Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 29 April 2024
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Marcus Delars Branson, 27, was found in possession of a firearm by U. S. Probation Officers during a visit to his home. Branson had a prior felony conviction for bank robbery and was on supervised release.
On July 25, 2023, Branson was indicted by a federal grand jury for being a felon in possession of a firearm. He is scheduled to be sentenced on July 30, 2024, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Matt Allen 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.
Jackson County Man Sentenced to over 8 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Jackson County man was sentenced to 105 months in federal prison for possession with intent to distribute 70 grams of methamphetamine.
James Richard Morgan, 42, of Jackson County, was sentenced in U.S. District Court in Gulfport.
According to court documents, on September 11, 2018, Morgan and co-defendant Karlos Brown sold 70 grams of 42% pure methamphetamine in the parking lot of a Walmart in Pascagoula, Mississippi.
Morgan and Brown were indicted by a federal grand jury on May 17, 2022. Both defendants pled guilty to possession with intent to distribute methamphetamine. Brown was sentenced on February 27, 2023, to 70 months in prison.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation, the Pascagoula Police Department, and the Mississippi Bureau of Narcotics.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Ideal Man Sentenced for Larceny and Prohibited Person in Possession of a FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Ideal, South Dakota, man convicted of Larceny and Prohibited Person in Possession of a Firearm. The sentencing took place on April 24, 2024.
Tredell Long Crow, age 27, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to a pay $200 special assessment to the Federal Crime Victims Fund. Long Crow was furthered ordered to pay restitution in the amount of $1,786.66.
Long Crow was indicted by a federal grand jury in September of 2023. He pleaded guilty on February 1, 2024.
The convictions stem from conduct that occurred in July of 2023. On July 15, 2023, Long Crow stole a vehicle from a residence in Sioux Falls, South Dakota, which he drove to a residence in Ideal, on property that is part of the Rosebud Sioux Indian Reservation. In the early morning hours of July 16, 2023, Long Crow was involved in an argument with two individuals in Ideal, during which he brandished and discharged a firearm.
In 2022, Long Crow was convicted of Possession of a Controlled Drug or Substance in Minnehaha, County, South Dakota. As a result of this conviction, it is illegal for Long Crow to possess firearms or ammunition.
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 matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
This case was investigated by the Sioux Falls Police Department, the Rosebud Sioux Tribe Law Enforcement Services, the Tripp County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Long Crow was immediately remanded to the custody of the U.S. Marshals Service.
Huntington Man Sentenced for Making False Declaration in Bankruptcy CaseRead the Press Release
HUNTINGTON, W.Va. – John Christopher Spence, 67, of Huntington, was sentenced today to five years of federal probation, including six months on home detention with GPS monitoring, and fined $5,000 for making a false declaration in a bankruptcy case.
According to court documents and statements made in court, on or about April 30, 2019, Spence filed for bankruptcy as an individual and separately on behalf of Park Place Properties LLC, one of his businesses. In the days and weeks leading up to his filing for bankruptcy, Spence made extravagant purchases including the buying of airfare to Grand Cayman Islands, Aruba, and Las Vegas, Nevada. Spence admitted that he made these purchases knowing that he would be filing for bankruptcy and did so with the intent of defrauding creditors through the bankruptcy process.
Spence also admitted that he knew he was required to identify creditors and submit various schedules of assets and liabilities and a statement of financial affairs in each bankruptcy case. Each schedule and statement of financial affairs was filed in U.S. Bankruptcy Court under criminal penalty for false swearing, concealing property, and obtaining money or property by fraud. On May 30, 2019, Spence caused to be filed Schedule A/B, a disclosure document, and a statement of financial affairs in his individual bankruptcy case. Spence failed to disclose that he had legal or equitable interests in condominiums in Gatlinburg, Tennessee; Scottsdale, Arizona; Avon, Colorado; Port Saint Lucie, Florida; and Myrtle Beach, South Carolina. Spence admitted that he falsely stated on his Schedule A/B that he did not own or have any interest in condominiums. Spence further admitted that he lied about his legal or equitable interests in any condominiums during a meeting of creditors in his bankruptcy case on June 6, 2019.
At the time he filed for bankruptcy, Spence owned a 100 percent interest in J.C. Spence Company LLC. Spence admitted that failed to disclose in each bankruptcy case that he owned J.C. Spence Company LLC, that he held a 100 percent interest in this company, and that this company possessed substantial assets.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI). The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-184.
###
Highlands County drug dealer sentenced to prisonRead the Press Release
MIAMI – On April 25, a Highlands County drug dealer was sentenced to 121 months in federal prison, followed by four years of supervised release, after previously pleading guilty to distribution of cocaine and possession with intent to distribute 500 grams or more of cocaine.
On March 15, May 4, and May 17, 2023, Nichiren Shoshu Smith, aka Nick Drop, 48, of Sebring, Florida, sold cocaine base, commonly known as crack cocaine, in Sebring. On May 19, 2023, law enforcement officers discovered over a kilogram of cocaine, approximately 115.5 grams of cocaine base and more than $7,000 in Smith’s residence. Smith has a prior conviction for possession with intent to distribute cocaine base in the Southern District of Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division and Sheriff Paul Blackman of the Highlands County Sheriff’s Office (HCSO) announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division and HCSO investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14038.
###
Hays County Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
AUSTIN, Texas – A San Marcos man was sentenced in a federal court in Austin to 120 months in prison for possession with intent to distribute fentanyl.
According to court documents, Colten Romeo Thayer, 20, was arrested during a traffic stop on Aug. 29, 2022. During a search of his vehicle, Hays County Sheriff’s deputies found a bag containing 11 grams of fentanyl. Thayer had been purchasing fentanyl pills from other dealers in and around Hays County for personal use and for the purpose of selling. Thayer pleaded guilty Dec. 21, 2023.
Co-defendant Anthony Perez Rios pleaded guilty to one count of possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl. He remains in federal custody, scheduled to be sentenced May 23.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Drug Enforcement Administration and San Marcos Police Department investigated the case.
Assistant U.S. Attorney Gabriel Cohen prosecuted the case.
###
Former NSA Employee Sentenced to over 21 Years in Prison for Attempted EspionageRead the Press Release
DENVER – Jareh Sebastian Dalke, 32, of Colorado Springs, was sentenced today to 262 months in prison for attempted espionage in connections with his efforts to transmit classified National Defense Information (NDI) to an agent of the Russian Federation.
According to court documents, Dalke pleaded guilty in 2023 to six counts of attempting to transmit classified NDI to a foreign agent. From June 6 to July 1, 2022, Dalke was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer. Dalke admitted that between August and September 2022, in order to demonstrate both his “legitimate access and willingness to share,” he used an encrypted email account to transmit excerpts of three classified documents to an individual he believed to be a Russian agent. That person was an FBI online covert employee. All three documents from which the excerpts were taken contain NDI, are classified as Top Secret//Sensitive Compartmented Information (SCI) and were obtained by Dalke during his employment with the NSA.
“This defendant, who had sworn an oath to defend our country, believed he was selling classified national security information to a Russian agent, when in fact, he was outing himself to the FBI,” said Attorney General Merrick B. Garland. “This sentence demonstrates that that those who seek to betray our country will be held accountable for their crimes. I am grateful to the FBI Denver and Washington Field Offices for their extraordinary work on this case.”
“This sentence should serve as a stark warning to all those entrusted with protecting national defense information that there are consequences to betraying that trust,” said FBI Director Christopher Wray. “Dalke believed he was passing classified information to an agent of the Russian government. The hard work of our FBI employees prevented that from happening and any potential harm to the United States.”
“Two primary objectives of the U.S. Attorney’s Office for the District of Colorado include keeping our citizens safe, and safeguarding the United States of America,” said U.S. Attorney Cole Finegan for the District of Colorado. “Not only is this case an exceptional example of federal law enforcement cooperation, but the sentence Mr. Dalke received today reflects the seriousness of the actions he took in attempt to injure our country and help a foreign government.”
"Every day, every FBI employee works to uphold the Constitution and protect the American people and our way of life. But it’s not every day we thwart a would-be spy among our own intelligence community ranks. Luckily such an occurrence is rare," said FBI Denver Special Agent in Charge Mark Michalek. "If Dalke had been successful, the repercussions would have been severe. The penalty imposed reflects this."
On or about Aug. 26, 2022, Dalke requested $85,000 in return for all the information in his possession. Dalke claimed the information would be of value to Russia and told the FBI online covert employee that he would share more information in the future, once he returned to the Washington, D.C.-area.
Dalke subsequently arranged to transfer additional classified information in his possession to the purported Russian agent at Union Station in downtown Denver. Using a laptop computer and the instructions provided by the FBI online covert employee, Dalke transferred five files, four of which contain Top Secret NDI. The other file was a letter, which begins (in Russian and Cyrillic characters) “My friends!” and states, in part, “I am very happy to finally provide this information to you… I look forward to our friendship and shared benefit. Please let me know if there are desired documents to find and I will try when I return to my main office.” The FBI arrested Dalke on Sept. 28, 2023, moments after he transmitted the files.
As part of his plea agreement, Dalke admitted that he willfully transmitted files to the FBI online covert employee with the intent and reason to believe the information would be used to injure the United States and to benefit Russia.
The FBI Washington and Denver Field Offices investigated the case.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section handled the prosecution.
Former NSA Employee Sentenced to over 21 Years in Prison for Attempted EspionageRead the Press Release
Jareh Sebastian Dalke, 32, of Colorado Springs, was sentenced today to 262 months in prison for attempted espionage in connections with his efforts to transmit classified National Defense Information (NDI) to an agent of the Russian Federation.
According to court documents, Dalke pleaded guilty in 2023 to six counts of attempting to transmit classified NDI to a foreign agent. From June 6 to July 1, 2022, Dalke was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer. Dalke admitted that between August and September 2022, in order to demonstrate both his “legitimate access and willingness to share,” he used an encrypted email account to transmit excerpts of three classified documents to an individual he believed to be a Russian agent. That person was an FBI online covert employee. All three documents from which the excerpts were taken contain NDI, are classified as Top Secret//Sensitive Compartmented Information (SCI) and were obtained by Dalke during his employment with the NSA.
“This defendant, who had sworn an oath to defend our country, believed he was selling classified national security information to a Russian agent, when in fact, he was outing himself to the FBI,” said Attorney General Merrick B. Garland. “This sentence demonstrates that that those who seek to betray our country will be held accountable for their crimes. I am grateful to the FBI Denver and Washington Field Offices for their extraordinary work on this case.”
“This sentence should serve as a stark warning to all those entrusted with protecting national defense information that there are consequences to betraying that trust,” said FBI Director Christopher Wray. “Dalke believed he was passing classified information to an agent of the Russian government. The hard work of our FBI employees prevented that from happening and any potential harm to the United States.”
“Two primary objectives of the U.S. Attorney’s Office for the District of Colorado include keeping our citizens safe, and safeguarding the United States of America,” said U.S. Attorney Cole Finegan for the District of Colorado. “Not only is this case an exceptional example of federal law enforcement cooperation, but the sentence Mr. Dalke received today reflects the seriousness of the actions he took in attempt to injure our country and help a foreign government.”
