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29 April 2024
Michael Wayne Bentley Sentenced to over 23 Years Imprisonment for Firearm and Drug OffensesRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2024, Michael Wayne Bentley, III, 28, of Gray, Tennessee, was sentenced to 284 months of imprisonment by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. Following his incarceration, Bentley will be on supervised release for five years.
On December 14, 2023, following a three-day jury trial, Bentley was found guilty of conspiracy to distribute 50 grams or more of methamphetamine and attempting to possess with the intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)A); and using, carrying, and/or brandishing a firearm during and in relation to a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
The evidence presented at trial demonstrated that Bentley arranged to receive deliveries of methamphetamine to the Kingsport area via the U.S. Postal Service from a source of supply located in Mexico. Law enforcement intercepted one postal package containing more than 894 grams of methamphetamine. Approximately three weeks later, another package was intercepted, containing more than 839 grams of methamphetamine. That package was addressed to Bentley’s grandparent’s residence. Agents replaced the methamphetamine in the second package with items of a similar weight and the package was delivered. Agents testified they observed Bentley’s grandmother accept the package and, shortly thereafter, Bentley arrived at the residence. Once Bentley left the residence, agents approached Bentley and attempted to arrest him. Bentley pointed a firearm at the agents and fled on foot, with agents in pursuit. During the chase, Bentley again pointed his firearm at the agents and two agents discharged their firearms at Bentley, who was not injured. He was then taken into custody.
During a post-arrest interview, Bentley admitted to agents that he had been receiving methamphetamine through the U.S. mail and distributing it. He also admitted that he had acquired the firearm for protection from other drug dealers.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, Special Agent in Charge, Rana M. Saoud, of the United States Homeland Security Investigations (“HSI”), and Inspector in Charge of the Atlanta Division, Tommy D. Coke, of the United States Postal Inspection Service (“USPIS”) made the announcement.
The criminal indictment was the result of an investigation by HSI, USPIS, and the Second Judicial Drug Task Force. This investigation was led by HSI Special Agent John Bulla.
Assistant United States Attorneys Emily Swecker and B. Todd Martin represented the United States.
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.
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Memphis Man Sentenced for Possession of 25 ‘Switch’ DevicesRead the Press Release
Memphis, TN – A federal judge has sentenced a Memphis resident to five years in federal prison for possessing 25 machine gun conversion devices, more commonly known as “switches”. United States Attorney Kevin Ritz announced the sentence today.
According to information presented in court, U. S. Customs and Border Protection agents intercepted a package from an overseas shipper addressed to Roosevelt Wilson, 43, which was found to contain 25 machine gun conversion devices. These devices significantly enhance the rate of fire of a semi-automatic firearm, converting a gun designed to fire a bullet and quickly reload after each trigger pull to instead function as a fully automatic weapon.
On February 28, 2023, officers made a controlled delivery of the package to the address listed. Wilson retrieved the package and the officers attempted arrest. The defendant then led officers on a high-speed pursuit through a residential neighborhood, tossing the package and a firearm out of his vehicle. Both were discovered along his path of travel. The firearm was later identified as a .40 caliber privately made, Glock-style gun with no serial numbers; it also had a machine gun conversion device affixed to it.
Wilson pled guilty on January 12 to possession of 25 machine gun conversion devices and to receiving and possessing 25 machine gun conversion devices that had been unlawfully imported into the United States. On April 25, 2024, United States District Thomas L. Parker sentenced Wilson to 60 months in federal prison followed by three years of supervised release.
Homeland Security Investigations and U. S. Customs and Border Protection investigated this case on behalf of the Department of Homeland Security. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Southaven Police Department, and the United States Marshals Service also provided assistance.
United States Attorney Ritz thanked Assistant United States Attorney Eileen Kuo, who prosecuted this case, as well as law enforcement partners who investigated the case.
Member of Violent Gang Pleads Guilty to Racketeering Involving Attempted MurderRead the Press Release
BOSTON – A Boston man pleaded guilty today to his role in Cameron Street, a violent Boston gang.
Eric Correia, a/k/a, “Bubba,” 26, has pleaded guilty to one count of conspiracy to participate in a racketeering enterprise, more commonly referred to as RICO conspiracy, and one count of distribution of and possession with attempt to distribute marijuana. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 11, 2024.
Correia was identified as a member of Cameron Street, a violent gang based largely in Dorchester that uses violence to preserve, protect and expand its territory, promote fear and enhance its reputation. According to the charging documents, members use social media applications to promote Cameron Street, celebrate murders and other violent crimes committed by the gang, as well as denigrate rival gangs – in particular, the Dorchester-based NOB gang (Norton, Onley and Barry Streets), known more generally as Wendover. Cameron Street members allegedly possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Cameron Street members also allegedly distribute controlled substances and firearms, commit armed robberies and engage in human trafficking in part to generate income for the Cameron Street enterprise.
