperated with this investigation and did not admit liability in the settlement agreement. Federal authorities encourage health care providers to cooperate with investigations involving the possible submission of false claims to federal programs. Entities or individuals that make proactive, timely and voluntary self-disclosures to the U.S. Attorney’s Office may receive credit during the resolution of a later FCA case.
The U.S. Department of Health and Human Services, Office of Inspector General investigated the case.
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Poplar man sentenced to 15 months in prison for assaulting woman on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Poplar man who admitted to beating a woman on the Fort Peck Indian Reservation was sentenced on June 20 to 15 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, Thomas Ivan Reese Larson, 25, pleaded guilty in February to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court document that in January 2021 in Poplar, on the Fort Peck Indian Reservation, Larson assaulted the victim, identified as Jane Doe, during an argument while he was intoxicated. Larson held the victim by her throat and struck her in the face, causing multiple injuries to her face and neck.
The U.S. Attorney’s Office prosecuted the case. The FBI and Fort Peck Law Enforcement conducted the investigation.
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Omaha Man Sentenced for Unlawful Possession of AmmunitionRead the Press Release
United States Attorney Susan Lehr announced that Victor Henderson, 24, of Omaha, Nebraska, was sentenced June 21, 2024, in federal court in Omaha for being a felon in possession of ammunition. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Henderson to 18 months’ imprisonment. There is no parole in the federal system. After Henderson’s release from prison, he will begin a 3-year term of supervised release.
On July 30, 2023, Omaha Police observed the driver of a Ford Edge commit a traffic violation and initiated a traffic stop on that vehicle. The driver was identified as Christopher Grutel. Henderson was seated in the front passenger seat. Officers could smell a strong odor of marijuana coming from inside the vehicle, so they detained Grutel and Henderson for a probable cause search of their persons as well as the vehicle.
While searching the vehicle, officers located marijuana shake on the front passenger floorboard, an open container of alcohol on the driver’s seat, and an ammunition box in the back seat inside a plastic bag that contained four live “Aguila” 9mm rounds of ammunition. In 2021, Henderson was convicted in Douglas County District Court for possessing a firearm as a convicted felon.
Grutel also pleaded guilty to being a felon in possession of ammunition and will be sentenced on September 6, 2024.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco and Firearms.
Oklahoma City Man Sentenced to Serve Nine Years in Federal Prison for Role in Major Black-Market Marijuana OperationRead the Press Release
OKLAHOMA CITY – BRANDON YE, 43, of Oklahoma City, has been sentenced to serve 108 months in federal prison for possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Robert J. Troester.
On May 3, 2024, a federal grand jury returned a four-count Indictment against Ye and several other co-defendants, charging them for their roles in a major black-market marijuana drug trafficking organization (DTO). According to public record, in December 2022, agents with the Federal Bureau of Investigation (FBI), Oklahoma Bureau of Narcotics (OBN), and Oklahoma City Police Department officers, were investigating reports of a separate DTO when they observed what appeared to be an ‘Amazon’ delivery van pull up to a suspected drug stash house. Agents witnessed several individuals load the van with large, full trash bags. The van’s registration led authorities to a business address in Oklahoma City owned by Ye, followed by a home owned by Ye, where authorities observed what was later determined to be a fake Amazon van parked in the driveway.
An affidavit in a previously filed criminal complaint further alleges that Ye, working with the co-defendants and others, would pick up trash bags containing vacuum-sealed packages of marijuana from licensed marijuana grows across Oklahoma, and deliver the bags to a stash house operated by Ye in Oklahoma City. From there, the marijuana was repackaged into cardboard boxes and would be moved to two warehouses owned by Ye, to be picked up by a semi-truck, and transported to the east coast. It’s estimated that, between June 2022 and March 2023, Ye helped ship approximately 28 tons of marijuana out of the state of Oklahoma.
On September 11, 2023, Ye pleaded guilty to a two-count Superseding Information, and admitted to knowingly possessing marijuana with the intent to distribute, and to possessing a firearm while distributing that marijuana illegally.
At the sentencing hearing on June 20, 2024, U.S. District Judge Scott L. Palk sentenced Ye to serve 108 months in federal prison. In announcing the sentence, Judge Palk specifically noted the vast amount of marijuana transported by Ye during his clandestine operation.
This case is the result of an investigation by the FBI Oklahoma City Field Office, the OBN, and OCPD. It is also a part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Assistant U.S. Attorney Wilson D. McGarry is prosecuting the case.
Reference is made to public filings for additional information.
North Port Man Gets Life in Federal Prison for Using Hidden Cameras to Produce Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Gregory Allen Williamson (59, North Port), a/k/a “Vlad Vlad,” to life in federal prison for enticing a minor to engage in sexual activity, and for the production, distribution, and possession of child sexual abuse material. Williamson was found guilty following a jury trial on March 13, 2024.
According to testimony and evidence presented at trial, Williamson isolated and groomed a vulnerable 12-year-old victim, and recent immigrant from Eastern Europe, to engage in sexual activity. Using the alias “Vlad Vlad,” Williamson sent the victim anonymous and graphic sexually explicit emails, including ones containing child sexual abuse material. Williamson later gifted the victim cellphone chargers which, unbeknownst to the victim, contained hidden cameras. Williamson used the chargers to surreptitiously record and produce sexually explicit images of the victim when the victim was naked in the victim’s bedroom. One of the cellphone chargers with a hidden camera is pictured below.
“Life in prison will keep this depraved individual from hurting another child. Our special agents, task force officers, and analysts work these investigations with compassion and dogged determination to ensure the innocent are protected from predators,” said FBI Tampa Acting Special Agent in Charge Rodney Crawford.
This case was investigated by the Federal Bureau of Investigation Tampa Division − Sarasota Resident Agency and the North Port Police Department, with substantial assistance from the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Erin Claire Favorit and Lindsey Schmidt.
This is another case 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.
Midlothian Man Sentenced in One of Two Cases Involving Fraud, BriberyRead the Press Release
SAN ANTONIO – A Midlothian man was sentenced in federal court to 25 months in prison for falsifying court documents and bribing a Veteran’s Administration contracting officer.
According to court documents, Javor McCoy, 43, attempted to avoid a civil court appearance in Dallas by transmitting a criminal summons to an employee with the Dallas County Court showing he had to appear in court for a Western District of Texas federal indictment. The summons contained the false and fraudulent electronic signature of a United States magistrate judge and had been altered to display a fictitious appearance date for McCoy.
The criminal summons altered by McCoy was related to charges he faced for bribery of a public official. In that case, court documents reveal that McCoy owned Ready 2 Go Transport Central LLC (R2G Central), a purported Service-Disabled Veteran Owned Small Business, providing transportation for veterans, including ambulance and wheelchair transportation. McCoy’s co-defendant in the bribery case, Glenn Dartone Johnson, 50, of San Antonio, was a contracting officer with the Department of Veteran’s Affairs (VA). McCoy paid Johnson approximately $100,000 for information regarding the VA bid process and for Johnson’s assistance in influencing the VA bid process to help R2G Central win competitive bids from the VA.
McCoy pleaded guilty to charges in both cases in January. U.S. District Judge Orlando Garcia ordered the Defendant sentenced to 25 months on each case, to be served concurrently. McCoy will also be subject to a term of supervised release of three years.
Johnson pleaded guilty on Dec. 20, 2023, to one count of conspiracy to commit bribery of a public official and is scheduled to be sentenced Sept. 19, 2024.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI and VA-OIG investigated the case.
Assistant U.S. Attorney Justin Chung and Special Assistant U.S. Attorney Jay Porier prosecuted the case.