On or about Aug. 26, 2022, Dalke requested $85,000 in return for all the information in his possession. Dalke claimed the information would be of value to Russia and told the FBI online covert employee that he would share more information in the future, once he returned to the Washington, D.C.-area.
Dalke subsequently arranged to transfer additional classified information in his possession to the purported Russian agent at Union Station in downtown Denver. Using a laptop computer and the instructions provided by the FBI online covert employee, Dalke transferred five files, four of which contain Top Secret NDI. The other file was a letter, which begins (in Russian and Cyrillic characters) “My friends!” and states, in part, “I am very happy to finally provide this information to you… I look forward to our friendship and shared benefit. Please let me know if there are desired documents to find and I will try when I return to my main office.” The FBI arrested Dalke on Sept. 28, 2023, moments after he transmitted the files.
As part of his plea agreement, Dalke admitted that he willfully transmitted files to the FBI online covert employee with the intent and reason to believe the information would be used to injure the United States and to benefit Russia.
The FBI Washington and Denver Field Offices investigated the case.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section handled the prosecution.
Federal grand jury indicts postal worker for stealing mailRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Christopher Porter, 37, of Angola, NY, with two counts of theft of mail and six counts of delay of mail by a postal employee. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz T. Wright, who is handling the case, stated that according to the indictment, in October 2021, and January 2022, Porter, a United States Postal Service employee in Angola, embezzled mail and stole gift cards included in the embezzled mail. In addition, on six separate occasions in March 2022, Porter opened mail, delaying its delivery.
Porter was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released on conditions.
The indictment is a result of an investigation by the United States Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent-in-Charge Matthew Modafferi.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Federal Jury Convicts Penn Hills Man on Drug Trafficking and Firearms OffensesRead the Press Release
PITTSBURGH, Pa. - After deliberating for less than two hours, a federal jury on April 18, 2024, found Harry E. Duncan guilty of three counts of violating federal drug and firearms laws, United States Attorney Eric G. Olshan announced. The verdict of guilt included one count each of possession with intent to distribute fentanyl, cocaine, and crack cocaine; possession of firearms and ammunition by a convicted felon; and aiding and abetting the straw purchase of three firearms.
Duncan, 36, of the Penn Hills area of Pittsburgh, Pennsylvania, was tried before United States District Judge Christy Criswell Wiegand in Pittsburgh.
According to Assistant United States Attorneys Jerome A. Moschetta and Benjamin C. Dobkin, who prosecuted the case, the evidence presented at trial established that, in the fall of 2022, Duncan was the subject of an investigation by Allegheny County Police narcotics detectives for suspected involvement in drug trafficking. On November 18, 2022, the detectives served a search warrant on Duncan’s residence, finding in the basement over 1,000 stamp bags of fentanyl, significant amounts of unpackaged fentanyl powder, powder cocaine, and crack cocaine hidden in the ceiling. Throughout the basement, the detectives also discovered a large quantity of drug packaging materials, scales, cash, and 11 different cell phones.
In addition to the drugs and drug trafficking paraphernalia, detectives found a Ruger AR-556 semi-automatic rifle, a Winchester 12 gauge shotgun, several hundred rounds of ammunition, and several pistol cases. Further investigation revealed that Duncan, who previously had been convicted of a felony, had engaged a former drug customer to unlawfully straw purchase the rifle and two of the pistols. In December of 2020, at Duncan’s direction, that person lied on background investigation paperwork and falsely stated that they were the purchaser of the firearms, when, in fact, the firearms were for Duncan. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Judge Wiegand scheduled sentencing for August 29, 2024. The law provides for a maximum total sentence of up to 40 years in prison, a fine of up to $2.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the defendant’s prior criminal history. Pending sentencing, the Court remanded Duncan into the custody of the United States Marshals.
The Allegheny County Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to Duncan’s prosecution.
FCI Schuylkill Inmate Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jared Sebaugh, age 36, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, pleaded guilty on April 26, 2024, before U.S. District Court Judge Julia K. Munley, to the charge of assault with a dangerous weapon.
According to United States Attorney Gerard M. Karam, Sebaugh, formerly of Olmstead Falls, Ohio, admitted to assaulting another inmate with a dangerous weapon with intent to do bodily harm. The charges stem from an incident in February 2023 in which Sebaugh assaulted another inmate with a prison-made weapon consisting of a combination lock attached to a cloth strap.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each charge is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
# # #
Doctor sentenced to 10 years in prison for unlawfully dispensing controlled substancesRead the Press Release
MIAMI – On April 25, a Weston doctor was sentenced to 10 years in federal prison, followed by three years of supervised release for running a pill mill type pain clinic.
The sentence comes after Osmin Morales, 72, of Weston, Florida, was convicted in January of conspiracy to unlawfully dispense and distribute controlled substances, and six counts of unlawfully dispensing controlled substances.
Under federal law, a physician is authorized to dispense (prescribe) controlled substances only when there is a legitimate medical basis for doing so, and the dispensing is consistent with accepted standards of professional medical practice.
Morales established a purported pain management clinic in which he issued prescriptions for controlled substances, principally oxycodone, morphine, and alprazolam (a tranquilizer commonly known by its brand name, Xanax) to most patients who sought them, without any appropriate medical basis. On many occasions, Morales issued prescriptions for controlled substances without examining the patients, often when he was not even present in the clinic. Morales also often pre-wrote many prescriptions for controlled substances and provided them to his office managers to hand out for cash payments of $250 to regular patients, with the purpose of unlawfully maximizing the clinic’s profits.
Some of Morales’s former patients testified during trial that they had often obtained prescriptions for oxycodone, morphine, and alprazolam from the office staff without seeing Morales. One patient’s mother testified that she had begged Morales to stop prescribing narcotics to her daughter, because she was becoming dysfunctional, but he continued prescribing them.
Medical records from Morales’s office described a number of medical examinations he had purportedly conducted of patients which described the patients’ symptoms and included Morales’s diagnoses for which he prescribed opioids to them. However, official records from the U.S. Customs and Border Protection (CBP) confirmed that on many of the dates for those purported examinations, Morales had been out of the country. A Drug Enforcement Administration (DEA) agent testified that Florida’s prescription drug monitoring program showed that during the time of the indictment, Morales had prescribed opioids to more than a thousand patients, most often the maximum available doses. The DEA agent also researched numerous patients by name and found that nearly one-third of them had criminal records relating to drug dealing.
A pain medicine expert witness testified that none of the patient medical records he had examined contained any proper medical basis for the use of opioids, such as oxycodone or morphine, nor any basis for the use of benzodiazepines, such as alprazolam. The pain medicine expert also testified that the combination of opioids and benzodiazepines that Morales regularly prescribed, both of which are central nervous system depressants, created an enhanced risk of overdose and death.
A former member of the Morales’s office staff testified that she had collected approximately $4,000 per day, in cash, from patients to whom Morales provided controlled substance prescriptions. On most of those days, Morales had not been present at the clinic.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, announced the sentence.
DEA Miami Field Division investigated the case with assistance from CBP. Assistant U.S. Attorneys Frank Tamen and Theodore Joseph O’Brien prosecuted it. Assistant U.S. Attorneys Emily Stone and Mitchell Hyman handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20255.
###
District of New Jersey Collects $214 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the District of New Jersey collected a total of $214 million in Fiscal Year 2023. Of this amount, $33.4 million was collected in criminal actions and $13.4 million was collected in civil actions. The district also collected $91 million in cases the office handled jointly with other U.S. Attorney’s Offices and components of the Department of Justice, including $90.9 million in civil actions and $60,851 in criminal actions. In addition, the district recovered $71.5 million in civil bankruptcy proceedings where individuals and businesses owed debts to federal agencies. And the district, working with partner agencies and divisions, collected $4.7 million in asset forfeiture actions.
U.S. Attorney Philip R. Sellinger“Part of the mission of our office is to ensure that defendants are held financially accountable for their criminal and civil wrongdoing. Our recoveries in fiscal year 2023 demonstrate this commitment. We pursue restitution for victims, ensure that defendants are made to forfeit assets they have accumulated through criminal activity, and recover federal funds obtained through fraud. We also recover debts owed to the United States in bankruptcy.”
Significant recoveries included a $14.7 million False Claims Act settlement the District of New Jersey entered into with Biotelemetry Inc. and Lifewatch Services Inc. Both companies were alleged to have knowingly submitted inflated claims for remote cardiac monitoring that were not supported by medical necessity. The district also recovered $4.25 million in an FCA settlement with Watermark Retirement Communities LLC, a senior living facility alleged to have received kickbacks in return for referrals to a nationwide home health agency which previously settled its liability with the government for $17 million. The district’s significant bankruptcy recoveries included over $18 million of delinquent tax debts for the IRS and over $16 million of outstanding commercial loans for the U.S. Small Business Administration.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Recoveries in bankruptcy are returned to the federal agencies that are creditors in the case.
Davenport Man Sentenced to 360 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced on April 17, 2024, to 360 months in federal prison, for conspiracy to manufacture, distribute and/or possess with intent to distribute five kilograms or more of cocaine and marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of firearms.
According to public court documents evidence presented at trial and sentencing, Kpangbala Benyan Blamah, 34, was identified by law enforcement as a suspect in multiple shooting incidents. During that investigation, it was revealed that Blamah was a leader of a drug distribution conspiracy in and around the Quad City Metro area. Evidence showed that Blamah was coordinating several trips to California for him and other members of the conspiracy, including in some cases, minors that Blamah had recruited to be a part of the conspiracy. Evidence also showed that Blamah had packages of controlled substances mailed from California to Davenport to various residences of members of the conspiracy. In total, Blamah was responsible for over 1700 kilograms of controlled substances, including marijuana and cocaine.
After completing his term of imprisonment, Blamah will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
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.
Dallas Man Pleads Guilty to Role in Large-Scale Cocaine ConspiracyRead the Press Release
BOSTON – A Dallas man pleaded guilty on April 26, 2024 in federal court in Worcester to his role in a nationwide large-scale cocaine trafficking conspiracy.
Javier Robledo Perez, 39, pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute five kilograms or more of cocaine. U.S. District Court Judge Margaret R. Guzman scheduled sentencing hearing for July 19, 2024.
Perez was a commercial truck driver based out of Dallas who transported approximately 30 kilograms of cocaine across state lines on behalf of a drug trafficking organization based in Mexico and Texas. In May 2020, Perez and his co-conspirators arranged for the delivery of 30 kilograms of cocaine to a cooperating witness in Massachusetts. In May 2020, Perez was stopped by law enforcement as he traveled into Massachusetts in his commercial semi-truck, from which 30 vacuum sealed bricks, containing approximately 30 kilograms of cocaine, were seized.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and the charge of possession with intent to distribute five kilograms or more of cocaine both carry a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Drug Enforcement Administration, Laredo and Dallas Divisions provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting 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.