Correia pleaded guilty to committing a March 2019 attempted murder with a firearm of a NOB/Wendover gang member on Clayborne Street in Dorchester. Additionally, Correia pleaded guilty to his role in an armed robbery of a drug customer as well as to distributing $1,400 worth of marijuana to a cooperating witness. Despite wearing a mask during the drug deal, Correia was identified through a “C” tattoo on his hand – a symbol commonly used by Cameron Street members to designate membership.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of marijuana provides for a sentence of up to five years in prison, at least two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of Levy’s Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Media Advisory: Sentencing of Jareh DalkeRead the Press Release
What: United States Attorney for the District of Colorado Cole Finegan, and FBI Special Agent in Charge Mark Michalek, will speak at a press conference about the sentencing of Jareh Dalke, 31, of Colorado Springs.
Mr. Dalke will be sentenced by Judge Raymond P. Moore after pleading guilty in October 2023, to six counts of attempting to transmit classified National Defense Information to an agent of the Russian Federation
When: Monday, April 29, 2024
Sentencing begins at 10:30 a.m. The press conference will commence approximately 15 minutes after the end of the hearing. This is likely to occur after 1 p.m.Where: Steps of the Alfred A. Arraj United State Courthouse at 901 19th Street, Denver, CO
USA Finegan and SAC Michalek are not available for questions or interviews.
McAlester Resident Sentenced for Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lawanna Renee Pogue, age 41, of McAlester, Oklahoma, was sentenced to time served for possessing a firearm after being previously convicted of a felony offense.
The charges arose from investigations by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 19, 2023, Pogue pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on December 25, 2022, deputies with the Pittsburg County Sheriff’s Office stopped Pogue’s vehicle after observing a traffic infraction and located a .22 caliber firearm in the vehicle’s trunk compartment. Pogue later admitted to possessing the firearm despite her status as a convicted felon.
The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee.
Assistant United States Attorney Joshua Satter represented the United States.
Maryland Man Pleads Guilty to a String of Armed Robberies and Attempted Robberies of Northwest Commercial BusinessesRead the Press Release
WASHINGTON – Roberto McBean, 30, of Hyattsville, MD, pleaded guilty in U.S. District Court on Friday to a string of 10 armed robberies and attempted robberies in the District between August 22, 2023, and January 8, 2024, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office, and Chief Pamela A. Smith of the Metropolitan Police Department.
McBean admitted to committing all 10 robberies. He pleaded guilty to four counts of interference with interstate commerce by robbery, aka Hobbs Act robbery, on April 26, 2024, before U.S. District Judge Colleen Kollar-Kotelly, who scheduled sentencing for September 5, 2024.
According to court documents, McBean used a small hammer to rob a Sunoco gas station on the 2400 block of Wisconsin Ave., NW, on August 22, 2023. On August 31, McBean used a small vegetable knife to rob the Georgetown Wine and Spirits on the 2700 block of P street, NW of cash and a bottle of red wine. On September 18, 2023, McBean was stymied when he brandished a knife at the Universal Wine and Spirits on the 2000 block of Florida Ave.-- a customer saw what was happening and barked “Not today, Get out!” and McBean left without taking any money. On November 23, 2023, McBean entered the Glover Park Market on the 2400 block of 37th Street, NW, with a black firearm and robbed the market of cash. On December 8, 2023, McBean gained entry to an Exxon gas station in Georgetown, on the 1600 block of Wisconsin Ave., NW, produced a gun and left with a small amount of cash. On December 8, 2023, McBean returned to the Sunoco gas station on Wisconsin Ave., produced his firearm, and ordered the employee to empty the register in a bag. On December 16, 2023, McBean returned to the Glover Park Market, went behind the counter, and opened the cash register. McBean took the cash from the register, multiple lottery tickets, and a plastic bag.
On December 20, 2023, McBean went back to the Georgetown Wine and Spirits shop and ordered an employee to empty the register. The employee told McBean that he didn’t have a key to the register and McBean pulled out a firearm and again demanded money. The employee picked up the entire register and handed it to McBean. McBean fumbled with the machine before handing it back. Unsuccessful, McBean left the store. On January 4, 2024, McBean entered Sara’s Market and Dry Cleaners on the 3000 block of Q Street NW. McBean picked up a bottle of wine, set it on the counter, and demanded cash. The employee said the market did not accept cash and only accepted electronic payments. McBean left the store with only a bottle of wine. On January 5, 2024, McBean again returned to the Glover Park Market armed with a handgun and ordered an employee to fill a bag with cash. In addition to the money, McBean took lottery tickets and two packs of cigarettes with him. On January 8, 2024, McBean returned to the Glover Park Market for the fourth time. The store employee recognized McBean as the same man who had robbed her in December and a few days before.
