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22 May 2024
Felon Accused of Drug and Gun Crimes Indicted by a Grand JuryRead the Press Release
Salt Lake City, Utah – A felon and foreign national living in Utah was indicted by a federal grand jury in Salt Lake City today for federal drug and gun crimes.
According to court documents, Rafael Maldonado-Solario, 46, of Salt Lake City, was under investigation by agents for allegedly distributing fentanyl in the Salt Lake Valley. On May 9, 2024, agents seized 2,290 grams of blue pills stamped M30 at Maldonado-Solario’s apartment in Salt Lake City. The pills were field tested and confirmed to contain fentanyl. Law enforcement also seized a Taurus CCP .380 handgun inside Maldonado’s apartment. As a previously convicted felon, Maldonado-Solario is restricted from possessing a firearm.
Maldonado-Solario is charged with possession of a firearm as a previously convicted felon, possession of fentanyl with intent to distribute, and illegal reentry of a previously removed alien. His initial court appearance on the indictment is scheduled for May 23, 2024, at 10:30 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by Homeland Security Investigations (HSI), Utah State Bureau of Investigations (SBI), Drug Enforcement Administration (DEA), and U.S. Immigration and Customs Enforcement/Enforcement and Removal Operations (ICE ERO).
Assistant United States Attorney Cameron P. Warner of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal, State, and Local Agencies Honored with Midwest HIDTA AwardsRead the Press Release
SIOUX FALLS – Alison J. Ramsdell, U.S. Attorney for the District of South Dakota, has announced multiple local recipients of High Intensity Drug Trafficking Area (HIDTA) awards. The presentation took place in Sioux Falls on April 24, 2024. The awards were presented for the extraordinary work done on the Three Sisters and Grand Ram Operations, which involved the dismantling of drug trafficking activity from Mexico to South Dakota and other states.
The Midwest HIDTA Outstanding Prosecution Award was given to those involved with Operation Three Sisters, an investigation that began when Sioux Falls Police Department (SFPD) Narcotics Detectives received information about a couple in Sioux Falls who was selling large amounts of methamphetamine. Members of the Sioux Falls Area Drug Task Force conducted an investigation into those two individuals, which resulted in the seizure of approximately two pounds of methamphetamine from their home. Investigators also located information at the home that led to the source of the illicit drugs. That information was utilized by the Drug Enforcement Administration (DEA) and South Dakota Division of Criminal Investigation (DCI) agents to conduct an investigation into an individual who was arranging to have methamphetamine brought to Sioux Falls from Mexico through California. Agents were then able to work up to two individuals in Mexico who were working to source narcotics to Sioux Falls and other areas. As a result of the investigation, large quantities of methamphetamine, cocaine, and fentanyl were removed from the distribution stream. In all, the investigation revealed that more than 250 pounds of methamphetamine had been distributed in the community.
The investigation and subsequent prosecutions demonstrate the impact that significant information sharing can have in dismantling large drug distribution conspiracies. The key to reaching the source in Mexico was intelligence sharing and a willingness to work together by local, state, and federal agencies investigating different members of the conspiracy. In total, twenty defendants were federally prosecuted and convicted as a result of this operation, including Salvador Madrigal, Jr., who was sentenced to 33 years and four months in federal prison on August 7, 2023.
Recipients of the Outstanding Prosecution Award include agents from the SFPD, DCI, DEA, ATF, IRS, and SDHP, as well as Assistant U.S. Attorneys Mark Hodges and Elizabeth Ebert, Legal Administrative Specialist Lindsay Nicola (USAO), and Litigation Support Manager Jeff Peters (USAO).
The Midwest HIDTA Outstanding Investigative Collaboration Award was given to those involved with Operation Grand Ram. During this operation, investigators infiltrated the distribution network of the drug trafficking organization (DTO). Investigators discovered that defendants were bringing methamphetamine from California and Minneapolis to South Dakota for further distribution. They also learned that at least one defendant was obtaining methamphetamine from Sioux Falls and bringing it to Wisconsin to sell. Ultimately, investigators learned that proceeds from the drugs sold in South Dakota were being sent back to individuals in Mexico. Throughout the operation, investigators seized multiple pounds of methamphetamine, thousands of fentanyl pills, and thousands of dollars. Operation Grand Ram resulted in the federal prosecution of 16 individuals for distribution of controlled substances, money laundering, and firearm violations in the District of South Dakota.
Recipients of the Outstanding Investigative Collaboration Award include agents from HSI, MCSO, DEA, IRS, and SFPD, as well as Assistant U.S. Attorney Mark Hodges.
The HIDTA program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia. The DEA plays a very active role and has more than 1,500 authorized special agent positions dedicated to the program. At the local level, the HIDTAs are directed and guided by Executive Boards composed of an equal number of regional Federal and non-Federal (state, local, and tribal) law enforcement leaders.
South Dakota counties involved in the Midwest HIDTA include Beadle, Brookings, Brown, Clay, Codington, Custer, Lawrence, Lincoln, Meade, Minnehaha, Pennington, Union, and Yankton.
Federal jury convicts Richmond felon for illegally possessing a firearmRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man yesterday for being a felon in possession of a firearm.
According to court records and evidence presented at trial, on Jan. 20, 2024, Richmond Police officers were patrolling the Fairfield Court community when they observed a car leaving Fairfield Court at a high rate of speed and running stop signs. When the officers attempted to catch the vehicle, the driver, Rashad Laroy Ebron, 32, suddenly stopped his car, exited the vehicle, and tossed something onto the floorboard. Ebron then closed the door and locked the car.
Officers observed a 9mm handgun in plain view on the floorboard of the vehicle. Ebron claimed that he could not unlock the vehicle because the keys were locked inside the car and that he had no wallet or identification. The officers were able to identify Ebron, however, and confirmed that he was a convicted felon. The officers arrested Ebron, located the car keys, unlocked the vehicle, and recovered the firearm.
Ebron was convicted of grand larceny in 2011, evading police in 2013, and robbery and use of a firearm in the commission of a felony in 2016. As a previously convicted felon, Ebron cannot legally possess a firearm or ammunition.
Ebron faces up to 15 years in prison when sentenced on Sept. 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman and Special Assistant U.S. Attorney Katherine Groover, an Assistant Commonwealth’s Attorney with the Richmond Commonwealth’s Attorney Office, are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-47.
Dulce Man Charged with Multiple Counts of Sexual Abuse of ChildrenRead the Press Release
ALBUQUERQUE – A Dulce man was charged by indictment with multiple counts of sexual abuse against two minors under the age of 12.
Herbert Ben, Jr., 54, an enrolled member of Jicarilla Apache, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.
According to the indictment, between July 2018 and October 2020, Ben engaged in sexual acts with two children who had not attained the age of 12 years.
If convicted of the current charges, Ben faces not less than 30 years and up to life in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department and Bloomfield Police Department. Assistant United States Attorneys Caitlin L. Dillon and Timothy Trembley are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 10 Years in Prison for Firing 14 Rounds at MPD OfficerRead the Press Release
WASHINGTON – Saeve Edward Evans, 38, of Washington D.C., was sentenced today to 10 years in prison for firing 14 rounds at a Metropolitan Police Department officer. The officer was not injured. The shooting, in the early morning of August 1, 2023, occurred at 1711 Benning Road, a three-story apartment building in Northeast Washington D.C.
The sentence was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). In addition to the 10-year prison term, U.S. District Judge Reggie B. Walton ordered Evans to serve five years of supervised release.
Evans pleaded guilty in U.S. District Court on January 29, 2024, to assault on a police officer while armed, and unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term of over one year.
According to court documents, on Tuesday, August 1, 2023, Evans was walking a dog at about 5:25 a.m. around the interior courtyard of the apartment building at 1711 Benning Road, Northeast. An unknown individual walked in front of the building and, unprovoked, Evans pulled out a gun, pointed the gun towards the sky, and fired three times in the air. The unknown individual ran away.
Three minutes later, at 5:28 a.m., an MPD officer arrived at the scene to investigate the gunfire. The officer, who was wearing a full police uniform and driving a marked MPD cruiser, stood on Gales Place, Northeast, and spotted Evans within the courtyard. Evans yelled at the officer to “come and get it” and then aimed at the officer, fired the gun three times, then moved towards the apartment entrance. Moving up a ramp, Evans pointed his gun at the officer again and fired nine more rounds. The officer returned fire before taking cover behind his police cruiser. Inside the building, Evans climbed the stairs to the third-floor landing and fired two more shots at the officer through large windows. In total, Evans fired 14 rounds at the officer.
Additional MPD officers from the Fifth District responded to assist and entered the building on Benning Road. Officers located Evans on the third-floor landing of the apartment building. Before officers placed Evans under arrest, Evans said, “Ain’t no gun, I took it off me.” Officers recovered the firearm on the third-floor landing. DNA evidence further linked the firearm -- a black Springfield XD 9x19 pistol with an empty 16 round magazine -- to Evans. DNA evidence linked Evans to the gun, which was stolen on March 9, 2023, from the state of Texas.
This case was investigated by the Metropolitan Police Department.
The case was prosecuted by Assistant U.S. Attorneys Justin Song and former Assistant U.S. Attorney Colin Cloherty.
Distribution of child pornography sends Missoula man to prison for more than 17 yearsRead the Press Release
MISSOULA — A Missoula man who admitted to trading videos and images of child pornography with others on social media sites and who possessed thousands of images of child sexual abuse material was sentenced on Tuesday to 17 years and six months in prison, to be followed by 15 years of supervised release, U.S. Attorney Jesse Laslovich said today.
Nicholas Geoffrey Combs, 29, pleaded guilty in December 2023 to distribution of child pornography.
U.S. District Judge Donald W. Molloy presided. The court also ordered $36,000 restitution.
“There is no more important duty of our office than to protect kids by holding accountable those who seek to victimize them. Our office has prosecuted many people who pose grave dangers to children, but Combs’ conduct is among the worst I’ve seen during my time as Montana’s U.S. Attorney. His possession of thousands of images of graphic sexual and physical violence perpetrated against children, including infants, was grotesque and all parents should be relieved he will spend the next 30 years of his life either in federal prison or under federal supervision,” U.S. Attorney Laslovich said.
In court documents, the government alleged that in June 2022, Snapchat reported to the National Center for Missing and Exploited Children (NCMEC) that a Snapchat user had uploaded two videos of minors engaged in sexually explicit content to its service. A law enforcement investigation determined that the Snapchat account belonged to Combs and that he had sent two videos of minors engaged in sexually explicit content to another Snapchat user. Combs admitted to trading videos and images of minors engaged in sexually explicit content with other users on social media sites, including Reddit and Snapchat. Combs also admitted he was sexually attracted to minors, had solicited and received sexually explicit pictures from children with whom he interacted online and sometimes pretended to be a child to solicit the images. Law enforcement seized Combs’ electronic devices and determined that they contained thousands of images and videos of graphic sexual and physical violence against children, including babies.
Assistant U.S. Attorney Brian C. Lowney prosecuted the case. The Missoula Police Department and Internet Crimes Against Children Task Force conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Defendants Charged with Distributing Fentanyl that Resulted in Overdose Death of Carlsbad WomanRead the Press Release
NEWS RELEASE SUMMARY – May 22, 2024
SAN DIEGO – A federal grand jury returned an indictment today charging Bryan Kim Bullard and Cameron William Fulston with distributing the fentanyl that resulted in the death of a 25-year-old Carlsbad woman.
According to court records, on September 10, 2023, at approximately 12:23 a.m., San Diego Police Department officers were dispatched for a suspected drug overdose to an apartment complex in Mission Valley. One minute prior, a 911 call had been placed from the victim’s phone, in which a male individual reported “overdose, overdose” before ending the call while the dispatcher was trying to explain life saving measures.
