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10 May 2024
Tangipahoa Parish Man Charged with Violating Federal Controlled Substance ActRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL PENN, age 23, a resident of Tangipahoa Parish, was indicted on May 3, 2024, for violations of the Federal Controlled Substances Act. PENN is charged with three counts of distributing fentanyl, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 841(b)(1)(B), announced U.S. Attorney Duane A. Evans.
If convicted of Count 1, PENN faces a mandatory minimum sentence of 5 years up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release. If convicted of Counts 2 and 3, PENN faces a mandatory minimum sentence of 10 years up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release. PENN also faces a mandatory $100 special assessment fee for each count.
On February 2, April 4, and April 18, 2024, PENN distributed large quantities of fentanyl pills in the Eastern District of Louisiana.
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 Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Lauren Sarver of the Narcotics Unit.
Tampa Drug Trafficker Convicted Following Bench TrialRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that U.S. District Judge William F. Jung found Enock Edouard (37, Tampa) guilty of conspiracy to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine and fentanyl, being a felon in possession of a firearm, and criminal contempt, following a bench trial. Edouard faces a minimum mandatory sentence of 10 years in federal prison. His sentencing hearing has not yet been scheduled. Edouard was arrested on April 22, 2023, and ordered detained.
According to testimony and evidence presented at trial, between 2021 and 2023, Edouard was part of a drug trafficking network that operated throughout the Middle District of Florida and elsewhere, including California. Working with others, Edouard moved methamphetamine and fentanyl originating in Mexico, shipped to California in car tires, then shipped or transported the drugs to Orlando and Tampa. Edouard carried large amounts of cash to California to purchase the narcotics, then utilized various accomplices to hide narcotics in boxes and suitcases for distribution in Florida. At trial, one co-conspirator described Edouard as “the only person between me and the cartels,” and estimated that Edouard sold him over 300 kilograms of methamphetamine in less than 10 months.
Edouard was arrested in Las Vegas. A search warrant executed at his apartment in downtown Tampa resulted in the recovery of additional fentanyl and a firearm. Law enforcement ultimately seized 15 firearms, 2 hand grenades, more than 25 kilograms of methamphetamine, and more than $80,000 in cash from Edouard and his co-conspirators.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. 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. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Diego F. Novaes.
Statement from United States Attorney Will ThompsonRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia and its partners have concluded an investigation involving now-former Kanawha County Commissioner W. Kent Carper. The investigation uncovered significant allegations of concern. It also found that Carper had significant health issues that could have had an impact on his actions relevant to the investigation. As a result, a decision has been made to end the investigation without taking further action, United States Attorney Will Thompson announced today.
In general, the U.S. Department of Justice does not publicly announce investigations or investigative findings. Department of Justice policy allows exceptions in certain circumstances, including when the issue under investigation has already received significant publicity. The U.S. Attorney’s Office for the Southern District of West Virginia follows Department of Justice policy and regulations when deciding which investigations and investigative findings to announce publicly.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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St. Lucie County man pleads guilty to production of child pornographyRead the Press Release
MIAMI – On May 9, a St. Lucie County man pleaded guilty in federal court to production of visual depictions of sexual exploitation of a minor.
Between November 2022 and January 2023, Luis Escoto, 28, engaged in sexual intercourse with a 17-year-old when he was about 26 or 27 years old in St. Lucie and Martin counties. Escoto recorded the sexual interactions with the minor victim using his cellphone and convinced the victim to send him sexually explicit pictures through text messages and communication platforms. In February 2023, Martin County Sheriff’s Office detectives arrested Escoto.
Sentencing is scheduled for Aug. 2, before U.S. District Judge David S. Liebowitz in Fort Pierce. Escoto faces a mandatory minimum penalty of 15 years and up to 30 years in prison, followed by up to a lifetime of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced the guilty plea.
HSI Fort Pierce and the Martin County Sheriff’s Office investigated the case. Managing Assistant U.S. Attorney Carmen Lineberger is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14024.
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South Gate Man Pleads Guilty to Leading Drug Trafficking Ring that Used Modified ‘Trap Cars’ to Transport and Distribute NarcoticsRead the Press Release
LOS ANGELES – A South Gate man pleaded guilty today to a federal narcotics charge for leading a drug trafficking ring that imported drugs, including cocaine and heroin, from Mexico, then used modified BMWs with hidden trap compartments to distribute those drugs throughout the United States.
Joel Antonio Villegas, 35, a.k.a. “Junior,” pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances.
According to his plea agreement, from at least November 2017 to September 2019, Villegas led a drug trafficking organization that imported from Mexico to the United States kilogram quantities of cocaine, heroin, marijuana, and hashish oil. As the conspiracy’s organizer and manager, Villegas picked up the drugs and arranged for their sale to customers or fellow conspirators.
Villegas ordered other conspirators to purchase cars – including BMWs – and modify them by installing hidden trap compartments so other members of the organization could conceal and transport narcotics and drug proceeds on the organization’s behalf.
Villegas delegated to other conspirators the coordination of cross-border caravans using couriers and other so-called “trap cars” to pick up drugs – including cocaine and heroin – in Mexico and transport them into the United States.
He also operated a stash house containing cocaine, marijuana, and hashish oil as well as materials to manufacture and distribute drugs, including packaging materials, pill presses, drug ledgers, and money counters. Villegas also possessed firearms at his residence to protect the organization’s drug proceeds.
In September 2019, when law enforcement executed a warrant at Villegas’ residence and called him on his telephone and ordered him to come outside, Villegas set fire to numerous paper journals, including drug ledgers and pay/owe sheets. He also broke several cellphones and other digital devices and attempted to break even more. Villegas admitted in his plea agreement that he willfully impeded and obstructed the administration of justice by doing so.
In addition to multiple firearms Villegas possessed at his residence, law enforcement also recovered $127,307 in cash and jewelry, including three Rolex watches and one golden necklace, all of which were purchased with the organization’s drug proceeds.
That same day, law enforcement executed a search warrant at a Downey stash house that Villegas’ organization used and seized approximately 882 grams (1.9 pounds) of heroin, approximately 1 kilogram (2.2 pounds) of marijuana, and 81.3 grams of hashish oil, as well as a money counter, pill press machine, and drug paraphernalia, among other items.
In total, the conspiracy involved at least approximately 3.9 kilograms (8.6 pounds) of heroin, approximately 52 kilograms (114.6 pounds) of cocaine, approximately 25 kilograms (55.1 pounds) of marijuana, and approximately 186.2 grams of hashish oil.
United States District Judge André Birotte Jr. scheduled an August 30 sentencing hearing, at which time Villegas will face a statutory maximum sentence of life imprisonment.
The FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Customs and Border Protection, the California Highway Patrol, the Pasadena Police Department, the South Gate Police Department, and the Jacksonville Sheriff’s Office investigated this matter with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant United States Attorneys Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section, Jena A. MacCabe of the Violent and Organized Crime Section, and A. Carley Palmer of the Criminal Appeals Section are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
South Dakota Man Arrested for Assaulting Law Enforcement and Other Charges During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A South Dakota man has been arrested on felony and misdemeanor charges, including for assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Darrell Goins, 42, of Newell, South Dakota, is charged in a criminal complaint filed in the District of Columbia with six felony offenses, including civil disorder; assaulting, resisting, or impeding certain officers using a dangerous weapon; assaulting, resisting, or impeding certain officers; and entering and remaining, disorderly or disruptive conduct, and act of physical violence in a restricted building or grounds using a dangerous weapon.
In addition to the felonies, Goins is charged with two misdemeanor offenses of disorderly or disruptive conduct and act of physical violence in a Capitol building or grounds and parading, demonstrating, or picketing in a Capitol building.
The FBI arrested Goins on May 9, 2024, in South Dakota, and he made his initial appearance in the District of South Dakota today.
According to court documents, on Jan. 6, 2021, Goins was part of the crowd gathered on the Capitol’s West Plaza, standing directly in front of a line of the U.S. Capitol Police (USCP) officers that had formed to protect the building. While there, open-source video footage depicts Goins raising his fist in the air and cheering to the crowd of rioters. At approximately 1:50 p.m., rioters began to breach the police line protecting a staircase located at the north end of the West Plaza. Goins proceeded to join the crowd in pushing forward up the stairs and, before entering the stairway, Goins allegedly threw what appears to be a full, approximately 20-ounce plastic soft-drink bottle in the direction of a USCP officer.
After throwing the bottle, Goins moved with the crowd up the northwest stairs before again confronting a police line attempting to halt the crowd’s movement. Here, Goins physically engaged with several USCP officers while attempting to break through their lines. During this confrontation with police, Goins made it to the top landing of the stairway that police were protecting. Eventually, however, USCP officers were able to wrestle Goins to the ground and bring him to a seated position on the stairs.
Court documents say that the rest of the mob advanced to the top landing of the stairs, and Goins returned to his feet and remained directly in front of the police line. At some point in the subsequent minutes, Goins obtained a USCP officer’s riot shield and passed it off to another rioter. Eventually, other rioters succeeded in breaking through the police line and began surging up the remaining stairs at approximately 2:09 p.m. Less than a minute later, Goins joined the crowd and advanced up the stairs and to the Capitol’s Upper West Terrace.
From the Upper West Terrace, Goins allegedly entered the Capitol building via the Senate Wing Door at 2:14 p.m.— one minute after the initial breach of the Capitol building at this entrance. Once inside, Goins moved further into the building and arrived at the foyer just inside the Senate Carriage Door. At that time, USCP officers were working to clear the building by moving rioters out through the Senate Carriage Door. Despite efforts by the police to move the crowd out through the Senate Carriage Door, Goins remained inside the Capitol building. He positioned himself just to the side of the door’s interior while other rioters outside the door attempted to gain entry.
Goins later returned to the area inside the Senate Wing Door and exited the building at approximately 2:30 p.m.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of South Dakota.
The case is being investigated by the FBI’s Birmingham, Minneapolis, and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 40 months since Jan. 6, 2021, more than 1,424 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 500 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Sioux Falls Man Sentenced to 20 Years in Fentanyl Overdose CaseRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury. The sentencing took place on May 6, 2024.
Jason Winckler, 44, was sentenced to 20 years in federal prison, followed by three years of supervised released. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Winckler was indicted for Distribution of a Controlled Substance Resulting in Serious Bodily Injury by a federal grand jury in September of 2022. He pleaded guilty on February 21, 2024.
On or about March 17, 2022, in Sioux Falls, South Dakota, Winckler distributed a pill containing fentanyl to one of his drug customers, who in turn gave it to his girlfriend, who ingested the pill and experienced an overdose. The police were called and when officers arrived, the victim was unconscious, not breathing, and was turning blue. The officers were able to revive the victim after administering three doses of Narcan.
This case was investigated by the FBI, the Drug Enforcement Administration, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Elizbeth Ebert prosecuted the case.
Winckler was immediately remanded to the custody of the U.S. Marshals Service.
SCDC Inmate Sentenced to Federal Prison for Laundering Funds Extorted from Enlisted Service MembersRead the Press Release
GREENVILLE, S.C. — Javarius G. Teague, age 31, of Greenville, was sentenced to 33 months for his role in laundering extorted funds.
Evidence presented to the court showed that Teague, while incarcerated in the South Carolina Department of Corrections, led a conspiracy to conceal the source of extorted funds. The extortion involved servicemen who were beguiled into sending compromising photos of themselves to women they met on dating sites. The servicemen would be confronted by an extortioner claiming to be the woman’s father and alleging she was underage. The extortioner then demanded money and threatened that if money was not paid a report would be made to law enforcement or military authorities. The service member would send money via MoneyGram or a similar service and Teague’s co-conspirators, at his instruction, would collect that money at MoneyGram locations in South Carolina. This money would be passed on to other members of the conspiracy and Teague through Green Dot and J Pay. The extortion came to light in December 2017 when a service member died from suicide rather than pay the money demanded by fraudsters.