Agents with the FBI’s Washington Field Office arrested McBean on January 26, 2024.
Because each of the six stores that McBean robbed bought and sold goods in interstate commerce, McBean’s actions in each of the robberies delayed, obstructed, or affected interstate commerce.
This case was investigated by the FBI Washington Field Office Violent Crimes Task Force and the Metropolitan Police Department. It was prosecuted by Ryan Lipes and Omeed A. Assefi.
Marion County Man Pleads Guilty to Disability Benefit Fraud Involving the Department of Veterans AffairsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Paul Lesslie Thompson (70, Anthony) has pleaded guilty to receipt of stolen government property. Thompson faces up to 10 years in federal prison and an order of forfeiture for at least $1.16 million, which represents the proceeds of the offense. A sentencing date has not yet been set.
According to court records, on January 26, 1983, Thompson applied for United States Veterans Affairs (VA) Disability Compensation based on a loss of vision. Between May 1993 and December 2022, Thompson exaggerated the impairment during his VA vision examinations. Based on his false representations to the VA, he eventually received 100 percent disability compensation. Despite his claims to the VA, however, Thompson maintained a Florida driver license and passed multiple associated vision examinations with the Department of Motor Vehicles. Based on his exaggerated visual impairment, Thompson fraudulently received $1,169,327.54 from the VA in disability compensation.
This case was investigated by the Department of Veterans Affairs - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Man Charged with Carjacking Resulting in DeathRead the Press Release
Orlando, FL –United States Attorney Roger B. Handberg announces the filing of a complaint charging Jordanish Garcia-Torres (28, Orlando) with carjacking resulting in death. If convicted, Garcia Torres faces a maximum penalty of death or life imprisonment.
According to the complaint, on April 11, 2024, Garcia-Torres carjacked a woman at gunpoint in Winter Springs, Florida, and forced her to drive to a location in Osceola County where she was murdered by gunshot and burned while in her vehicle.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office, with assistance from the Osceola County Sheriff’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the St. Cloud Police Department, the United States Postal Inspection Service, and the United States Marshals Service. It will be prosecuted by Assistant United States Attorneys Stephanie McNeff and Michael P. Felicetta.
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.
Madera County Man Sentenced to 10 Years in Prison for Distributing Fentanyl that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Elias Soliz, 26, of Madera, was sentenced today to 10 years in prison for distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 3, 2023, Soliz knowingly distributed one fentanyl pill to J.M. in Madera. J.M. suffered a fatal overdose just a few hours later. Law enforcement searched Soliz’ phone under a warrant and found that Soliz had deleted communications with the victim that had been found on the victim’s phone. Law enforcement also located additional evidence of drug dealing.
This case was the product of an investigation by the Drug Enforcement Administration and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Louisiana Woman Pleads Guilty to Conspiracy to Possess with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A New Orleans, Louisiana woman pleaded guilty today to conspiracy to possess with intent to distribute one ounce of fentanyl.
According to court documents, Angelle McLaughlin, 30, was caught in the parking garage of a Mississippi casino engaging in a drug transaction. McLaughlin traveled with two other individuals from Louisiana to the Mississippi casino to sell fentanyl. Officers encountered the trio and found that McLaughlin was in possession of one ounce of fentanyl that was intended for sale to a recipient at the casino.
According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl.
McLaughlin pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. She is scheduled to be sentenced on August 14, 2024, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Assistant Special Agent in Charge Anessa Daniels-McCaw of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration and the Hancock County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Erica Rose is prosecuting the case.
Leader of a Keene-Based Crack Cocaine Drug Trafficking Organization Sentenced to 70 Months in Federal PrisonRead the Press Release
CONCORD – A Vermont man was sentenced in federal court in Concord for conspiracy to distribute a controlled substance, namely crack cocaine, U.S. Attorney Jane E. Young announces.
Lamar Carter, 33, was sentenced by U.S. District Court Judge Samantha Elliott to 70 months in prison and 3 years of supervised release. On December 19, 2023, Carter pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute a controlled substance.
“The defendant admitted to leading a drug distribution organization that sold crack cocaine in Keene. After law enforcement searched the location used as a hub of operation, seizing a firearm, he was undeterred and continued to operate his illegal drug trafficking business from various hotel rooms in the Keene area,” U.S. Attorney Jane Young said. “Thanks to the diligent work of our law enforcement partners in Keene and at Homeland Security Investigations, the defendant was arrested and will no longer be able to distribute dangerous drugs that make their way into every community throughout the Granite State.”