Upon arrival, officers located the victim, identified in court records as D.G., lying unconscious on the bathroom floor. A San Diego Police officer pulled D.G. from the bathroom, determined she was not breathing, and began CPR until medical personnel arrived. D.G. was transported to a local hospital where she died five days later, on September 15th.
Within the bathroom where the overdose took place, officers observed a piece of foil with a brown liquid and a chunk of a white substance. Officers also located blue pills on the kitchen counter with “M30” stamped on them. The foil and pills both tested positive for the presence of fentanyl. Federal agents followed the evidence related to the sale of the fatal dose of fentanyl to the defendants.
“Behind every fatal overdose is a dealer who put someone’s life at risk,” said U.S. Attorney Tara McGrath. “We are holding them accountable to stop the cycle of devastation they perpetuate.”
“DEA in San Diego has made investigating overdose deaths a priority,” said DEA Acting Special Agent in Charge Anthony Chrysanthis. “We are committed to bringing drug dealers who poison our communities to justice.”
This case is being prosecuted by Assistant U.S. Attorneys Jill S. Streja and Adam Gordon.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the San Diego Police Department, the La Mesa Police Department, National Guard Counterdrug Task Force and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
DEFENDANTS Case Number 24-cr-00201-BAS
Bryan Kim Bullard Age: 43 San Diego, CA
Cameron William Fulston Age: 29 Carlsbad, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl Resulting in Death
U.S.C. §§ 841(a)(1) and (b)(1)(C), 846
Maximum penalty: Life in prison
Mandatory minimum: Twenty years in prison
Distribution of Fentanyl Resulting in Death
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Maximum penalty: Life in prison
Mandatory minimum: Twenty years in prison
Distribution of Fentanyl
21 U.S.C. § 841(a)(1)
Maximum penalty: Twenty years in prison
Possession With Intent to Distribute Fentanyl
21 U.S.C. § 841(a)(1)
Maximum penalty: Forty years in prison
Mandatory minimum: Five years in prison
Possession With Intent to Distribute Methamphetamine
21 U.S.C. § 841(a)(1)
Maximum penalty: Forty years in prison
Mandatory minimum: Five years in prison
INVESTIGATING AGENCIES
Drug Enforcement Administration
San Diego County District Attorney’s Office
Homeland Security Investigations
San Diego Police Department
La Mesa Police Department
California Department of Health Care Services
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Convicted Felon Indicted Following Large Salt Lake City Drug BustRead the Press Release
Salt Lake City, Utah – A Utah convicted felon was indicted by a federal grand jury in Salt Lake City today for multiple federal crimes after Salt Lake City Police detectives allegedly seized approximately 45 pounds of methamphetamine, 15,000 fentanyl pills, and two firearms from his home and from a storage unit associated with him.
According to court documents, on May 9, 2024, Anthony Owen Pawley, 65, of Murray, Utah, was stopped for a traffic violation by detectives assigned to the Salt Lake City Police Department’s Violent Criminal Apprehension Team. During the traffic stop, a canine officer alerted to narcotics. While searching the vehicle, detectives found five pounds of suspected methamphetamine and several hundred blue pressed pills suspected to contain fentanyl. During the investigation, detectives also found approximately 40 pounds of field tested and confirmed methamphetamine and approximately 15,000 fentanyl pills, along with two firearms at his residence and at a storage unit in Murray associated with Pawley.
SLCPDPawley is charged with possession of methamphetamine with intent to distribute, possession of fentanyl with the intent to distribute, and felon in possession of a firearm. His initial court appearance on the indictment is scheduled for May 24, 2024, at 10:30 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah and the Salt Lake City Police Department made the announcement.
The case is being investigated by the Salt Lake City Police Department and the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Cameron P. Warner of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Salt Lake City Police Department’s Violent Criminal Apprehension Team (VCAT) is a specialized unit within the department tasked with combating violent crime by identifying and apprehending violent criminals and fugitives. Operating under the SLCPD’s Special Operations Division, VCAT collaborates closely with the Investigations Division, patrol divisions, and Data and Research divisions to pinpoint and enforce targeted measures in hot spot areas and regions experiencing a surge in violent crime. Established to address emerging violent crime trends and the activities of repeat violent offenders in Salt Lake City, VCAT coordinates efforts with detectives, the Salt Lake Information Center (SLIC), and the SLCPD’s Crime Intelligence and Analysis Unit (CIAU) to identify and apprehend violent offenders.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chicago-Area Rap Promoter Pleads Guilty to Role in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – A Chicago-area man pleaded guilty today in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.
Antonio M. Strong, 31, of Lansing, Ill., pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 19, 2024.
Strong was indicted by a federal grand jury in October 2020 along with five co-defendants, including rap artist Herbert Wright, Joseph Williams and Demario Sorrells.
According to court documents, between at least March 2016 and September 2020, Strong conspired with Wright, Sorrells, Williams and others to defraud numerous businesses and individuals by obtaining, possessing, using and transferring unauthorized and stolen payment card account information to obtain valuable goods and services, including: private jet and yacht charters; luxury car rentals; luxury hotel and vacation rental accommodations; private chef and security guard services; designer puppies; limousine and chauffer services; and commercial airline flights, among other things. During this time, Strong presented himself as a music promoter based in the Chicago area.
The stolen payment card account information included the actual cardholders’ names, addresses, payment card account numbers, security codes and account expiration dates. Because Strong and his alleged co-conspirators provided authentic payment card information, the defrauded businesses and individuals successfully processed their transactions and provided the goods and services. The actual cardholders discovered these transactions on their accounts and disputed the charges, which were reversed by the payment card companies. As a result, the transactions were charged back to the businesses and individuals from whom Strong and his co-conspirators defrauded with the unauthorized transactions.
To conceal his identity and perpetrate the fraud, Strong used various fictitious names and aliases; provided fake driver’s licenses in the names of both fictitious and real people; used email accounts in the names of fictitious and real businesses; and falsely stated that he was from “Universal Music,” “Sony Music,” “Epic Music,” and other real and fictitious companies. Strong caused a total loss of $2,299,842, which he has agreed to repay.
In January 2024, Wright was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968, as well as a $5,500 fine after previously pleading guilty. Williams and Sorrells have also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 28, 2024 and Aug. 29, 2024, respectively. The remaining two defendants are pending trial.
The charges of wire fraud conspiracy and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chicago man pleads guilty to cyberstalking, sextortionRead the Press Release
COLUMBUS, Ohio – Omoruyi O. Uwadiae, 28, of Chicago, offered a guilty plea in U.S. District Court today to cyberstalking, sextortion and identity theft crimes. His scheme involved dozens of victims in multiple states, including Ohio, Colorado and Washington.
According to his plea documents, Uwadiae admitted to obtaining sexually explicit photographs and videos from potential victims and then using the content to threaten them. Uwadiae threatened to distribute the explicit material widely on the internet and specifically to victims’ friends, family members, employers and others.
The defendant demanded money from some victims. From others, he demanded they meet him, have sex with him, or make damaging admissions such as admissions that they were racist. On multiple occasions, Uwadiae carried through with his threats. He sent sexually explicit photographs and videos to the victims’ friends, family members (including at least one victim’s mother, at least one victim’s brother, and at least one victim’s sister), employers and acquaintances, and also posted sexually explicit photographs and videos widely on the internet.
Multiple victims had not publicly disclosed their sexual orientation, which Uwadiae’s actions disclosed, contrary to their wishes. The defendant also used victims’ identifications to create false accounts on social media and post personal information about the victims online.
Uwadiae targeted young gay men on Grindr and other online sites. He would obtain their sexually explicit photographs and videos consensually and then use them to extort. In some cases, he posted their nude images on Male General without their consent and then demanded money or other things of value to take down the images. Male General is a blog marketed to gay men containing, among other things, boards where users can post images and text.
For example, one victim was a student at The Ohio State University who communicated with Uwadiae on Grindr. Uwadiae ultimately demanded that the victim either pay him $200 or have sex with him. When the victim did not comply, Uwadiae created false social media accounts using true photos of the victim, stating, “this guy is gay, see pics for evidence.” The victim had not disclosed his sexual orientation to his family and had told Uwadiae he was concerned that his family would react negatively if they learned he was bisexual.
Uwadiae was charged in the Southern District of Ohio in April by a bill of information.
As part of his plea, Uwadiae pleaded guilty to 22 total counts. He pleaded guilty to eight counts of cyberstalking (punishable by up to five years in prison), seven counts of making interstate communications with the intent to extort (up to two years in prison) and seven counts of unlawfully using a means of identification (up to five years in prison).
Congress sets the maximum statutory sentences and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Senior Litigation Counsel Heather A. Hill are representing the United States in this case, which was investigated by the FBI and the Columbus Division of Police.
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Carrollton Juvenile Overdose Defendant Who Ignored Deaths Sentenced to 20 Years in PrisonRead the Press Release
The first defendant charged in the Carrollton juvenile fentanyl overdose scandal – which claimed the lives of at least four North Texas teenagers – was sentenced today to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Luis Eduardo Navarrete, 22, was charged via criminal complaint in February 2023 and indicted the following month. He pleaded guilty in November 2023 to conspiracy to possess with intent to distribute a Schedule II controlled substance and distribution of a controlled substance to a person under 21 years of age and was sentenced Wednesday by U.S. District Judge Ed Kinkeade.
“Even as children overdosed and died around him, this defendant continued to distribute poisonous pills to juvenile dealers to sell in grade schools,” said U.S. Attorney Leigha Simonton. “Brushing off the pain of his young victims’ family and friends, he delivered fentanyl into the hands of children, extinguishing lives before they’d even really begun. The callousness he displayed is truly chilling. Although we can never bring these kids back, we hope today’s verdict is a balm to their families’ unbearable suffering.”
“Today’s a very important day for DEA Dallas and all of those who were involved in this investigation. Defendant Navarrete was one of the first individuals identified in what later became a complex ring of various fentanyl traffickers selling poison in our neighborhoods,” said DEA Dallas Special Agent in Charge Eduardo A.. Chavez. “While we cannot bring back the lives lost and undo so much tragedy amongst the affected families, we are proud that justice has been served and remained committed to fighting illicit fentanyl trafficking in North Texas.”
“Today’s sentencing of twenty years, I feel, is appropriate for the seriousness of Navarrete’s crimes. Navarrete and others were responsible for causing enormous heartache and sorrow to many families. It is appropriate to show that the Carrollton Police Department and the DOJ remain serious about protecting our citizens, and especially our youth, from drug dealers who think they can prey on our children by pushing poison on them. I am grateful for our partnership with the US Attorney’s Office for the Northern District of Texas and DEA-Dallas; without their help, this would not have been possible.”
According to court documents, Mr. Navarrete and several co-conspirators trafficked fentanyl pills to a network of juvenile drug dealers, who then sold the pills – stamped M-30 to resemble oxycodone – to students at R.L. Turner High School, Dewitt Perry Middle School, and Dan Long Middle School.
At Wednesday’s sentencing hearing, a DEA task force officer testified that Mr. Navarrete began trafficking fentanyl in August 2022. When he was placed on a GPS ankle monitor following a domestic altercation, he relied on two drug runners, co-defendants Rafael Soliz Jr. and Robert Gaitan, to pick up counterfeit M-30 pills from his sources and deliver them to his residence in Carrollton.
According to evidence presented at the hearing, Mr. Navarrete continued to supply fentanyl pills to children even after he was told they were causing overdoses.