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Methamphetamine Traffickers Sentenced to a Combined 368 Months in PrisonRead the Press Release
TEXARKANA – A central Arkansas man and woman were sentenced yesterday to a combined total of more than 30 years in federal prison for methamphetamine trafficking and related crimes. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Texarkana.
According to court records, on February 28, 2021, Lynnel Antwan Watkins, age 36, of North Little Rock, and Haillie Marie Hendrickson, age 25, of Lonoke, were in a vehicle stopped by the Arkansas State Police on Interstate 49, in Miller County. The driver, Watkins, accelerated away from the scene of the stop at high speed, resulting in a short vehicle pursuit. When their vehicle became disabled, Watkins and his passenger, Hendrickson, were taken into custody on outstanding warrants. Officers then recovered more than nine (9) pounds of methamphetamine from the vehicle’s rear seat. Three firearms were also found in the vehicle, including two stolen AR-15’s, one of which was equipped with a loaded, 100-round drum magazine.
On July 20, 2023, Watkins pleaded guilty to Possession of More than 500 Grams of Methamphetamine with Intent to Distribute, and to Possessing a Firearm in Furtherance of a Drug Trafficking Crime. One day later, Hendrickson plead guilty to Possession of Methamphetamine with Intent to Distribute.
For those crimes, Watkins was sentenced today to 248 months, in federal prison followed by five years of supervised release. Hendrickson was sentenced to 120 months, in federal prison followed by three years of supervised release.
U.S. Attorney David Clay Fowlkes made the announcement.
The Arkansas State Police and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Metairie Man Indicted for Receipt and Distribution of Child Sexual Abuse Material and Obscene Visual Representations of Child Sexual AbuseRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KEVIN LILLIS, age 50, a resident of Metairie, Louisiana, was indicted today for distributing child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 1), receiving child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 2), and receiving obscene visual representations of the sexual abuse of children, in violation of Title 18, United States Code, Section 1466A (Count 3).
According to the indictment, LILLIS distributed visual depictions of minors, including children as young as approximately four (4) years old, engaging in sexually explicit conduct, such as one depiction of a prepubescent female bound and unclothed. LILLIS also received visual depictions of minors, as young as less than one (1) week old, engaging in sexually explicit conduct, including a newborn female with severe discoloration and bruising being victimized by an adult male. LILLIS also received visual depictions of minors engaging in obscene conduct.
LILLIS faces a mandatory minimum of five (5) years in prison, and a maximum term of imprisonment of twenty (20) years as to each of Counts 1, 2, and 3. LILLIS also faces at least five years, and up to a lifetime, of supervised release and up to a $250,000 fine for each count. He may also be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Massachusetts Man Charged with Wildlife TraffickingRead the Press Release
BOSTON – A Reading, Mass. man has been charged with allegedly trafficking in wildlife parts from endangered and protected species.
Adam Bied, 39, is charged with two counts of conspiracy to smuggle goods into the United States, specifically, illegally imported wildlife parts, and three counts of violating the Lacey Act which prohibits trafficking in wildlife. It is alleged that the wildlife was protected by the Endangered Species Act (ESA) as well as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
“The illicit trafficking of endangered wildlife for financial gain is a grave offense that poses a significant threat to global conservation efforts and preservation of these species. Mr. Bied’s alleged conduct reflects a blatant disregard for the laws in place to safeguard our planet’s biodiversity. These laws and international treaties exist to protect endangered species from exploitation and to maintain ecological balance,” said Acting United States Attorney Joshua S. Levy. “In addition to the criminal charges, our office is seeking to forfeit the hundreds of animal parts seized from Mr. Bied’s home and a storage unit, including orangutan skulls, tiger skulls and jaguar skins. This forfeiture action sends a clear message that we will not only prosecute those who engage in illegal wildlife trafficking, but also take legal actions to strip them of their ill-gotten gains.”
According to court filings, beginning at least from January 2018 until June 2021, Bied bought, sold and traded in wildlife parts and products, with knowledge that many of the transactions were in violation of U.S. laws and regulations and knowingly failed to declare this wildlife upon importation into the United States.
Specifically, Bied allegedly placed orders with individuals in Cameroon and Indonesia who were in the businesses of killing and acquiring wildlife – including endangered and protected species – which he then resold or traded to customers in the United States. Bied did not possess a United States Fish and Wildlife Service (USFWS) import/export license or necessary CITES permits, and allegedly failed to declare the wildlife to the USFWS upon import.
The United States Attorney’s Office also filed a civil forfeiture complaint seeking to forfeit over 100 wildlife parts from endangered, threatened, or protected species seized by the USFWS in July 2021 from Bied’s residence, storage unit, and a vehicle. As alleged in the civil forfeiture complaint, many of the seized wildlife parts required a CITES permit and/or a USFWS declaration for lawful import and a USFWS import/export license to import wildlife for commercial purposes. Other wildlife parts are alleged to have been acquired in violation of the ESA or the Marine Mammal Protection Act (MMPA). The civil forfeiture complaint alleges that the wildlife parts are subject to civil forfeiture under federal law.
The wildlife parts identified in the civil forfeiture complaint include:
- Orangutan skulls;
- Tiger skulls;
- Leopard skin, skulls and claw;
- Jaguar skin and skull;
- African lion skulls;
- Polar bear skull;
- Narwhal tusk;
- Otter skeleton;
- Harp seal skull;
- South American fur seal skull;
- Elephant seal skull;
- Babirusa skulls;
- Mandrillus skulls;
- Wallaby skull; and
- Jackal skull.
Federal wildlife statutes and regulations prohibit international and illegal trade in vulnerable wildlife species. The ESA, the Lacey Act and CITES, as well as the accompanying regulations, prohibit the import, export, possession, transport, purchase and sale of protected species. The restrictions apply to live and dead wildlife specimens, as well as the skins, parts and products made in whole or in part from listed species. Additional documents are also required for wildlife protected by the CITES treaty, which regulates trade in endangered or threatened species through permit requirements.
The lawful importation of vulnerable wildlife species requires a CITES permit(s). The lawful importation of any foreign species requires a USFWS wildlife declaration. Individuals are also required to have a USFWS import/export license to import wildlife for commercial purposes.
The charges of conspiracy as well as the charges under the Lacey Act each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and Ryan Noel, Special Agent in Charge of U.S. Fish and Wildlife Service, Office of Law Enforcement, Northeast Region, made the announcement today. This case was worked jointly with the United States Marshals Service and the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section. Assistant U.S. Attorneys Nadine Pellegrini, Chief of the National Security Unit, is prosecuting the case. Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit is prosecuting the civil forfeiture case.
The details contained in the charging document and civil forfeiture complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The United States must establish that the wildlife parts are subject to forfeiture by a preponderance of the evidence.
Maryann Manning Pleads Guilty to Stealing Social Security Benefit PaymentsRead the Press Release
Burlington, Vermont – The United States Attorney for the District of Vermont announced that Maryann Manning, 63, of Wolcott, Vermont, pleaded guilty yesterday in United States District Court in Burlington to fraudulently converting tens of thousands of dollars in Social Security benefit payments. Chief U.S. District Judge Geoffrey W. Crawford released Manning on conditions pending sentencing, which will be scheduled at a later date.
On May 13, 2024, the U.S. Attorney filed a one-count information charging Manning with receiving stolen government money. Manning made her initial appearance in federal court today and pleaded guilty to that charge. According to court records, Manning’s brother received disability insurance benefit payments from the Social Security Administration (SSA). Manning’s brother died in October 2015 at which time his SSA benefits should have terminated. Following his death, however, Manning collected her brother’s benefits from SSA by withdrawing the money from his accounts. The total loss to the Social Security Administration is more than $119,000.