United States District Judge Timothy M. Cain sentenced Teague and ordered him to pay $2,210 in restitution.
This case was investigated by the Department of the Army Criminal Investigation Division with assistance from the South Carolina Department of Corrections. Assistant United States Attorney Bill Watkins prosecuted the case.
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Rocky Mount Man Who Opened Fire on Police Officers Sentenced to 15 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Rocky Mount man was sentenced today to the statutory maximum of 180 months in prison for possessing a firearm as a felon and for shooting at Rocky Mount Police Department (RMPD) officers who were attempting to apprehend him. On November 8, 2023, Antonio Maurice Wilkins, Sr., pled guilty to the charge.
“Law enforcement officers are being shot in the line of duty far too often. We won’t stand by and watch it happen. As federal prosecutors, we’re partnering with local DA’s to put shooters on a fast track to federal prison, often even while state charges are still pending,” said U.S. Attorney Michael Easley. “This defendant fled law enforcement and tried to shoot an officer, but his bullet miraculously struck the officer’s service weapon. Too many officers are not so lucky. Prioritizing cases like these is the least we can do for those who risk their lives every day.”
“This case reminds us of the dangers our officers are faced with and how they place their lives on the line to serve our community and keep our streets safe,” said Rocky Mount Police Chief Hassell. “The quick actions of our officers allowed them to take a violent individual off our streets. We are committed to our partnerships with our federal partners. Our combined efforts will ensure we continue to prosecute those who commit crime.”
“This is a prime example of the benefits of our partnership with the U.S. Attorney’s office and law enforcement. We look forward to continuing to work with these agencies as we all strive to make our communities safer,” said District Attorney Jeff Marsigli.
According to court documents and other information presented in court, Antonio Wilkins, Sr., age 48, a previously convicted felon, was found to be in possession of a firearm on February 9, 2023. On that date, RMPD received a report of a stolen car and were informed that Wilkins was the driver. They were also provided with the location of the vehicle. Two officers went to that location and attempted to take him into custody. When encountered, Wilkins resisted arrest and fled on foot through a parking lot. As an officer caught up to him, Wilkins pulled out a handgun and fired a shot at the officer, striking his service weapon and injuring the officer's hip. Wilkins continued to fire as the officer retreated towards a dumpster. Meanwhile, another RMPD officer fired two shots at Wilkins, hitting him twice in the upper thigh and incapacitating him. Wilkins still faces state charges related to the incident.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. RMPD and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:23-CR-26-M-RN.
Rio Rancho Man Sentenced for Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – A Rio Rancho man was sentenced to 10 years in prison after pleading guilty to carjacking and using, carrying and brandishing a firearm during and in relation to a crime of violence. This case was adopted from state prosecution in cooperation with the Second Judicial District Attorney’s Office.
According to court documents, in the early morning hours of January 6, 2021, Daniel Pacheco, 31, approached the victim, brandished a firearm, and struck her repeatedly. Pacheco stole the victim's purse and car keys before fleeing in her vehicle.
The victim’s car was equipped with a LoJack anti-theft GPS tracking device, allowing police to locate the vehicle at an apartment complex north of Old Town Albuquerque. When officers attempted to arrest Pacheco, he rammed police vehicles and fled on foot before being apprehended.
During the arrest, officers seized two loaded firearms, extra magazines, and various illegal drugs from Pacheco’s person. The victim positively identified Pacheco and the firearm used in the carjacking. Pacheco admitted to being present during the incident but denied brandishing a firearm.
After completing his term of imprisonment, Pacheco will be required to serve five years of supervised release.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Bernalillo County District Attorney Sam Bregman made the announcement today.
The New Mexico State Police investigated this case with assistance from the FBI Albuquerque Field Office and Albuquerque Police Department. Assistant U.S. Attorney Jack Burkhead and Special Assistant U.S. Attorney Peter Haynes prosecuted the case as part of an agreement with the Second Judicial District Attorney’s Office.
Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.
The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state.
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Rensselaer County Sex Offender Convicted of Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Zachary Cota, age 31, of Castleton-on-Hudson, New York, pled guilty today to receiving child pornography and agreed to be sentenced to at least 262 months in prison. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Cota admitted that he used SnapChat to solicit three children to send him nude photos. After an 8-year-old and a 13-year-old provided the requested photos, Cota threatened to reveal what they had done, in an effort to obtain more child pornography from them. At the time of these crimes, Cota was on probation for a course of sexual conduct against a child. When his probation officer asked to see Cota’s phone, Cota locked himself in a bathroom and began deleting its contents. A search of Cota’s phone revealed an additional 900 images of child pornography, including screenshots of a video chat between Cota and a naked child.
When United States District Judge Anne M. Nardacci imposes sentence on September 6, 2024, Cota faces a term of imprisonment of at least 262 months and up to 327 months, a fine of up to $250,000, and a life term of supervised release. He has also agreed to forfeit the phone he used to commit the crimes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Cota must also register as a sex offender upon his release from prison.
The FBI and its Child Exploitation Task Force—which includes members of federal, state, and local law enforcement agencies, including the Rotterdam, Troy, and Colonie Police Departments and the New York State Police—investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Part-Time Actor from Orange County Found Guilty of Soliciting Investors for Shell Companies that Peddled Bogus COVID Cure and TreatmentRead the Press Release
LOS ANGELES – An Orange County man and part-time actor was found guilty by a jury today of soliciting investors in companies that marketed what in fact were a bogus cure and treatment for COVID-19 during the pandemic’s early days.
Keith Lawrence Middlebrook, 56, of Huntington Beach, was found guilty of 11 counts of wire fraud. He remains free on $150,000 bond.
According to evidence presented at a three-day trial, in March 2020, Middlebrook solicited potential investors in California, Nevada, New York, Texas, and Colorado via text messages, videos and statements posted on YouTube and Instagram about his purported cure for COVID-19. Middlebrook called this so-called cure “QC20,” and he also marketed a purported COVID treatment, which he called “QP20.”
Middlebrook claimed to have personally developed a “patent-pending” cure and a treatment to prevent coronavirus infection. Middlebrook fraudulently solicited investments in various companies with a series of false promises. These fraudulent claims included miraculous results from the prevention product and the cure, risk-free and 100 percent guaranteed “enormous returns” on investments,” and that former Los Angeles Lakers point guard Earvin “Magic” Johnson was a director and officer of Middlebrook’s company. He induced victims to invest their money by promising them enormous returns.
To bolster these claims, defendant Middlebrook lied that a party in Dubai had offered to purchase Middlebrook’s companies for $10 billion, and this offer would secure the victim-investors’ investments in the companies. He also lied that he had secured funding from seven investors who had each already invested between $750,000 and $1 million.
The FBI arrested Middlebrook in this case in March 2020 after Middlebrook delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor.
United States District Judge Dale S. Fischer scheduled a September 9 sentencing hearing, at which time Middlebrook will face a statutory maximum sentence of 20 years in prison for each wire fraud count.
The FBI investigated this matter.
Assistant United States Attorneys Kenneth R. Carbajal and Joseph S. Guzman, both of the General Crimes Section, are prosecuting this case.
Omaha Man Sentenced to more than 20 Years in Prison for Methamphetamine and Gun ChargeRead the Press Release
United States Attorney Susan T. Lehr announced that Leonires Perez-Gonzales, age 31, of Omaha, Nebraska was sentenced May 10, 2024, in federal court in Omaha after having pled guilty to conspiracy to distribute methamphetamine and possession of a firearm in relation to drug trafficking. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Perez-Gonzales to 248 months’ imprisonment. There is no parole in the federal system. After Perez-Gonzales’s release from prison, he will begin a 5-year term of supervised release.
On March 30, 2023, law enforcement utilized a confidential source (CS) to purchase one pound of meth from a Mexico-based source of supply (SOS). The drug transaction was arranged through text messages with the CS and Perez-Gonzales, both coordinating with the Mexico-based SOS. The CS met the codefendant in Omaha and purchased 387 grams meth for $2,300.
On April 11, 2023, a CS coordinated with the Mexico-based SOS to purchase one pound of meth. Again, the SOS coordinated with the CS and Perez-Gonzales to set up the controlled purchase. The CS and Perez-Gonzales met at a location in Omaha where he sold the CS one pound of meth for $2,500.
On April 17, 2023, law enforcement executed a search warrant of the Perez-Gonzales’s Omaha storage unit. Inside the unit, officers located 3 plastic bags totaling 1,334 grams of meth, a digital scale, multiple venue items for the defendant, a Smith and Wesson Rifle, 2 loaded .22 caliber magazines, and 569 rounds of .22 caliber ammunition.
On April 18, 2023, officers executed a search warrant at co-defendant Aleah Meyer’s Omaha apartment. The search warrant revealed three 9 mm handguns, two rifles, and a safe containing 1134 grams of meth, 29 grams of fentanyl, and drug proceeds in the amount of $7,613 in United States currency. DNA records established that Perez-Gonzales’s and Meyer’s DNA were on multiple firearms seized in this case. By pleading guilty, Perez-Gonzales gave up any right or claim to the money and firearms seized in this case.
Aleah Meyer is presumed innocent until proven guilty and is scheduled for trial later this month.
This case was the result of an investigation by the Douglas County Sheriff’s Office.
Oklahoma Man Previously Arrested for Allegedly Throwing Pipe Bomb at Satanic Temple in Salem Indicted by Federal Grand JuryRead the Press Release
BOSTON – An Oklahoma man has been indicted by a federal grand jury in Boston for allegedly throwing a pipe bomb at The Satanic Temple (TST) in Salem, Mass. on April 8, 2024.
Sean Patrick Palmer, 49, of Perkins, Okla., was indicted on one count of using fire and an explosive to damage and attempt to damage a building used in interstate or foreign commerce. Palmer was initially charged by criminal complaint and arrested on April 17, 2024 in Perkins, Okla. He subsequently appeared in federal court in the Western District of Oklahoma, where the Court ordered Palmer detained and transferred to the District of Massachusetts. He will appear in federal court in Boston at a later date.
TST is a non-theistic religious organization headquartered in Salem, Mass. According to the charging documents, at approximately 4:14 a.m. on April 8, 2024, surveillance cameras captured a man, subsequently identified as Palmer, walking towards TST wearing a black face covering, a tan-colored tactical vest and gloves. It is alleged that as Palmer approached TST, he ignited a pipe bomb – a type of improvised explosive device or “IED” – threw it at TST’s main entrance and ran away. Seconds later, the IED partially detonated causing minor fire and related damage to TST’s exterior.
According to the charging documents, the pipe bomb was constructed from a section of plastic pipe covered with metal nails attached to the pipe with tape. The inside of the pipe was filled with a powder-like substance, preliminarily identified as smokeless gunpowder. DNA from a Caucasian male was found on the outside of the IED.