Cut Bank man sentenced to more than five years in prison for assaulting, shooting woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Cut Bank man was sentenced today to five years and nine months in prison, to be followed by three years of supervised release, for assaulting and then shooting and wounding a woman at a residence on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
The defendant, Luke Charles Wells, 33, pleaded guilty in November 2023 to assault with a dangerous weapon and to using a firearm during a crime of violence.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on July 16, 2023, Wells was intoxicated at a residence on the Blackfeet Indian Reservation, when he became angry at the victim, identified as Jane Doe. Doe was in a bathroom when Wells broke down the door and began assaulting her. Doe ran outside to escape. Wells chased her and pulled out a pistol. Doe tripped and fell, and Wells started shooting at the ground around her. Wells then hit Doe in the head with the gun several times before shooting and wounding her in the chest. Doe was transported to the hospital. Wells, disobeying officers’ commands and while armed, fled multiple law enforcement agencies in a vehicle pursuit before being tased and arrested.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case. The FBI, Blackfeet Law Enforcement Services, Cut Bank Police Department and Glacier County Sheriff’s Office conducted the investigation.
XXX
Council Bluffs, Iowa Man Sentenced to 240 Months for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced April 16, 2024, to 240 months in prison for Conspiracy to Distribute a Controlled Substance, and 180 months for Possession of a Firearm by a Prohibited Person, to be served concurrently.
According to public court documents, Virgil Rude McIntosh, III, 47, pled guilty to conspiracy to distribute a controlled substance and prohibited person in possession of a firearm. Between December and July 2023, McIntosh was involved in a drug conspiracy credited for the distribution of over 30 kilograms of methamphetamine in the Council Bluffs metro area. Officers conducted a search warrant of McIntosh’s residence and seized methamphetamine and a loaded Sig Saur 9 mm handgun.
After completing his term of imprisonment, McIntosh will be required to serve ten years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force, the Division of Narcotics Enforcement, the Omaha Police Department, and the Council Bluffs Police Department.
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.
Council Bluffs, Iowa Man Sentenced to 200 Months for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced April 16, 2024, to 200 months in prison on federal drug charges and a concurrent 180 months for a firearms crime.
According to public court documents, Jake Michael Flynn, 39, pled guilty to conspiracy to distribute methamphetamine and prohibited person in possession of a firearm. From October 2022 through April 2023, Flynn was a member of a conspiracy which distributed more than 50 kilograms of methamphetamine in the Council Bluffs area. A stolen vehicle was also recovered that was involved in prior burglaries in the Council Bluffs area. Additionally, a Sig Sauer Model P365 9x19 millimeter handgun was found in the vehicle with Flynn’s DNA. Flynn was previously convicted of a felony and therefore prohibited from legally possessing a firearm.
After completing his term of imprisonment, Flynn will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force, the Division of Narcotics Enforcement, and the Council Bluffs Police Department.
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.
Council Bluffs, Iowa Man Sentenced to 108 Months in Federal Prison for Child Pornography ChargesRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced April 16, 2024, to 108 months in prison for Receipt of Child Pornography.
According to public court documents and evidence presented at sentencing, Ivan Dean Joslin, 20, pled guilty to Receipt of Child Pornography. In May 2023, Joslin met a thirteen-year-old minor in Council Bluffs, Iowa and exchanged phone numbers. At his request, Joslin received over the internet sexually explicit images and videos of the minor.
After completing his term of imprisonment, Joslin is required to serve six years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Council Bluffs Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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 https://www.justice.gov/psc. / For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Clovis Businessman Sentenced to Prison for $1.4 Million COVID-19 Relief Money TheftRead the Press Release
FRESNO, Calif. — Ruben Mireles, 48, of Clovis, was sentenced today to one year in prison for stealing $1.4 million in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mireles owned and operated a farm labor contracting business in Kings County. His business initially went by the name Vista Pacific Labor Solutions Inc. (VPLS) and then changed its name to Calzona Ag Management Inc., doing business as Vista Pacific Farm Management (CAM).
In January 2021, after VPLS changed its name to CAM, Mireles caused CAM to apply for and receive a COVID-19 Paycheck Protection Program (PPP) loan for $1.4 million from the Small Business Administration (SBA). Then, in April 2021, Mireles caused VPLS to apply for and receive another PPP loan for $1.4 million from the SBA based on false information.
In the second loan application, Mireles falsely represented to the SBA that VPLS was a separate company from CAM when, in fact, VPLS and CAM were the same company. Mireles also falsely represented that he had not received any other PPP loans, even though he had previously received CAM’s loan. Finally, Mireles falsely represented that he was not subject to any pending criminal charges when he was actually facing state fraud charges.
Based on Mireles’ representations, VPLS’s loan application was approved and the $1.4 million, to which he was not entitled, was deposited into his bank account.
This case was the product of an investigation by the Federal Bureau of Investigation and the SBA Office of Inspector General with assistance from the California Department of Insurance. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Chicago Man Sentenced to 4.5 Years in Prison for Pandemic Unemployment Benefits Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, Pa. - A resident of Chicago, Illinois, has been sentenced in federal court to 54 months in prison, to be followed by three years of supervised release, and $20,000 in restitution on his conviction of mail fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Christian Matthews, 35.
According to information presented to the Court, Matthews fraudulently obtained personal identifying information belonging to other people and used it to file claims for pandemic-related unemployment benefits. The Pandemic Unemployment Assistance Program was created to provide economic support to certain individuals unemployed as a result of the COVID-19 pandemic. Matthews used online marketplaces to purchase identifying information, including Social Security numbers, that had been stolen from victims. He then created fictitious businesses and used them to obtain mailing addresses from companies that rent shared office space. Finally, he used the stolen identity information to file fraudulent claims for Pandemic Unemployment Assistance benefits in states including Arizona, Nevada, and Pennsylvania, and had the resulting benefit cards sent via U.S. Mail to multiple business locations, including an office building in Pittsburgh, where Matthews would retrieve and use the benefits.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Labor Office of the Inspector General, United States Department of Homeland Security Investigations, United States Postal Inspection Service, and Findlay Township Police Department for the investigation leading to the successful prosecution of Matthews.
Buffalo man pleads guilty to child pornography and cyberstalking chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Raymond Brooks, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography by an individual with a prior sex offense conviction, and cyberstalking, which carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz T. Wright, who handled the case, stated that in January 2019, Brooks was convicted in Erie County Court of Possessing a Sexual Performance by a Child. On April 23, 2020, law enforcement searched Brooks’ cell phone, locating images and videos containing child pornography. Some of the images and videos depicted prepubescent minors engaged in violent sexual conduct. In January 2021, Brooks contacted a 15-year-old victim via Snapchat, and persuaded her to produce sexually explicit images of herself and send them to him. Brooks then contacted the victim repeatedly via Snapchat and threatened her to send more sexually explicit images or videos, or he would distribute the existing images and videos to her family members, friends, and other Snapchat users. As a result, the victim created more sexually explicit images and videos.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for October 3, 2024, before Judge Sinatra.
Brazilian Man Pleads Guilty and Sentenced on Charges of Escape from Federal CustodyRead the Press Release
BOSTON – A Brazilian man residing in Framingham pleaded guilty in federal court in Worcester to escaping from federal custody.
Victor Rodrigues De Moura-Pereria, 20, pleaded guilty on April 26, 2024 before U.S. Magistrate Judge David Hennessy, who sentenced Rodrigues to time-served (approximately five weeks in prison) to be followed by one year of supervised release. Rodrigues was subsequently transferred into ICE custody and placed into removal proceedings.
In September 2021, Rodrigues was arrested in Arizona after unlawfully entering the United States. He was subsequently placed into removal proceeding in October 2021 but failed to report and was considered an absconder.
On Feb. 25, 2024, in Framingham, Rodrigues was approached by local law enforcement due to an outstanding warrant for his arrest. Rodrigues ignored officers’ commands and resisted arrest. Rodrigues was then transferred into the custody of federal immigration officials.
On Feb. 26, 2024, while being transported to the Wyatt Detention Center where he was to be detained while in custody of immigration authorities, Rodrigues made numerous attempts to escape. Specifically – while placed in full restraints and seated in the prisoner compartment of the transport van – Rodrigues attempted to unlock the passenger side door by pulling on the lock pin with his teeth. Rodrigues then forced his body through a small gap between the vehicle’s rear cage and passenger side window and into the vehicle’s storage compartment, where he pulled the emergency release pull tab, opened the rear door and jumped out onto the highway when the vehicle entered standstill traffic. After exiting the transport van, Rodrigues ran down the middle of the highway and disappeared.
Responding law enforcement subsequently located Rodrigues hiding inside a wooden fenced area behind a building in Waltham, approximately a quarter mile from where he exited the vehicle.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement today. Valuable assistance was provided by the Waltham Police Department and the Massachusetts State Police. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit prosecuted the case.
Attorney General Merrick B. Garland Statement on the Shootings of Law Enforcement in North Carolina During U.S. Marshals Task Force OperationRead the Press Release
This afternoon, a Deputy U.S. Marshal and two Task Force Officers were killed in the line of duty and multiple other officers were wounded while serving a state arrest warrant on a fugitive in Charlotte, North Carolina.
Attorney General Merrick B. Garland issued the following statement:
“Every single day, Deputy U.S. Marshals and Task Force Officers put their lives on the line to apprehend some of our country’s most dangerous criminals. Today, three of those dedicated public servants made the ultimate sacrifice. Multiple other officers were critically injured while carrying out this operation to protect their community.
"The Justice Department is heartbroken by the deaths of three of our own law enforcement colleagues, and we extend our deepest condolences to their loved ones as they grieve this unfathomable loss.”
Arizona Man Convicted of Operating A Jet Ski in A Negligent Manner at Lake Mead National Recreation AreaRead the Press Release
LAS VEGAS – An Arizona resident was found guilty on Thursday for operating a jet ski in a negligent manner that resulted in the death of a passenger at Lake Mead National Recreation Area.
United States Magistrate Judge Daniel J. Albregts presided over the two-day bench trial. Bryce Tyrone Verhonich, 47, was found guilty of operating a vessel in a negligent manner, failing to wear a personal flotation device, and failing to attach an engine cut-off switch lanyard. A sentencing hearing has been scheduled for August 5, 2024.
According to court documents and evidence presented at trial, on June 30, 2022, Verhonich and a passenger traveled from his houseboat on a jet ski toward the Hoover Dam. As conditions worsened, Verhonich made a sharp turning maneuver that resulted in Verhonich and his passenger falling off the jet ski. Neither Verhonich nor the passenger were wearing life jackets at the time. The passenger’s body was ultimately recovered from Lake Mead National Recreation Area on July 6, 2022.
United States Attorney Jason M. Frierson made the announcement.
This case was investigated by the National Park Service. Assistant United States Attorneys Edward D. Penetar and Brian Whang are prosecuting the case.
###
Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Ricky Lee Smith, 55, of Laramie, Wyoming, was sentenced to 120 months in federal prison for possession of child pornography. According to court documents, On Jun. 25, 2023, law enforcement received a CyberTip from a provider of cloud-based services regarding the user of a Verizon phone with a Wyoming number that traced back to Smith, who is a registered sex offender. Investigators served a search warrant at Smith’s residence and found over 750 images of child pornography on Smith’s phone. Smith was indicted in November 2023 and pleaded guilty in January 2024. U.S. District Court Judge Alan B. Johnson imposed the sentence on Apr. 24. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Mackenzie R. Morrison.