On Jan. 26, 2023, a juvenile dealer informed Mr. Navarrete that one of his counterfeit M30 pills had caused a 14-year-old middle school student, identified in court documents by the initials J.P., to “pass away.” The dealer even included a photograph of first responders at the victim’s residence attempting, unsuccessfully, to resuscitate him. Despite being told that a minor had died from pills that he was distributing, Navarrete continued to distribute the pills to adult and minor customers.
Less than a week later, on Feb. 1, 2023, a different juvenile dealer informed Mr. Navarrete that a 17-year-old high school student who had taken one of his counterfeit M-30 pills “couldn’t wake up.”
“Od bro… wtf happening,” the dealer wrote. “Don’t tell me it was u that sold em like 18 30s … that’s another youngin dead bro.”
After being told of the second overdose death, Mr. Navarrete continued to traffic fentanyl, unabated, until his arrest two days later.
At Thursday’s sentencing hearing, the DEA task force officer testified that the fentanyl Mr. Navarrete sold originated from the Sinaloa Cartel in Mexico. Over the course of the investigation, he said, officers and agents made roughly 40 adult and juvenile arrests and seized more than 1.2 million fentanyl pills off the street. The conspiracy resulted in at least 14 juvenile overdoses, four of them fatal.
Mr. Navarrete is one of 11 defendants charged federally in connection with the case. Mr. Navarrete’s main supplier, Jason Xavier Villanueva, was sentenced to 15 years in federal prison, and his drug runners, Mr. Soliz and Mr. Gaitan, were sentenced to 15 to and five years respectively.
At Mr. Navarrete’s sentencing hearing, the mother of one of the late juvenile victims testified:
“He was the soul of our home,” she said of her son in Spanish. “I would like for everyone who’s present to know that these people who sell fentanyl, they destroy families…. On behalf of all those children who have passed away due to fentanyl, this has to stop.”
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.California Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – WALTER ALVAREZ TIRADO (“TIRADO”), age 34, a resident of Chula Vista, California, was sentenced on May 21, 2024, to 144 months imprisonment, 5 years supervised release, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. TIRADO previously pleaded guilty to possession with intent to distribute 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
According to court documents, on October 6, 2021, TIRADO traveled from Kentucky and bound for New Orleans to deliver fifty pounds of methamphetamine. Law enforcement conducted a traffic stop of TIRADO’s vehicle in Pearl River, La. Following the stop, officers searched TIRADO’s luggage and discovered fifty pounds of methamphetamine.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Financial Crimes Unit.
Armed Fentanyl Trafficker Sentenced to Federal PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Sean James Edwards, age 34, was sentenced after pleading guilty to one count of Possession with Intent to Distribute 40 Grams of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 84 months imprisonment to be followed by 4 years of supervised release.
According to court documents and information presented at the sentencing hearing, early on the morning of November 3, 2022, Spokane Sheriff’s Deputies responded to the area of 515 S. Farr Road for a report of a shooting. The reporting party said he heard a gunshot and saw a bullet hole in his window.
When deputies arrived, they observed a black Kia Rio crashed into a parked vehicle. Deputies could see a rifle and a loaded magazine on the passenger seat, as well as a spent silver casing on the floorboard of the Kia Rio. A neighbor told deputies that following the crash, he looked at his security camera and saw two people, a man, later identified as Edwards, and a woman, running away from the crash. Deputies had the Kia Rio towed to the police impound lot.
On November 4, investigators executed a search warrant on the Kia Rio. In addition to the rifle, investigators located a loaded pistol, several loaded magazines, dozens of rounds of ammunition, Edwards’s Montana State ID, two iPhones, methamphetamine, more than 1,400 fentanyl pills divided into several small bags, and a backpack with drug paraphernalia.
“This case demonstrates the dangerous nexus of drug trafficking and violent crime. A resident called law enforcement because someone had fired a shot into his home. Mr. Edwards ran from the scene, leaving behind fentanyl he planned to distribute and weapons he was not legally allowed to possess,” stated U.S. Attorney Waldref. “I’m grateful for the excellent work of investigators and prosecutors to identify Mr. Edwards and hold him accountable. By removing sources of illicit fentanyl from the streets, we can make our communities safer and stronger.”
“Every one of the fentanyl pills discovered in the vehicle had a potential to destroy lives, and it is a relief law enforcement was able to find them first and remove them from the community,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “Our Safe Streets Task Force members and prosecutors are committed to fighting back against the illegal drugs and unlawfully possessed firearms that bring violence and fear into our neighborhoods.”
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.
This case was investigated by the FBI Spokane Regional Safe Streets Task Force. It was prosecuted by Assistant United States Attorney Patrick J. Cashman.
Arizona Man Sentenced for Role in Scheme to Steal Money from U.S. Bank AccountsRead the Press Release
An Arizona man was sentenced yesterday in federal court in San Diego to 51 months in prison for conspiracy to commit access device fraud.
According to court documents, Luis Ramirez, 43, of Mesa, Arizona, helped to obtain “leads” for fraudsters who sought to steal money from the bank accounts of unknowing U.S. victims. The “leads” consisted of financial information for the prospective victims that included bank account numbers. Ramirez and his coconspirators trafficked “leads” that originated from payday loan applications of consumers across the United States. Ramirez was also sentenced yesterday to 120 months in prison on a separate case brought by the U.S. Attorney’s Office for the Southern District of California. In sentencing Ramirez, Judge Cynthia Bashant of the U.S. District Court for the Southern District of California determined that 24 months of his sentence should run consecutively, so that Ramirez’s total sentence is 144 months in prison.
“Those who knowingly supply fraudsters with personal and financial information about potential victims cause enormous harm to the American public,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who sell such information for illicit purposes.”
“The Postal Inspection Service is dedicated to protecting American consumers,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group. “In this case, small transactions were used to conceal the scheme, but that wasn’t enough to fool postal inspectors or keep us from adding it all together to put a halt to this fraud.”
Related cases against other scheme participants have previously been filed in Los Angeles and in Las Vegas. In May 2023, a grand jury in Los Angeles returned an indictment charging 14 defendants with RICO conspiracy and other charges in the U.S. District Court for the Central District of California. The indictment alleges that the defendants and associates debited consumers’ bank accounts without authorization and used shell entities and “micro debits” to conceal the activity from banks. “Micro debits” serve to conceal fraud by grouping unauthorized charges with a large number of low-value, straw transactions to lower the fraudster’s chargeback rate. Another scheme participant, Harold Sobel, pleaded guilty to bank fraud conspiracy in federal court in Las Vegas. In December 2022, Sobel was sentenced to 42 months in prison.
USPIS investigated the case.
Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Justice Department’s Consumer Protection Branch prosecuted the case, with assistance from the U.S. Attorneys’ Offices for the Central and Southern Districts of California.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
Arizona Man Sentenced for Brutal Assault on Former GirlfriendRead the Press Release
ALBUQUERQUE – A federal judge handed down a 20-month prison sentence to an Arizona man who pleaded guilty to an alcohol-fueled assault on his then-girlfriend that left her in need of extensive medical treatment.
There is no parole in the federal system.
According to publicly available court records, on November 3, 2022, Norbert Michael Tsosie, 31, an enrolled member of the Navajo Nation from Lukachukai, Arizona, assaulted his then girlfriend, Jane Doe, in Dulce, New Mexico. The couple had gotten into an argument earlier in the afternoon while shopping in Farmington. Although it seemed that they had resolved the argument, Tsosie suddenly and without warning became violent in the vehicle Jane Doe was driving. He punched the windshield and dashboard, kicked the window, then turned his attack on Jane Doe. He punched her face, kicked her with his boots, and choked her until she was nearly unconscious. Though she was injured, Jane Doe and Tsosie returned to Doe’s parents’ house.
The next day, Tsosie claimed not to remember what happened. Jane Doe told Tsosie that she wanted to end their relationship, then drove Tsosie around to try to find him a place to stay before she went to the emergency room at San Juan Regional Medical Center. Jane Doe suffered a concussion, cervical strain, ankle sprain, and facial contusion and required additional medical care in the weeks following due to the ongoing pain and injuries from the attack.
Upon his release from prison, Tsosie will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Jicarilla Apache Police Department. Assistant U.S. Attorney Kimberly Bell is prosecuting the case.
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Additional Defendant Sentenced for Federal Conspiracy Against Rights and Freedom of Access to Clinic Entrances (FACE) Act Convictions Related to 2020 D.C. Clinic Invasion and BlockadeRead the Press Release
Heather Idoni was sentenced today to 24 months in prison following her convictions for federal conspiracy against rights and Freedom of Access to Clinic Entrances (FACE) Act offenses following three separate trials in connection with the blockade of a Washington, D.C., area reproductive health clinic on Oct. 22, 2020.
Previously, Lauren Handy was sentenced to 57 months in prison, John Hinshaw was sentenced to 21 months in prison, William Goodman was sentenced to 27 months in prison, Jonathan Darnel was sentenced to 34 months in prison, Herb Geraghty was sentenced to 27 months in prison, Jean Marshall was sentenced to 24 months in prison and Joan Bell was sentenced to 27 months in prison.
“Federal law is clear: using force, threatening to use force or physically obstructing access to reproductive health care is unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People have a First Amendment right to communicate their views but they do not have the right to use chains, locks and obstruction to prevent access to reproductive health care facilities. The Justice Department will continue to protect both patients seeking reproductive health services and providers of those services.”
“Using force and intimidation to deprive others of their civil rights is a crime, and rightly so,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This office will continue to defend and protect the right of every citizen to access health care.”
These defendants, and one, were convicted following three separate trials in 2023. Paulette Harlow is scheduled to be sentenced later this month. Idoni is scheduled to be sentenced in a separate matter on July 30, following conspiracy and FACE Act convictions in an unrelated clinic blockade from Tennessee. A tenth defendant, Jay Smith, was sentenced to prison after pleading guilty to a felony FACE Act offense on March 1, 2023.
Evidence presented at trial established that the defendants used force and physical obstruction to execute a clinic blockade that was organized by the group’s leaders, Handy and Darnel. The defendants planned and organized the clinic invasion using social media, text messages and telephone calls, and several co-conspirators, including Hinshaw, Goodman, Geraghty, Marshall, Bell, Harlow, Idoni and Smith traveled from northeast and midwestern states to participate in the blockade. Prior to the clinic incursion, the defendants met with other co-conspirators to plan their crime, which included making a fake patient appointment to ensure the group’s entry into the clinic, using chains and locks to barricade the facility and passively resisting their anticipated arrests to prolong the blockade.
The clinic invasion was advertised on social media as a “historic” event that was live-streamed on Facebook. The defendants’ forced entry into the clinic at the outset of the invasion resulted in injury to a clinic nurse. During the blockade, one patient had to climb through a receptionist window to access the clinic, while another laid in the hallway outside of the clinic in physical distress, unable to gain access to the clinic.
The FBI Washington Field Office investigated the case.
Prosecutors from the Civil Rights Division and U.S. Attorney’s Office for the District of Columbia prosecuted the case.
21 May 2024
Wisconsin Man Indicted for Kidnapping Greenville ChildRead the Press Release
GREENVILLE, S.C. — A federal grand jury in Greenville returned a three-count indictment against Tyler Michael Berlick, 35, of Muskego, Wisconsin, for traveling across state lines with intent to engage in illicit sexual conduct with a minor, transporting a minor across state lines with the intent to engage in sexual conduct, and production of child sexual abuse materials.*
The indictment alleges that in February of this year, Berlick traveled from Wisconsin to South Carolina with the intent to engage in sexual activity with a minor and then traveled with the minor to Florida with the intent to engage in illicit sexual conduct. Berlick met the child in an online game and believed she was 13 years old. Berlick is also charged with one count of production of child sexual abuse materials.