Manning faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
This case was investigated by the Social Security Administration’s Office of the Inspector General.
Manning is represented by Robert Behrens, Esq. The government is represented by Assistant United States Attorney Zachary Stendig.
Leader, Members of Galloping Goose Motorcycle Club Indicted for Criminal Racketeering EnterpriseRead the Press Release
JEFFERSON CITY, Mo. – Seven area residents, including the leader and several members of the Galloping Goose Motorcycle Club, have been indicted by a federal grand jury for their roles in an ongoing criminal enterprise that involved acts of violence, drug trafficking, and illegally possessing firearms.
Tonka Way Con Ponder, 53, and his wife, Carolynn L. Ponder, 47, both of Preston, Mo., and Tretch Lucius Lawrence, also known as “Travis Dewain Shankle,” 48, Keith Dewayne Nolen Jr., also known as “Seg,” 34, Paul Leon Gardner, 52, Daniel Scot Kurtzenborn, 41, and Robert Russell Warren, also known as “Russ,” 54, all of whom have unknown addresses, were charged in a 25-count indictment returned under seal by a federal grand jury in Jefferson City on Tuesday, June 18.
That indictment was unsealed and made public today following the arrests of six of the defendants (with the exception of Warren). Tonka Ponder, Lawrence, Nolen and Kurtzeborn remain detained in federal custody pending a detention hearing on Tuesday, June 25. Gardner and Carolynn Ponder were released on bond.
The federal indictment alleges that Tonka Ponder, Lawrence, Nolen, Gardner and Kurtzeborn are members of the Lake of the Ozarks chapter of the Galloping Goose outlaw motorcycle gang, an organized criminal enterprise. Members of the Galloping Goose, says the indictment, engaged in acts of violence, including assault, attempted robbery, and extortion.
According to the indictment, Tonka Ponder was the leader of the local chapter of the Galloping Goose, which has a clubhouse in Camdenton, Mo.
The federal indictment charges Tonka Ponder, Lawrence, Shankle, Nolen, Kurtzeborn and Gardner with committing a violent crime in aid of racketeering. They allegedly assaulted another person with a deadly weapon on Dec. 12, 2020.
The federal indictment charges Tonka Ponder, Lawrence, Nolen, and Kurtzeborn with committing a violent crime in aid of racketeering. They allegedly conspired to assault members of the Mongols Motorcycle Club and the Iron Celtics Motorcycle Association, resulting in serious physical injuries, on July 15, 2021.
Tonka Ponder is charged with two counts of committing a violent crime in aid of racketeering and two counts of discharging a firearm in furtherance of a crime of violence. Tonka Ponder allegedly shot two persons, resulting in serious physical injury, on July 15, 2021.
Kurtzeborn is charged with one count of committing a violent crime in aid of racketeering and one count of discharging a firearm in furtherance of a crime of violence. Kurtzeborn allegedly attempted to assault a victim by shooting at him on July 15, 2021.
Tonka Ponder and Lawrence are charged with one count of attempted extortion. The indictment alleges that, from July 1, 2020, to July 15, 2021, they attempted to obtain the property of the Iron Celtics Motorcycle Association by threatened use of force, violence, and fear.
The federal indictment charges Tonka Ponder, Carolynn Ponder, and Warren with participating in a conspiracy to distribute methamphetamine in Camden and Miller Counties from Aug. 1 to Oct. 31, 2022. Tonka Ponder is also charged with five counts of distributing methamphetamine, one count of possessing a firearm in furtherance of a drug-trafficking crime, and four counts of traveling across state lines to facilitate the illegal distribution of methamphetamine.
Tonka Ponder is charged with two counts of using his cell phone to facilitate a drug-trafficking conspiracy. Carolynn Ponder is charged with one count of using her cell phone to facilitate a drug-trafficking conspiracy.
Kurtzeborn and Nolen are each charged with one count of being a felon in possession of a firearm. Kurtzeborn allegedly possessed a Taurus .357-caliber revolver on July 15, 2021. Nolen allegedly possessed a Taurus 9mm handgun on Aug. 24, 2023.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Aaron M. Maness and Cecily L. Hicks. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the FBI, the Missouri State Highway Patrol, the Jefferson City, Mo., Police Department, the Lake of the Ozarks, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, and the Camden County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC, Mississippi Men Sentenced to Life in Prison for Murder, Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and a Crowder, Mississippi, man have been sentenced in federal court for their roles in a drug-trafficking conspiracy that included two murders.
Shawn Burkhalter, also known as “Deuce,” 35, of Kansas City, Mo., was sentenced today by U.S. District Judge Brian C. Wimes to life in federal prison without parole. Co-defendant Joshua Nesbitt, also known as “T,” 30, was sentenced yesterday to life in federal prison without parole.
On Aug. 28, 2023, Burkhalter and Nesbitt each were found guilty at trial of one count of conspiracy to distribute cocaine and marijuana, one count of possessing cocaine with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of robbery, two counts of discharging a firearm in furtherance of a crime of violence and a drug-trafficking crime, one count of brandishing a firearm in furtherance of a crime of violence, one count of being felons in possession of a firearm, one count of conspiracy to commit witness and evidence tampering, one count of murdering a potential witness, and one count of evidence tampering. Additionally, Burkhalter was found guilty of one count of witness tampering.
Burkhalter and Nesbitt participated in a decade-long conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018. Six more co-defendants pleaded guilty and have been sentenced for their roles in the drug-trafficking conspiracy.
Trial evidence showed that on Sept. 10, 2015, Burkhalter and Nesbitt stole cocaine from Danny Lamont Dean, and in the process of that robbery, shot and killed Dean with a Rock River Arms AR-15, 5.56-caliber semi-automatic rifle.
On Oct. 4, 2015, Nesbitt and others stole marijuana from Anthony Dwayne Johnson, and in the process of that robbery, Nesbitt shot and killed Johnson with the same Rock River Arms AR-15, 5.56-caliber semi-automatic rifle, all of which was at the direction of Burkhalter (who was detained in custody at the time of the murder). Trial evidence showed Johnson was murdered because Burkhalter suspected him of providing information to investigators about Burkhalter’s involvement in Dean’s murder.
Burkhalter and Nesbitt robbed a Kansas City, Mo., business on Sept. 8, 2015, brandishing the same AR-15 rifle.
The government also presented evidence at yesterday’s sentencing hearing that Nesbitt repeatedly assaulted staff members at detention facilities while incarcerated and awaiting trial.
Co-defendants Sharika Hooker and Autry Hines, both of Kansas City, Mo.; Joslyn Lee, also known as “Bless,” and Nickayla Jones, both of Blue Springs, Mo.; Rachel Ryce of Raytown, Mo.; and Anthony Peltier, also known as “A-1,” of Lawrence, Kansas, have pleaded guilty and previously been sentenced.
This case was prosecuted by Assistant U.S. Attorneys David Raskin, Patrick C. Edwards, and David Wagner. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Justice Department today announced the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information. TAP improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Crime Information Center (NCIC).
“The Department’s Tribal Access Program is a critical asset that Tribes can deploy to increase safety and justice in their communities,” said Deputy Attorney General Lisa Monaco. “Year in and year out, TAP’s value – enabling Tribes to access and exchange federal criminal justice information – has proven indispensable in advancing Tribal public safety across the country. I encourage all eligible Tribes to participate.”
“The Tribal Access Program is a highly valuable resource which aids in facilitating additional support to law enforcement partners and the communities they serve,” said FBI Deputy Director Paul Abbate. “TAP gives Tribal partners a mechanism to share and collaborate on time-sensitive information that can be used to help better serve and protect their communities. The program has already experienced tremendous success and this application period offers an opportunity to further expand this important tool to even more partners.”