Drug Trafficking
Michael E. Trujillo, II, 28, of Cheyenne, Wyoming, was sentenced to 41 months’ imprisonment for possession with intent to distribute fentanyl. According to court documents, on Sep. 26, 2023, the Cheyenne Police Department conducted a traffic stop on Trujillo’s vehicle for speeding. During the traffic stop a certified narcotics canine alerted to the presence of drugs. Officers searched the vehicle and Trujillo’s person and found approximately 33 grams of suspected fentanyl pills, seven grams of methamphetamine, and approximately three grams of cocaine. Trujillo was indicted in November 2023, and pleaded guilty in January 2024. U.S. District Court Judge Alan B. Johnson imposed the sentence on Apr. 24. This crime was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Firearms Offenses
Eric Lamario Mitchell, 41, of Cheyenne, Wyoming, was sentenced to 60 months’ imprisonment for being a felon in possession of a firearm and ammunition. According to court documents, on Jul. 13, 2023, the Cheyenne Police Department conducted a traffic stop on a vehicle where Mitchell was the front passenger. Officers located a .45 caliber 1911 handgun under his seat. Mitchell is a convicted felon and not allowed to possess firearms. Officers also executed a warrant for Mitchell’s hotel room and found a .22 caliber handgun under his mattress. Michell was indicted in November 2023, and pleaded guilty on Feb. 6. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Apr. 26. This crime was investigated by the Cheyenne Police Department, Wyoming Division of Criminal Investigation, and the DEA. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
23 Lubbock Drug Traffickers Sentenced to Combined 218 Years in PrisonRead the Press Release
The final defendant arrested in a large-scale drug and gun bust in Lubbock in July 2023 has been sentenced, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In total, 23 defendants were sentenced to a combined total of 218 years in federal prison.
The final defendant, Beatrice Eunice Gutierrez, was sentenced by U.S. District Judge James Wesley Hendrix to 18 years in prison for possession with intent to distribute methamphetamine on Thursday.
“Project Safe Neighborhoods is designed to target an areas’ most dangerous offenders. Key to the initiative’s success are productive partnerships between state, federal, and local law enforcement,” said U.S. Attorney Leigha Simonton. “We hope the Lubbock community will feel more at ease knowing these defendants will spend significant time off their streets and behind bars.”
Members of the group are linked to at least one fatal overdose. The victim, identified in court documents as T.F., was located in a bedroom surrounded by blue pills later confirmed to contain fentanyl. Defendant Alexus Grubelnik later admitted she delivered the pills to his residence, hiding them under the doormat.
Over the course of the investigation, law enforcement seized more than 12,354 grams of fentanyl pills, 12,7311 grams of methamphetamine, 4393 grams of heroin, 31 grams of oxycodone, 1.26 grams of cocaine, 35 firearms, and $155,204 in U.S. currency.
Those sentenced include:
• Steven Paul Echols, sentenced to 210 months for possession with intent to distribute methamphetamine
• Rachel Michelle Melendez, sentenced to 210 months for possession with intent to distribute methamphetamine
• Nicolas Blake Pereida, sentenced to 240 months for distribution and possession with intent to distribute methamphetamine
• Brent Reed Angelle, sentenced to 188 months for possession with intent to distribute methamphetamine
• Alexus Michelle Grubelnik, sentenced to 135 months for distribution and possession with intent to distribute fentanyl
• Beatrice Eunice Gutierrez, sentenced to 216 months for possession with intent to distribute methamphetamine
• Erik Hans Grosstueck, sentenced to 216 months for possession with intent to distribute fentanyl
• Brian Jacob Miller, sentenced to 70 months for possession with intent to distribute fentanyl
• Alexander Erik Pierce, sentenced to 186 months for distribution and possession with intent to distribute fentanyl
• Christian Carlisle Enochs, sentenced to 60 months for possession with intent to distribute fentanyl
• Brannon Mikel Burns, sentenced to 42 months for distribution and possession with intent to distribute fentanyl
• Matthew Ryan Chandler, sentenced to 42 months for possession with intent to distribute fentanyl
• Loddy Max Montoya, sentenced to 42 months for possession with intent to distribute fentanyl
• Trey Matthew Parrish, sentenced to 96 months for distribution and possession with intent to distribute fentanyl
• Glen Donnell Nall, Jr., sentenced to 135 months for possession with intent to distribute methamphetamine
• Anthony Ray Morales, sentenced to 78 months for felon in possession of a firearm
• Ronny Paul Spruiell, sentenced to 210 months for distribution and possession with intent to distribute methamphetamine
• Kevontae Jalil Hawthorne, sentenced to 48 months for felon in possession of a firearm
• Daniel Anthony Moreno, sentenced to 30 months for felon in possession of a firearm
• Ethan Tyler Nieto, sentenced to 32 months for felon in possession of a firearm
• Martin Rosalez III, aka Wedo, sentenced to 41 months for felon in possession of a firearm
• Roberto Salinas, Jr., sentenced to 27 months for felon in possession of a firearm
• Tevin Terelle Carrington, sentenced to 63 months for felon in possession of a firearm
A number of the defendants were tied to Lubbock’s Project Safe Neighborhood zone, a high-crime hotspot where federal, state, and local law enforcement leaders collaborate to reduce violence and increase community safety. Many had extensive criminal histories, including child sexual assault, aggravated assault, burglary, fraud, manufacture and delivery of controlled substances, and unlawful carrying of firearms.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Lubbock Resident Agency, the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency, the United States Marshal Service, the Caprock HIDTA (High Intensity Drug Trafficking Area) Task Force, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sherriff’s Office, and the Texas Anti-Gang Task Force conducted the investigation and arrest operation. Assistant U.S. Attorney Sean Long is prosecuted the case along with Assistant U.S. Attorneys Jeff Haag, Ann Howey, Callie Woolam, Matt McLeod, and Ryan Redd.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at
Sunday 28 April 2024
Two Men and a Woman Sentenced to Decades in Federal Prison Following Convictions for Kidnapping an FBI Employee at GunpointRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced an El Salvadoran man, a Guatemalan man, and a Kersey, Colorado, woman convicted of the following offenses: Kidnapping; Carjacking; Brandishing a Firearm During and in Relation to a Crime of Violence; Unlawful Possession of a Firearm by a Prohibited Person; and Unlawful Reentry after Deportation. The sentencings took place on April 12 and April 26, 2024, in Rapid City, South Dakota.
Deyvin Morales, age 29, of Guatemala, was sentenced on April 26, 2024, to 47 years in federal prison, followed by five years of supervised release.
Juan Francisco Alvarez-Sorto, age 25, of El Salvador, was sentenced on April 12, 2024, to 35 years in federal prison, followed by five years of supervised release.
Karla Lopez-Gutierrez, age 29, was sentenced on April 26, 2024, to 26 ½ years in federal prison, followed by five years of supervised release.
Alvarez, Morales, and Lopez were indicted by a federal grand jury in August of 2022. Lopez-Gutierrez pleaded guilty to Kidnapping and Brandishing a Firearm During and in Relation to a Crime of Violence on August 17, 2023. Alvarez and Morales were indicted again in December of 2023. On January 23, 2024, following a federal trial, Alvarez and Morales were found guilty of Kidnapping; Carjacking; Brandishing a Firearm During and in Relation to a Crime of Violence; Unlawful Possession of a Firearm by a Prohibited Person; and Unlawful Reentry after Deportation.
“The victim in this case was faithfully performing his duties when he found himself at the center of an absolute nightmare — fighting for survival in the back of his own car after these callous defendants carjacked, kidnapped, and held the victim at gunpoint for more than thirty minutes,” said U.S. Attorney Alison Ramsdell. “That men and women in law enforcement must face such profound risks to their lives while working to secure community safety is unacceptable and will not be tolerated. These lengthy sentences reflect those principles. Once again, we are grateful to the FBI and numerous other federal, state, local, and tribal law enforcement partners for their unwavering commitment to both this investigation and to the righteous mission we all serve in this community.”
“These sentences reaffirm the FBI’s steadfast commitment to protecting our personnel from acts of violence and intimidation,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “We extend our gratitude to the USAO-SD and law enforcement partners for their unwavering dedication. Justice has been served, and we continue to stand united against any attempt to endanger our workforce.”
In her sentencing comments, Judge Schreier declared the defendants’ actions among the most horrendous crimes she had seen as a judge.
According to evidence admitted at trial, on May 5, 2022, Alvarez, Morales, and Lopez traveled from Greeley, Colorado, into southwestern South Dakota for the purpose of trafficking and distributing controlled substances, including methamphetamine, fentanyl, and heroin. During their trip, the defendants encountered a South Dakota Highway Patrol Officer and engaged in a high-speed chase. The defendants eluded law enforcement at that time and hid in a remote area near Red Shirt, South Dakota.
Alvarez, Morales, and Lopez then decided to carjack the next vehicle to come along the area at which the defendants stopped on BIA Highway 41. At approximately 2:00 a.m. on May 6, 2022, a Federal Bureau of Investigation (FBI) Victim Specialist left an unrelated crime scene investigation near Oglala, South Dakota, and began traveling back towards his duty station in Rapid City. The FBI employee was driving his assigned FBI vehicle.
As the employee was heading North on BIA 41 near the Badlands overlook on Cuny Table, he passed a vehicle that was parked in the approach near the overlook. As he passed the parked vehicle, the parked vehicle’s lights turned on and the vehicle pulled out behind the employee. The employee, believing he was being pulled over by law enforcement, pulled his vehicle to the side of the road. After the employee pulled his vehicle over, he next realized there was a male at his window pointing a rifle at him and ordering him to get out of the vehicle. The employee realized that the male, identified as Alvarez, was not a law enforcement officer and also that the vehicle had blocked his own vehicle, preventing him from driving away.
Morales and Alvarez ordered the FBI employee out of his vehicle at gun point. The employee was ordered to get on the ground behind his vehicle while Alvarez was holding the rifle at the back of his head. The employee was ordered to keep his head down while on the ground. The group then robbed him of his wallet, money, credit cards, car keys, watch, and personal and work mobile phones.
The FBI employee was then ordered to get up and placed in the middle-rear seat of his government-issued vehicle, as the passenger side seat was blocked with items. While holding the rifle, Alvarez was seated in the front passenger seat of the employee’s vehicle and Morales, while armed with two handguns in his waistband, was seated in the rear driver’s side seat next to the employee. Lopez got into the driver’s seat of the employee’s vehicle. At this point, the defendants took control of the vehicle and took the employee hostage. As the group traveled North on BIA 41, they told the employee to cooperate and he would be safe, but if he did not, the group would come after his family and that they knew where he lived.
The group traveled to Hermosa, South Dakota, stopping at a gas station at the intersection of State Highway 40 and Highway 79. Once the group arrived at the gas station, Lopez went inside to purchase gas. As she got out of the vehicle to go inside the gas station, Alvarez locked the doors to the employee’s vehicle, and the doors remained locked while Lopez was out of the vehicle. Lopez then came back to the vehicle holding a gas can and zip ties. She entered the vehicle and conducted a U-turn and then went to a gas pump. The FBI employee noticed that after Lopez came back to the vehicle, Alvarez, who was brandishing the firearm, had the zip ties in his possession and was getting them out. As Lopez got out to pump gas, the doors to the vehicle were momentarily unlocked. Seizing the opportunity, the employee opened the rear driver’s side door, fought his way out of the vehicle, slipping out of his jacket to escape Morales' attempts to detain him, and sprinted inside the front doors of the gas station to escape.