It is alleged that a six-page handwritten note was found in a flower bed adjacent to TST, near the area where Palmer allegedly threw the IED. Among other things, the letter stated:
DEAR SATANIST
ELOHIM SEND ME 7 MONTHS AGO TO GIVE YOU
PEACEFUL MESSAGE TO HOPE YOU REPENT. YOU SAY
NO, ELOHIM NOW SEND ME TO SMITE SATAN AND I
HAPPY TO OBEY. AND ELOHIM WANT ME TO CONTACT
YOU TO TELL YOU REPENT. TURN FROM SIN. ELOHIM
NO LIKE THIS PLACE AND PLAN TO DESTROY IT. MAYBE
SALEM TOO? ELOHIM SEND ME TO FIGHT CRYBABY
SATAN, BUT WANT ME TO MAKE HARD EFFORT SO NO
ONE DIES. I OBEY.The charge of using fire or an explosive to cause damage to a building used in interstate or foreign commerce provides for a sentence of at least five years and up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Lucas J. Miller, Chief of the Salem Police Department made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Massachusetts State Police; Federal Bureau of Investigation’s Oklahoma City Field Office; Payne County Sherriff’s Office; Oklahoma Highway Patrol; the United States Attorney’s Office for the Western District of Oklahoma; and Stillwater (Okla.) Police Department. Assistant U.S. Attorney Jason A. Casey of the National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oahu Man Sentenced to Federal Prison for Fraudulent Check SchemeRead the Press Release
HONOLULU – Senior United States District Judge Helen Gillmor sentenced Phong Duy Le, 49, of Honolulu, Hawaii to 29 months in federal prison on May 7, 2024, for bank fraud. Le had earlier appeared before U.S. Magistrate Judge Kenneth J. Mansfield on April 20, 2023, and pled guilty to a 13-count Indictment.
The court found that Le engaged in 19 fraudulent transactions and attempted to obtain $959,870 from the financial institutions. The court further found that Le successfully defrauded the institutions out of $262,315.15. Le told the court he committed the offenses due to a gambling addiction resulting in losses at casinos in Las Vegas.
According to information produced to the court, between August 2015 and November 2015, Le defrauded nine financial institutions in Hawaii and elsewhere by depositing checks and electronic payments into accounts that he held, knowing that the deposits were not backed with sufficient funds. In one scheme, commonly known as “check kiting,” Le falsely inflated the balance on a bank account by depositing and then immediately withdrawing funds from the account, which temporarily resulted in a positive balance on the account. Le then quickly spent the funds in the account and any associated line of credit before the bank realized the initial deposit was not backed with sufficient funds.
Other information provided to the court reflected that Le also perpetrated a related “credit bust-out” scheme, which involved applying for and obtaining a credit card from a financial institution and then incurring charges up to the credit limit of the card. Le then wrote bad checks to the financial institution in amounts in excess of the payment due on his credit card, knowing that these checks were not backed with sufficient funds. The financial institution then posted the amount of the bad checks to Le’s account and restored Le’s credit line, thereby giving Le access to funds above the credit limit on his credit card. Le then used the credit card to make additional purchases before the financial institution discovered Le’s payments were fraudulent and reversed the credits posted to his account.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Gregg Paris Yates handled the prosecution.
New York Man Indicted for Travelling to Louisiana to Engage in Illicit Sexual Conduct with Fifteen-Year-Old FemaleRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that PETER NEALON, age 66, from Schenectady, New York, was indicted on May 9, 2024 by a federal grand jury sitting in New Orleans, Louisiana, for interstate travel with intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b).
According to the indictment, beginning on or about July 17, 2023, and culminating on or about March 27, 2024, NEALON travelled from Albany, New York, to New Orleans, Louisiana, by plane for the purpose of engaging in sexual conduct with an individual NEALON believed to be a fifteen-year-old female.
If convicted, NEALON faces a maximum term of imprisonment of not more than thirty (30) years. NEALON also faces at least five (5) years and up to a lifetime of supervised release, up to a $250,000 fine and a $100 mandatory special assessment fee. NEALON may also be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Briana Williams of the Narcotics Unit and Jordan Ginsberg, Chief of the Public Integrity Unit, are in charge of the prosecution.
Minneapolis Marketing Executive Charged with Fraud, Money Laundering in $1.5 Million Embezzlement SchemeRead the Press Release
MINNEAPOLIS – A Minneapolis woman has been charged with embezzling over $1.5 million from her employer, announced United States Attorney Andrew M. Luger.
According to court documents, Danielle Terese Eisenbacher, 39, was an employee of a Minneapolis-based marketing firm from October 2019 through October 2023. Eisenbacher held various roles in the company, including Director of Operations, Vice President of Operations, and Chief Operating Officer, and was responsible for managing the company’s finances. From January 2020 through October 2023, Eisenbacher used her positions to embezzle more than $1.5 million from her employer. As part of the scheme, Eisenbacher made unauthorized personal transactions using company credit cards, including for designer clothing, jewelry, furniture, personal travel, and home renovations. Eisenbacher tried to conceal her embezzlement by creating false entries in company accounting records to make it look like the unauthorized personal transactions were for legitimate business expenses.
The indictment charges Eisenbacher with one count of mail fraud, six counts of wire fraud, and six counts of money laundering. Eisenbacher made her initial appearance in U.S. District Court before Magistrate Judge Douglas L. Micko earlier this week.
This case is the result of an investigation conducted by the FBI and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Matt Murphy is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexico Extradites Cartel’s Precursor Chemical Broker to United States to Face Trial for Controlled Substances Manufacturing and Distribution ConspiracyRead the Press Release
A Mexican national who allegedly supplied the Cártel de Jalisco Nueva Generación (CJNG or Jalisco Cartel) with precursor chemicals used to manufacture controlled substances was extradited today from Mexico to Washington, D.C., to face trial.
Francisco Pulido Coracero, 66, will make his initial court appearance on May 13 before U.S. Magistrate Judge Moxila A. Upadhyaya in the District of Columbia.
In March 2021, a grand jury in Washington, D.C., charged Pulido Coracero and his co-conspirator, Carlos Algredo Vazquez, 58, with conspiracy to manufacture and distribute 500 grams or more of methamphetamine for importation into the United States, and conspiracy to distribute listed chemicals—including methylamine, nitroethane, phenylacetic acid, toluene, and acetone—to be used to manufacture methamphetamine for importation into the United States. The indictment was unsealed in February 2023.
In July 2023, Carlos Algredo Vazquez’s brother, Javier Algredo Vazquez, 56, was convicted at trial for his role in the same drug conspiracy and sentenced on Feb. 23 to 18 years and eight months in prison.
“Precursor chemicals are the lifeblood of the Jalisco Cartel’s deadly drug trafficking operation,” said Attorney General Merrick B. Garland. “Today’s extradition of one of the cartel’s alleged chemical suppliers, Francisco Pulido Coracero, demonstrates the long and relentless reach of the Justice Department. We are grateful to the government of Mexico for their partnership in this extradition. The Justice Department will stop at nothing to hold accountable those who devastate our communities with deadly drugs.”
“The defendant allegedly conspired to distribute methamphetamine and its precursor chemicals into the United States for at least 10 years,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “His indictment and extradition demonstrate that the Criminal Division remains committed to disrupting and dismantling the supply chain that drug trafficking organizations use to manufacture deadly drugs and distribute them across the border. This effort reaffirms the importance of our enduring partnership with the Government of Mexico and we are thankful for the Mexican Attorney General’s Office’s help in facilitating the defendant’s extradition to the United States to face justice.”
According to court documents and evidence presented at Javier Algredo Vazquez’s trial, Pulido Coracero, Javier Algredo Vazquez, Carlos Algredo Vazquez, and other co-conspirators allegedly used seemingly legitimate companies in Mexico and the United States to acquire chemicals that are used to manufacture controlled substances from companies in China, India, and elsewhere. The chemicals were then distributed and used by the CJNG and other Mexican drug trafficking organizations to manufacture controlled substances, which were then imported into the United States.
“Pulido Coracero will now face justice for allegedly conspiring with the Jalisco Cartel, one of the two Mexican cartels responsible for the deadly methamphetamine in the United States,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “The Jalisco Cartel uses a variety of tactics to obtain precursor chemicals and conceal their crimes, including hiding behind the cover of legitimate businesses, which Pulido Coracero is alleged to have done. This investigation is another example of DEA’s commitment to save American lives by stopping the Jalisco and Sinaloa Cartels.”
Mexican authorities arrested both Pulido Coracero and Carlos Algredo Vazquez in October 2023. Carlos Algredo Vazquez’s extradition to the United States is still pending.
The DEA Los Angeles Field Division investigated the case with assistance from the U.S. Marshals Service’s Investigative Operations Division and Homeland Security Investigations Houston.
Trial Attorneys Kate Naseef and Jonathan Hornok, Acting Assistant Deputy Chief Nhan Nguyen, and Acting Deputy Chief Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
The Justice Department’s Office of International Affairs contributed significantly to the investigation and in securing the arrest and extradition of Pulido Coracero. The Justice Department thanks Mexican authorities for their key role in securing the arrest and extradition of Pulido Coracero, including the Mexican Attorney General’s Office (FGR) and INTERPOL Mexico for providing critical assistance in support of the prosecution.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexican national living in Columbus sentenced to 10 years in prison for role in fentanyl conspiracyRead the Press Release
COLUMBUS, Ohio – A Mexican national was sentenced in U.S. District Court today to 120 months in prison for conspiring to distribute kilogram quantities of fentanyl in Central Ohio for a supplier in Mexico.
According to court documents, Luis Martinez-Torres, 26, of Columbus, illegally entered the United States and distributed large quantities of narcotics at the behest of a dangerous drug cartel in Mexico.
Martinez-Torres would deliver requested amounts of fentanyl to buyers after the buyers contacted a dispatch telephone number.
In April 2023, Martinez-Torres and a co-conspirator possessed or distributed more than 2.7 kilograms of fentanyl, including approximately 6,290 fentanyl pills marked as Oxycodone.
This is the third time Martinez-Torres has been found in the United States illegally, and he faces deportation following his term of imprisonment.
Martinez-Torres was arrested in June 2023 and pleaded guilty in January 2024 to conspiring to possess with intent to distribute 400 grams or more of fentanyl.
Several local drug task forces – including from Delaware, Hardin and Union counties – participated in the investigation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Shawn Gibson, Acting Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence imposed by Senior U.S. District Court Judge James L. Graham. Assistant United States Attorney Nicole Pakiz is representing the United States in this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Luzerne County Man Charged with Commercial BriberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose L. Ortiz, age 48, of Drums, Pennsylvania, was charged May 8, 2024, in a criminal Information with conspiring to commit honest services fraud.
According to United States Attorney Gerard M. Karam, the Information alleges that, during his tenure as a manager and director at a Pennsylvania food services company from 2014 to 2021, Ortiz and his coconspirators accepted cash bribes and other things of value from other coconspirators who owned and operated Global Staffing Services, Inc. and Penns Independent Staffing. Global Staffing Services, Inc. and Penns Independent Staffing were two companies that leased temporary employees to Ortiz’s company. In exchange for the kickbacks, Ortiz and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies. Allegedly, over $18,000,000 were paid to the two staffing companies, in exchange for hundreds of thousands of dollars in kickbacks. Ortiz allegedly received approximately $200,000 of those cash kickbacks.
Six other individuals were previously prosecuted in this investigation:
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to accepting, as the General Manager of the Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, another temporary staffing company that he owned and operated. Encore Staffing Solutions LLC leased temporary employees to manufacturing businesses throughout Pennsylvania. Holmes awaits sentencing.
- Madeline Nieves, age 49, of Plains, Pennsylvania, pleaded guilty to a tax fraud conspiracy. Nieves conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, which she owned and operated. Nieves failed to report Encore Staffing Solutions LLC employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. Nieves was sentenced to 15 months of imprisonment.
- Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam was sentenced to three years of probation.
- Danny Sing, age 60, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees, and to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Danny Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. Sing awaits sentencing.
- Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS.
- Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, pleaded guilty to accepting, as a supervisor of the Pennsylvania food services company, approximately $150,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $13,000,000 from Bonnewell’s employer. Bonnewell also pleaded guilty to failing to disclose cash income on his personal tax returns. Bonnewell awaits sentencing.