The Department will accept TAP applications from June 24 to Aug. 30. Tribes selected to participate will be notified in September. There are currently 132 federally recognized Tribes participating in TAP.
The program provides software, hardware, and training, as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“The Cherokee Nation has been participating in TAP for many years,” said Senior Director Justice Services Suzanne Drywater of the Cherokee Nation. “From sex offender registrations, law enforcement, foster home certification, human resources, and child support, our Tribe has been able to exercise our sovereignty, and TAP has proven to be an invaluable resource that we use daily in a multitude of ways.”
“TAP provides the Suquamish Tribal Police Department with access to national criminal justice information to properly conduct criminal investigations and to make NICS entries to prevent persons with legal restrictions from purchasing firearms,” said Administrative Services Manager Lisa Sparks of the Suquamish Tribal Police Department.
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-2024-applications.
To qualify for funding, federally recognized Tribes must have – and agree to use TAP for – at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Jury Finds District Woman Guilty of Robbery and Conspiracy for Christmas Day OffensesRead the Press Release
WASHINGTON – Derricka Burton, 20, of Washington, D.C., was found guilty by a Superior Court jury of a Christmas Day robbery, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
The verdict was returned on June 20, 2024, following a trial in the Superior Court of the District of Columbia. The Honorable Robert Salerno scheduled sentencing for August 23, 2024.
According to the government’s evidence, at around 2:38 p.m. on December 25, 2023, Burton and three co-conspirators saw the victims, a couple spending time together at the Alethia Tanner Park, located at 227 Harry Thomas Way Northeast. Video footage showed Burton and her co-conspirators huddle together before two of her co-conspirators walked up to the victims and robbed them. Burton’s co-conspirators pointed a gun at the victims and demanded the victims’ Canada Goose brand jacket, cellphone, and other items. The co-conspirators then walked back to Burton and the other co-conspirators. The group conferred with each other and left together. As they did so, one of the co-conspirators dropped some of the stolen property, which Burton picked up before she left with the group. Police arrested Burton on February 12, 2024.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. Assistant U.S. Attorneys Michael Toogun and Katrenia Shelly prosecuted the case.
Jeffersonville Man Sentenced to 25 Years in Federal Prison for Secretly Recording Minor Victim in Shower and Dressing AreasRead the Press Release
NEW ALBANY- Joseph Grant Flamion, 47, of Jeffersonville, has been sentenced to 25 years in federal prison, followed by 15 years of supervised release, after pleading guilty to sexual exploitation of a child and possession of child sexual abuse material.
According to court documents, in 2021 and 2022, Flamion secretly used electronic devices to record or to attempt to record a child victim in places where Flamion knew the child would be undressing or nude. Flamion placed a hidden camera in the child’s bathroom and bedroom and routinely held a cell phone camera or another device under the doors to record the child fully nude or undressing. Flamion had custody, care, or supervisory control of the child, who was 13 and 14 years old when Flamion made the recordings.
In October of 2021, Flamion brought a hidden camera with him when he took the child to Florida for a vacation. Flamion placed the hidden camera in the bathroom of the hotel and recorded the child when the child was showering.
The minor victim and a witness became aware that Flamion was attempting to create nude recordings of the victim and disclosed his conduct to the Indiana Department of Child Services. The Department of Child Services notified Flamion of what it had learned, and he subsequently destroyed or disposed of the hidden camera that he used to make recordings of the victim before they could be seized by law enforcement officers.
On July 5, 2022, the Jeffersonville Police Department conducted court-authorized searches of Flamion’ s person and residence. Police seized electronic devices, including a laptop that contained secretly recorded videos of the victim nude or partially nude, and had been used to search for topics such as “hidden camera” and “real life cam.” Investigators also found videos of the victim nude or partially nude on Flamion’s iPhone and MicroSD card. In his guilty plea, Flamion admitted that he created the recordings of the child for his own sexual gratification.
“All children deserve to live in a home that is a place of safety and love. This defendant used his proximity to a child to secretly invade their safety and dignity, sexually exploiting them for his own gratification,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who seek to sexually exploit children must be identified and held accountable for the trauma they inflict on victims and their families. Thanks to the outstanding efforts of the Jeffersonville Police Department, FBI, and our federal prosecutor, the public will be protected from this defendant while he serves a very serious sentence in federal prison.”
“The defendant took advantage of a child’s vulnerability in their own home – a place where they should feel safe and protected – and not have to live in constant fear of being exploited,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our partners will continue to work diligently to protect our children from those engaging in such heinous crimes.”
“I want to thank the Indiana State Police Digital Forensic Examiners, FBI Indianapolis Field Office, and the U.S. Attorney’s Office for the Southern District of Indiana for their assistance in the investigation and the thorough prosecution of Mr. Flamion,” said Col. Kenny Kavanaugh, Chief of Police of the Jeffersonville Police Department. “His predatory actions impacted not only the victims in this case but caused a ripple effect across our community. Our partnership with these agencies enabled us to conduct a sound investigation which led to a successful prosecution.”
The FBI, Indiana State Police, and Jeffersonville Police Department investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. Judge Pratt also ordered Flamion to pay $10,000 in restitution, $7,500 in fines, and to register as a sex offender wherever he lives, works, or goes to school.
U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case.
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 U.S. Attorneys’ Offices and the 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.
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Illegal sale of firearms and ammunition buys prison time for local felonsRead the Press Release
McALLEN, Texas – Two Rio Grande City residents have been sentenced for being felons in possession of firearms and for attempting to sell multiple firearms and ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Maria Salazar Jr., 29, and Filiberto Martinez Jr., 42 pleaded guilty on Oct. 20, 2023.
U.S. District Judge Ricardo H. Hinojosa has now imposed a 30-month term of imprisonment for Salazar, while Martinez received 22 months. Both must also serve 2 years of supervised release following their sentences. At the hearing, the Court heard additional evidence including that both Salazar and Martinez had federal convictions for smuggling ammunition. In handing down the prison terms, Judge Hinojosa noted their prior convictions.
On March 2, 2023, Salazar sold three AK-47 variant rifles, one AR-15 variant rifle and approximately 5,900 rounds of ammunition to an ATF undercover agent.
The investigation revealed Martinez stored three of the firearms for Salazar prior to the sale.
Salazar and Martinez are both prohibited from possessing a firearm or ammunition following their respective federal convictions for illegally smuggling ammunition to Mexico.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted 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.
Illegal Firearm Possession by Convicted Felon Lands Oklahoma City Man in Federal Prison for Eight YearsRead the Press Release
OKLAHOMA CITY – DONALD EDWARD HILL, JR., 24, of Oklahoma City, has been sentenced to serve 96 months in federal prison for illegally possessing a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
On August 9, 2023, Hill was charged by Information with being a felon in possession of a firearm. According to an affidavit in a previously filed criminal complaint, in March 2023, an arrest warrant was issued for Hill in Oklahoma County District Court related to a shooting incident. When law enforcement executed a search warrant at the Edmond apartment where Hill was arrested, they located a pistol in a pair of Hill’s pants.
According to public record, Hill has multiple prior felony convictions, including assault and battery with a dangerous weapon, discharging a firearm into a dwelling, and possession of a firearm after juvenile adjudication, all in Oklahoma County District Court case number CF-2017-6085; placing bodily fluids upon a government employee in Oklahoma County District Court case number CF-2018-1014; and possession of a firearm after juvenile adjudication in Oklahoma County District Court case number CF-2019-543.