The three defendants then fled from the gas station and drove to Rapid City, where they abandoned the FBI vehicle and switched to another vehicle. Alvarez and Morales were able to make it back to Greeley, Colorado, where they were ultimately arrested for their roles in the kidnapping and carjacking. During a search of the residence where Alvarez and Morales were arrested, law enforcement located firearms, including the rifle used during the kidnapping and carjacking, and controlled substances. Lopez was arrested soon afterward.
This case was investigated by the FBI, Department of Homeland Security’s Homeland Security Investigations and Immigration and Customs Enforcement, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Oglala Sioux Tribe Department of Public Safety, Rapid City Police Department, Greeley, Colorado Police Department, and the Custer and Pennington County Sheriffs’ Offices. Assistant U.S. Attorneys Jeremy R. Jehangiri and Paige Petersen prosecuted the case.
Alvarez, Morales, and Lopez were remanded to the custody of the U.S. Marshals Service to begin serving their sentences.
Friday 26 April 2024
Williams-Sonoma Ordered to Pay Record Civil Penalty for Violating an Administrative Order Prohibiting its Marketing of Imported Goods as Made in the USARead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), announced that Williams-Sonoma Inc. (Williams-Sonoma) has agreed to a settlement that requires it to pay more than $3 million in civil penalties and stop making false and misleading claims about the origins of its products.
In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that home products company Williams-Sonoma, doing business as Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, PBTeen, West Elm and Rejuvenation, violated an FTC administrative order that prohibits it from advertising wholly imported products and products containing significant imported content as “Made in the USA” in violation of the FTC Act and the Made in USA Rule.
In the stipulated order resolving this case, Williams-Sonoma admits the truth of the complaint’s allegations and agrees to pay a $3,175,387 civil penalty. The order also enjoins Williams-Sonoma from making misleading or unsubstantiated country-of-origin claims and includes recordkeeping and reporting obligations to ensure the company’s future compliance.
“The Justice Department will vigorously enforce laws to stop deceptive advertisers from making misleading and fraudulent claims to sell products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Williams-Sonoma misled consumers by touting products as made in the USA when at least one of them was made in China. We will continue to work with the FTC to stop deceptive marketing practices like this.”
“Williams-Sonoma claimed its products were made in the United States even though they were made in China,” said FTC Chair Lina M. Khan. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”
Trial Attorney Mary M. Englehart and Assistant Director Zachary Dietert of the Civil Division’s Consumer Protection Branch, as well as Assistant U.S. Attorney David DeVito for the Northern District of California and Julia Ensor of the FTC’s Bureau of Consumer Protection, handled the matter.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
Virginia Man Convicted of Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Virginia man was convicted for possession with intent to distribute fentanyl, U.S. Attorney Philip Sellinger announced today.
Djavon Holland, 37, of Virginia, was convicted on April 15, 2024, by a federal jury of two counts of possession with intent to distribute fentanyl following trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to court documents and evidence presented at trial:
In August 2021, law enforcement officials received information that Holland was engaged in narcotics trafficking in or around the Virginia area and New Jersey. On Aug. 12, 2021, a confidential source working with the Ocean County Prosecutor’s Office contacted Holland to arrange a meeting with a confidential source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). On several occasions, Holland drove to New Jersey and sold fentanyl to ATF’s confidential source.
The narcotics offenses each carry a minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $5 million. Sentencing will be scheduled at a later date.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Rossin Marchetti, and the Ocean County Prosecutor’s Office, under the direction of Ocean County Prosecutor Bradley D. Billhimer, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Megan N. Linares and Jenny Chung of the Office’s Criminal Division in Newark.
US Attorney’s Office Charges Labar Tsethlikai for Murder of Navajo ManRead the Press Release
ALBUQUERQUE – A Zuni man made an initial appearance on his Indictment related to the murder of a member of the Navajo Nation and is considered the prime suspect in a series of crimes targeting Native American men in Gallup, Zuni, and Albuquerque. He will remain in custody pending his detention hearing and arraignment, which is set for May 1, 2024.
Labar Tsethlikai, 51, an enrolled member of the Zuni Pueblo, is charged with murdering John Doe on January 18, 2024. John Doe was found deceased the next morning in a remote area of the Zuni Reservation on Route 7, approximately 300 yards eastbound of State Highway 602.
Prior to the murder, John Doe was last seen along East Highway 66 in Gallup, New Mexico.
According to court records, Tsethlikai is linked to a string of murders, kidnappings, robberies, sexual abuses, and assaults, in both Indian Country and the Albuquerque Metropolitan Area between May 2023 and April 2024. Through the investigation, 10 other potential victims have been identified, with 7 crimes occurring within Indian Country, 1 crime involving the victim being transported from Indian Country to Albuquerque, and 3 crimes occurring in the Albuquerque area. One other victim is believed to have died after being kidnapped.
Investigators tied Tsethlikai to the crimes through a common modus operandi, victim statements, video surveillance, EBT records, DNA analysis, and advanced cellular phone tracking. This comprehensive evidence placed Tsethlikai at or around each victim, including John Doe, during the relevant time periods.
If convicted, Tsethlikai faces up to life in prison followed by five years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department’s Sex Crimes Unit and Air Support Unit. Assistant United States Attorneys Matthew J. McGinley, Mark A. Probasco, and Eliot Neal are prosecuting the case.
The FBI continues to investigate Tsethlikai’s involvement in crimes against other victims. If you have reason to believe you or someone you know may be a victim, or have information about Tsethlikai, please call the FBI at (505) 889-1300 or submit tips online at tips.fbi.gov.
Labar Tsethlikai is approximately 5’7” and weighs 180 pounds. He is heavyset, has short brown hair, brown eyes, and wears glasses. He sometimes wears a gold bracelet. He is from Zuni, but travels extensively around New Mexico, including Gallup, Albuquerque, and Santa Fe. He is believed to work in the Native American jewelry industry and may be a Zuni jewely artist.
Tsethlikai drives a gold/brown Chevy Silverado, single cab truck, with dual exhaust, bearing license plate number WNMU0043.
This case is part of the Department of Justice’s Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This prosecution upholds the Department’s mission to the unwavering pursuit of justice on behalf of Indigenous victims and their families.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
# # #
U.S. Department of Justice Announces Dillard University’s Completion of ADA Compliance MeasuresRead the Press Release
NEW ORLEANS - The United States Attorney’s Office for the Eastern District of Louisiana and Dillard University jointly announce the successful conclusion of a multi-year process to implement a number of improvements that create an accessible environment in compliance with the Americans with Disabilities Act (ADA).
In 2018, the United States Attorney’s Office and Dillard cooperatively entered into a renewal and extension of an original ADA settlement agreement signed in 2002. A thorough ADA survey of the entire campus noted several non-accessible campus features, ranging from the lack of handicap parking and wheelchair ramps to the need for signage for low vision/blind persons outside of classrooms and more. Dillard completed its ADA-compliance measures earlier this year with modifications to its website.
Dr. Rochelle L. Ford, Dillard University’s eighth president, identified inclusion and accessibility on campus as vital components of the University’s commitment to healthy, safe, and innovative communities. She commented:
“In the coming months, the University will open the doors of a new living, learning, and serving community building. In this space, accessibility is a top priority for the team leading design and construction. As the University continues to grow, it will double down on its commitment to being a welcoming and inclusive place for students and the wider community.”
Duane A. Evans, United States Attorney for the Eastern District of Louisiana, remarked:
“We appreciate Dillard’s cooperation and commitment to bring its campus into full compliance with the ADA, a hallmark of our nation’s federal civil-rights legislation. Ensuring accessible educational settings for the disabled now, creates greater professional and economic opportunities for them in the future. This joint endeavor is an across-the-board win for Dillard, its current and prospective students, and our region.”
AUSA Glenn Schreiber of the Civil Division handled the case for the U.S. Attorney’s Office.
For more information on the ADA, please call the department’s toll-free Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
U.S. Attorneys for the Eastern, Middle, and Western Districts of North Carolina Host National Crime Victims’ Rights Week CeremonyRead the Press Release
RALEIGH, N.C – United States Attorneys Michael Easley from the Eastern District of North Carolina, Sandra J. Hairston from the Middle District, and Dena J. King from the Western District, together with various local and state leaders, gathered on Tuesday morning to promote community engagement in supporting crime survivors and victims. Local news reporter Debra Morgan of WRAL emceed the event, which featured music by The 100 Men in Black Ensemble, and an array of speakers delivering messages of hope to victims of crime. Students from Southeast Raleigh Magnet High School were also recognized for their participation in a poster contest featuring butterflies in honor of National Crime Victims’ Rights Week. Two service organizations were also featured, including Safe Child and Ship Outreach, for their role in helping survivors of crime.
North Carolina Department of Adult Corrections“In the face of gun violence and an opioid epidemic claiming far too many lives, we won’t allow our communities to be defined by grief and loss,” said U.S. Attorney Michael Easley. “In National Crime Victims’ Rights Week, we highlight the brave victims, survivors, and service providers seeking justice in our courts. We also recognize that true healing requires services and care, wrapping up survivors and ensuring they and their loved ones are never forgotten.”
“Each year, we honor and pay tribute to the victims of crime, to those who are survivors of crime, and to the courageous families who love them,” said U.S. Attorney Sandra J. Hairston of the U.S. Attorney’s Office in the Middle District of North Carolina. “We take this time to thank the outstanding victims’ advocates and law enforcement professionals who are dedicated to supporting survivors and seeking justice for all victims. We will continue this work throughout the year and in years to come to seek justice for the victims and to give hope to the survivors and their families.”
“National Crime Victims’ Rights Week emphasizes the importance of supporting and advocating for crime victims and survivors within our justice system,” said U.S. Attorney Dena J. King of the U.S. Attorney’s Office in the Western District of North Carolina. “This year’s theme reflects our dedication to individuals whose lives have been affected by crime and underscores our commitment to ensuring their rights are recognized and upheld every step of the way. When we put victim advocacy at the forefront of our efforts, we ensure that crime victims and survivors have access to the care, support, and resources they need throughout their journey toward healing and justice.”
This year’s National Crime Victims’ Rights Week theme is “How would you help? Options, services, and hope for crime survivors.” The theme aims to ensure that everyone in a community, including friends, family members, colleagues, neighbors, service providers, or other trusted members of the community, understands their crucial role in supporting crime victims and survivors, and is prepared to offer support.
The U.S. Attorneys Offices for the Eastern, Middle, and Western Districts of North Carolina are proud to join the Office for Victims of Crime (OVC) and communities throughout the United States during National Crime Victims’ Rights Week in raising awareness of victims’ rights and honoring crime victims and their advocates.
For additional information about this year’s NCVRW and how to assist victims in your own community, please visit the United States Attorney’s Office website. For more ideas on how to support victims of crime, visit OVC’s website at www.ovc.ojp.gov.
U.S. Attorneys for the Western, Middle, and Eastern Districts of North Carolina Host National Crime Victims’ Rights Week CeremonyRead the Press Release
CHARLOTTE, N.C – United States Attorneys Dena J. King, Sandra J. Hairston, and Michael Easley from the Western, Middle, and Eastern Districts of North Carolina, respectively, gathered on Tuesday morning with local and state leaders to promote community engagement in supporting crime survivors and victims.