The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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KDY Crew Member Sentenced to 16 Years in Prison for Violent Crime Spree Involving Multiple Carjackings and Armed RobberiesRead the Press Release
WASHINGTON – Azriel Ethan Echavarria, 22, of Washington, D.C., was sentenced today to 192 months in prison for committing a string of armed carjackings and violent armed robberies with two co-defendants in the District and Suburban Maryland during 2022.
The sentencing was announced U.S. Attorney Matthew M. Graves, Chief Pamela Smith of the Metropolitan Police (MPD); ATF Special Agent in Charge Craig Kailimai of the Washington Division, Special Agent in Charge David J. Scott of the FBI Washington Field Office's Criminal and Cyber Division, DEA Special Agent in Charge Jarod Forget, of the Washington Division, Chief Malik Aziz of the Prince George’s County, Md., Police Department, and Chief Marcus G. Jones, of the Montgomery County, Md., Police Department.
Echavarria pleaded guilty in U.S. District Court on January 26, 2024, to conspiracy to interfere with interstate commerce, also known as a Hobbs Act robbery; conspiracy to commit carjacking; and armed robbery. In addition to the 16-year prison term, the Honorable Beryl A. Howell, ordered Echavarria to serve 60 months of supervised release.
According to court documents, Echavarria admitted to personally participating in the armed robberies of six individuals, five businesses and/or their employees, and two armed carjackings during the first three months of 2022.
One of Echavarria’s co-conspirators, Tyrell Jordan Stewart, 26, of Washington, D.C., was sentenced to 15 years in prison on January 12, 2024, after pleading guilty in the same spree of carjackings and violent armed robberies.
According to the government’s evidence, Echavarria and his co-defendants are members of the Kennedy Street Crew or KDY, a violent street gang that operates in the Kennedy Street neighborhood in Northwest Washington, D.C. KDY is among the largest crews in the District based on both territory and its vast membership.
The prosecutions of Echavarria and his co-conspirators are part of an ongoing coordinated law enforcement investigation into the Kennedy Street Crew, also known as “KDY.” The multi-year investigation reflects the efforts of nearly every federal law enforcement agency in the District of Columbia, along with the Metropolitan Police Department’s Violent Crime Suppression Division.
The above efforts are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case is being investigated by the FBI Washington Field Office, the Metropolitan Police Department, the Montgomery County, Md., Police Department and the Prince George’s County, Md., Police Department, and ATF’s Washington Field Division.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey and Sitara Witanachchi and Special Assistant U.S. Attorney Timothy J. Coley of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was also provided by former Special Assistant U.S. Attorney Brian Lynch.
Johnstown Man Sentenced to More Than 7.5 Years in Prison for Trafficking of Heroin, Crack-Cocaine, Fentanyl, and MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty and was sentenced in federal court in Johnstown for conspiring to distribute and possess with intent to distribute heroin, crack-cocaine, fentanyl, and methamphetamine, United States Attorney Eric G. Olshan announced today.
Blake Young, 35, pleaded guilty to Count One of the Superseding Indictment before United States Senior District Judge Kim R. Gibson. Following the plea, Judge Gibson sentenced Young to 92 months of imprisonment, to be followed by six years of supervised release.
In connection with the guilty plea, the Court was advised that, from in and around February 2021 to in and around July 2021, in the Western District of Pennsylvania, Young conspired to distribute and possess with intent to distribute quantities of a mixture and substance containing a detectable amount of heroin, cocaine base in the form commonly known as crack, fentanyl, and methamphetamine. Young was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Young. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jackson Man Indicted on Extortion and Child Pornography OffensesRead the Press Release
Jackson, TN – A federal grand jury in Jackson, Tennessee recently returned an indictment charging a Jackson man with federal child exploitation offenses and extortion. United States Attorney Kevin G. Ritz announced the return of the indictment today.
According to information presented in court, Peter Anthony Pappas, 40, has been indicted for using deception to manipulate several minors into providing him with confidential information which he used for fraudulent purposes. Specifically, Pappas used the information to gain unauthorized access to online accounts belonging to the minor victims – including social media, cloud storage, and email accounts. Pappas then used the information obtained from those accounts to both exploit the victims and to target new victims. Pappas’s goal was to obtain sexually explicit images and/or videos from the victims, many of whom he knew were minor children.
Pappas is charged with four counts of distribution of child pornography, four counts of transferring obscene matter to a minor, two counts of attempted production of child pornography, two counts of coercion and enticement of a minor, one count of extortion by interstate communications, and one count of possessing child pornography.
If convicted on all counts, Pappas is facing a sentence of up to life in prison. This case is pending before United States District Court Judge S. Thomas Anderson in Jackson, Tennessee. If Pappas is convicted of the charges, Judge Anderson will determine the sentence to impose on the defendant after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the FBI Memphis Child Exploitation Task Force. Anyone with additional information on this case is asked to contact Special Agent Eric McCraw at the FBI Memphis-Jackson Resident Agency.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
Assistant United States Attorney Josh Morrow is prosecuting this case on behalf of the government.
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For more information, please contact Tjuana Holmes at (901) 544-4231 or [email protected]. Follow the U.S. Attorney’s Office on Facebook or on Twitter at @WDTNNews for office news and updates.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on May 7 was:
David Michael Rosebud Mathison, 48, of Poplar, on charges of wire fraud. If convicted of the most serious crime, Mathison faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Mathison was released pending further proceedings. The FBI conducted the investigation. PACER case reference. 24-28.
David Victor Fast Horse, 35, of Billings, on charges of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Fast Horse faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and three years of supervised release on the crime of possessing a firearm in furtherance of a drug trafficking crime. Fast Horse was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosive, Rocky Boy’s Police Department and U.S. Marshals Service investigated the case. PACER case reference. 23-42.
Jamison Gray Devine, 35, of Billings and Helena, on charges of prohibited person in possession of ammunition. If convicted of the most serious crime, Devine faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Devine was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Lewis and Clark County Sheriff’s Office and Montana Probation and Parole conducted the investigation. PACER case reference. 24-8.
Richard William Karp, 54, of Billings, on charges of prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, Karp faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Karp was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Broadwater County Sheriff’s Office and Montana Probation and Parole conducted the investigation. PACER case reference. 24-9.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 8 was:
Shane Michael Kardash, 33, of Livingston, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Kardash faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Kardash was detained pending further proceedings. The U.S. Postal Inspection Service, Park County Sheriff’s Office, Livingston Police Department and Billings Police Department conducted the investigation. PACER case reference. 24-7.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Honoring National Police WeekRead the Press Release
HAMMOND— In honor of National Police Week, United States Attorney Clifford D. Johnson salutes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, National Police Week is observed Sunday, May 12 through Saturday, May 18, 2024.
In 1962, President John F. Kennedy signed a proclamation which designated May 15 as Peace Officers Memorial Day and the week in which that date falls as Police Week. Every year, tens of thousands of law enforcement officers from around the world converge on Washington, D.C. to participate in planned events which honor those that have paid the ultimate sacrifice.
Based on preliminary data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), approximately 136 law enforcement officers died in the line of duty nationwide during 2023. This is a sizeable decrease of approximately 39% from the 224 officers killed in 2022. The decrease of line-of-duty deaths for 2023 has occurred in most major categories that are tracked, including another year of substantial reductions in Covid-19 related deaths. Of the 136 officers killed in the line of duty in 2023, 47 officers died as result of gun fire.
United States Attorney Clifford D. Johnson said, “I am grateful for the work law enforcement officials undertake every day to protect the citizens in their communities. Running toward danger to protect others is one of those selfless acts which deserves the utmost honor and respect. It is my solemn duty to honor all law enforcement officers who have paid the ultimate sacrifice in protecting others.”
Tragically, seven (7) law enforcement officers from Indiana were killed in the line of duty in 2023. The names of these seven (7) officers, as well as the names of seven (7) other officers who died in Indiana in other years will be added to the National Law Enforcement Officers Memorial as part of this year’s ceremony.
The names of the fallen officers have been added to the wall at the National Law Enforcement Officer Memorial and will be read on Monday, May 13, 2024, during a Candlelight Vigil in Washington, D.C. There are currently 24,067 names engraved on the Memorial.
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Herkimer County Man Indicted for Sexual Exploitation of Minors and Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Andrew Edick, age 37, of Mohawk, New York, was indicted yesterday for the sexual exploitation of two minors, and for the transportation and possession of child pornography. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI), Buffalo, New York Field Office, made the announcement.
According to the indictment and documents previously filed in the case, between August and October 2022, Edick allegedly used two children, born in 2009 and 2013, to engage in sexually explicit conduct for the purpose of creating child pornography. Edick is also charged with committing these offenses while he was required to register as a sex offender. The grand jury also indicted Edick for transportation of child pornography after he allegedly shared, via the internet, images he created of the 9-year-old victim, as well as possession of numerous images and videos of child pornography.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Edick was arrested on May 18, 2023, after a complaint was filed in federal court alleging his sexual exploitation of the 9-year-old. He has been detained since that date. He is scheduled to be arraigned on the indictment at a future date.
If convicted of all charges, Edick faces at least 35 years and up to life in prison, a fine of up to $250,000, and a supervised release term of at least 5 years and up to life. Edick may also be ordered to pay restitution to the victims of his offenses and forfeit the device used in the offenses. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Edick would also have to register as a sex offender upon his release from prison.
HSI is investigating this case with assistance from the New York State Police. Assistant United States Attorney Benjamin S. Clark is prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Henry County Man Indicted on Child Pornography OffensesRead the Press Release
Jackson, TN – A federal grand jury in Jackson, Tennessee recently returned an indictment charging a Henry County man with federal child exploitation offenses. United States Attorney Kevin G. Ritz announced the return of the indictment today.
Levi Edward Hamilton, 22, of Mansfield, Tennessee, was indicted for soliciting sexually explicit images and videos from several individuals, including minor children, through interstate commerce, such as the internet and the use of social media accounts.
Hamilton is charged with five counts of production of child pornography, five counts of coercion and enticement of a minor, five counts of receipt of child pornography, three counts of transferring obscene matter to a minor, and one count of possessing child pornography.
If convicted on all counts, Hamilton is facing a sentence of up to life in prison. This case is pending before United States District Court Judge S. Thomas Anderson in Jackson, Tennessee. If Hamilton is convicted of the charged offenses, Judge Anderson will determine the sentence to impose on the defendant after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the FBI Memphis Child Exploitation Task Force and the Henry County Sheriff’s Office. Anyone with additional information on this case is asked to contact Special Agent Eric McCraw at the FBI Memphis-Jackson Resident Agency, or Lieutenant David Andrews at the Henry County Sheriff’s Office.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
Assistant United States Attorney Josh Morrow is prosecuting this case on behalf of the government.
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For more information, please contact Tjuana Holmes at (901) 544-4231 or [email protected]. Follow the U.S. Attorney’s Office on Facebook or on Twitter at @WDTNNews for office news and updates.
HSI, DEA, and local partners, seize more than 16 kilograms of fentanyl powder and 60,000 fentanyl pills in fast-moving investigationRead the Press Release
Seattle – A fast moving investigation resulted in the seizure of a large amount of fentanyl and four federal arrests, announced U.S. Attorney Tessa M. Gorman. The investigation began in late March with undercover agents setting up initial drug deals. The case culminated with arrests and seizures on May 9, 2024. The four defendants appeared today in U.S. District Court in Seattle.
“This quick work by federal and local law enforcement will save lives with 16 kilos of fentanyl powder and tens of thousands of pills taken off the street,” said U.S. Attorney Gorman. “With deadly fentanyl overdoses occurring at a rate of two a day in King County alone, we are focused at getting as much fentanyl as we can off the streets and out of circulation.”