On September 11, 2023, Hill pleaded guilty, and admitted he possessed the firearm, despite knowing he was prohibited from doing so because of his felony convictions.
At the sentencing hearing on June 18, 2024, U.S. District Judge Jodi W. Dishman sentenced Hill to serve 96 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted Hill’s extensive criminal history and his lack of respect for the law, as well as the need to protect the public from further crimes committed by the defendant.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Danielle M. Connolly 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 violent crime and gun violence, and to make our neighborhoods safer for everyone. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Hampton man pleads guilty to recording videos of minors in amusement park restroomRead the Press Release
NORFOLK, Va. – A Hampton man pled guilty today to possession of child sexual abuse material (CSAM).
According to court documents, on Sept. 4, 2021, Corey Thomas Mason, 29, used a cell phone to record two videos of exposed minors in a restroom stall at an amusement park.
On Feb. 8, 2022, the Norfolk Naval Shipyard (NNSY) Police Department requested assistance from the Naval Investigative Criminal Service (NCIS) with conducting a review of Mason’s cellphone relating to a video voyeurism that had recently occurred on NNSY in Portsmouth. Investigators conducted a digital forensic extraction on Mason’s cellphone. An initial review of the cellphone extraction revealed several suspected recordings of males while utilizing bathroom stalls. On Feb. 14, 2022, further review identified the two videos of minors.
On April 13, 2022, NCIS obtained a federal search warrant to review the forensic extraction and found 141 voyeuristic videos taken in what appear to be bathroom stalls, including the two videos of minors.
Mason is scheduled to be sentenced Oct. 18 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.
Assistant U.S. Attorney Matthew Heck is prosecuting the case.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 2:24-cr-48.
This release was edited on June 22, 2024, to reflect that the defendant pled guilty to possession of CSAM, not production.
Great Falls man admits trafficking methamphetamine and fentanylRead the Press Release
GREAT FALLS — A Great Falls man admitted on June 20 to trafficking methamphetamine and fentanyl after a law enforcement investigation determined he was dealing large quantities of drugs in the community and found two pounds of meth wired under his truck, U.S. Attorney Jesse Laslovich said.
The defendant, John Mead Ogburn, 45, pleaded guilty to an information charging him with conspiracy to distribute and to possess with intent to distribute meth and fentanyl. Ogburn faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Under the terms of a plea agreement, the parties agreed that a prison sentence in the range of 12 years and seven months to 15 years and eight months is an appropriate sentence to resolve the case.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 24. Ogburn was detained pending further proceedings.
In court documents, the government alleged that in September and October 2023, drug task officers in Great Falls learned Ogburn was a source of supply of meth and fentanyl. In November 2023, officers intercepted a UPS package that contained 1,757 fentanyl pills. The package was intended to be delivered to a Great Falls address of an individual, who admitted knowing the package contained fentanyl and who identified Ogburn as arranging for the shipment. In December 2023, officers received information that another individual possessed a large quantity of fentanyl powder. Officers executed a search warrant on the individual’s residence and recovered approximately one pound of meth and 55 grams of fentanyl powder. Officers observed Ogburn at the individual’s home before and after the search, and the individual later told officers that the drugs were intended for Ogburn. On Feb. 9, law enforcement conducted an interdiction stop on Interstate 90 of two vehicles associated with Ogburn, an Acura and a Dodge truck. A search of the vehicles found approximately two pounds of meth wired under the truck. Ogburn admitted on a recorded jail call that he was responsible for placing the meth under the truck.
The U.S. Attorney’s Office is prosecuting the case. The FBI, Russell Country Drug Task Force, Montana Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Montana Highway Patrol conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Former State Senator and Sister/Business Owner Charged with Obstruction of JusticeRead the Press Release
BOSTON – An indictment was unsealed today in federal court in Boston charging former Massachusetts State Senator Dean Tran and his sister for allegedly attempting to cover up a sham job offer from the sister’s company to Tran.
Tran, 48, of Fitchburg, was indicted on one count of obstruction of justice and one count of making a false statement. His sister, Tuyet T. Martin, 54, of Pelham, N.H., was indicted on two counts of obstruction of justice and one count of perjury. Martin was arrested this morning and will appear in federal court in Boston this afternoon. Tran will appear at a later date.
In November 2023, Tran was arrested and charged in 28-count federal indictment for his alleged fraudulent collection of Pandemic Unemployment Assistance benefits and his willful omission of consulting and rental income from his tax returns in 2020, 2021 and 2022.
“The charges against Dean Tran and his sister represent a serious breach of public trust,” said Acting United States Attorney Joshua S. Levy. “Their alleged calculated effort to defraud the government and deceive federal investigators demonstrate a disturbing disregard for the law. Our office remains committed to uncovering and prosecuting fraud and corruption, as this case makes clear.”
“Anyone who obstructs a federal investigation is attempting to subvert the course of justice,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today, former Massachusetts State Senator Dean Tran and his sister Tuyet Martin are accused of doing exactly that, in an effort conceal Mr. Tran’s alleged attempts to steal tens of thousands of dollars from public assistance programs at the expense of those in need. Make no mistake, the FBI and our partners will not hesitate to bring to justice anyone foolish enough to try to interfere with our cases.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving the U.S. Department of Labor’s (DOL) unemployment insurance program as well as allegations involving the obstruction of DOL investigations, including those conducted by the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” said Special Agent-in-Charge Jonathan Mellone, Northeast Region, U.S. Department of Labor, Office of Inspector General.
“The indictment and arrest of Tuyet T. Martin demonstrates the IRS’s commitment to not only prosecuting those who break the law but also those who knowingly and willfully obstruct Federal investigations,” said Special Agent in Charge, Harry T. Chavis Jr., Internal Revenue Service’s Criminal Investigations, Boston Field Office. “Martin lied to Special Agents in an effort to obstruct an ongoing Federal investigation. Martin attempted to protect her brother, former State Senator Dean Tran, from being arrested but now she must face justice for her actions.”
According to the indictment, as part of the investigation into Tran’s unemployment benefits and tax fraud schemes, an investigation began into a purported job offer from Martin to Tran at Alecon Enterprises, Inc., where Martin was an owner and the CEO. In June 2022, during the execution of a search warrant at Tran’s residence, it is alleged that Tran made false statements to agents about a job offer letter from Martin and whether Martin had actually written the letter and her signature on it. It is further alleged that Martin concealed and attempted to delete emails between her and Tran regarding the employment offer letter. Additionally, Martin allegedly provided false testimony before a federal grand jury in July 2023 regarding the employment offer letter.
The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of perjury provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI SAC Cohen, DOL-OIG SAC Mellone and IRS-CI SAC Chavis made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Kentucky Sheriff’s Deputy Sentenced for Abusing ArresteesRead the Press Release
A former Kentucky sheriff’s deputy was sentenced today to 110 months in prison for violating the constitutional rights of multiple people he arrested during his tenure as a law enforcement officer.
Former Boyle County Sheriff’s Deputy Tanner M. Abbott, 31, was convicted by a federal jury in March of five felonies and one misdemeanor related to using excessive force against four arrestees, performing an illegal search and writing and conspiring to write false police reports to cover up his abuse.
“This defendant habitually and routinely abused his authority and used his badge to shield himself from accountability for years,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should send a loud message that such abuses by law enforcement will not be tolerated. The Justice Department is steadfast in its commitment to hold law enforcement accountable when they violate the civil and constitutional rights of people in their country.”
“Instead of protecting and serving the community, the defendant was physically abusing people — even bragging about the injuries he caused,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That is not law enforcement; that is brazen criminal conduct. The community deserved better. Fortunately, he now has a criminal sentence that he deserves.”