“National Crime Victims’ Rights Week emphasizes the importance of supporting and advocating for crime victims and survivors within our justice system,” said U.S. Attorney King. “This year’s theme reflects our dedication to individuals whose lives have been affected by crime and underscores our commitment to ensuring their rights are recognized and upheld every step of the way. When we put victim advocacy at the forefront of our efforts, we ensure that crime victims and survivors have access to the care, support, and resources they need throughout their journey toward healing and justice.”
“Each year, we honor and pay tribute to the victims of crime, to those who are survivors of crime, and to the courageous families who love them,” said U.S. Attorney Hairston. “We take this time to thank the outstanding victims’ advocates and law enforcement professionals who are dedicated to supporting survivors and seeking justice for all victims. We will continue this work throughout the year and in years to come to seek justice for the victims and to give hope to the survivors and their families.”
“In the face of gun violence and an opioid epidemic claiming far too many lives, we won’t allow our communities to be defined by grief and loss,” said U.S. Attorney Easley. “In National Crime Victims’ Rights Week, we highlight the brave victims, survivors, and service providers seeking justice in our courts. We also recognize that true healing requires services and care, wrapping up survivors and ensuring they and their loved ones are never forgotten.”
News reporter Debra Morgan of WRAL emceed the event, which featured music by The 100 Men in Black Ensemble, and an array of speakers delivering messages of hope to victims of crime. Students from Southeast Raleigh Magnet High School were also recognized for their participation in a poster contest featuring butterflies in honor of National Crime Victims’ Rights Week. Two service organizations were also featured, including Safe Child and Ship Outreach, for their role in helping survivors of crime.
The U.S. Attorneys Offices for the Western, Middle, and Eastern Districts of North Carolina are proud to join the Office for Victims of Crime (OVC) and communities throughout the United States during National Crime Victims’ Rights Week in raising awareness of victims’ rights and honoring crime victims and their advocates.
For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
U.S. Attorney Hurwit Highlights Success of Fentanyl Distribution Prosecution Efforts in East IdahoRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit announced the results of six separate distribution of fentanyl cases in Eastern Idaho today.
“The case results announced today reflect stellar work by our prosecutors and staff in our Pocatello branch office,” said U.S. Attorney Hurwit. “Together with our law enforcement partners in the region, our office is rising to meet the challenge that fentanyl trafficking poses to communities in Eastern Idaho. The partnerships that drive these cases will continue to make all of Idaho a terrible place for drug dealers to do business.”
1. Pocatello Man Sentenced to 121 Months for Conspiracy and Possession with Intent to Distribute Fentanyl
In one case, Donny Ray Moreno, 35, of Pocatello, was sentenced by Chief U.S. District Judge David C. Nye to 121 months in federal prison for conspiracy and possession with intent to distribute fentanyl.
According to court records, law enforcement began investigating Moreno for distributing controlled substances in January 2021. The investigation culminated on November 2, 2021, when law enforcement attempted to stop Moreno in Downey, Idaho. Moreno fled from law enforcement in his vehicle at a high rate of speed. During the 45-minute pursuit, Moreno threw 97 grams of fentanyl and a handgun out of his car window. Law enforcement eventually stopped Moreno and later recovered the fentanyl and other items that had been thrown from Moreno’s vehicle.
Judge Nye also ordered Moreno to serve three years of supervised release following his prison sentence. Moreno pleaded guilty to the federal charge in January 2024.
U.S. Attorney Hurwit thanked the Idaho State Police, the Drug Enforcement Administration, and the BADGES Task Force, for their investigation.
This case was prosecuted by Assistant U.S. Attorney Justin Paskett.
2. California Man Sentenced to 70 Months for Possession with Intent to Distribute Fentanyl
In another case, Andrew Haney, 40, of Torrance, CA, was sentenced by Chief U.S. District Judge David C. Nye to 70 months in federal prison for possession with intent to distribute fentanyl.
According to court records, in May 2023, Haney obtained 2,000 fentanyl pills in California. He disguised them in candy boxes and transported them to Idaho for the purpose of distribution.
Judge Nye also ordered Haney to serve three years of supervised release following his prison sentence. Haney pleaded guilty to the federal charge in December 2023.
U.S. Attorney Hurwit commended the cooperative efforts of the BADGES Task Force including the Drug Enforcement Administration, the Pocatello Police Department, the Bannock County Sheriff’s Office, and the Idaho State Police for their efforts on this case.
This case was prosecuted by Assistant U.S. Attorney Blythe McLane.
3. Four Additional Fentanyl Dealers Pleaded Guilty; Awaiting Sentencing in July 2024
Additionally, this week in U.S. District Court, four more East Idaho defendants pleaded guilty to federal drug trafficking cases involving fentanyl.
- Teyawnna Marie Littlebull, 29, of Idaho Falls, pleaded guilty to possession with intent to distribute fentanyl. According to court records, on three occasions between February and May 2023, Littlebull sold over 200 pills containing fentanyl to another person as part of an investigation led by the Idaho State Police, Homeland Security Investigations, the Idaho Falls Police Department, and the Bonneville County Sheriff’s Office. Littlebull is scheduled to be sentenced on July 10, 2024, at the federal courthouse in Pocatello.
- William Brian Thomson, 37, of Menan, ID, pleaded guilty to possession with intent to distribute fentanyl. According to court records, in March 2023, Thomson was pulled over for a traffic violation that resulted in the search of his vehicle. During the search, Bonneville County Sheriff’s Office deputies found 2,000 pills containing fentanyl and a solid gray substance that also tested positive for fentanyl. Thomson is scheduled to be sentenced on July 31, 2024, at the federal courthouse in Pocatello.
- Christopher Bishop, 36, of Pocatello, pleaded guilty to possession with intent to distribute fentanyl. A search warrant was served on Bishop’s hotel room in Pocatello in July 2023. BADGES Task Force officers located approximately 1,000 pills containing fentanyl. Bishop is scheduled to be sentenced on July 10, 2024, at the federal courthouse in Pocatello.
- Jonely Emanuel Rivera-Doblado, 35, of Taylorsville, UT, pleaded guilty to possession with intent to distribute fentanyl. Rivera-Doblado was arrested by BADGES Task Force officers in Malad, ID. Officers found over 4,000 pills containing fentanyl in his possession. Rivera-Doblado is scheduled to be sentenced on July 10, 2024, at the federal courthouse in Pocatello.
These cases are being prosecuted by Assistant U.S. Attorneys Justin Paskett and Blythe McLane.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
###
U.S. Attorney Gorman recognizes National Crime Victims’ Rights Week with Seattle event and Victim Services AwardRead the Press Release
Seattle – This year the theme of National Crime Victims’ Rights Week is “How Would You Help: Options, Services, and Hope for Crime Survivors.” U.S. Attorney Tessa Gorman joined a panel at Seattle City Hall to discuss the work of our Victim Witness Unit to assist those who are impacted by federal crimes.
“Whether it is making sure a victim of sexual assault is supported while they confront their assailant in court, or ensuring a victim of a financial crime has the opportunity to seek restitution, our victim witness staff put people first,” said U.S. Attorney Gorman. “They are on the front lines of law enforcement, helping victims pick-up the pieces and move forward after devastating events. It is difficult work, and I salute those who are devoted to helping others, this week, and every week.”
U.S. Attorney Gorman was joined by King County Prosecutor Leesa Manion, the Supervisor of the Seattle City Attorney’s Office Domestic
Violence Unit Lorna Staten-Sylvester, Washington State Senate Deputy Majority Leader Manka Dhingra, and Sexual Violence Law Center Director Riddhi Mukhopadhyay.
The panelists discussed how victim services and advocacy have evolved over the last several years. U.S. Attorney Gorman highlighted efforts to get restitution for victims of crimes through our Financial Litigation Unit. Additionally, U.S. Attorney Gorman noted how our office collaborates with community-based victim support groups, the King County Prosecuting Attorney’s Office, and the City Attorney’s Office through organizations such as the anti-human trafficking group WashACT.
This year, for the first time, the U.S. Attorney’s Office is making Awards of Excellence to law enforcement partners who have made great contributions to our work and our district. The Victim Witness 2024 Excellence Award is being presented to National Park Service Special Agent Susannah (Sanny) Lustig. Special Agent Lustig is credited with “revolutionizing how the National Park Service responds to victims.” In fact, Special Agent Lustig has an additional role with the National Park Service as the Victim Assistance Program Manager. She is a Child Forensic interviewer and assists other law enforcement agencies in this role. The U.S. Attorney’s Office Victim Witness Unit noted that Agent Lustig does a top-notch job of supporting victims and trains others in the National Park Service on best practices for assisting victims. The award cites two federal cases where Agent Lustig was especially effective in victim support: U.S. v. Turrey and U.S. v. Chapman.
The award for Lustig and for other law enforcement officers will be presented next month.
Troy Woman Pleads Guilty to Yearslong Fraud to Obtain BenefitsRead the Press Release
BANGOR, Maine: A Troy woman pleaded guilty in U.S. District Court in Bangor to Social Security fraud, health care fraud, and theft of public money.
According to court records, from about October 2013 to February 2020, Christie Mitchell, 49, lied to the Social Security Administration (SSA) about her husband’s presence in her household and his income to fraudulently appear eligible for Supplemental Security Income (SSI) payments. Mitchell also concealed her husband’s presence and income from the Maine Department of Health and Human Services (ME/DHHS) from about October 2013 to December 2019 during which time she received MaineCare benefits and Supplemental Nutrition Assistance Program (SNAP) benefits.
In multiple benefit eligibility reviews, Mitchell falsely represented to the SSA and ME/DHHS that she and her husband lived separately. She failed to disclose her husband’s presence and income despite knowing that she was required to and that it would affect her eligibility to receive benefits.
Mitchell faces up to five years in prison and a maximum fine of $250,000 followed by up to three years of supervised release on each of the Social Security fraud and health card fraud charges. She faces up to 10 years and a maximum fine of $250,000 followed by up to three years of supervised release on the theft of public money charge. The Court may also order Mitchell to pay
restitution to SSA for the Social Security fraud charge and must order her to pay restitution to ME/DHHS for the health care fraud and theft of public money charges.
SSA’s Office of the Inspector General and ME/DHHS’s Fraud Investigation and Recovery Unit investigated the case.
###
Texas man sentenced to more than 3 years in prison for providing faulty military partsRead the Press Release
COLUMBUS, Ohio – A Texas was sentenced in U.S. District Court here today to 37 months in prison for crimes related to providing faulty parts to the U.S. military.
Philip R. Huddleston, 59, of Ft. Worth, supplied the United States military with unapproved and substituted parts as a Department of Defense (DoD) contractor.
Since 2013, Huddleston was a civilian employed as a quality assurance specialist at the Defense Contract Management Agency. Since 2018, Huddleston also co-owned WM Industries, a DoD contractor in Beaumont, Texas, who sold and supplied a variety of military parts to the DoD.
Huddleston co-owned the DoD parts business with Gregory Gotreaux, 56, of Beaumont, Texas, who is also convicted in this scheme. Gotreaux was sentenced in November 2023 to 21 months in prison.
According to court documents, Huddleston and Gotreaux conspired to supply the United States with unapproved and substituted parts on 41 orders totaling at least $704,000.