“Fentanyl traffickers threaten the lives of our community for profit, and this amount of fentanyl represented over 1.6 million potentially lethal doses,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The Drug Enforcement Administration and our partners work tirelessly to stop those who would bring this tragedy to our communities and this case is another example of the power of teamwork to make us all safer.”
According to the criminal complaint, undercover agents working with Homeland Security Investigations posed as well-funded drug customers. They set up a deal to purchase kilos of fentanyl powder and pills. Elvin Irias-Escoto, 22, of Honduras, who lived in Renton, agreed to supply the drugs. DEA Tacoma agents surveilled Irias-Escoto and his coconspirators as they packed boxes, a backpack, and a cooler into a car at a Renton apartment complex. The four conspirators drove to the Bellingham area where they had set the drug sale for a shopping center parking lot. The defendants showed law enforcement two boxes which contained 15 packages of just over 15 kilograms of fentanyl powder.
Ultimately all four men were arrested. In addition to Irias-Escoto, these three defendants are charged in the case:
Selvin Ponce-Maradiaga, 26, of Honduras, living in Renton, WA
Sammy Maradiaga-Escoto, 20, of Honduras, living in Federal Way, WA
Hector Rosales-Martinez, 24 of Honduras, Washington residence unknown
In addition to the fentanyl powder, law enforcement seized a firearm that was in the car. A search of the Renton apartment by agents resulted in the seizure of an additional 60,000 fentanyl pills, another kilogram of fentanyl powder and multiple boxes of ammunition.
“Today's successful operation, resulting in four arrests and the seizure of a significant quantity of fentanyl, underscores the importance of collaborative efforts between HSI and our law enforcement partners,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This joint investigation exemplifies the dedication and coordination necessary to combat the scourge of illicit drugs in our communities. We remain committed to working together to disrupt criminal networks and protect the safety and well-being of our citizens."
"I cannot overstate the gravity of this fentanyl seizure and the pivotal role of our collaborative partnerships, said Tobin Meyer, Commander of the Skagit County Interlocal Drug Enforcement Unit (SCIDEU). “This operation epitomizes the effectiveness of pooling resources and expertise across agencies. Through unified efforts, we send a clear message to drug traffickers: we will relentlessly pursue you, disrupt your operations, and safeguard our communities from the devastating impact of illicit substances."
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case was the result of coordinated work between HSI, DEA, FBI, Skagit County Interlocal Drug Enforcement Unit, Whatcom County Sheriff’s Office, Customs and Border Protection Office of Field Operations, Customs and Border Protection Air and Marine Operations, and U.S Border Patrol.
The case is being prosecuted by Assistant United States Attorneys Yunah Chung and Jehiel Baer.
Glastonbury Psychologist Sentenced to Prison for Defrauding Medicaid of More Than $1.6 MillionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL B. PINES, 75, of Avon, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 27 months of imprisonment, followed by 3 years of supervised release, for defrauding Medicaid of more than $1.6 million.
According to court documents and statements made in court, Pines is a psychologist who owned and operated Michael B. Pines, Ph.D., P.C., located in Glastonbury. Pines provided psychotherapy to young children, adolescents, and adults, and he was enrolled individually as a Behavioral Health Clinician provider in the Connecticut Medicaid Program (“Medicaid”).
Between January 2017 and October 2023, Pines submitted and caused to be submitted fraudulent claims to Medicaid for psychotherapy services that were purportedly provided to his Medicaid clients. Specifically, Pines submitted claims for dates of service when no services of any kind had been provided to the Medicaid clients identified in the claims, including when he was traveling, on vacation, recovering from surgery, or otherwise not working. He also submitted claims when an appointment had been canceled, when the claimed client was in the hospital, when he had stopped treating the claimed client, and when the claimed client had never been his client. In addition, when Pines treated multiple Medicaid clients in the same family at the same time, he billed Medicaid for the group visit as multiple individual claims, a practice that he knew was not permitted by Medicaid.
The investigation revealed that Pines used his business bank account for numerous personal expenditures.
Through this scheme, Pines defrauded Medicaid of $1,617,679. Judge Nagala ordered Pines to make full restitution. Pines also forfeited 16 pieces of jewelry, which he paid for using his business bank account, with an appraised replacement value of $67,685.
On January 31, 2024, Pines pleaded guilty to health care fraud.
Pines who is released on a $250,000 bond, is required to report to prison on June 24.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Gibsonia Man Charged with Insider Trading Based on Non-Public Information Related to Dick’s Sporting Goods Business OperationsRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pennsylvania, was charged in federal court with securities fraud, United States Attorney Eric G. Olshan announced today.
Frank T. Poerio Jr., 62, was charged by criminal Information with four counts of securities fraud.
According to the Information, Poerio used sensitive, material non-public information (MNPI) obtained from a Dick’s Sporting Goods employee to engage in nearly 200 trades of the company’s securities on the New York Stock Exchange, including the purchase of individual shares and call option contracts. The trading allegedly occurred between August 2019 and May 2021 when the insider worked in a data analytics role at the company’s corporate offices in Moon Township, Pennsylvania. The trades allegedly netted approximately $823,000 in profit for Poerio. As alleged, Poerio knew the Dick’s employee and spoke often with the employee about finances and investing. Several of the alleged trading incidents occurred in the days immediately preceding Dick’s release of periodic earnings statements—so called “blackout” periods, when Dick’s employees were prohibited from trading in the company’s securities.
At each count, the defendant faces a maximum sentence of up to 20 years in prison, a $5 million fine, or both. Under the federal Sentencing Guidelines, the actual sentence imposed by the court would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant, among other factors.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Poerio.
A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Garner Man Sentenced to 16 and a Half Years in Federal Prison for Trafficking Fentanyl Resulting in an Overdose DeathRead the Press Release
RALEIGH, N.C. – Reginald Webb, a 33-year-old resident of Garner, has been sentenced to 198 months in prison for distributing heroin and fentanyl in the Raleigh area. On April 11, 2017, Webb was the source of the fentanyl distributed to a 22-year-old woman who overdosed and died. Webb pled guilty on January 5, 2024. Webb’s co-defendant in this case, as well as an additional individual who was indicted separately, have previously pled guilty to charges and are awaiting sentencing.
“In 2023, there were more than 4,000 suspected overdose deaths in North Carolina. Drug dealers who lace fentanyl into their supply and prey on vulnerable individuals who have an addiction should know that the U.S. Attorney’s Office will use every tool available to seek justice for victims of fentanyl poisoning and their families” said U.S. Attorney Michael Easley. “Webb's actions show a complete disregard for human life motivated by sheer greed.”
“The Raleigh Police Department (RPD) is proud to collaborate with U.S. Attorney Michael Easley in our joint endeavor to preserve lives and remove the offenders who sell and deliver dangerous drugs, like fentanyl, from our community,” said Chief Estella Patterson. “This investigation and prosecution underscores our commitment to identifying those who seek to destroy our communities by distributing illegal opioids. The RPD, in partnership with federal, state, and local agencies, will pursue justice for the families who lose loved ones to the opioid crisis and will never concede in our efforts to prevent opioid overdoses in our city.”
According to the court documents and other information presented in court, on April 11, 2017, the RPD responded to a 911 call for a suspected overdose death. The investigation that followed confirmed that a 22-year-old woman lost her life due to a fentanyl overdose. Ultimately, law enforcement learned that Webb was the source of supply for the drugs that led to the fatal overdose.
Text messages found on the victim’s phone showed that she arranged to purchase heroin from Amanda McLeod (indicted separately) on the day she died. Video footage from a Food Lion showed the victim withdrawing money from an ATM and getting into a vehicle law enforcement later learned McLeod drove and that Treveris Montel Coward, Webb’s co-defendant, was the vehicle’s front seat passenger. During the investigation, law enforcement learned that the day before the overdose death, the victim suffered a non-fatal overdose after taking drugs suspected to be laced with fentanyl, also distributed by McLeod and sourced by Webb. McLeod contacted Coward when the victim began to overdose, and both Coward and Webb came to the scene and revived her. Despite the victim’s recent overdose, additional fentanyl, distributed by McLeod and sourced by Webb, was provided to the victim the following day, which caused her to overdose and die.
The investigation into the overdose death led investigators to look into drug trafficking activities of Webb and uncovered another case from August of 2016 where a young man suffered a non-fatal overdose and identified Webb as his supplier. In addition, a confidential informant was utilized to purchase heroin from Webb in 2015. Webb was later arrested in March of 2017 after a traffic stop in Duplin County, which resulted in the seizure of 18 bindles of heroin found in Webb’s underwear.
On February 3, 2021, McLeod (5:20-cr-533-1D) pled guilty to distributing a quantity of fentanyl and aiding and abetting. On October 4, 2022, Coward (5:21-cr-00148-D-2) pled guilty to distributing a quantity of a mixture or substance containing a detectable amount of fentanyl and aiding and abetting.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Judge James C. Dever III. The Raleigh Police Department investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:21-cr-00148-D-1.
Gang Member Sentenced to 210 Months in Federal PrisonRead the Press Release
NEW ORLEANS, LOUISIANA – ASHTON CAUSEY, age 22, a resident of Orleans Parish, was sentenced on May 7, 2024 to serve 210 months in federal prison on multiple drug and firearms violations, followed by a term of three years of supervised release. Additionally, CAUSEY was ordered to pay a mandatory $600 special assessment fee.
Back on January 19, 2024, CAUSEY pled guilty before U.S. District Judge Darrel James Papillion to Counts 1, 3, 4, 5, 7, and 8 of the indictment pending against him. Count 1 charged CAUSEY with the illegal possession of a machinegun, in violation of 18 U.S.C. § 922(o). Count 3 charged him with possession with the intent to distribute a quantity of a mixture or substance containing a detectable amount of marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D). Counts 4 and 7 charged him with possession with the intent to distribute a quantity of a mixture or substance containing a detectable amount of fentanyl and marijuana, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D). Count 5 charged him with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). Count 8 charged him with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c).
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, the Louisiana State Police, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
Fourth Honduran National Extradited to the U.S. in Prosecution of Tenderloin District Drug Trafficking OrganizationRead the Press Release
SAN FRANCISCO – On May 8, 2024, the government of Honduras extradited convicted felon Victor Viera-Chirinos to the United States. The extradition marks the fourth in the case against 14 defendants alleged to have been trafficking large quantities of heroin, methamphetamine, cocaine base, and cocaine in San Francisco. Information about the three defendants previously extradited can be found here.
“Victor Viera-Chirinos thought he could evade consequences for his criminal conduct by fleeing to Honduras prior to his sentencing,” said U.S. Attorney Ismail Ramsey. “Let this case be instructive to people considering whether to distribute drugs in the Tenderloin District; the reach of the government is long and we are determined to assign the resources necessary to eradicate drug dealing from our neighborhoods and punish those who are found guilty of violating the drug trafficking laws.”
“Victor Viera-Chirinos thought he could run from justice, but he could not hide from it,” said DEA Special Agent in Charge Brian M. Clark. “As our sustained enforcement efforts in San Francisco continue, the economics of drug dealing no longer make sense for those peddling poison in the Tenderloin. This extradition makes it clear that we will use every tool at our disposal to hold you accountable because no one is beyond the grasp of the DEA and our law enforcement partners.”
Viera-Chirinos, 42, was originally charged by criminal complaint on July 29, 2019, with charges that he participated in a conspiracy to distribute drugs in the Tenderloin. A federal grand jury indicted Viera-Chirinos on August 8, 2019, alleging he was one of 14 defendants trafficking large quantities of heroin, methamphetamine, cocaine base, and cocaine. The charging documents describe how Viera-Chirinos was involved with the organization. For example, the complaint alleges Viera-Chirinos collected “rent” for street-level dealers who paid the organization for housing while participating in the organization’s drug trafficking activities. Similarly, the charging documents describe how the defendant played a role in ensuring street-level dealers were supplied with drugs for trafficking activities.