Berlick faces a maximum penalty of life in prison. He is scheduled to be arraigned on May 23 at 10 a.m. before Magistrate Judge Kevin McDonald.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the FBI Columbia Field Office, the Greenville County Sheriff’s Office, the FBI Miami Field Office, the Lantana Police Department (Florida), the Monroe County Sheriff’s Office (Florida) and the Waukesha County Sheriff’s Department (Wisconsin). Assistant U.S. Attorney Winston Marosek is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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* The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child.
Wewoka Resident Sentenced to 108 Months in Prison for Involuntary Manslaughter, Assault, and Federal Firearm ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Kyle Pinson, age 37, of Wewoka, Oklahoma, was sentenced to 51 months in prison for one count of Involuntary Manslaughter, and 51 months in prison for one count of Felon in Possession of a Firearm, to be served concurrently. Pinson was also sentenced to 57 months in prison for one count of Assault resulting in Serious Bodily Injury, to be served consecutive to the other terms of imprisonment.
The charges arose from investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, and the Seminole Nation Lighthorse Police Department.
On July 25, 2023, Pinson pleaded guilty to the charges. According to investigators, on January 16, 2022, Pinson physically assaulted an individual, causing significant facial injuries that required surgery. Three days later, on January 19, 2022, Pinson, a convicted felon, discharged a firearm, killing a second individual. The crimes occurred in Seminole County, within the boundaries of the Seminole Nation of Oklahoma Reservation, 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 hearings. Pinson 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.
West Chester Man Pleads Guilty to Abusive Sexual Contact on an AircraftRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Edward Decker, 46, of West Chester, PA, pleaded guilty today before U.S. District Judge Nitza I. Quinones Alejandro to one count of abusive sexual contact on an aircraft.
According to court documents, Decker, on or about July 29, 2022, while on board an American Airlines flight from San Diego, California to Philadelphia, intentionally touched the thigh and breast of a minor while she was sleeping. The victim woke up from her sleep on this overnight flight to find Decker, who was seated in her row, with his hands and face under her clothes and on her body.
“The facts of this case are incredibly disturbing — a parent’s nightmare, really,” said U.S. Attorney Romero. “Not only should people feel safe putting their kids on a plane to get from Point A to Point B, everyone should feel free to close their eyes mid-flight without fearing a seatmate’s intentions. We and the FBI will continue to crack down on these crimes aboard aircraft, to support and ensure justice for the victims.”
"This guilty plea demonstrates that those who commit sexual assault aboard aircrafts will be held responsible," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "While our office will continue to aggressively pursue offenders, we encourage everyone to be aware of their surroundings while in flight and to report incidents of abusive sexual contact to their flight crew and the FBI.”
Sentencing is set for September 23, 2024, at 11:00 a.m. and the defendant faces a maximum possible sentence of three years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Two Minneapolis-Based Business Consultants Charged in $1 Million Pandemic Aid Fraud SchemeRead the Press Release
MINNEAPOLIS – Two Minneapolis-based business consultants have been indicted for defrauding COVID-19 pandemic aid programs of more than $1 million while serving as business advisors to Hennepin County, announced U.S. Attorney Andrew M. Luger.
“During the COVID-19 pandemic, at a time when small businesses were suffering deep economic losses, local and federal government agencies stepped in to provide support. These defendants saw this as an opportunity to defraud the aid programs by submitting phony invoices and applications for benefits,” said U.S. Attorney Andrew Luger. “I commend the skilled investigators and prosecutors who work diligently to hold accountable those who defraud the aid programs designed to support our small business community.”
According to court documents, beginning in 2020, through the present, Tezzaree El-Amin Champion, 27, and Marcus Alexander Hamilton, 27, devised and carried out a fraud scheme to obtain funds from a variety of federal, state, local, and private COVID-19 relief programs. Through their company, Futuristic Management Group LLC, a Minnesota-based small business consulting firm, the defendants submitted fraudulent applications for PPP loans, pandemic relief, and other funds on behalf of their small business clients and their own entities.
As part of the scheme, Champion, who was the founder and chief executive officer of Futuristic Management, and Hamilton, who was the chief operating officer, caused the consulting firm to enter into contracts with Hennepin County under a COVID-19 relief program called “Elevate Business,” also known as “Elevate Hennepin.” Elevate Business is a small business assistance program designed to provide local small businesses with no-cost marketing and website assistance. Under the contracts, Hennepin County agreed to pay Futuristic Management to provide technical assistance services to client businesses that were located in Hennepin County at no cost to the clients. Instead of abiding by the terms of the contracts, Champion and Hamilton billed Hennepin County for work not actually performed, and for work for which Champion and Hamilton were being paid by their clients, when the contracts required that Futuristic Management’s work be provided at no cost.
As part of the scheme, Champion and Hamilton also submitted fraudulent PPP and EIDL loan applications and Hennepin County Small Business Relief grant applications on behalf of their clients and their own entities. When clients received the loans and grants, Champion and Hamilton transferred and misappropriated a portion of the funds for themselves.
Also as part of the scheme, Champion intimidated clients by showing them a firearm and telling them he always carried a firearm. On April 26, 2023, law enforcement executed a search warrant at Champion’s residence in Andover. Inside the home, agents found $126,000 in U.S. currency in a locked safe, and a Ruger LCR .357 revolver. Because Champion has a prior felony conviction, he is prohibited from possessing firearms or ammunition at any time.
In total, Champion and Hamilton’s fraud resulted in losses of more than $1 million in COVID-19 pandemic aid and involved more than 100 fraudulent invoices and grant and loan applications.
Champion and Hamilton were charged with three counts of mail fraud, three counts of wire fraud, one count of theft of government money, and one count of engaging in a monetary transaction in property derived from specified unlawful activity. Champion was also charged with one count of possessing a firearm as a felon. The defendants made their initial appearances earlier today in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by IRS-Criminal Investigations, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department’s Special Crimes Investigations Division.
Assistant U.S. Attorneys Matthew D. Forbes and Joseph H. Thompson are prosecuting the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Sentenced to Prison for Impersonating and Defrauding Comcast and Charter CustomersRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Estifany Herrera Cedano, 45, of Yonkers, NY, and Johnny Israel Ramos Castillo, 31, of the Dominican Republic, were sentenced to prison by United States District Judge Juan R. Sánchez for impersonating over 150 customers of Comcast and Charter as part of a fraudulent scheme to obtain iPhones and iPads through identity theft.
Herrera Cedano was sentenced to 81 months’ imprisonment followed by three years of supervised release on convictions for wire fraud and aggravated identity theft and ordered to pay restitution in the amount of $347,666.07 to Comcast and $245,697.76 to Charter. Ramos Castillo was sentenced to 54 months' imprisonment followed by three years of supervised release on convictions for wire fraud and aggravated identity theft and ordered to pay restitution in the amount of $50,327.19 to Comcast and $217,948.01 to Charter.
Between 2019 and 2020, Herrera Cedano and Ramos Castillo orchestrated a sophisticated operation, obtaining stolen identities and account information of Comcast and Charter customers from a source in the Dominican Republic. They entered Comcast Xfinity and Charter Spectrum retail stores across the country, presenting fabricated photo identifications bearing their photos but the customers' information. They used the customers' personal identifying information and accounts to sign up for mobile service in unsuspecting customers' names and obtain smartphones and related devices on credit. The customers would first learn about the fraudulent charges when they received their monthly bill long after the devices had left the stores and had been shipped overseas for resale.
Law enforcement identified over 560 mobile devices stolen through this multi-state scheme, amounting to actual losses of $593,363.83. The fraudulent transactions involving Herrera Cedano and Ramos Castillo were identified through store surveillance video, along with financial, phone, and sales transaction records. Comcast and Charter eliminated the charges against the individual accounts, ensuring that the victims suffering the financial loss were strictly the corporations.
"Identity theft and other financial frauds are serious crimes that can have a devastating and long-lasting impact on victims," said U.S. Attorney Romero. "Our office and law enforcement partners are committed to stopping fraud scams and punishing those responsible and protecting the financial well-being of the American public."
"A priority investigative focus of Homeland Security Investigations (HSI) is the identification and investigation of financial fraud," said Acting Special Agent in Charge of HSI Philadelphia Sara C. Bay. “Together with our partner agencies and the U.S. Attorney's Office for the Eastern District of Pennsylvania, we continue to have great success in dismantling these criminal organizations and safeguarding the financial safety of the American public."
The case was investigated by Homeland Security Investigations – Harrisburg/York. The case was prosecuted by Assistant United States Attorney Samuel S. Dalke.
Two Charged with Conspiring to Commit Murders for HireRead the Press Release
BOSTON – Two men have been charged with allegedly conspiring to murder a witness in a federal trial as well as rivals. One defendant also allegedly discussed the murder of federal prosecutors.
Elijah Melton, 26, of Middleborough, and Kareem Pires, 25, of Wareham, have been charged with one count each of conspiring to commit murder for hire. Pires was arrested this morning and will appear in federal court in Boston at 2 p.m. this afternoon. Melton is currently in federal custody and will appear at a later date.
In December 2023, Melton was arrested and charged in a two-count federal indictment of conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and the distribution of 400 grams or more of fentanyl. Melton was released by the Court on conditions. In February 2024, Melton was arrested for allegedly violating his pre-trial release conditions. Melton was ordered detained pending trial and has remained in federal custody since.
According to the charging documents, a cooperating witness told federal authorities that Melton had allegedly solicited him to murder a person (Target Witness) that Melton believed to be cooperating in Melton’s federal drug case. Melton allegedly told the cooperating witness that members of his gang had placed a “bounty” on the Target Witness and provided the cooperating witness with information about the Target Witness, including the city in which he resided, the car he drove, and details about distinctive jewelry he wore. Melton allegedly offered to arrange for a juvenile family member to deliver $75,000 to a family member of the cooperating witness. The cooperating witness informed federal authorities that he refused the money at that time.
Melton allegedly further asked the cooperating witness to murder two other individuals that were “beefing” with Melton’s crew (Target Rival #1 and Target Rival #2). Melton allegedly provided the cooperating witness with information to identify the Target Rivals and the Target Witness. Melton also allegedly told the cooperating witness that he wanted two federal prosecutors murdered, provided the cooperating witness with certain information about the prosecutors and indicated that he would provide the money to murder the prosecutors personally.According to the charging documents, Melton told the cooperating witness that Pires, who was not detained, could help identify the targets and locations where the targets might be found. It is alleged that Melton expected the cooperating witness to be released from prison soon thereafter and provided the cooperating witness with both a letter for Pires and the phone number for Melton’s juvenile family member. Federal authorities reviewed the letter Melton provided the cooperating witness, which allegedly included information, among other things, information concerning the plan to murder the Target Rivals. Prior to the cooperating witness’s release from custody, Melton allegedly provided him with a second letter to be delivered to Pires. Federal authorities reviewed the letter, which allegedly referenced the Target Rivals.
According to court documents, upon his release from custody in April 2024, the cooperating witness arranged to meet with Pires. They met in a public location, where the cooperating witness delivered the second letter to Pires, who allegedly agreed to assemble information, including pictures, about the Target Witness and the Target Rivals for the cooperating witness.
The charge of conspiracy to commit murder for hire provides for a sentence of up to 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian Kyes, U.S. Marshal for the District of Massachusetts; and Warden Michael Nessinger of the Donald W. Wyatt Detention Facility made the announcement today. Assistant U.S. Attorneys Anne Paruti and Mark Grady, Chief and Deputy Chief, respectively, of the Major Crimes Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tuskahoma Resident Pleads Guilty to Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Russell Richard Fincher, age 53, of Tuskahoma, Oklahoma, pleaded guilty pursuant to a written plea agreement to selling ammunition to a prohibited person.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
As part of the plea agreement, Fincher admitted during the plea hearing that on May 5, 2023, he knowingly sold 60 rounds of .40 caliber ammunition to an individual he had reason to believe was a felon. Fincher also admitted that between February 2021 and June 2023, he unlawfully engaged in the business of dealing in firearms without a license.