Specifically, from November 2019 through September 2021, Huddleston and Gotreaux provided nonconforming parts used in various U.S. military defense and weapons systems. The defendants were paid by the Defense Finance and Accounting Service (DFAS) located in Columbus.
The two men pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property.
The defendants have agreed to pay $706,000 in restitution, which includes approximately $2,100 for testing costs to the DoD.
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the U.S. Department of Defense (DoD) Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “Supplying nonconforming parts to the DoD compromises military systems and potentially endangers the lives of U.S. service members. We will continue to partner with the Defense Logistics Agency, Internal Revenue Service Criminal Investigation, and Department of Justice to ensure that DoD contractors provide approved material and quality products to the U.S. military.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. Deputy Criminal Chief Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
# # #
Texas Man Admits Selling 1.4 Kilos of Methamphetamine to the DEARead the Press Release
ST. LOUIS – A man from Texas on Friday admitted selling 1.4 kilograms of methamphetamine to an undercover Drug Enforcement Administration agent, and giving the agent another kilogram of cocaine to sell.
On August 16, 2022, Marco Chavira met with the agent in El Paso. Chavira believed the agent was a driver who would transport the drugs to St. Louis and Chicago. Chavira sold 1.4 kilograms of methamphetamine to the agent and “fronted” the agent a kilogram of cocaine, meaning he expected to be paid later for the cocaine.
Chavira, 35, of El Paso, pleaded guilty in U.S. District Court in St. Louis to one count of possession with intent to distribute methamphetamine. Chavira’s sentencing is set for August 9. The charge carries a mandatory minimum prison sentence of five years and a maximum of 40 years. He could also face a fine of up to $5 million.
The Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Stephen Casey is prosecuting the case.
Stilwell Resident Sentenced to 35 Years for Multiple Counts of Aggravated Sexual AbuseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Daniel Wayne Bayless, age 27, of Stilwell, Oklahoma, was sentenced to 420 months for each of four counts of Aggravated Sexual Abuse in Indian Country. The terms of imprisonment will be served concurrently. Bayless will also be required to register as a sex offender.
The charges arose from investigations by the Adair County Sheriff’s Office and the Federal Bureau of Investigation.
On July 18, 2023, Bayless was found guilty of the charges by a federal jury. During the trial, the United States presented evidence that in 2020 Bayless sexually assaulted a minor victim under the age of 12 on multiple occasions. The Government also presented evidence Bayless victimized another child ten years prior. The crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Bayless will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Nicole Paladino and Morgan Muzljakovich represented the United States.
Standish Man Sentenced to 3+ Years for Attempted Transfer of Obscene Material to a MinorRead the Press Release
PORTLAND, Maine: A Standish man was sentenced today in U.S. District Court in Portland for attempting to transfer obscene material to a minor.
U.S. District Judge Nancy Torresen sentenced John Wilson, 36, to 40 months in prison to be followed by three years of supervised release. Wilson pleaded guilty on January 30, 2023.
According to court records, in March 2022, the Cumberland County Sheriff’s Office received reports that an individual later identified as Wilson had engaged in inappropriate conversations with at least two minor children using the internet and social media. In June 2022, Wilson engaged in sexually explicit online chats with members of a watchdog group posing as underage girls. During one sexually explicit chat, Wilson sent photographs of his penis and live-streamed a video of himself masturbating to someone he believed to be an 11-year-old girl.
Homeland Security Investigations and the Cumberland County Sheriff’s Office investigated the case.
Online enticement is increasing: The National Center for Missing & Exploited Children (NCMEC) reported an alarming increase in online enticement reports between 2020 and 2022, with reports more than doubling. “Online enticement” involves an individual communicating with someone believed to be a child via the internet with the intent to commit a sexual offense or abduction. This type of victimization takes place across every platform, including social media, messaging apps, gaming platforms, etc. Learn more about online enticement, including red flags and risk factors, at https://www.missingkids.org/theissues/onlineenticement. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
###
Springfield, Illinois Man Sentenced to 35 Years in Federal Prison for Multiple Crimes Against ChildrenRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, James Simons, 32, of the 2000 block of South 5th Street in Springfield, Illinois, was sentenced to 35 years in the Bureau of Prisons, to be followed by a lifetime of supervised release on April 23, 2024.
Simons, a registered sex offender, pleaded guilty on December 20, 2023, to the charges of sexual exploitation of a child, distribution of child pornography, receipt of child pornography, attempted enticement of a minor, use of interstate facilities to attempt to transmit information about a minor, attempted transfer of obscene material to a minor, and penalties for registered sex offenders.
At the sentencing hearing in front of U.S. District Judge Collen R. Lawless, the government established that the defendant persuaded children to produce sexual images of themselves and send them to him for his sexual gratification. The Court further found that between August 13, 2020, and August 28, 2020, Simons communicated with an individual online he believed to be fifteen years old. Despite knowing the individual’s age, Simons discussed engaging in sexual activity with the minor, asked for the minor’s address, and sent child pornography to the child. On August 28, 2020, after confirming that the minor was alone, he asked for the child’s address and drove to the residence expecting to engage in sexual conduct; he was then arrested.
“This sentence sends a strong message to every perpetrator that the U. S. Attorney’s Office for the Central District of Illinois and its law enforcement partners prioritize the protection of children and will use every resource at our disposal to ensure that the internet is not used by predators as their hunting ground.” said Assistant United States Attorney Tanner K. Jacobs.
“The FBI prioritizes investigations that protect children,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “This substantial sentence resulted from the dedicated efforts of our agents and law enforcement partners who work around the clock to stop perpetrators who harm our children.”
Simons was indicted in September 2020 and has remained in the custody of the U.S. Marshals since his arrest in August 2020.
The Federal Bureau of Investigation, Springfield Field Office with assistance from the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police investigated the case. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case against Simons was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Carolina Construction Company and Its Owner Settle Matter Alleging Receipt of Improper CARES Act LoansRead the Press Release
NEWARK, N.J. – A construction company based in South Carolina and its owner entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking two Paycheck Protection Program (PPP) loans and an Economic Injury Disaster Loan (EIDL) to which the company was not entitled, U.S. Attorney Philip Sellinger announced today.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. The act also authorized EIDL non-forgivable loans to small businesses impacted by the COVID-19.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
From June 20, 2020, to Nov. 21, 2021, Dennis Corp., a construction company owned by Daniel R. Dennis III, applied for and received two PPP loans, each for approximately $512,900, and a loan pursuant to the EIDL program, for $500,000. In applying for the loans, Dennis denied having a been convicted of a felony involving fraud within five years of the submitting the loan applications. In fact, in February 2017, Dennis pleaded guilty in U.S. District Court for the Northern District of West Virginia to the felony charge of conspiring to impede the IRS. As a result of Dennis’s false certification on the PPP and EIDL applications, Dennis Corp. received more than $1.5 million in loans to which it was not entitled.
Dennis Corp. and Dennis fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Dennis Corp. and Dennis will pay a total of $2.5 million plus interest. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $250,180 as his share.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. Forsyth v. Dennis Corp. et al., 23-20792 (D.N.J.).
denniscorp.settlement.pdfSeminole Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Douglas Vaughn Switch, Jr., age 47, of Seminole, Oklahoma, was sentenced to a term in prison for 168 months for one count of Second Degree Murder in Indian Country.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, and the Seminole Nation Lighthorse Police Department.
On September 25, 2023, Switch pleaded guilty to the charge. According to investigators, on the evening of October 23, 2022, Switch fired a single round from a .380, killing the victim instantly. Law enforcement officers responding to a 911 call discovered Switch pressing the .380 pistol to his own chin and sitting beside the body of the deceased on the front porch of a Seminole residence. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee. Switch will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Erin Cornell represented the United States.
San Gabriel Valley-Based Nursing Home Chain and Executives to Pay over $7 Million to Settle COVID-Related False Claims AllegationsRead the Press Release
LOS ANGELES – The United States and the State of California have reached a $7,084,000 civil settlement with Monrovia-based ReNew Health Group LLC, ReNew Health Consulting Services LLC, and two corporate executives for knowingly submitting false Medicare Part A claims for nursing home residents.
During the COVID-19 pandemic, to conserve hospital beds, the Centers for Medicare and Medicaid Services waived the requirement that a person must have had a hospital stay of at least three days (signaling an acute illness or injury) before reimbursing for skilled care in a nursing home.
The United States and the State of California alleged that the defendants knowingly misused this waiver by routinely submitting claims for nursing home residents when they did not have COVID-19 or any other acute illness or injury, but merely had been near other people who had COVID-19. Under the settlement, the defendants will pay $6,841,727 to the United States and $242,273 to the State of California, plus interest.
“False claims are anathema to the Medicare system, especially during a public health crisis,” said United States Attorney Martin Estrada of the Central District of California. “This settlement agreement highlights my office’s determination to ensure our nation’s health care programs help those who actually need them.”
“The Department of Justice is committed to protecting the integrity of taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who sought to defraud such programs during the COVID-19 pandemic, including those who knowingly misused emergency waivers for personal gain.”
This investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government to redress false claims for government funds and to receive a share of any recovery. The settlement agreement in this case provides for the whistleblower, Bay Area Whistleblower Partners, to receive $1,204,280, plus interest, as its share of the settlement. The case is captioned United States and State of California ex rel. Bay Area Whistleblower Partners v. ReNew Health Group LLC et al., No. 2:20-cv-09472 (C.D. Cal.).
Assistant United States Attorney Karen Y. Paik of the Civil Division’s Civil Fraud Section and Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section are handling this matter with assistance from the Department of Health and Human Services’ Office of Inspector General and the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse.
The claims settled by the United States and the State of California are allegations only, and there was no determination of liability.
San Gabriel Valley Woman Pleads Guilty to Counterfeit Postage Fraud that Caused More Than $150 Million in Losses to U.S. Postal ServiceRead the Press Release
LOS ANGELES – A San Gabriel Valley woman pleaded guilty today to defrauding the United States Postal Service (USPS) out of more than $150 million by using counterfeit postage to ship tens of millions of parcels.
Lijuan “Angela” Chen, 51, of Walnut, pleaded guilty to one count of conspiracy to defraud the United States and one count of use of counterfeit postage. Chen has been in federal custody since her arrest in May 2023.
“This defendant participated in a fraud scheme that caused massive losses to our nation’s postal service,” said United States Attorney Martin Estrada. “My office will continue to focus on holding fraudsters accountable and bringing justice to victims everywhere.”
According to her plea agreement, from at least November 2019 to May 2023, Chen and her co-defendant, Chuanhua “Hugh” Hu, 51, owned and operated a package shipping business located in the City of Industry. This company provided shipping services, including the shipping of packages via U.S. Mail, for China-based logistics businesses.
To avoid the cost of postage, Hu began creating false and counterfeit postage to ship packages by printing duplicate and counterfeit Netstamps – stamps that may be purchased online from third-party vendors and printed onto adhesive paper.
In November 2019, knowing that law enforcement was investigating his use of counterfeit postage, Hu fled the United States and moved to China. After fleeing to China, Hu developed ways to make counterfeit postage and avoid detection, such as a computer program for fabricating counterfeit postage shipping labels. Chen remained in the United States and managed the warehouses that she and Hu used to ship mail bearing counterfeit postage.