On January 27, 2021, Viera-Chirinos pleaded guilty to conspiring to distribute and possess with the intent to distribute heroin, methamphetamine, cocaine base, and cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B). In his plea agreement, Viera-Chirinos described his role in the drug trafficking organization; specifically, Viera-Chirinos admitted that no later than June 2018 he entered into an agreement with other individuals to distribute and possess with intent to distribute heroin, methamphetamine, cocaine base, and cocaine to street-level dealers, who ultimately sold drugs in the streets of San Francisco, including in the city’s Tenderloin District. Viera-Chirinos also admitted that he made at least one delivery of drugs to a co-conspirator and described how he facilitated the sale of additional drugs to other members of the conspiracy. Viera-Chirinos further acknowledged in his plea agreement that the total weight of drugs attributable to him was an amount over 1775 kilograms of converted drug weight.
The district court scheduled Viera-Chirinos’s sentencing hearing for June 2, 2021. In filings related to the defendant’s sentencing, the government described Viera-Chirinos as an experienced trafficker who, through his own admission, had been selling drugs in San Francisco’s Tenderloin District for years. The filing described how Viera-Chirinos’s conduct in the case demonstrated his “savviness as a trafficker.” Approximately one week prior to his sentencing, the defendant absconded from pretrial release and fled to Honduras.
Viera-Chirinos arrived back in the Northern District of California on May 8, 2024, to face sentencing for the charge set out in the August 2019 indictment. He is scheduled to appear before U.S. Magistrate Judge Sallie Kim on May 15, 2024, for further proceedings, including identification of counsel. A date for his sentencing has not yet been scheduled.
The Justice Department’s Office of International Affairs worked with Honduran authorities to secure the arrest and extradition of Viera-Chirinos.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Utica Mayor and School Board President Pleads Guilty to Mail Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Louis LaPolla, age 78, of Utica, New York, pled guilty today in federal court in Syracuse to mail fraud for soliciting and then stealing donations intended for a scholarship fund in his late wife’s name. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), announced the guilty plea.
In pleading guilty, LaPolla admitted that he set up a scholarship fund in honor of his late wife, Andrea LaPolla, after she passed away in 2018, with the stated intention of benefitting Utica City School District students who planned to pursue post-secondary education in health-related fields. LaPolla further admitted that he received nearly $40,000 in donations intended for the scholarship fund from individuals and businesses and that he spent nearly all the donated money on himself rather than depositing it into the scholarship fund. LaPolla served as the mayor of Utica from 1984 to 1995, and he served as President of the Utica City School Board from 2018 to 2022, following 21 years of service as a member of the board.
LaPolla will be sentenced on September 10, 2024, by United States District Judge Glenn T. Suddaby. The charges filed against LaPolla carry a maximum sentence of 20 years in prison, a fine of up to $1.5 million, and a term of supervised release of up to 3 years. The defendant will also be required to pay restitution in the amount of $38,616. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Earlier this year, LaPolla pled guilty in Oneida County Court to a misdemeanor petit larceny charge after admitting that he used envelopes, stamps, and mailing labels belonging to the Utica City School District to send out fundraising flyers relating to the scholarship. In that case, LaPolla was sentenced to 60 days of house arrest, 3 years of probation, and ordered to pay $3,100 in restitution.
The FBI is investigating the case with assistance from the New York State Police and the Oneida County District Attorney’s Office. Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Former Rochester mail carrier sentenced for stealing mailRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Marlene Cruz, 40, of Rochester, NY, who was convicted of theft of mail matter by officer or employee, was sentenced to serve two years’ probation by U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in January 2022, the U.S. Postal Service (USPS) received complaints from individuals stating that their mail had been tampered with in late 2021. Subsequent investigation determined that Cruz, a full-time Mail Carrier, worked the mail route involving the complaints. Further investigation determined that between January 2022, and November 2023, Cruz routinely opened envelopes and parcels, removing items such as ticket stubs, documents, cash, lottery tickets, and gift cards, on dozens of occasions.
In May and November 2023, investigators conducted mail integrity tests, placing greeting cards containing cash and gift cards in the mail to be delivered by Cruz. On November 2, 2023, at the end of her shift, investigators detained Cruz and executed a warrant for her person and personal belongings. During the search, they recovered a gift card from one of the mail integrity test greeting cards inside Cruz’ personal duffle bag.
The sentencing is the result of an investigation by the U.S. Postal Service Office of Inspector General, under the direction of Matthew Modafferi, Special Agent-in-Charge Northeast Field Office.
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Former Perry County Commonwealth’s Attorney Pleads Guilty to Federal Honest Services Wire FraudRead the Press Release
LONDON, Ky.— The former Commonwealth’s Attorney, for the 33rd Judicial Circuit of Kentucky, Scott Blair, 52, of Hazard, Ky., pleaded guilty on Friday, before U.S. Magistrate Judge Hanly A. Ingram, to committing honest services wire fraud.
According to his guilty plea agreement, between April 2020 and March 2024, Blair knowingly and intentionally devised a scheme to fraudulently deprive the citizens of Perry County of their right to his honest services, as the elected Commonwealth’s Attorney, through bribery. On multiple occasions, Blair agreed to take official actions, in his position as the Commonwealth’s Attorney – including making recommendations on probation, drug court, and probation violations or sanctions for defendants he was prosecuting – in exchange for methamphetamine and sexual favors.
“Whenever prosecutors reject their official duties for the public, and instead abuse their positions for personal benefit, that does continuing damage to us all,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “It not only victimizes individuals, but it demeans the true work of law enforcement, undermines fairness and public safety, and diminishes faith in the criminal justice system. This conviction is an important step toward restoring the necessary integrity and faith in the system and preventing this grave misconduct.”
“Blair’s conduct undermines the confidence the public deserves to have in their government officials,” said Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Division. “The public relies on its Commonwealth’s Attorneys to maintain and validate its faith in our criminal justice system. As he admitted today, Blair betrayed that trust by engaging in a scheme that spanned years and corrupted the fair administration of justice for personal gain. The FBI will pursue corrupt actors without fear or favor, and the people of Perry County and the Commonwealth of Kentucky deserve nothing less.”
“All Kentuckians – including the people of Perry County – deserve prosecutors with integrity and public servants they can trust. Scott Blair violated that trust and broke the law,” said Attorney General Russell Coleman. “This conviction will help restore public safety in this community, and it is an example of the zealous collaboration between our Office and our partners that is key to protecting Kentucky families.”
“I commend the outstanding work conducted by our detectives along with our federal partners, into this investigation” said KSP Commissioner Phillip Burnett, Jr. “We hope this will bring closure to the citizens of Perry County and renew their trust in the justice system.”
United States Attorney Shier; Special Agent in Charge Stansbury; Kentucky Attorney General Coleman; and Commissioner Burnett, jointly announced the guilty plea.
The investigation was conducted by the FBI, the Kentucky Attorney General’s Office, and the KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the matter on behalf of the United States.
The Court will enter a separate order setting a date for sentencing. Blair faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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Former Camden County Sheriff’s Deputy Charged with Distributing Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A former Camden County, Mo., sheriff’s deputy and school resource officer has been charged in federal court with distributing child pornography.
Darrin Marshall Skinner, 49, was charged in a criminal complaint filed in the U.S. District Court in Jefferson City, Mo., on Thursday, May 9.
Skinner was employed by Camden County as a deputy sheriff and assigned as a school resource officer in the Macks Creek School District. Prior to being hired by Camden County, he worked as a police officer in Osage Beach, Mo.
According to an affidavit filed in support of the federal criminal complaint, the investigation began when the social media network MeWe reported to the National Center for Missing and Exploited Children’s Cyber Tip Line that a user, later identified as Skinner, had uploaded images of child pornography. On June 7, 2023, the National Center for Missing and Exploited Children sent the report to the Camden County Sheriff’s Department. Due to Skinner’s connection to the department, the case was taken over by the Missouri State Highway Patrol.
Investigators learned the email address allegedly used by Skinner was a member of several sexually themed social groups. On Aug. 1, 2023, law enforcement officers executed a search warrant and interviewed Skinner at his residence.
Investigators learned that MeWe had made a prior report to the Cyber Tip Line in 2020 related to a user identified as Skinner allegedly uploading multiple images of child sexual abuse through the application’s chat feature. Skinner allegedly sent child sexual abuse material on multiple occasions, including images of children under the age of 12 and a pre-school age child.
Skinner also shared a number of photos of prepubescent girls identified as being from the community with other users of the MeWe platform, the affidavit says. He cropped and adjusted these images to be more sexually suggestive. No local minors were contained in the images of child pornography. It is believed Skinner obtained some of these photos of local minors from social media since they were in gymnastics or dance clothes associated with a local gymnastics studio. The images were exchanged as part of sexually charged chats between Skinner and other MeWe users.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Melissa A. Pierce. It was investigated by the Missouri State Highway Patrol Digital Forensic Investigative Unit and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former CEO and Controlling Shareholder of Fat Brands Inc., Former CFO, and a Tax Advisor Indicted in Alleged Scheme to Conceal $47 Million Paid to CEO in the Form of Shareholder LoansRead the Press Release
INDICTMENT (FAT Brands Inc., et al.) INDICTMENT (Wiederhorn firearm and ammo)LOS ANGELES – Andrew A. Wiederhorn, the former CEO and current controlling shareholder of the publicly traded Fat Brands Inc. (FAT), has been indicted on federal charges alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT’s minority shareholders, and the broader investing public, the Justice Department announced today.
According to the indictment returned Thursday by a federal grand jury, Wiederhorn – assisted by FAT’s chief financial officer and his outside accountant at advisory firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act’s prohibition on direct and indirect extensions of credit to public-company CEOs in the form of a personal loan.
“This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars,” said United States Attorney Martin Estrada. “Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund, in violation of federal law. The Corporate and Securities Fraud Strike Force of my office focuses on rooting out corporate malfeasance by corporate insiders, and we will continue to protect the public by bringing these important prosecutions.”
“The indictment alleges that with the assistance of his co-defendants, Mr. Wiederhorn repeatedly evaded his taxes and the law as he engaged in a cover-up to avoid being accountable to shareholders,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “Rather than continuing to fund his lavish lifestyle, Mr. Wiederhorn will face serious consequences for his alleged criminal actions.”
“The allegations contained in the indictment against Mr. Wiederhorn show that he is a serial tax cheat. His actions over decades hurt not only his company and its shareholders, but also every American taxpayer,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Failing to honestly and accurately report income shortchanges Americans, and places undue strain on honest taxpayers. CI is committed to investigating this sort of criminal behavior to ensure accountability and equity in the tax system.”
The defendants charged in the indictment are:
- Wiederhorn, of Beverly Hills;
- William J. Amon, of Los Angeles, a certified public accountant, attorney, and one-time managing director of Andersen’s Los Angeles Office, who provided tax-advisory services to Wiederhorn, FAT, and FAT’s former affiliate, Fog Cutter Capital Corporation (FOG);
- Rebecca D. Hershinger, a Los Angeles-area resident who formerly served as FAT’s CFO and, in that role, certified FAT’s public filings; and
- Fat Brands Inc., a publicly traded global franchising company based in Beverly Hills that acquired and developed casual-dining restaurant concepts, including Fatburger, Johnny Rockets, Hurricane Grill and Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses.
Wiederhorn is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. The remaining defendants are expected to be arraigned during the first week of June.