At the sentencing hearing, the government presented evidence that the crimes for which Abbott was convicted were part of a larger pattern of abuse of authority spanning his career. An investigator testified that, during its two-year investigation of numerous allegations against Abbott, the FBI discovered evidence that Abbott frequently used excessive force against suspects. This evidence included text messages recovered from Abbott’s work-issued cell phone in which Abbott bragged, sometimes in graphic and vulgar terms, about causing injuries to people he had arrested. The government also presented cell phone evidence showing that Abbott sometimes took photographs of injuries he had caused and sent the photographs to friends and acquaintances, but never included or submitted them in official police documents. Two additional witnesses testified that they had been physically abused by Abbott while being arrested.
The court also found that Abbott obstructed justice during his trial by testifying falsely in his own defense.
The FBI Louisville Field Office investigated the case.
Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Chairman of Nevada-Based Publicly Traded Health Care Company Found Guilty of Multimillion-Dollar Insider Trading SchemeRead the Press Release
LOS ANGELES – The former CEO and chairman of the board of directors of Ontrak Inc., a Henderson, Nevada-based publicly traded health care company, was found guilty by a jury today of engaging in an insider trading scheme, using Rule 10b5-1 plans, to avoid losses of more than $12.5 million.
Terren Scott Peizer, 64, a resident of Puerto Rico and Santa Monica, was found guilty of one count of securities fraud and two counts of insider trading.
“Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said United States Attorney Martin Estrada. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.”
“When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.”
According to evidence presented at a 10-day trial, Peizer avoided losses of approximately $12.5 million by entering into two Rule 10b5-1 trading plans while in possession of material, non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract.
In May 2021, Peizer entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated.
In establishing his 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the plan and when he sold stock—despite warnings from two brokers, a senior Ontrak executive, and attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On August 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
“As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.”
United States District Judge Dale S. Fischer scheduled an October 21 sentencing hearing, at which time Peizer will face a statutory maximum penalty of 25 years in prison on the securities fraud count and up to 20 years in prison on each of the insider trading counts.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.
The Corporate and Securities Fraud Strike Force is designed to expand and prioritize complex corporate and securities fraud investigations, some of which involves corporate executives and other individuals involved in criminal conduct. Members of the Strike Force examine accounting fraud, insider trading, and other matters that directly impact the financial system and trading markets.
The FBI investigated the case, with substantial assistance from FINRA’s Criminal Prosecution Assistance Group.
Assistant United States Attorney Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Trial Attorneys Matthew Reilly and Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.
Florida promoter sentenced to 20 years for duping investors in fraudulent Southfork Ranch concert schemeRead the Press Release
SHERMAN, Texas – An Orlando, Florida man has been sentenced to 20 years in federal prison for wire fraud in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
James Walker Watson, Jr., 68, pleaded guilty to wire fraud in May 2023 and was sentenced to 20 years in federal prison by U.S. District Judge Amos L. Mazzant, III, on June 20, 2024. Judge Mazzant announced restitution to victims would be determined at a separate hearing.
According to information presented in court, from 2016 to 2020, Walker devised and carried out a scheme to commit fraud against multiple individuals in the North Texas area by representing to them that he was a successful concert promoter and was looking for investors to give him money to put on concert events, including two purported concerts at the Southfork Ranch in Plano, Texas. Walker took the victims’ money but failed to return the investments as he had promised. He would often tell investors that, without further investment and involvement with his ventures, they would not receive any of their money back. The fraudulent activity resulted in a loss to victims of approximately $3 million.
“The U.S. Attorney's Office will continue to bring charges against and prosecute those who commit fraud and steal money from victims in our district,” said U. S. Attorney Damien M. Diggs. “These crimes often take advantage of individuals who trust the defendants with their hard-earned savings and investments, only to lose them forever. We appreciate the work of the FBI in investigating and partnering with the U.S. Attorney’s Office to bring this defendant to justice.”
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Jay Combs.
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Florida Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty yesterday to evading taxes on income he earned from commercial fishing in Massachusetts.
According to court documents and statements made in court, Christopher Garraty, of New Port Richey, and formerly of Newport and East Greenwich, Rhode Island, worked as a commercial fisherman and deckhand for fishing companies operating out of New Bedford, Massachusetts. Despite earning substantial income working as a fisherman, Garraty did not file until 2012 any federal income tax returns for tax years 2002 through 2011. When he filed the delinquent returns, he reported that he owed a total of approximately $234,497 in taxes for those nine years. But even after reporting that he owed taxes, Garraty did not make any payments to the IRS. In addition, Garraty did not file returns for 2015 through 2018 despite earning approximately $600,000 in fishing income across those years and owing approximately $179,382 in taxes.
To thwart the IRS from assessing or collecting his outstanding taxes, Garraty regularly cashed his paychecks at the issuing bank to conceal the source and disposition of his income. Garraty did not deposit a significant portion of his cashed paychecks into his bank accounts. Moreover, when his paycheck was over $10,000, Garraty frequently cashed the paycheck at the issuing bank and then immediately made multiple cash deposits of less than $10,000 into his bank account to avoid triggering the bank’s reporting requirements. He used the cash to fund his lifestyle to further conceal his financial activity.
In total, Garraty caused a tax loss to the IRS of approximately $413,879.
Garraty is scheduled to be sentenced on Sept. 17 and faces a maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties. A federal judge for the U.S. District Court for the District of Massachusetts will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Federal Inmate Sentenced to Additional 32 Months in Prison for Possessing Improvised WeaponRead the Press Release
TERRE HAUTE- Javon Britton, 44, of Georgia, has been sentenced to an additional 32 months in federal prison after being found in possession of a weapon while in prison.
According to court documents, in 2015, Britton was convicted of robbery and two counts of brandishing a firearm during a crime of violence and a judge in the Middle District of Georgia sentenced him to 11.5 years in federal prison. He has been serving his prison sentence at the Terre Haute Federal Correctional Complex inmate since 2017.
On April 29, 2019, Britton exited the prison dining hall and passed through a walk-through metal detector. The metal detector alerted staff to an object on Britton’s person. A Bureau of Prisons Officer patted Britton down and located a homemade weapon in his right jacket pocket. The weapon consisted of a combination padlock attached to a belt. Britton ran and was tackled by multiple officers, who removed the weapon. Improvised weapons are illegal to possess in federal prison and pose a significant risk to the safety of fellow inmates and correctional staff.
The Special Investigation Services branch of the Bureau of Prisons investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden and Jayson W. McGrath, who prosecuted this case.
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Erie Resident Who Led Large-Scale Drug Trafficking Organization Pleads Guilty to Narcotics, Firearms, and Money Laundering ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics, firearms, and money laundering laws, United States Attorney Eric G. Olshan announced today.
John Christopher Bisbee, 44, pleaded guilty before Senior United States District Judge Kim R. Gibson to Counts Two, Three, Thirteen, and Fourteen of the Superseding Indictment.
In connection with the guilty plea, the Court was advised that, from in and around July 2019 to in and around June 2020, in the Western District of Pennsylvania, Bisbee conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Bisbee, who led and directed the drug trafficking organization’s activity in Erie and surrounding areas, including New York, was intercepted on a federal wiretap obtaining kilogram quantities of methamphetamine that he distributed to others. Through a source of supply in Atlanta, Bisbee imported dozens of kilograms of methamphetamine at a time, packaged it for final distribution, and provided it to a network of distributors below him to distribute and collect proceeds from the drugs.
During the execution of a search warrant at Bisbee’s residence in June 2020, law enforcement agents seized two handguns and more than 100 rounds of ammunition. Under federal law, Bisbee is prohibited from possessing any firearms or ammunition based on previous felony convictions for drug trafficking. In this case, Bisbee also pleaded guilty to possessing these firearms in furtherance of the instant federal drug trafficking crime.