Starting in 2020, Chen and Hu began affixing counterfeit postage to mail they presented to USPS for delivery. Chen and Hu received parcels from the China-based vendors and others, applied shipping labels showing postage purportedly paid and then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation. The shipping labels were fraudulent and frequently included, among other red flags, “intelligent barcode data” recycled from previously mailed packages, according to court documents. Intelligent barcode data is used in some postage shipping labels to evidence the payment of required postage for the shipped item.
For example, on October 25, 2022, Chen and Hu caused to be transported to USPS a delivery of approximately 4,779 packages to be shipped via U.S. Mail. This delivery included multiple packages bearing counterfeit USPS Priority Mail postage meter stamps.
From January 2020 to May 2023, Chen and Hu knowingly mailed and caused to be mailed more than 34 million parcels containing counterfeit postage shipping labels, which caused more than $150 million in losses to USPS.
As part of her plea agreement, Chen has agreed to forfeit funds that law enforcement seized from her bank accounts, insurance policies, and real estate in Walnut, Chino, Chino Hills, South El Monte, Diamond Bar, and West Covina.
“The Postal Service and the Postal Inspection Service will continue to implement expanded measures to preserve the level of security Postal Service customers expect and deserve,” said Inspector in Charge Carroll Harris, Los Angeles Division of the Postal Inspection Service. “Engaging in counterfeit postage fraud causes monetary losses to customers and the Postal Service alike. Fraudsters beware, the Postal Inspection Service will continue to exhaust all its efforts to disrupt your scheme, find you, and bring you to justice.”
“Ms. Chen has admitted today that she conspired with Mr. Hu to defraud the United States Government willfully and knowingly,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI will work tirelessly with our partners to protect taxpayer interests in the postal service and other government agencies.”
United States District Judge Josephine L. Staton scheduled an August 2 sentencing hearing, at which time Chen will face a statutory maximum sentence of five years in federal prison for each count.
Hu, who is believed to be a fugitive residing in China, is charged with one count of conspiracy to defraud the United States, three counts of passing and possessing counterfeit obligations of the United States, and one count of forging and counterfeiting postage stamps.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The United States Postal Inspection Service and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys James C. Hughes and Richard E. Robinson of the Major Frauds Section are prosecuting this case.
Rocky Mount Man Sentenced for Illegal Firearm Possession After High-Speed Chase with Child and Puppy in VehicleRead the Press Release
ELIZABETH CITY, N.C. – A Rocky Mount man was sentenced to 96 months in federal prison for possessing a short-barreled rifle that was not marked with a serial number. On September 26, 2023, Chi-Ali Bunn pled guilty to the charge.
“This defendant fled police in a high-speed chase exceeding 111 miles per hour with guns, drugs, and a kid in the car,” said U.S. Attorney Michael Easley. “A short-barreled rifle and high-capacity drum magazine have no place around a child, especially in a car traveling at speeds over a hundred miles an hour. We will keep up our partnership with local law enforcement to get illegal guns out of dangerous hands like Bunn’s.”
“We appreciate the collaboration and partnerships with the U.S. Attorney’s Office and dedicated law enforcement,” said Nash County Sheriff Keith Stone. “Dedicated law enforcement and prosecutors make safe communities.”
According to court documents and other information presented in court, Bunn, 29, approached a Nash County Sheriff’s Office license check station in January 2023. Bunn, a felon, then turned around to avoid the station and deputies pursued. When a deputy activated his blue lights, Bunn fled, reaching speeds of up to 111 miles per hour. During the pursuit, Bunn ran multiple stop signs, traveled on the wrong side of the road, weaved in and out of traffic, and narrowly avoided colliding with other motorists, including a law enforcement vehicle. The pursuit continued into Zebulon where deputies with the Wake County Sheriff’s Office successfully deployed stop sticks, which flattened two tires of the suspect’s vehicle. Unknown to law enforcement at the time, Bunn’s young child and a small puppy were in the car during the chase. After the car was stopped, deputies searched the vehicle and found a loaded 9mm handgun capable of accepting a large capacity magazine; a .223 caliber rifle with a barrel length of 7.5 inches; a loaded drum magazine; a pill bottle containing eight Oxycodone pills; a cut straw containing cocaine residue; and a digital scale.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Nash and Wake County Sheriff’s Offices, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00127-BO-RJ.
Registered Sex Offender Pleads Guilty to 14 Charges for Producing, Transporting and Distributing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A West Gardiner man pleaded guilty today in U.S. District Court in Bangor to 14 charges relating to the production, transportation and distribution of child sexual abuse material, as well as failing to register as a sex offender.
According to court records, on August 29, 2022, Maine State Police executed a search warrant in West Gardiner on the person of Jon A. Hall, 30. In the search, they seized an iPhone belonging to Hall, and child sexual abuse material was recovered from that phone. Some of the images and video files depicted Hall sexually abusing a young child while earlier living in another state. The phone also included messages with a person in Maine while Hall was out of state. In many of those messages, Hall sent child sexual abuse material to the user in Maine.
On September 11, 2022, Hall was arrested for a sex offender registry violation. At the time, he was in possession of another phone, which also contained images of victims under 12 that Hall had downloaded from online storage, and images Hall had solicited and received directly from a 12‑year-old child using the internet.
Hall was required to register as a sex offender following a conviction for possessing sexually explicit material depicting a child under 12. Although Hall was aware of his requirement to notify the registry of changes in residence, he failed to update his registry information after he moved back to Maine from out of state in August 20222.
Hall faces:
- Transportation of child pornography charge (2 counts): Minimum of 15 and maximum of 40 years in prison and a maximum fine of $250,00, followed by up to three years of supervised release.
- Receipt of child pornography (1 count): Minimum of 15 and maximum of 40 years in prison and a maximum fine of $250,000, followed by five years to life of supervised release.
- Possession of child pornography (2 counts): Minimum of 10 and maximum of 20 years in prison and a maximum fine of $250,000, followed by up to three years of supervised release.
- Distribution of child pornography (8 counts): Minimum of 15 and maximum of 40 years in prison and a maximum fine of $250,000, followed by five years to life of supervised release.
- Failure to register as a sex offender (1 count): Up to 10 years in prison and a maximum fine of $250,000, followed by five years to life of supervised release.
A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
###
Registered Sex Offender Arrested and Charged with Possession of Child PornographyRead the Press Release
BOSTON – A Boston man, who is a Level 3 sex offender, has been arrested and charged with possession of child pornography.
Bryan Horgan, 58, was charged with possession of child pornography. Horgan made his initial appearance in federal court in Boston yesterday following his arrest and agreed to voluntary detention.
According to the charging documents, Horgan was identified as the owner of a Microsoft account uploading child pornography. During a search of Horgan’s residence, it is alleged that one of his electronic devices contained several video files of child pornography depicting children as young as infants. It is further alleged that another device contained filenames with words and phrases indicative of child pornography.
Horgan was previously convicted in the Suffolk Superior Court of rape of a child, assault to rape a child, indecent assault and battery on a child, disseminating obscene material to a minor, and possession of child pornography.
The charge of possession of child pornography as a person with a prior conviction under Mass. state law relating to sexual abuse of a minor provides for a sentence of at least 10 years and up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorney Jessica L. Soto of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Readout of Disruptive Technology Protection Network Summit with Japan and the Republic of KoreaRead the Press Release
Yesterday, the Departments of Justice and Commerce launched the Disruptive Technology Protection Network with Japan and the Republic of Korea (ROK), hosting the first high-level trilateral summit in Washington, D.C. The creation of this network follows an August 2023 Camp David summit between the leaders of the three countries, during which they committed to expanding collaboration on technology protection measures and building connections between representatives of the U.S. Disruptive Technology Strike Force and Japan and ROK counterparts. The Disruptive Technology Protection Network expands information-sharing and the exchange of best practices across the three countries’ enforcement agencies.
“Keeping sensitive technology out of the wrong hands is a global problem and demands a global response,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Our partnerships with like-minded nations are critical to our ability to succeed, and we are proud to join forces with Japan and the Republic of Korea in forming the Disruptive Technology Protection Network.”
The meeting was hosted by Assistant Attorney General Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security, the two co-leads of the Disruptive Technology Strike Force. The Strike Force, established in February 2023, is an interagency law enforcement effort aimed at preventing critical technologies from being acquired by authoritarian regimes and hostile nation-states.
Assistant Attorney General Olsen and Assistant Secretary Axelrod were joined by Hyeon-Wook Kim, Secretary to the President of the ROK for Economic Security; Soonjeong Kwon, Deputy Minister of Justice, Head of the Prosecution Service Bureau (ROK); Woohyuk Choi, Director General for the Bureau of Trade Controls Policy at the Ministry of Trade, Industry, and Energy (MOTIE) (ROK); IGARI Katsuro, Director General of the Trade Control Department at Japan’s Ministry of Economy, Trade and Industry (METI); and TSUTSUI Hiroki, Director General of Japan’s Foreign Affairs and Intelligence Department. Deputy Attorney General Lisa Monaco delivered opening remarks for the event, highlighting the successes of the Strike Force and the importance of international partnerships.
“Preventing sensitive technologies from being acquired by authoritarian regimes and hostile nation-states is not only a critical endeavor, but a shared one,” said Assistant Secretary Axelrod. “Today’s Summit formally launches our work with our partners in South Korea and Japan, as we join together to prevent our countries’ most sensitive items from getting into the world’s most dangerous hands.”
The United States, Japan and the ROK enjoy strong trade relationships and law enforcement cooperation. Recognizing that violations of export controls or other laws prohibiting the illicit transfer of technology threaten their respective national security interests, the delegations agreed that combating illicit technology transfer is a critical national and economic security imperative and agreed to further enhance cooperation and information sharing through the signing of two memoranda of intent between the three countries.
Over the course of the day, delegates shared updates on their respective technology protection efforts, presented case studies about recent enforcement actions, and provided overviews of their key enforcement authorities. The summit ended with a comprehensive discussion of practical next steps to execute the newly-signed memoranda and concurrence on the network’s near- and medium-term goals.
The delegations included representatives from the following agencies:
The United States
- The Department of Justice
- The Department of Commerce
- The Department of Homeland Security’s Homeland Security Investigations
- The Department of Defense’s Defense Criminal Investigative Service
Japan
- The National Police Agency
- The Ministry of Economy, Trade, and Industry (METI)
- The Ministry of Finance, Customs and Tariff Bureau
The Republic of Korea
- The Office of the President
- The Ministry of Trade, Industry, and Energy (MOTIE)
- The Ministry of Justice
- The Ministry of Foreign Affairs
- The Customs Service
In August 2023, President Biden welcomed Japanese Prime Minister Kishida and ROK President Yoon to a historic trilateral summit at Camp David, the first-ever stand-alone summit of leaders from the United States, Japan and ROK, and the first summit of foreign leaders at Camp David during the Biden-Harris Administration. The leaders jointly inaugurated a new era of trilateral partnership and reaffirmed that cooperation between the United States, Japan and ROK advances the security and prosperity of our people, the Indo-Pacific region and the world. Among other priorities, the leaders committed to building connections between the Disruptive Technology Strike Force representatives and their Japan and ROK counterparts.
Additional information about the Camp David Summit is available here.