Federal law requires that people engaged in the business of dealing in firearms, defined as repeatedly devoting time and attention to purchasing and reselling guns for monetary gain, obtain Federal Firearms Licenses, or FFLs, and run background checks on potential buyers.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Joshua Satter represented the United States.
Three Members of Drug Enterprise Sentenced for Federal Drug CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that three Oklahoma residents, DONALD PAUL SPITTLER, age 42, of Holdenville, SUSAN MELODY SAXON, age 49, of Shawnee, and DANNA LAVON MCCARLEY, age 38, of Ardmore, were sentenced for federal drug charges. Spittler was sentenced to 360 months in prison for one count of Drug Conspiracy, Saxon was sentenced to 63 months in prison for one count of Possession with Intent to Distribute Methamphetamine, and McCarley was sentenced to 63 months in prison for one count of Drug Conspiracy.
The charges arose from investigations by the Drug Enforcement Administration, the United States Postal Inspection Service, the Oklahoma Bureau of Narcotics, and the District 22 Drug Task Force.
On January 19, 2023, Spittler and McCarley each pleaded guilty to one count of Drug Conspiracy. On February 7, 2023, Saxon pleaded guilty to one count of Possession with Intent to Distribute Methamphetamine.
According to investigators, Spittler, Saxon, and McCarley participated in a scheme to obtain and distribute methamphetamine in the Eastern District of Oklahoma. In January 2022, McCarley used a vehicle belonging to Spittler and Saxon to travel to El Centro, California. In El Centro, McCarley obtained a large quantity of methamphetamine, divided it into separate parcels, and sent the parcels priority overnight mail. The packages were addressed to residences in the Eastern District of Oklahoma. The U.S. Postal service flagged the parcels as suspicious, and a narcotics canine alerted on the packages. USPIS investigators obtained and executed a search warrant finding a package addressed to Spittler at a residence associated with Saxon contained nearly 3,000 grams of methamphetamine; a second parcel addressed to McCarley contained over 2,000 grams of methamphetamine. Law enforcement officers replaced the original parcels with dummy packages and completed the controlled deliveries. Agents executed federal search warrants on the residences which led to the discovery of additional quantities of methamphetamine, scales, and money.
“Methamphetamine continues to be one of the most dangerous and prevalent illicit drugs in Oklahoma, tearing families apart and ruins lives as it makes its way into our neighborhoods,” said DEA Dallas Special Agent in Charge, Eduardo A. Chávez, who leads operations in Oklahoma. “Defendants Spittler, Saxon, and McCarley are now learning the hard way that the strong law enforcement partnerships in Eastern Oklahoma will always see that justice prevails.”
“The USPIS seeks to rid the mail of illicit drug trafficking and the associated violence, preserve the integrity of the mail, and, most importantly, provide a safe environment for postal employees and Postal Service customers — the American public,” said Inspector in Charge Kai Pickens of the Fort Worth Division. “We are thankful for our partnerships with the DEA, OBN, District 22 Drug Task Force, and USAO. We will not stop pursuing those who seek to utilize the mail system for illicit drug trafficking. We will continue our long standing tradition of protecting the mail system and effectively enforcing the laws of this nation.”
“We cannot overstate the importance of these collaborative investigations,” said OBN Director Donnie Anderson. “Methamphetamine continues to be a leading cause of drug-related deaths in Oklahoma. My agency is committed to working along-side our state and federal partners to target, arrest, and prosecute those responsible for distributing meth onto the streets of Oklahoma.”
“I would like to start by first offering my gratitude to the dedicated state and federal law enforcement agencies that were involved in this investigation, and secondly I want to acknowledge the great work of our partner prosecutors in the Eastern District, specifically the service of AUSA Erin Cornell,” said Erik Johnson, District Attorney for District 22, representing Pontotoc, Seminole and Hughes Counties. “We are in a daily battle to keep dangerous drugs out of our communities, and collaborative work on cases like this is becoming the new normal and making our efforts much more successful.”
“I commend the DEA, OBN, District 22 Drug Task Force, and USPIS for their collaboration and excellent investigative work in dismantling this drug trafficking organization,” said United States Attorney Christopher J. Wilson. “It remains our collective mission to curtail the flow of illegal drugs into our communities and to hold drug distributors accountable.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The Defendants 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 sentences of incarceration.
Assistant United States Attorney Erin Cornell represented the United States.
Texas Petrochemical Company Pleads Guilty to Clean Air Act Violation and Fined More than $30 Million in Criminal Fines and Civil Penalties Related to Explosions at Its Facility in Port NechesRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced the filing of a felony criminal charge and related civil complaint and consent decree under the Clean Air Act (CAA) against TPC Group LLC, a Texas petrochemical company. TPC Group also entered a plea of guilty today to a one-count information charging the company with a violation of the Clean Air Act before U.S. Magistrate Judge Zack Hawthorn for the Eastern District of Texas.
The filings address explosions that caused injuries, evacuations and significant air pollution. The company has agreed to pay over $30 million in criminal fines and civil penalties and spend approximately $80 million to improve its risk management program and improve safety issues at TPC Group’s Port Neches and Houston facilities.
According to information provided in court, on Nov. 27, 2019, two explosions at TPC Group’s Port Neches facility prompted evacuations of thousands of residents from the City of Port Neches and surrounding areas, released more than 11 million pounds of extremely hazardous substances and caused more than $130 million in offsite property damage and other impacts to human health and the environment. Four employees and one contractor suffered injuries including concussions, burns, perforated eardrums, tinnitus and cracked teeth.
“Port Neches residents will always remember the day before Thanksgiving 2019,” said Acting Associate Attorney General Benjamin C. Mizer. “That day, powerful explosions at the TPC Group’s facility caused evacuations, injuries, air pollution, and more than $130 million in damage. This entirely preventable accident was the result of the company’s failure to take the necessary precautions to control a hazardous chemical even though it was well aware of the serious risks. Today’s criminal plea and settlement send a clear message that safety measures are not optional and that we will hold violators accountable.”
“When a disaster happens like at Port Neches, public safety is paramount,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “TPC Group’s knowing failure to comply with the chemical accident prevention provisions of the Clean Air Act at its Port Neches and Houston facilities placed its workers, neighbors and the environment in danger. Community members have expressed concerns about potential explosions happening at TPC Group’s Houston facility, like what happened in 2019 at Port Neches. Importantly, today’s criminal plea and civil settlement includes safety requirements that will help prevent future incidents.”
“TPC recklessly risked the lives of thousands of Port Neches residents and illegally released millions of gallons of extremely hazardous substances into the environment,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s criminal and civil settlements hold TPC accountable for endangering the Port Neches community and require the company to invest approximately $80 million to improve safety at TPC Group facilities. These settlements highlight the strong partnership between EPA’s criminal and civil enforcement programs and demonstrate EPA’s emphasis on a more strategic and collaborative approach to enforcement and compliance assurance.”
“Protecting our environment and the safety of the citizens of Southeast Texas will always be a priority of our office,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “The community of Port Neches and their neighbors will never forget the horror of being awakened in the middle of the night – hours before Thanksgiving – by the frightening sounds of the TPC plant explosion at their doorsteps. TPC violated the law when it ignored its own safety protocols, which led to a disastrous explosion with catastrophic consequences that directly endangered the lives of TPC workers and the surrounding community. Today’s guilty plea shows that businesses that choose to place profits over safeguards and legal compliance will face serious consequences.”
“The people of Port Neches had their lives disrupted because of a major disaster in their neighborhood. TPC must uphold the accident-prevention standards in the Clean Air Act to ensure families and workers are not harmed,” said EPA Regional Administrator Dr. Earthea Nance. “And when companies do not comply with these important safety regulations, EPA and our federal partners will continue to hold them accountable, in this case by requiring TPC to pay $80 million to reduce health risks at its facility and $12.1 million in civil penalties so communities like Port Neches will be protected from harm in the future.”
TPC Group’s facility produced the hazardous chemical Butadiene, which is used in the production of tires, latexes and plastics. Butadiene can form a “popcorn polymer,” which can grow at an accelerating rate and cause catastrophic events, including explosions and fires. The company was aware that this polymer was forming in some of its production lines, and the risks it posed, but failed to take necessary measures to prevent the explosion.
An initial explosion occurred at the facility’s South Unit. A secondary explosion followed, and a series of fires erupted at the facility which blew contaminants into the air. As a result of the explosions, mandatory evacuations were ordered for residents within a four-mile radius of the facility, voluntary orders to shelter in place were issued for residents in the surrounding area and local schools were closed for multiple days to allow buildings to be cleaned, repaired and inspected.
The company has agreed to pay $18 million in criminal fines. The plea agreement also includes a one-year term of probation and publishing of a public apology. The $12.1 million in civil penalty payments will be made through bankruptcy proceedings. TPC Group will also spend approximately $80 million to improve its risk management program and improve safety issues at both facilities.
TPC Group has been criminally charged and pleaded guilty to knowingly failing to implement its own written operating procedures, including monthly flushing of production lines, that would have prevented the explosion. Clean Air Act regulations require planning to prevent accidental releases of hazardous chemicals and makes implementation of those plans mandatory.
The civil complaint includes 27 claims and counts – some of which included numerous violations – against TPC Group for violations of the CAA at its Port Neches facility, including numerous violations that led to the 2019 explosions. The Port Neches facility is now used for storage purposes only. The civil complaint also includes 26 claims and counts against TPC Group for CAA violations at the company’s Houston facility, including failing to promptly take corrective actions for hundreds of pieces of process equipment and failing to address similar conditions that led to the Port Neches explosions.
Under the proposed civil consent decree, TPC Group is required to update safety information for equipment at its Port Neches and Houston facilities to ensure that they are designed, maintained, inspected and operated in a safe manner. TPC Group must overhaul its process hazard analysis program to ensure prompt completion of all corrective actions and remedial measures to mitigate hazards at the facilities. TPC Group will also update operating procedures and training for its workers and contractors. TPC Group has agreed to audit and revise their emergency shutdown procedures and implement key performance indicators.
The company will now provide incident investigations to EPA and release incident report information to the public on a publicly available website. The consent decree requires TPC Group to conduct an audit of the relief system design at the Houston facility to ensure the system can handle all appropriate scenarios.
TPC Group will also install and continually use air monitors at the fence line of each facility and in the neighboring communities. Data from the air monitors will be available on TPC Group’s website. TPC Group agreed to conduct an inherently safer technology review to identify safer technology alternatives that minimize or eliminate the potential for accidental chemical releases. TPC Group is required to host community meetings to inform the community about risks associated with its facilities, share evacuation routes and share information about how to properly shelter in place.
Under section 112(r) of the CAA, facilities like TPC Group’s in Port Neches and Houston must identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities that are commonly overburdened with pollution.
EPA investigated this matter and received extensive cooperation from the Occupational Safety and Health Administration (OSHA). On the date of the explosion, a Unified Command was established that included Jefferson County Judge Jeff Branick, the Jefferson County Office of Emergency Management, the EPA, the Texas Commission on Environmental Quality and TPC Group. If you know of an unsafe industrial situation or an environmental violation, report it here: echo.epa.gov/report-environmental-violations.
Attorneys from the Justice Department’s Environment and Natural Resources Division (ENRD), Environmental Enforcement Section are handling the civil case. Attorneys from ENRD’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of Texas are jointly prosecuting the criminal case.