According to the indictment, Wiederhorn began disguising distributions to himself in the form of shareholder loans approximately 30 years ago, when he served as CEO of another company, Wilshire Credit Corporation (WCC). After forgiving himself some $65 million in putative debts owed to WCC, Wiederhorn resolved a federal grand jury investigation into that and related conduct by pleading guilty in 2004 in the District of Oregon to the payment of illegal gratuities and filing a false federal tax return. FOG and its affiliates are successor corporate entities to WCC and its affiliates.
From at least 2006 through 2021, Wiederhorn was the subject of efforts by the IRS to collect personal income tax and trust fund taxes he owed personally and as a responsible party and guarantor for entities, including FOG, the indictment states. The IRS efforts included levies and liens on Wiederhorn’s accounts and assets due to outstanding taxes he owed. The IRS, beginning in 2016, assessed Wiederhorn penalties for FOG’s failure to pay trust fund taxes and failure to establish a payment plan. By March 2021, Wiederhorn’s unpaid personal income tax liability to the IRS totaled approximately $7,743,952, inclusive of statutory interest and penalties, according to the indictment.
Beginning no later than 2010 and continuing through early 2021, Wiederhorn allegedly caused employees of FAT and FOG to compensate him by distributing to him approximately $47 million for his personal use and benefit. Wiederhorn, Amon, Hershinger and others miscategorized these distributions as “shareholder loans” and failed to disclose as reportable compensation to the IRS, SEC and the broader investing public, the indictment alleges.
Neither FAT nor FOG required Wiederhorn to post collateral, make interest payments or observe any of the other commercial requirements and realities of true loans, according to the indictment, which adds that Wiederhorn generally determined for himself the amount, timing and form of both extension and forgiveness of these “loans” without informing the directors of either FAT or FOG.
“After defendant FAT became an issuer of securities through its IPO [initial public offering], defendant Wiederhorn caused millions of dollars from defendant FAT’s accounts to be disbursed to defendant Wiederhorn and his family members for their personal benefit,” according to the indictment. “These disbursements were used to fund the purchase of private-jet travel, vacations, a Rolls Royce Phantom, other luxury automobiles, jewelry, and a piano.”
The indictment goes on to outline several transfers of hundreds of thousands of dollars that Wiederhorn caused others at FAT to make directly from FAT accounts to pay Wiederhorn’s personal American Express credit-card debts.
“Wiederhorn, posing as both ‘lender’ and ‘borrower,’ caused defendant FAT and FOG to extend to him and then ‘forgive’ tens of millions of dollars in distributions made in the fraudulent form of loans – all while paying no income tax on these distributions and, in fact, using them to generate net operating losses to provide defendant FAT with financially beneficial tax treatment,” the indictment alleges.
Although FAT publicly claimed that it was “cooperating with the government” in connection with this investigation, after members of FAT’s Board communicated with the government, Wiederhorn removed every director other than himself in March 2023 and reconstituted FAT’s Board with a majority of non-independent directors under his control, according to the indictment.
Wiederhorn is charged with one count of endeavoring to obstruct the administration of the Internal Revenue Code, six counts of tax evasion, and one count of false statements and omission of material facts in statements to accountants in connection with audits and reviews.
Both Wiederhorn and Hershinger are charged with four counts of wire fraud, two counts of false statements and omission of material facts in statements to accountants in connection with audits and reviews, and one count of certifying faulty financial reports.
Wiederhorn, Hershinger and FAT are charged with two counts of extension and maintenance of credit in the form of personal loan from issuer to executive officer.
Hershinger is also charged with one count of making false statements to federal investigators, including, among things, denying that company funds were being used to pay Wiederhorn’s personal American Express bill.
Amon is charged with four counts of aiding and assisting the filing of false tax returns.
Any investors who believe they were victims of the crimes alleged in the indictment are encouraged to go to https://www.justice.gov/usao-cdca/united-states-v-andrew-wiederhorn-william-j-amon-rebecca-d-hershinger-and-fat-brands-inc for further information and updates regarding this matter.
Wiederhorn has also been charged in a separate indictment for illegally possessing a firearm and ammunition after being convicted of a felony.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS Criminal Investigation are investigating this matter.
Separately, the U.S. Securities and Exchange Commission has also filed a civil enforcement action against Wiederhorn, Hershinger, FAT, and another FAT executive.
This case is being prosecuted by Assistant United States Attorneys Adam P. Schleifer of the Corporate and Securities Fraud Strike Force and Kevin B. Reidy of the Major Frauds Section.
Federal Law Enforcement Dismantles Brooklyn Gun Trafficking RingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a six-count indictment was unsealed charging Yashiya Louisdor, Zaire Alman, Marques Seals and a fourth defendant with conspiring to illegally traffic more than 40 firearms in three months. Louisdor, Alman and Seals were arrested yesterday and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon. The fourth defendant is still at large. During the arrests 33 guns, including several rifles and shotguns, were recovered.
Breon Peace, United States Attorney for the Eastern District of New York, Thomas Kalogiros, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, in just three short months the defendants attempted to bring over 40 guns into our community to sell them on our streets, including selling near an elementary school,” stated U.S. Attorney Peace. “Thanks to our Office and our law enforcement partners, this gun trafficking ring has been dismantled and we hope this sends a message to all who seek to profit from the illegal gun trade that we will not stop in our efforts to keep our community safe.”
“This indictment highlights NYPD investigators’ ongoing intelligence-driven efforts to pinpoint, arrest, and hold accountable gun traffickers,” stated NYPD Commissioner Caban. “Allegedly selling these illegal firearms in broad daylight, close to a school, makes these charges especially disturbing. Along with our partners at the ATF and the office of the U.S. Attorney for the Eastern District of New York, the NYPD vows to remain relentless in our quest to eradicate gun violence in all New York City neighborhoods.”
Stated ATF Acting Special Agent-in-Charge Kalogiros: “Firearms trafficking is a central focus of the ATF strategy to protect the public from violent crime. These individuals are alleged to have brought dozens of illegal firearms to the streets of New York. With their arrests we have disrupted and dismantled a trafficking ring that profited from bringing illegal firearms to our city streets endangering each and every one of their fellow citizens. I would like to thank the ATF Special Agents and Task Force Officers of the NYPD/ ATF Joint Firearms Task Force for their diligent efforts on this case. This case is yet another example of how the many units in the NYPD and ATF can collaborate and coordinate their efforts with their Federal partners at the United States Attorney’s Office to make the streets safer for all.”
According to the indictment and other court documents, the defendants made multiple sales of at least 40 illegal firearms, including semi-automatic and defaced weapons, between February 2024 and April 2024. The defendants conducted many of these firearms sales in a vehicle in the parking lot of a fast-food restaurant in Brooklyn, New York, which was at a busy intersection and mere blocks away from an elementary school and a sports venue and concert arena. The defendants also conducted these firearm sales in a vehicle near a public transportation hub in Manhattan. Three members of the gun-trafficking operation obtained the firearms in Georgia and then transported them to New York to be sold on the streets of Brooklyn. The firearms deals often occurred in the middle of the afternoon and in broad daylight. Some of the firearms had defaced serial numbers.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Katherine P. Onyshko is in charge of the prosecution, with the assistance of Paralegal Specialist Peiyuan Lo.
The Defendants:
YASHIYA LOUISDOR
Age: 23
Brooklyn, New YorkZAIRE ALMAN
Age: 23
Douglasville, GeorgiaMARQUES SEALS
Age: 23
Douglasville, GeorgiaE.D.N.Y. Docket No. 24-CR-187
Federal Inmate Charged in Fatal Stabbing of Fellow Inmate at the Terre Haute Federal Prison ComplexRead the Press Release
TERRE HAUTE- A federal grand jury has returned an indictment charging Otha Don Watkins III, age 42, of Cairo, Illinois, with involuntary manslaughter and possessing contraband in prison.
On April 14, 2023, Watkins was serving a federal prison sentence and was an inmate at the Federal Correctional Complex in Terre Haute, Indiana. According to the indictment, on April 14, 2023, Watkins allegedly stabbed fellow inmate, Carlos Shelton, with an improvised knife during a fight. Improvised knives, commonly referred to as “shanks” are illegal to possess in prison and pose a significant risk to the safety of fellow inmates and correctional staff. Watkins allegedly created the weapon with a piece of metal sharpened to a point at one end and wrapped in white cloth on the other.
Shelton ultimately succumbed to his injuries. Watkins remains in the custody of the Federal Bureau of Prisons.
The Federal Bureau of Investigation and the Special Investigation Services branch of the Bureau of Prisons investigated this case. If convicted, Watkins faces up to 8 years in federal prison, in addition to his current sentence.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who is prosecuting this 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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Federal Indictment Charges Man with Robbing U.S. Postal Service Employee in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a man for allegedly robbing a U.S. Postal Service employee in Chicago.
RICHARD THOMPSON, 52, of Chicago, took an arrow key from the Postal Service employee on Nov. 10, 2023, according to an indictment unsealed Thursday in U.S. District Court in Chicago. Thompson used a dangerous weapon during the robbery, putting the Postal Service employee’s life in jeopardy, the indictment states.
The indictment charges Thompson with one count of robbery of a Postal Service employee. The charge is punishable by a maximum sentence of 25 years in federal prison. Thompson was arrested on Thursday. He pleaded not guilty during his arraignment Thursday afternoon and was ordered to remain detained in federal custody. A status hearing is set for June 14, 2024, before U.S. District Judge Andrea R. Wood.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Special Assistant U.S. Attorney Mary McDonnell.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Thompson indictmentFairfield Man Charged with Sexual Exploitation of a Child and Receipt of Visual Depictions of Minors Engaging in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 2-count indictment against Trevor Clayton Morgan, 32, of Fairfield, charging him with sexual exploitation of a child and receipt of visual depictions of minors engaging in sexually explicit conduct, United States Attorney Phillip A. Talbert announced. The indictment was unsealed after Morgan’s arrest on May 9, 2024, and he made his initial court appearance today.
According to court documents, in April 2023 Morgan persuaded a minor victim to engage in sexually explicit conduct for the purpose of producing a video recording. In December 2023, Morgan also knowingly received one or more visual depictions of minors engaging in sexually explicit conduct.
This case was the product of an investigation by Contra Costa District Attorney’s Office, United States Homeland Security Investigations, the Silicon Valley Internet Crimes Against Children Task Force, and the Sacramento Valley Hi-Tech Crimes Task Force / Internet Crimes Against Children Task Force. Assistant United States Attorney Christina McCall is prosecuting the case.
If convicted of sexual exploitation of a child, Morgan faces a maximum statutory penalty of 30 years in prison (with a mandatory minimum sentence of 15 years), a lifetime of supervised release, restitution and a $250,000 fine. If convicted of Receipt of Visual Depiction of a Minor Engaging in Sexually Explicit Conduct, Morgan faces a maximum statutory penalty of 20 years in prison (with a mandatory minimum sentence of 5 years), a lifetime of supervised release, plus restitution and a fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
FBI Arrest Maryland Man Following Indictment on Charges of Distribution of Child PornographyRead the Press Release
WASHINGTON – Joseph Ruben Baer, 20, of Silver Spring, Maryland, was taken into custody today following an indictment charging him with distribution of child pornography, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott, of the Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to the indictment, unsealed today, on April 18, 2024, Baer distributed video files depicting the sexual exploitation of minor boys via a social media communication application.