Bisbee additionally acknowledged that, from in and around July 2019 to in and around June 2020, he conspired with others to commit money laundering by using drug proceeds to purchase real estate with cash.
Judge Gibson scheduled sentencing for October 22, 2024. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Bisbee. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Eleven Men Plead Guilty to Conspiring to Distribute Fentanyl, Methamphetamine and Marijuana in Tennessee and Other StatesRead the Press Release
NASHVILLE – Eleven members of a drug trafficking conspiracy pled guilty to conspiring to distribute and possess with the intent to distribute controlled substances in middle Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Davontay Holt, 30, of Columbia, Tennessee, pled guilty on April 8, 2024
Ricardo Molinero-Alcarez, 29, of Santa Rosa, California, pled guilty on April 9, 2024
Khyre McClain, 21, of Columbia, Tennessee, pled guilty on May 17, 2024
Marcus Johnson, 26, of Santa Rosa, California, pled guilty on May 29, 2024
Ethan Kimes, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Jahari Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Jaydan Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024
Mathew Cox, 28, of Santa Rosa, California, pled guilty on June 7, 2024
Tristain Orr, 24, of Columbia, Tennessee, pled guilty on June 17, 2024
Jonny Rodriguez-Gonzalez, 25, Elmira, California, pled guilty on June 17, 2024
Quortez Duncan, 36, of Columbia, Tennessee, pled guilty on June 18, 2024
According to charging and plea documents, agents with the Drug Enforcement Administration and Homeland Security Investigations were investigating the distribution of methamphetamine, marijuana and counterfeit fentanyl-laced Oxycodone tablets with the inscription “M30” which were being shipped from the Santa Rosa, California, area to Tennessee and more than a dozen other states. Subsequent investigation, including surveillance and the review of social media sites and mobile payment records, identified members of the drug distribution network. Law enforcement officers in Columbia, Tennessee, executed several search warrants of the defendants’ residences and recovered loaded firearms and blue tablets inscribed “M30.”
On July 25, 2022, HSI agents seized a package from a UPS Store in Sebastopol, California, which was destined for Nashville. This package contained thousands of counterfeit fentanyl-laced Oxycodone “M30” tablets weighing over two kilograms. The package also contained more than eight pounds of methamphetamine.
On August 9, 2022, HSI agents intercepted two additional packages from the Santa Rosa area which were destined for residences in Nashville. One package contained 472 grams of the counterfeit fentanyl-laced Oxycodone “M30” tablets and the other package contained approximately four pounds of methamphetamine.
The defendants will be sentenced before United States District Judge Waverly D. Crenshaw, Jr., in the spring of 2025. Cox, Johnson, Molinero-Alcarez, McClain, Rodriguez-Gonzalez, and Duncan face up to life imprisonment and a $10,000,000 fine. Holt, Orr, Kimes, Jahari Armstrong, and Jaydan Armstrong face up to 20 years’ imprisonment and a $1,000,000 fine.
This case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the U.S. Postal Inspection Service; the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency; and the Columbia Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Rachel Stephens are prosecuting the case.
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Doctor Convicted of Unlawful Distribution of Controlled SubstancesRead the Press Release
A federal jury convicted a Maine doctor today for unlawfully distributing controlled substances, including oxycodone, hydromorphone, and fentanyl.
According to court documents and evidence presented at trial, Dr. Merideth Norris, 53, of Kennebunk, distributed controlled substances to patients at her practice without a legitimate medical purpose and outside the usual course of professional practice. Norris prescribed controlled substances despite the fact that some of these patients suffered from opioid use disorder, tested positive for addictive substances that were not prescribed to them, or appeared to be diverting the drugs into the community. Norris was warned about her prescribing on numerous occasions, including by way of pharmacists who refused to fill prescriptions she wrote and letters from an insurance company covering one of her patients. Walmart pharmacies also issued a “central block,” or a nationwide ban, on filling prescriptions written by Norris. When asked by Maine’s Board of Osteopathic Licensure (the “Board”) to justify her prescribing, Norris submitted an incomplete patient file to the Board, and otherwise deceived the Board about her prescribing practices.
The jury convicted Norris of 15 counts of unlawfully distributing controlled substances. She faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Darcie N. McElwee for the District of Maine; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Boston Division; Assistant Administrator Thomas Prevoznik of the DEA’s Diversion Control Division; and Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Region made the announcement.
The FBI, DEA, and HHS-OIG investigated the case.
Trial Attorneys Thomas Campbell and Danielle Sakowski of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Nicholas Scott for the District of Maine.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
Defendants Sentenced for Shooting at Hopi Police Officers During Car ChaseRead the Press Release
PHOENIX, Ariz. –Two defendants were sentenced by Senior United States District Judge David G. Campbell last week for their role in shooting at Hopi police officers while fleeing from tribal law enforcement. Ryan Adelbert Johnson, 39, of Dilkon, was sentenced to 209 months in prison, followed by three years of supervised release. Mike Duffy, III, 41, of Ganado, was sentenced to 161 months in prison, followed by three years of supervised release.
After a five-day jury trial in September 2023, Johnson and Duffy were each convicted of two counts of Assault with a Dangerous Weapon; Johnson also was convicted of Discharging a Firearm During a Crime of Violence; and Duffy also was convicted of Possession of a Firearm During a Crime of Violence.
In addition to the convictions at trial, Johnson and Duffy, who are convicted felons, both pleaded guilty to one count each of Felon in Possession of a Firearm.
On February 3, 2021, Johnson and Duffy were driving through the Hopi Indian Reservation when they ran a stop sign and nearly collided with a Hopi Law Enforcement Services (HLES) police vehicle. Johnson and Duffy then fled and refused repeated commands by law enforcement to pull over. While Duffy drove, Johnson used an AM-15 rifle to fire multiple shots at the pursuing officers, who narrowly avoided being hit. Johnson and Duffy are enrolled members of the Navajo Nation.
“Too often law enforcement is confronted with gun violence as a part of their duties,” said United States Attorney Gary Restaino. “This sentence sends a message that when the violence is directed at them, it will not be tolerated.”
“This shooting was without justification and threatened the lives of police officers who work every day to keep their community safe,” said Daniel Mayo, acting special agent in charge of the FBI’s Phoenix Field Office. “An attack like this has serious consequences as proven by the sentences handed down to the defendants.”
The Phoenix Field Office of the Federal Bureau of Investigation and Hopi Law Enforcement Services conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, and the Navajo Division of Public Safety. Assistant U.S. Attorneys Alanna Kennedy and Christina Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-08057-PCT-DGC
RELEASE NUMBER: 2024-079_Duffy# # #
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.Convicted Drug Trafficker Sentenced to 4 Years After Bangor Police Find Him with a Firearm, Drugs During Traffic StopRead the Press Release
BANGOR, Maine: A Bangor man was sentenced today in U.S. District Court in Bangor for being a prohibited person in possession of a firearm and ammunition and to possessing controlled substances with the intent to distribute them.
Chief U.S. District Judge Lance E. Walker sentenced Andrew Blais, 37, to 48 months imprisonment to be followed by three years of supervised release. Blais pleaded guilty on March 15, 2024.
According to court records, in October of 2023, Bangor police officers encountered Blais during a traffic stop and identified an active warrant for his arrest. Officers observed drug paraphernalia in open view in the vehicle and recovered bundles of cash and a loaded handgun on Blais’ person. A further search at the Penobscot County Jail revealed 38 individual bags containing fentanyl concealed underneath his clothing. Blais was prohibited from possessing a firearm or ammunition due to a prior felony drug trafficking conviction.