Additional information about the explosion can be found on the Justice Department’s website: www.justice.gov/enrd/case/tpc-group-llc-investigation-port-neches-explosion.
The proposed consent decree was lodged in the U.S. District Court for the Eastern District of Texas and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment are also available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
Richmond man previously convicted on weapons charges sentenced for possessing a machinegunRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to two years in prison for possession of a machinegun.
According to court documents, on Sept. 9, 2022, a Hanover County deputy sheriff performed a traffic stop in a car in which Jarec Dominique Brown, 23, was a passenger. At the time, Brown possessed a backpack at his feet. The deputy lawfully searched the backpack and recovered a 9mm firearm equipped with a machinegun conversion device (MCD), rendering the firearm capable of fully automatic fire. Brown was also in possession of three ammunition magazines and 66 rounds of ammunition. Brown admitted to purchasing the MCD on the darknet.
Brown has three previous convictions for possession of a concealed weapon.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Colonel David R. Hines, Hanover County Sheriff’s Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorney Stephen W. Miller and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-141.
Rhode Island Man Sentenced for Role in Southeastern Massachusetts Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Rhode Island man was sentenced today for his involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island.
Alfredo Valdez, 45 of Providence, R.I. was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and three years of supervised release. In February 2024, Valdez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. Valdez was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy.
In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. Intercepted communications on numerous cellphones identified Valdez as a member of the DTO who conspired with Ortiz-Alcantara to regularly distribute multi-kilograms of fentanyl from a base of operations at a stash house in Fall River. During a search of the stash house in July 2022, Valdez was found inside the apartment along with more than 12 kilograms of fentanyl stored in various ceiling panels, blenders, a hydraulic press and baggies.
Valdez is the eighth defendant to plead guilty in the case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Pulaski County Man Sentenced for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Bronston, Ky., man, France Allen Helton, 42, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 250 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, on March 29, 2023, law enforcement conducted a traffic stop on a vehicle occupied by Helton and seized 55.9 grams of a methamphetamine mixture packaged in two separate baggies, along with $2,529 in cash. Helton admitted that he intended to distribute the methamphetamine to others. Helton has a prior conviction for trafficking in methamphetamine, from the Pulaski Circuit Court in 2019.
Under federal law, Helton must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office, and Sheriff Bobby Jones, Pulaski County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and Pulaski County Sheriff’s Office. Assistant U.S. Attorney Pearce Nesbitt prosecuted the case on behalf of the United States.
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Postal Service Employee Pleads Guilty to Stealing Suspected Drug Parcels from Tulare Post OfficeRead the Press Release
FRESNO, Calif. — Nathan Vaughn Southard, 34, of Visalia, pleaded guilty Monday to theft of mail by a postal service employee, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Southard was an employee at the Tulare Main Post Office. On Oct. 19, 2023, Southard stole a parcel from the post office because he believed it contained marijuana and intended to sell it for a profit. Southard admitted that over the past seven years he had stolen parcels worth approximately $50,000.
U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Deputy Special Agent-in-Charge Christopher Paige said, “Narcotics and theft offenses committed by Postal Service personnel are completely unacceptable. The special agents for the U.S. Postal Service Office of Inspector General are steadfast in their dedication to maintaining the integrity of the U.S. Postal Service. The USPS OIG values our working relationship with the U.S. Attorney’s Office and various law enforcement agencies in holding Postal Service personnel accountable for their actions when they violate a position of trust.”
Southard is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Southard faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Postal Service Office of Inspector General with assistance from the Drug Enforcement Administration and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
Pittsburgh Resident Sentenced to 24 Months in Prison for Computer FraudRead the Press Release
PITTSBURGH, Pa - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 24 months imprisonment and three years supervised release on his conviction of computer fraud, United States Attorney Eric G. Olshan announced today.
United States District Judge Cathy Bissoon imposed the sentence on Kevin N. Ukaegbu, age 31, of Pittsburgh, PA.
According to information presented to the court, on December 5, 2022, Ukaegbu, formerly a graduate nurse at Allegheny General Hospital, criminally used the hospital credentials of a Highmark resident physician and attempted to modify prescription medications for two patients, putting one of the patients at risk of serious bodily harm. In neither case was the medicine administered to the patients. Due to the seriousness of the crime, Judge Bissoon imposed the maximum sentence under the guideline range.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Homeland Security Investigations of the United States Department of Homeland Security, with the assistance of Highmark Health Police, for the investigation leading to the successful prosecution of Ukaegbu.
Pemiscot County Man Sentenced to 140 Months in Prison for Selling MethamphetamineRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a Pemiscot County, Missouri man who sold methamphetamine three times to undercover drug task force officers to 140 months in prison.
Davario D. Taylor, 34, of Caruthersville, pleaded guilty in U.S. District Court in Cape Girardeau in October to two counts of distribution of methamphetamine and one count of aiding and abetting the distribution of methamphetamine. He admitted selling a total of about 341 grams of meth to a Southeast Missouri Drug Task Force Officer working with a confidential informant. On March 10, 2023, he sold about three ounces of meth for $250 an ounce. On March 22, 2023, he sold another three ounces. Five days later, he sold six ounces for $1,500.
Taylor has two prior felony drug sale convictions and a prior felony conviction for unlawful possession of a firearm, a sentencing memo says.
The Southeast Missouri Drug Task Force and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.
Pain Doctors Plead Guilty in $45 Million Healthcare FraudRead the Press Release
Two pain management doctors who pantomimed injections on patients pleaded guilty today to healthcare fraud charges, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted in November 2023. The pair pleaded guilty Tuesday to one count each of conspiracy to commit healthcare fraud before U.S. Magistrate Judge Rebecca Rutherford.
According to court documents, the twin brothers admitted that they conspired to defraud Blue Cross Blue Shield, Cigna, and United Healthcare by submitting claims for corticosteroid injections that were never administered.
As part of the conspiracy, the Barrogas required patients to submit to monthly office visits. This allowed patients to continue receiving highly addictive Schedule II controlled substances – including hydrocodone, oxycodone, and morphine – while allowing the defendants to bill patients’ insurance companies for expensive services they never provided.
The Barrogas reported to insurance that they performed as many as 80 corticosteroid injections per patient per visit. In reality, the majority of these injections were never administered. In many instances, the doctor simply placed a needle on the patient’s body without actually piercing the skin to mimic giving an injection.
They defendants created fake medical records, which were often cut and pasted, or cloned, from patient to patient with little to no variation. They also instructed patients to include false statements pertaining to the injections and other treatments in the record.
In plea papers, the brothers admitted that they billed insurers at least $45 million and were paid at least $9 million as part of the scheme.
They now face up to 10 years each in federal prison.
Under the terms of their plea agreement, both men agreed to immediately surrender their DEA registrations and to forfeit their medical licenses at least 14 days prior to sentencing. They also agreed to joint and several restitution in an amount to be determined at a later date by the court.
The U.S. Department of Labor’s Office of Inspector General, the U.S Department of Labor’s Employee Benefits Security Administration, U.S Office of Personnel Management’s Office of the Inspector General, the Drug Enforcement Administration’s Dallas Field Division Diversion Group, and the Texas Department of Insurance – Fraud Unit – Austin and Fort Worth Field Offices conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
Orthopedic Surgeon Sentenced to More Than One Year in Prison for Health Care FraudRead the Press Release
BOSTON – A Canton orthopedic surgeon was sentenced today in federal court in Boston for his role in a health care fraud scheme.
Dr. Olarewaju James Oladipo, 60, of Canton, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison, followed by one year of supervised release. In December 2023, Oladipo was convicted by a federal jury of 10 counts of health care fraud.
From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided. Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 100 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes.
Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts. The evidence presented at trial showed that Oladipo knowingly prescribed oxycodone to patients suffering from opioid addiction.
The U.S. Attorney’s Office for the District of Massachusetts; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.
North Little Rock Man Who Illegally Possessed Firearm Sentenced to over 15 Years in Federal PrisonRead the Press Release
LITTLE ROCK—Kamron Leemonte Mathis, a multi-convicted felon, will spend more than 15 years in federal prison for illegally possessing a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr.
On October 11, 2023, Mathis, 27, of North Little Rock, pleaded guilty to one count of being a felon in possession of a firearm. On Tuesday, Judge Moody sentenced Mathis to 188 months in the Bureau of Prisons to be followed by five years of supervised released. Mathis, whose prior felony convictions all involved firearms, was indicted on December 7, 2022, on one count of being a felon in possession of a firearm. The maximum penalty Mathis faced was not less than 15 years to life in prison and a fine of $250,000. There is no parole in the federal system.
Classified as an armed career criminal, Mathis’ sentence was based on the offense as well as his documented violent criminal history. Mathis has a prior conviction for being a felon in possession of a firearm as well as prior convictions for robbery on two different occasions, two counts of aggravated assault, and battery in the first degree.
On June 25, 2022, North Little Rock Police Department officers stopped the vehicle that Mathis was driving because the registration had expired. Mathis, who was on parole at the time of the traffic stop and had a search waiver on file, was asked to step out of the vehicle. During this search of the vehicle, a 9 mm firearm was found under the driver’s seat. Also found were two magazines and approximately 24 rounds of ammunition.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Little Rock Police Department.
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Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“In addition to taking guns out of the hands of convicted felons, these cases also demonstrate the increased danger posed by the growing number of illegal machine guns on the streets,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we will continue to identify and remove these illegal weapons from our communities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted during the May term of the U.S. District Court Grand Jury include:
- Jordan Richardson, 24, of Savannah, charged with Interference with Commerce by Robbery, Possession of a Firearm by a Convicted Felon, and Possession and Discharge of a Firearm in Furtherance of a Crime of Violence;
- Tavare Vashawne Ragin, 43, of Columbus, Ga., and Wesley Earl Wilson, 33, of Thomson, Ga., both charged with Conspiracy to Possess with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine. Ragin also is charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Malik Havier McKenzie, 26, of Savannah, charged with Possession with Intent to Distribute Fentanyl, Cocaine, Carfentanyl, and Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Machine Gun; and Possession of a Firearm by a Convicted Felon;
- Duane B. Smith, 50, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Anthony McQuarters, 31, of Hardeeville, S.C., charged with Possession of a Firearm by a Convicted Felon and Possession of Stolen Firearms. McQuarters was arrested on state charges following a chase on I-16 by multiple law enforcement agencies through Laurens, Treutlen, Emanuel and Candler counties;
- Kenyatta Dunn Nero, 40, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Barry Christopher Carpenter, 43, of Gainesville, Ga., charged with Possession of a Firearm by a Convicted Felon. Carpenter was arrested on state charges in Columbia County during a burglary investigation;
- Brodrick Kyle Merritt, 42, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Antuane Farmer, 37, of Hinesville, Ga., charged with Possession of a Firearm by a Convicted Felon;
- James Allen Ponder, 47, of Sylvania, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Andrey Denorris Blockett, 37, of Augusta, charged with Possession of a Firearm by a Convicted Felon; and,
- Deleon Alexander Jackson, 23, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Jamell Williams, 44, of Savannah, was sentenced to 80 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers investigating reports of shots fired near a motel determined Williams was in possession of a rifle.
- Akeem Ajmia Lanier, 36, of Metter, Ga., was sentenced to 77 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Metter police officers found a pistol in Lanier’s vehicle during a traffic stop.
- Wilbur Zaccaeus Hightower, 24, of Blackshear, Ga., was sentenced to 72 months in prison after pleading guilty to Possession with Intent to Distribute Cocaine and Marijuana, and Possession of a Machinegun. Pierce County sheriff’s deputies found a pistol and drugs in Hightower’s vehicle after an attempted traffic stop ended with Hightower striking a police vehicle and crashing. ATF agents determined the Glock 9mm pistol in Hightower’s possession was fitted with a device designed to render it fully automatic.