In early 2024, a member of the FBI–MPD Child Exploitation and Human Trafficking Task Force was monitoring an online application in an undercover capacity. Law enforcement has come to learn that the application is used by some individuals who have a sexual interest in children. The undercover agent encountered Baer, who sent a message believing he was communicating with a pedophile. Baer expressed an interest in the sexual exploitation of prepubescent boys and later sent the undercover agent two video files via a social media communication application. Those video files depicted Baer masturbating while watching child pornography on a laptop computer. On April 25, 2024, a federal grand jury returned an indictment charging Baer with one count of distribution of child pornography. The case is assigned to the Honorable Loren L. AliKhan.
Earlier today, law enforcement executed a search warrant at two residences connected to Baer in Silver Spring, Maryland, and arrested him in the District of Columbia. Baer made his initial appearance in the U.S. District Court for the District of Columbia and has been ordered held without bond pending trial.
Distribution of child pornography carries a mandatory minimum sentence of five years’ imprisonment and a statutory maximum of 20 years’ imprisonment. The statutory sentences for federal offenses are prescribed by Congress and are provided here for informational purposes. Any sentence will be determined by the Court based on the advisory Sentencing Guideline and other statutory factors.
The case is being investigated by the FBI Washington Field Office and MPD’s Child Exploitation and Human Trafficking Task Force. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Maryland and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Paul V. Courtney of the U.S. Attorney’s Office for the District of Columbia.
This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Salvadorian National Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – LORENZO ALEXANDER BENITEZ age 40, a native of El Salvador, was indicted on May 9, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, BENITEZ reentered the United States illegally after being previously deported on July 27, 2018. If convicted, BENITEZ faces a sentence of up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorneys Paul J. Hubbell and Spiro Latsis of the General Crimes Unit are in charge of the prosecution.
Duluth Man Convicted of Methamphetamine Trafficking Following a Jury TrialRead the Press Release
ATLANTA - Jorge Rodriguez Martinez was found guilty by a federal jury for his role in a scheme to distribute multiple kilograms of methamphetamine in the metro-Atlanta area. Martinez was charged with one count of conspiracy to possess methamphetamine with the intent to distribute, and one count of possessing methamphetamine with the intent to distribute. Rodriguez Martinez was convicted on both counts following a three-day trial.
“Methamphetamine trafficking funnels poison into our communities,” said U.S. Attorney Ryan K. Buchanan. “This defendant’s conviction sends a strong warning to others that those who peddle dangerous drugs will be held accountable for their conduct.”
“The investigation and subsequent conviction of this criminal drug dealer demonstrates the DEA’s commitment to fight the drug cartels who have no regard for the citizens of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On October 7, 2020, a confidential source (“CS”) working with agents from the DEA, placed multiple recorded phone calls to Rodriguez Martinez to purchase several kilograms of methamphetamine. After the phone calls, Rodriguez Martinez, who was being surveilled by federal law enforcement agents, travelled to a location in the metro-Atlanta area to meet with a drug supplier at a Dunwoody apartment complex. Rodriguez Martinez traveled to the CS’s residence where he dropped off his truck containing multiple kilograms of methamphetamine, switched vehicles, then drove away.
The CS placed additional recorded phone calls to Rodriguez Martinez, during which Rodriguez Martinez confirmed that the drugs were in the truck and agreed to return to the CS’s residence to pick up the drugs. Rodriguez Martinez next travelled to the CS’s residence, picked up the methamphetamine, and quickly departed. Shortly thereafter, the Georgia State Patrol stopped Rodriguez Martinez’s vehicle and located approximately three kilograms of methamphetamine on the front passenger floorboard.
Jorge Rodriguez Martinez, 56, of Duluth, Georgia, is scheduled to be sentenced on July 29, 2024, at 2:30 p.m. before U.S. District Judge Steve C. Jones. Rodriguez Martinez was found guilty by a federal jury on April 25, 2024.
This case is being investigated by the Drug Enforcement Administration.
Special Assistant U.S. Attorney McClellon D. Cox, III, and Assistant U.S. Attorney Sandra E. Strippoli are prosecuting the case. This case was previously prosecuted by Special Assistant U.S. Attorney Rachel S. Lyons.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Doctor Convicted of $6.3M Medicare Fraud SchemeRead the Press Release
A federal jury convicted a Michigan doctor today for causing the submission of over $6.3 million in fraudulent claims to Medicare for medically unnecessary orthotic braces ordered through a telemarketing scheme.
According to court documents and evidence presented at trial, Sophie Toya, M.D., 55, of Bloomfield Hills, signed thousands of prescriptions for orthotic braces for over 2,500 Medicare patients during a six-month period. Toya was not the treating physician for any of these patients and, instead, was connected with some of the patients over the telephone through a telemarketing scheme and spoke to the patients briefly before signing orthotic brace prescriptions for them. For other patients, Toya signed prescriptions without having any contact with them. In one instance, Toya prescribed a lower back brace, right and left shoulder braces, a right wrist brace, right and left knee braces, and right and left ankle braces for a single Medicare patient. Toya also prescribed multiple braces for undercover agents posing as five different Medicare patients after speaking to each agent for less than a minute over the telephone. The evidence presented at trial showed that Toya could not possibly have diagnosed the patients or determined that the braces were medically necessary for them. Nonetheless, Toya signed medical records and prescriptions for braces that falsely represented that the braces were medically necessary and that she diagnosed the beneficiaries, had a plan of care for them, and recommended that they receive certain additional treatment. Toya’s false prescriptions were used by brace supply companies to bill Medicare more than $6.3 million. Toya was paid approximately $120,000 in exchange for signing the fraudulent prescriptions.
The jury convicted Toya of one count of health care fraud and five counts of false statements relating to health care matters. She is scheduled to be sentenced on Aug. 15 and faces a maximum penalty of 10 years in prison for health care fraud and five years in prison on each of the false statements relating to health care matters counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case. The case was charged as part of Operation Rubber Stamp, a coordinated nationwide law enforcement operation that targeted medical professionals who participated in fraudulent telemedicine schemes.
Assistant Chief Rebecca Yuan and Trial Attorney Christopher Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section are prosecuting 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 the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Dentist Sentenced for Unlawfully Distributing Opioids That Caused Patient’s DeathRead the Press Release
A Kentucky dentist was sentenced today to 20 years in prison for his unlawful prescribing of opioids, including morphine that caused the death of one of his patients.
According to court documents and evidence presented at trial, Dr. Jay M. Sadrinia, 61, of Villa Hills, owned and operated dental clinics in Crescent Springs, Kentucky. Sadrinia prescribed powerful opioids to his patients for routine dental procedures despite clear signs, including notes within Sadrinia’s own patient charts, that these patients suffered from substance abuse disorder. Sadrinia’s unlawful prescribing of morphine to one patient led to her death. Sadrinia charged the patient $37,000 for dental procedures and prescribed the patient medically unnecessary quantities of narcotics, including morphine. Several days later, the patient fatally overdosed on the morphine.
A federal jury convicted Sadrinia in June 2023 of unlawful distribution of controlled substances and unlawful distribution of controlled substances resulting in death.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA) Detroit Field Division; and Special Agent in Charge Michael Stansbury of the FBI Louisville Field Office made the announcement.
The DEA and FBI investigated the case.
Assistant Chief Katherine Payerle and Trial Attorney Thomas Campbell of the Criminal Division’s Fraud Section 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 the Department of Health and Human Services Office of Inspector General, 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.
Convicted Felon Charged with Firearms Trafficking After Allegedly Attempting to Trade Fentanyl for Four FirearmsRead the Press Release
BOSTON – A Quincy man was charged today in federal court in Boston for allegedly distributing fentanyl to obtain four firearms.
Caesar Ross, 40, was charged by Information with one count of firearms trafficking and one count of distribution and possession with intent to distribute fentanyl. Ross was previously arrested on related charges in September 2023 and has remained in federal custody since.
According to court documents, in 2022, an investigation began into Ross and others for allegedly engaging in firearms trafficking and other violations of federal firearms and drug laws. It is alleged that in September 2023, Ross met with a cooperating witness in Quincy to whom he provided 60 grams of fentanyl in exchange for four firearms, each of which had no visible serial number: a Beretta 92F, 9 parabellum, pistol; a Beretta 96 Brigadier elite IA, .40S&W pistol; a Glock 22, .40S&W pistol; and a FN Herstal 5.7, 5.7x28 pistol. Ross was immediately taken into custody.
Ross is prohibited from possessing a firearm or ammunition due to a prior felony conviction.
The charge of firearms trafficking provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of distribution and possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Division and the Quincy Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Contractors Agree to Pay $273,100 over Failure to Deliver Telescope to the Air ForceRead the Press Release
ALBUQUERQUE – The U.S. Department of Justice has reached a $273,100 settlement agreement with Hart Scientific Consulting International LLC (“Hart Scientific”) and Composite Mirror Applications, Inc. (“CMA”) over allegations of false claims related to the procurement of a telescope for the Air Force Research Laboratory (“AFRL”).
AFRL contracted with Hart Scientific to acquire the telescope for $250,000 as part of an ongoing research project coordinated through the Small Business Administration’s Small Business Innovation Research program. In turn, Hart Scientific contracted with CMA in December of 2015 to manufacture and deliver the telescope to AFRL. CMA commenced work on the telescope in January of 2016, and provided a 5-month timeline for delivery to the Government. AFRL paid the contractors the $250,000 total amount in monthly installments between January and June of 2016.
In April of 2017, months after the 5-month delivery timeline had passed, CMA continued to experience problems fabricating the telescope’s mirrors, and demanded an additional $13,200, above and beyond the $250,000 price tag agreed upon by the parties. AFRL provided the additional funds, but as the contract came to a close at the end of May 2017, the telescope was not ready for use by the Air Force and was not delivered or leased to the Air Force. Despite failing to deliver the telescope, Hart Scientific claimed in the contract’s final report that the telescope was “leased to the Air Force.”
The United States alleges that the contractors violated the False Claims Act by submitting demands for the monthly installment payments, despite knowing that the telescope would not be delivered in accordance with the applicable contract terms.
To resolve the allegations, Hart Scientific and CMA agreed to pay a total of $273,100 to the U.S. government, with Hart Scientific and CMA jointly responsible for $259,900 and CMA responsible for $13,200.
U.S. Attorney Alexander M.M. Uballez and the Department of the Air Force, Office of the Deputy General Counsel, made the announcement today.
The government’s investigations were led by Assistant United States Attorney Sean M. Cunniff and Auditor Julie Chappell and criminal investigators from the Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 3.
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Connecticut Ophthalmologist Sentenced to Prison for Five-Year Health Care Fraud SchemeRead the Press Release
BOSTON – A Connecticut doctor was sentenced yesterday in federal court in Boston for receiving kickbacks in exchange for ordering medically unnecessary brain scans.
Dr. Donald Salzberg, 69 of Avon, Conn., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year and one day in prison, to be followed by one year of supervised release. Salzberg was also ordered to pay $1.34 million in restitution to Medicare, Medicaid and private insurers. In July 2022, Salzberg pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks.
Salzberg, a licensed medical doctor in the State of Connecticut for nearly 40 years, owned and operated Donald J. Salzberg, M.D., an ophthalmology practice in West Hartford, Conn. From 2014 through 2019, Salzberg conspired with a principal for a medical diagnostics company that performed transcranial doppler (TCD) scans – brain scans that measure blood flow in parts of the brain – to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. Salzberg and his co-conspirator used false patient diagnoses to order the unnecessary brain scans, for which the co-conspirator would submit claims to Medicare and other insurance companies on behalf of the medical diagnostic company for payment. In exchange, Salzberg was paid cash kickbacks of $100 to $125 per test that he ordered, as well as sham administrative services fees. The scheme resulted in fraudulent bills of over $3 million to Medicare and private insurance companies.
Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the FBI Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office made the announcement. Assistant U.S. Attorney Howard Locker of the Health Care Fraud Unit prosecuted the case.