The Bangor Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration investigated the case.
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Columbia Man Sentenced to Federal Prison for Gun ChargeRead the Press Release
COLUMBIA, S.C. — Deandre Lamar Davis, 35, of Columbia, was sentenced to more than eight years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on May 5, 2021, Columbia Police Department officers arrested Davis on outstanding state arrest warrants for kidnapping and domestic violence. A loaded 9mm pistol was found tucked into Davis’s waistband along with approximately 2.8 grams of crack cocaine in his pants pocket. This was the third time Davis was arrested while in unlawful possession of a firearm or illegal drugs since 2020. Davis had prior convictions for aggravated assault and battery, burglary, possession with intent to distribute marijuana, domestic violence, second degree and assault and battery, second degree. At the time of the May 2021 incident, Davis was on state probation for his most recent assault and battery conviction.
United States District Judge Sherri A. Lydon sentenced Davis to 100 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Colorado man pleads guilty in crypto investment fraud schemeRead the Press Release
ALEXANDRIA, Va. – A Colorado man pled guilty today to wire fraud relating to his scheme to fleece investors through a series of misrepresentations and high-pressure tactics.
According to court documents, on Sept. 4, 2023, Robert Wesley Robb, 46, advertised on a social media chat an opportunity to invest in a Maximum Extractable Value (MEV) cryptocurrency trading bot. Robb invited individuals that had “$100-$200k+ sitting around” and wanted to “participate in some next-level MEV stuff” to send him a direct message to learn more.
On Sept. 7, 2023, Investor A, a resident of Brambleton, Virginia, sent a direct message to Robb and discussed the opportunity. Robb told Investor A that the investment must total at least $100,000 and described the MEV bot as capable of delivering very high returns. Robb insisted that Investor A must invest within a “day or two,” because he expected the bot to be operational “soon (likely early next week).”
Robb provided Investor A an Ethereum virtual currency address to send his initial investment and on Sept. 8, 2023, Investor A sent Robb $100,000.
On Oct 27, 2023, Robb falsely told Investor A that a new investor was interested in making a $300,000 investment that would dilute Investor A’s profits, and that he was giving Investor A the chance to make an additional investment to insulate Investor A from dilution. In truth, Robb had already spent Investor A’s initial investment on personal expenses. On Oct. 28, 2023, Investor A sent an additional $50,000 to Robb’s Ethereum virtual currency address.
On Nov. 8, 2023, Robb falsely claimed that the bot had not yet conducted any transactions because it was still “warming up.” Investor A requested a refund from Robb because there were neither any returns nor evidence Robb had created the MEV bot.
The government’s investigation identified more than ten investors in Robb’s scheme alleging losses totaling more than $2.2 million. Despite Robb’s representations that investor funds would be used as trading capital for the MEV bot, they were funneled instead to Robb’s virtual currency exchange accounts and bank accounts. The vast majority of the funds were used for personal expenses, including airline tickets, vacations, gambling, cars, and other luxury items. For example, Robb used $204,423 to lease an executive suite at the Denver Broncos’ Mile High Stadium, $117,570 to purchase a 2023 Jeep Wagoneer, and $46,914 to send his girlfriend and her extended family to a resort in the Bahamas.
Robb is scheduled to be sentenced Oct. 2 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-141.
Chicago Consultant Sentenced to a Year in Federal Prison for Tax OffensesRead the Press Release
CHICAGO — A Chicago consultant was sentenced today to a year in federal prison for underreporting and failing to file federal income taxes.
ANNAZETTE COLLINS, 62, of Chicago, willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp. Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator.
A jury earlier this year convicted Collins on federal tax charges. In addition to the prison sentence, U.S. District Judge Jorge L. Alonso ordered Collins to pay $110,852 in restitution.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Jason Bushey, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Michelle J. Parthum and Amarjeet S. Bhachu.
Charlotte Man Is Sentenced to Eight Years in Prison for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Bryan Dequan Ledbetter, 48, of Charlotte, was sentenced on Monday to 96 months in prison for possession of a firearm by a convicted felon.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on September 25, 2022, in the early morning hours, Ledbetter used a bedroom window to enter the home of a female victim who was known to Ledbetter. Upon hearing Ledbetter attempting to enter her home, the victim called 911. While she was on the phone with the dispatcher, the victim managed to escape and run toward the neighbor’s home. Ledbetter caught up with the victim on the neighbor’s porch, placed his hands around the victim’s neck and began to squeeze her neck. Ledbetter then dragged the victim on the neighbor’s yard while keeping his hands around her neck. Court records show that, while Ledbetter held the victim down, he pulled out a firearm and fired into the air. Ledbetter then dragged the victim in the nearby bushes where he placed the muzzle of the firearm against the victim’s head and under her neck. When officers arrived at the scene, they ordered Ledbetter to surrender. At first, Ledbetter refused and continued to press his firearm against the victim’s head. Ledbetter eventually threw down his firearm and he was arrested on scene.
On March 14, 2023, Ledbetter pleaded guilty to possession of a firearm by a convicted felon. Ledbetter has prior state convictions that include assault on a female and felony assault by strangulation, and he is prohibited from possessing a firearm or ammunition.
Ledbetter is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte 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 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.
Chairman of Publicly Traded Health Care Company Convicted of Insider TradingRead the Press Release
A federal jury in Los Angeles convicted the former CEO, executive chairman, and chairman of the board of directors of Ontrak Inc., a publicly traded health care company, for engaging in an insider trading scheme using Rule 10b5‑1 trading plans.
“When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.”
“Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said U.S. Attorney Martin Estrada for the Central District of California. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate Crime and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.”
According to court documents and evidence presented at trial, Terren S. Peizer, 64, a resident of Santa Monica, California, and Puerto Rico, avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer entered into his first Rule 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second Rule 10b5-1 trading plan approximately five minutes after Ontrak’s chief negotiator for the contract informed Peizer that the contract likely would be terminated.
“As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.”
In establishing his Rule 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the trading plan and when he sold Ontrak stock—despite warnings from multiple brokers, Ontrak’s Insider Trading Compliance Officer, and several attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his second Rule 10b5-1 plan, Ontrak announced to the public that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%.
The jury convicted Peizer of one count of securities fraud and two counts of insider trading. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of 25 years in prison on the securities fraud count and 20 years in prison on each of the insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1.
The FBI investigated the case. The Justice Department appreciates the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
Trial Attorneys Matthew Reilly and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case.
Central Pennsylvania Man Sentenced to Prison for Hobbs Act RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Judge Christopher C. Conner sentenced Kyle Jaden Morales, age 21, of Harrisburg, Pennsylvania to 230 months’ imprisonment following his conviction for robberies of businesses engaged in interstate commerce (Hobbs Act robbery), bank robbery, and brandishing a firearm during and in relation to a crime of violence.
According to United States Attorney Gerard M. Karam, Morales previously pleaded guilty to these offenses, which involved Morales’ robberies of McDonald’s restaurants, Sheetz convenience stores, and United Bank in March 2022 during a 12-day crime spree in the states of Pennsylvania, Georgia, North Carolina, and South Carolina. As part of these robberies, Morales pointed a handgun at employees and took money by means of actual and threatened force, violence, and fear of injury. Judge Conner also ordered Morales to pay $5,094 in restitution to the McDonald’s Corporation, Sheetz, Inc., and United Bank, to pay a special assessment of $400, and to serve five years of supervised release after he completes his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the East Pennsboro Township Police Department, and the Pennsylvania State Police, and prosecuted by Assistant U.S. Attorneys David C. Williams and Samuel S. Dalke.