- Tommy Cowart, 60, of Statesboro, Ga., was sentenced to 66 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Bulloch County deputies arrested Cowart after finding a rifle in his car during a traffic stop.
- Zytavious Beck, 26, of Dublin, Ga., was sentenced to 68 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Dublin police arrested Beck while investigating an armed altercation at a housing development and finding Beck in possession of a pistol.
- Darrell Lamar Williams, 25, of Claxton, Ga., was sentenced to 64 months in prison and fined $1,500 after pleading guilty to Possession of Ammunition by a Convicted Felon. Georgia State Patrol troopers arrested Williams after a traffic stop and found him in possession of ammunition.
- Zachary Smith, 26, of Savannah, was sentenced to 45 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Christopher David Baskett, 46, of Augusta, was sentenced to 30 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County sheriff’s deputies arrested Baskett while investigating reports of gunfire in downtown Augusta and a pistol in Baskett’s vehicle.
- Jodarrius Vaughner, 20, of Wrens, Ga., was sentenced to 24 months in prison and fined $1,500 after pleading guilty to Illegal Possession of a Machine Gun. Jefferson County sheriff’s deputies and Wrens police officers arrested Vaughner on a felony warrant from Richmond County. Vaughner had in his possession a Glock pistol fitted with a device that converted it to fully automatic. Vaughner also is under indictment on state charges including murder and aggravated assault.
- Hunter W. Taylor, 26, of Hephzibah, Ga., was sentenced to 40 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies investigating reports of gunfire arrested Taylor after determining he possessed a rifle.
- Kavon Smalls, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police found a pistol after chasing Smalls when he ran away from a vehicle that crashed during an attempted traffic stop.
- Benjamin Priester, 56, of Pooler, Ga., awaits sentencing after pleading guilty to Possession of a Stolen Firearm. Savannah police officers found a pistol in Priester’s possession during a traffic stop and later determined Priester knew the gun had been stolen.
- Daveon Daniels, 25, of Grovetown, Ga., awaits sentencing after pleading guilty to Illegal Possession of a Machine Gun. Columbia County sheriff’s deputies were investigating the accidental fatal shooting of a 4-year-old girl when they determined the gun belonged to Daniels, and that it was equipped with a “Glock switch” to convert it to fully automatic fire.
- Phillip Smith, 49, of Augusta, and Brian Hilliard, 40, of Augusta, both await sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon. Seven co-defendants, including Edward Jake Walters, 29, of Grovetown; Glen Taylor, 45, of Beech Island, S.C.; Dustin Bayles, 36, and Joshua Wasden, 36, both of Thomson, Ga.; Linda Campbell, 53, of Augusta; Gary Holcomb, 59, of Martinez; and Destiny Poole, 23, of Grovetown, await sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine. All were charged in USA v. Walters et al., an indictment alleging an Augusta-area drug trafficking conspiracy. A tenth defendant, Donnie Skillman, 46, of Augusta, awaits further proceedings and is considered innocent unless and until proven guilty.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
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Missoula fentanyl trafficker sentenced to more than four years in prisonRead the Press Release
MISSOULA — A Missoula woman who admitted to distributing fentanyl in the community was sentenced today to four years and two months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Janelle Ann Bergeson, 38, pleaded guilty in January to possession with intent to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that from at least September 2022 to January 2023, Bergeson distributed fentanyl in the Missoula community, and on at least one occasion, traveled with a co-conspirator to acquire the drug in Spokane, Washington. The government estimated that Bergeson is accountable for the distribution of from 2,400 fentanyl pills to 6,000 pills. During an investigation, federal agents intercepted a package addressed to co-defendant Nikolas Pellant and that contained several hundred fentanyl pills. The investigation determined Pellant and his girlfriend and co-defendant, Lynsi Barnes, had been selling the drug that they acquired through the mail and regular trips to Spokane. Bergeson was their primary customer and purchased between 40 and 100 pills every day. In a traffic stop in January 2023, the Montana Highway Patrol stopped Barnes as she was returning from a trip to Spokane, and Bergeson was in the front passenger seat. Law enforcement searched the vehicle and seized more than 450 fentanyl pills. Pellant, Barnes and a third co-defendant, Beau James Breneman, each were sentenced to five years and three months for their convictions in the case.
Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Missouri River Drug Task Force, Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Service, Montana Highway Patrol, Montana Division of Criminal Investigation, Missoula County Sheriff’s Office, Lewis and Clark County Sheriff’s Office and Shoshone County (Idaho) Sheriff’s Office conducted the investigation.
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Milford Drug Trafficker Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that WILSON GUZMAN, JR., 39, of Milford, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to a fentanyl trafficking offense.
According to court documents and statements made in court, a DEA New Haven Task Force investigation revealed that Guzman advertised various controlled substances, including fake oxycodone pills containing fentanyl and fake Adderall pills containing methamphetamine, and other drugs, through an encrypted phone messaging application. He then distributed the drugs to customers in person and through the U.S. mail. Guzman used locations in West Haven and North Haven to store and prepare narcotics for distribution. Between June and August 2023, investigators made controlled purchases of drugs from Guzman, including more than 1,000 counterfeit pills containing fentanyl, counterfeit Adderall containing methamphetamine, and psilocybin mushrooms.
Guzman was arrested on September 6, 2023. On that date investigators searched his Milford residence and the West Haven and North Haven locations and seized various controlled substances, including methamphetamine pills, Xanax pills, psilocybin mushrooms, and approximately 20 kilograms of marijuana, as well as an AR-15 style rifle and a Glock style Polymer 80 handgun that had no serial numbers (“ghost guns”).
Guzman pleaded guilty to distribution of 40 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Judge Nagala scheduled sentencing for August 9, 2024. Guzman is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, and the East Haven Police Department, West Haven Police Department, New Haven Police Department, Connecticut State Police, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
Mexican man heads to prison for organizing scheme to smuggle 150 kilos of cocaineRead the Press Release
BROWNSVILLE, Texas – A 37-year-old man from Valle Hermoso, Tamaulipas, Mexico, has been sentenced following his conviction for conspiracy to possess with intent to distribute multi-kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Alfonso Leos-Orozco pleaded guilty May 1, 2023.
U.S. District Judge Fernando Rodriguez Jr. has now ordered Leos-Orozco to serve 140 months in federal prison to be immediately followed by three years of supervised release. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the necessity to consider the seriousness of the offense, nature of the criminal activity and Leos-Orozco’s extensive involvement in the scheme.
Leos-Orozco was a manager/supervisor of the narcotics smuggling conspiracy responsible for distributing approximately 150 kilograms of cocaine.
From approximately 2019 to 2021, law enforcement conducted multiple arrests of individuals possessing multi-kilograms of cocaine in the Brownsville/Edinburg area. Authorities connected the narcotics seizures to attempts to enter the United States, gas station transfers, highway interdictions and bulk currencies destined for Mexico. The bulk currencies are proceeds of the conspiracy that are both connected to a truck transporting company and Leos-Orozco.
The investigation revealed Leos-Orozco would smuggle 15 to 20 kilograms of cocaine weekly and charge $500 per kilogram imported utilizing his commercial tractor trailers company “Leos Auto Transportes De Carga.” Leos-Orozco would then recruit drivers and pay them $250 per kilogram smuggled into the United States.
Further investigation indicated at least 20 border crossing incidents using a trailer are directly linked to Leos-Orozco. Surveillance video also identified Leos-Orozco as one of the individuals responsible for the transfer of a narcotics shipment to another driver.
Leos-Orozco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Paul Marian and Luis Salazar prosecuted the case.
Maryland Man Charged with Fentanyl and Cocaine OffensesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Donald McDuffin Williams, age 49, of Baltimore, Maryland, was indicted on federal fentanyl and cocaine charges.
Williams is charged with possession with intent to distribute fentanyl and possession with intent to distribute cocaine base. According to court documents, investigators suspected Williams of trafficking drugs in Harpers Ferry, West Virginia. They obtained a search warrant for a property where Williams was staying and found fentanyl and cocaine.
Williams faces up to 20 years in federal prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
This case was investigated by the Eastern Panhandle Task Force, a HIDTA-funded initiative.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
WASHINGTON – A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands.
Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisiana Field Division made the announcement.
Homeland Security Investigations, ATF, and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.
Man Sentenced for Sex Trafficking ConspiracyRead the Press Release
A Texas man was sentenced today to 22 years and six months in prison for conspiracy to commit sex trafficking by force, fraud, or coercion.
According to court documents, in 2021 and 2022, Gregory Massey, 30, and his girlfriend and co-defendant Patricia Hart, 25, forced two adult victims to engage in commercial sex in different locations. Massey and Hart advertised the victims for commercial sex on websites, kept the money the victims made from commercial sex transactions, required the victims to earn a minimum dollar amount from commercial sex every day, and restricted the victims’ access to food. Massey also tracked the geolocation data on the victims’ phones so that they could not leave his control and used physical violence, including punching and strangling one victim while another watched, and threats of physical violence to force the victims to comply with his demands.
Massey pleaded guilty in January. He agreed to pay $128,800 in restitution to the victims. As a result of his plea, Massey must also participate in the sex offender registration and notification program.
Hart also pleaded guilty in November 2023 to conspiracy to commit sex trafficking. She is scheduled to be sentenced on June 25.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Deputy Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI); and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Division made the announcement.
HSI, ATF, and the Louisiana State Police investigated the case.
Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana prosecuted the case.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
ATLANTA - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program.
“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”
“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial system, and the elderly.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam perpetrated on an elderly victim, which Mullings used to purchase a Ferrari.
Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison to be followed by three years of supervised release. He was also ordered to pay restitution to victims. He pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of the Inspector General.
Assistant U.S. Attorney Kelly K. Connors prosecuted the case, with Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Sentenced for Laundering over $4.5M Obtained from Business Email Compromise and Romance Fraud SchemesRead the Press Release
A Georgia man was sentenced today to 10 years in prison for laundering more than $4.5 million derived from business email compromise (BEC) schemes, including a scheme that defrauded a health care benefit program, and romance fraud schemes.
According to court documents and evidence presented at sentencing, Malachi Mullings, 31, of Sandy Springs, opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. From at least 2019 through July 2021, Mullings used those accounts to launder millions of dollars of fraud proceeds generated by BEC schemes targeting, among others, a health care benefit program and private companies, and romance fraud schemes targeting numerous individual victims, several of whom were elderly. Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the proceeds to purchase luxury items, such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program and had been intended as reimbursement for a hospital. In another instance, Mullings obtained $260,000 from a romance scam, which Mullings used to purchase a Ferrari.
Mullings pleaded guilty in January 2023 to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Kansas City Region; Special Agent in Charge Demetrius D. Hardeman of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Eugene S. Kowel of the FBI Omaha Field Office made the announcement.
HHS-OIG, IRS-CI, and the FBI investigated the case.
Trial Attorneys Gary Winters and Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kelly Connors for the Northern District of Georgia prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Magellan Diagnostics Agrees to Plead Guilty and Pay $42 Million to Resolve Criminal ChargesRead the Press Release
BOSTON – Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., has agreed to resolve criminal charges relating to its concealment of a device malfunction that produced inaccurately low lead test results for potentially tens of thousands of children and other patients.
As part of the criminal resolution, Magellan will plead guilty to violations of the federal Food, Drug and Cosmetics Act and pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Today’s resolution also includes a deferred prosecution agreement to resolve felony conspiracy fraud charges against the company.
Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples.
Magellan has admitted that it misled its customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By hiding the malfunction and later deceiving customers and the FDA about when the company discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, Magellan caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results.
Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. In response, Magellan told its customers that it had only recently identified the malfunction and had not observed the malfunction in its clinical trials prior to product release. Magellan, in fact, had known about the malfunction for over a year, including before the product release.
Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Magellan, however, did not notify its customers and the FDA about the LeadCare II malfunction until November 2016.
In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan had discovered the malfunction in 2013. Magellan then sent a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction.
The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction.
According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.
As part of today’s criminal resolution, Magellan has agreed to compensate all patients who were demonstrably harmed for the pecuniary damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.
Acting U.S. Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Roberto Coviello, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Jamie Herbert, Kelly Lawrence, Elysa Wan and Leslie Wright of the Criminal Division are prosecuting the case.
Long Island Man Sentenced to 30 Years in Prison for Drug Trafficking, Distribution of Drugs Causing Death, and Illegal Possession of FirearmsRead the Press Release
Earlier today, in federal court in Central Islip, Marlon Thompson was sentenced by United States District Judge Joan M. Azrack to 30 years in prison for distribution of fentanyl causing the death of a young Long Island man, conspiracy to distribute controlled substances on Long Island, and being a felon in possession of firearms. Thompson was found guilty on all counts following a December 2022 jury trial.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Robert Waring, Acting Police Commissioner, Suffolk County Police Department (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the sentence.
“Today, Thompson was held accountable for the large quantities of fentanyl he distributed all over Suffolk County which had a devastating impact on the community, including the tragic poisoning death of a young man on Long Island,” stated United States Attorney Peace. “This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this epidemic.”
"Today’s sentencing reflects the consequences to those who manufacture and distribute lethal narcotics, while tearing our communities apart” stated DEA New York Division Special Agent in Charge Frank Tarentino. “We will continue to work with our law enforcement partners in making sure those responsible for poisoning our communities bear the heavy burden of the lives they have destroyed.”
“The lethalness of fentanyl is not a secret, and yet, this defendant continued to distribute the deadly drug at the expense of others to make a profit,” Suffolk County Police Acting Commissioner Robert Waring said. “We will continue to work with our law enforcement partners to stem the flow of deadly opioids.”
"Opioid overdose deaths are at crisis levels in the United States and here in Suffolk County, where at least one of our residents dies every day from a fentanyl overdose. I appreciate the help from our federal partners at the Eastern District and the DEA in combating this scourge and I hope that this sentence brings some measure of closure to the family of Mr. Koenig," stated Suffolk County D.A. Raymond A. Tierney.
As proven at trial, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County. On Christmas Day in 2018, the defendant supplied fentanyl to the victim, Freddy Koenig, who suffered a fatal overdose at his parents’ home in Selden, New York. The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death.
When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns, including a sawed-off shotgun, and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Samantha Alessi, Gabriel Park and Catherine M. Mirabile are in charge of the prosecution, with the assistance of Paralegal Specialist Adam Bernard.
The Defendant:
MARLON THOMPSON
Age: 42
Selden, New YorkE.D.N.Y. Docket No. 19-CR-596 (S-1) (JMA)
Lead Drug Trafficker Sentenced for Escorting More than 100 Kilos of Pure Methamphetamine through Pawnee CountyRead the Press Release
TULSA, Okla. – A man was sentenced today for his lead role in organizing the drug trafficking of more than 100 kilos of pure methamphetamine, announced U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil, III, sentenced Jabier Bustos, 35, to 324 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy.
“Today’s prison sentence puts criminals who bring dangerous drugs into the Northern District of Oklahoma, on notice of the cost of that activity,” said U.S. Attorney Clinton Johnson. “My office will continue to work towards disrupting and dismantling any criminal organization trying to operate in our backyards. With the collaboration of several law enforcement partners, more than 100 kilos of pure methamphetamine were stopped from being distributed into the Northern District of Oklahoma.”
“The importance of the defendant’s sentence cannot be overstated. He knowingly smuggled and distributed hundreds of pounds of methamphetamine and other dangerous drugs across Oklahoma,” said Robert Melton, Assistant Special Agent in Charge for the HSI Dallas – Oklahoma Division. “Meth is a major concern affecting our society, with connections to violent crime, theft, addiction, and hundreds of overdose fatalities in the last few years. HSI will aggressively investigate any individual or transnational criminal organization seeking to jeopardize the well-being and safety of our communities through the illicit drug trade.”
“This investigation demonstrates the tremendous importance of state and federal partnerships working to identify and dismantle criminal drug trafficking organizations. Oklahoma continues to see the devastating impact of methamphetamine and fentanyl on lives and communities. And my agency will aggressively target and help prosecute these traffickers who threaten the peace and safety of this state.” — OBN Director Donnie Anderson
According to court documents, Bustos collaborated with his co-defendant, Abel Anthony Flores to get the pure methamphetamine from a drug trafficking organization. Once Bustos and Flores received the delivery they facilitated and escorted more than 101 kilograms of pure methamphetamine through Pawnee County. They both expected to be paid for their involvement in escorting the drugs. Agents not only seized the pure methamphetamine but also found cocaine, fentanyl pills, and several firearms during a search warrant.
Flores previously pled guilty to Drug Conspiracy and was sentenced by U.S. District Judge David O. Nuffer in Feb. 2024. Judge Nuffer ordered Flores to 135 months imprisonment, followed by five years of supervised release.
Bustos will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Homeland Security Investigations, Oklahoma Bureau of Narcotics, and Tulsa County Sheriff’s Office investigated the case. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Le Mars Man Pleads Guilty to Meth and Firearm ChargesRead the Press Release
Timothy Mullally, 48, from Le Mars, Iowa, pled guilty on May 16, 2024, in federal court in Sioux City to one count of conspiracy to distribute methamphetamine and one count of prohibited person in possession of firearms.
At the plea hearing, Mullally admitted that between January 2022 through September 2022, he and others distributed more than two kilograms of methamphetamine. Evidence showed that on two occasions in August and September 2022 he distributed more than 800 grams of pure methamphetamine to an individual cooperating with law enforcement. During investigation of this matter, law enforcement and United States Postal Inspection Service intercepted a three pound package of methamphetamine coming from California to Mullally’s house in September 2022. During the investigation, including a search warrant at Mullally’s properties and vehicles, law enforcement seized $5,830 and two firearms. Mullally admitted to being a regular user of methamphetamine, and thereby was prohibited from possessing any firearm.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Mullally was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. On the drug conviction, Mullally faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. For the firearm conviction, Mullally faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine and not more than three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4083. Follow us on Twitter @USAO_NDIA.
Laurel County Man Sentenced for Conspiracy to Defraud Natural Gas CompaniesRead the Press Release
LONDON, Ky. – A London man, Mark Edward Holbook, 72, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 12 months and one day in prison, along with two months of home detention, for conspiracy to rig natural gas meters allowing him to steal thousands of dollars from two Kentucky gas companies.
According to his plea agreement, Mark Holbrook and his son, Marshall Holbrook, worked in the business of sourcing natural gas throughout the past 20 years, drilling wells and acquiring gas rights. The Holbrooks often used Delta Gas or Somerset Gas Services (SGS) to transport their gas or for direct sales. In 2016, after the market price of natural gas had fallen substantially, the Holbrooks compensated by manipulating meters that SGS and Delta used on their pipelines to measure how much natural gas the Holbrooks were providing. This scheme allowed the Holbrooks to boost their profit substantially, while financially harming both SGS and Delta.
Mark Holbrook admitted that the financial loss due to this conspiracy was greater than $250,000 and the Court entered a forfeiture order against him, in the amount of $332,952. The Court also ordered Mark Holbrook to pay restitution of $1,207,016 to SGS, and $172,964 to Delta.
Earlier this month, Judge Boom sentenced Marshall Holbrook for his role in the same conspiracy. Marshall Holbrook was sentenced to four months imprisonment and six months of home detention, followed by 18 months of supervised release. He was ordered to pay Delta $239,642 in restitution.
Upon his release from prison, Mark Holbrook will be under the supervision of the U.S. Probation Office two and a half years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Will Moynahan prosecuted the case on behalf of the United States.
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Lafayette Parish Couple Charged with Drug TraffickingRead the Press Release
NEW ORLEANS, LOUISIANA – TERRY REED, age 54, and CHASSIDY MENARD, age 38, a couple from Lafayette Parish, were charged on May 9, 2024, in a four-count indictment by a federal grand Jury. REED was charged with possession with intent to distribute fifty grams or more of methamphetamine, a Schedule II controlled substance, its salts, isomers, and salts of its isomers, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A); felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c). MENARD was charged with simple possession of heroin, in violation of 21 U.S.C. § 844(a), announced U.S. Attorney Duane A. Evans.
If convicted of the drug count, REED faces a mandatory minimum term of imprisonment of 10 years, up to life imprisonment, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee. If convicted of felon in possession of a firearm, REED faces a term of imprisonment up to 15 years, a fine of up to $250,000, up to 3 years of supervised release, and a $100 mandatory special assessment fee. If convicted of possession of a firearm in furtherance of a drug trafficking crime, REED also faces a consecutive mandatory minimum term of imprisonment of 5 years, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a $100 mandatory special assessment fee. MENARD faces imprisonment up to 1 year, and a minimum fine of $1,000. If convicted, REED shall pay a $100 mandatory special assessment fee for each count. If convicted, MENARD must pay mandatory special assessment fee of $25.
According to the filed indictment, on or about February 3, 2024, REED intentionally possessed with the intent to distribute (50) grams or more of methamphetamines, possessed a firearm, a Ruger Model LC9, nine-millimetre pistol despite being previously convicted of a felony which prohibits possession of firearm. REED allegedly used the illegally possessed firearm in furtherance of a drug trafficking crime. Finally, on February 3, 2024, MENARD allegedly intentionally possessed heroin.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the St. John the Baptist Parish Sheriff’s Office and the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Lauren Sarver of the Narcotics Unit.
Justice Department and Stanford University to Cohost Workshop “Promoting Competition in Artificial Intelligence”Read the Press Release
The Justice Department and Stanford University will hold a public workshop on May 30 to discuss the state of competition across the Artificial Intelligence (AI) technology industry from the chip to the app.
“The Antitrust Division is excited to partner with Stanford University on this workshop to learn from stakeholders at various levels of the AI stack who are all adapting to the fast-paced developments in AI,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We look forward to hearing about how competition is developing, bottlenecks and other challenges established firms and new entrants are facing and how AI is affecting the authors, musicians, artists and other content creators that drive creativity and innovation in our economy.”
The Justice Department’s Antitrust Division, Stanford Graduate School of Business and Stanford Institute for Economic Policy Research will cohost the free full-day workshop to discuss competition and AI industry structure, including competition in AI models, semiconductors, the cloud and AI applications. The workshop will be livestreamed from 9 a.m. PT to 6:00 p.m. PT. A recording of the workshop will be available on Stanford’s event page after the workshop. An agenda and a list of speakers will be available in the near future on the Antitrust Division’s event page and Stanford’s event page. Members of the public should register on Stanford’s event page and members of the press should send a copy of their registration confirmation to [email protected] on their registration email.
In a series of panels, presentations and remarks, government and industry representatives, academics from both law and business, content creators, inventors and other tech industry stakeholders will explore how competition at one level of the AI stack affects other AI technologies, how standards and accountability systems can be designed to promote competition and the challenges AI poses to content creators. The workshop also will explore how competition affects the funding decisions of investors and the practical considerations that investors face when evaluating whether to invest in startups.
The Justice Department invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through July 15 at [email protected].