“Carter led a group that brought deadly drugs into New Hampshire, exploiting addiction for his own profit. HSI is committed to working with local partners like the Keene Police Department to dismantle drug trafficking networks and make our communities safer,” said Michael J. Krol, Special Agent in Charge of Homeland Security in New England.
Carter was a leader of a drug distribution organization that obtained powder cocaine from New Jersey, “cooked” the cocaine to manufacture crack, and distributed the crack in and around Keene, New Hampshire. The organization had several employees who worked for Carter and conducted hand-to-hand drug transactions with customers. The organization operated out of a local resident’s home, as well as several hotel rooms.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Keene Police Department. Assistant U.S. Attorney Jarad Hodes prosecuted the case.
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Laboratory Marketer and North Carolina Physicians Agree to Pay over $1.3M to Settle Kickback AllegationsRead the Press Release
Laboratory marketer Thomas Anthony Carnaggio, of Irmo, South Carolina, and his marketing company, as well as three physicians in Charlotte, North Carolina, Steven Bauer, M.D., Larry Berman, M.D. and Alireza Nami, M.D., and their medical practices, have agreed to pay a total of $1,373,400 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Justice Department’s investigations of other participants in the alleged schemes.
“Using financial inducements to steer patients to a particular laboratory for taxpayer-funded testing can distort medical decision making and result in unnecessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will diligently pursue those who undermine the integrity of federal health care programs by violating rules designed to protect the programs and their beneficiaries from fraud and abuse.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that a marketer and his marketing company offered kickbacks to doctors on behalf of a laboratory in Anderson, South Carolina, and that doctors and their medical practices received kickbacks from the laboratory in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.
- Thomas Anthony Carnaggio and South Ventures LLC. Carnaggio and his marketing company agreed to pay $400,000 to resolve allegations that from January 2017 to January 2020, Carnaggio and his company, on behalf of the laboratory, offered to doctors in North Carolina and South Carolina thousands of dollars in kickbacks disguised as purported office space rental and phlebotomy payments to induce the doctors to order laboratory testing. In addition, Carnaggio and his marketing company allegedly received commissions from the laboratory as independent contractors based on the volume and/or value of the Medicare and TRICARE referrals that they arranged for and/or recommended, in violation of the Anti-Kickback Statute.
- Steven Bauer and Ballantyne Medical Associates PLLC. Dr. Bauer and his medical practice agreed to pay $205,000 to resolve allegations that from May 2016 to December 2021, they received thousands of dollars in kickbacks in the form of purported office space rental and phlebotomy payments from the laboratory, in return for ordering testing. Dr. Bauer and his practice provided information that assisted the government’s investigation and received credit under the Department of Justice’s guidelines for taking cooperation into account in False Claims Act matters.
- Larry Berman and Larry F. Berman, M.D., P.C. Berman and his medical practice agreed to pay $385,000 to resolve allegations that from July 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the laboratory in return for ordering testing.
- Alireza Nami and Joint and Muscle Medical Care, P.C. Nami and his medical practice agreed to pay $383,400 to resolve allegations that from November 2016 to November 2021, they received thousands of dollars in kickbacks from the laboratory disguised as the purchase price for used laboratory equipment, office space rental, and phlebotomy payments, in return for ordering testing.
“Schemes like this compromise the integrity of our healthcare programs,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We will continue to pursue those engaged in illegal kickbacks and hold them accountable.”
“This resolution underscores our commitment to ensuring fair and ethical practices in the healthcare industry,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “The FBI, along with our law enforcement and regulatory partners, will continue to hold those accountable who defraud our healthcare systems for their personal gain.”
“Providers who participate in kickback schemes do so at the risk of undermining the integrity of federal healthcare programs,” said Special Agent in Charge Tamala Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains steadfast in its collaboration with law enforcement partners to diligently investigate individuals engaged in kickback schemes for personal gain.”
“It is unethical and wholly inappropriate for physicians to accept financial incentives to drive business,” said Special Agent in Charge Chris Dillard of the Defense Criminal Investigative Service (DCIS) Mid Atlantic Field Office. “Government healthcare systems are degraded and the reputation of the medical profession is tarnished when vendors pay medical providers kickbacks for use of their services. Working closely with our law enforcement partners, DCIS will continue to hold accountable those who choose to enrich themselves at the expense of patient health and trust.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS and the FBI.
Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina handled the case. The United States previously resolved allegations that physicians in South Carolina and Texas received kickbacks from the same laboratory.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are only allegations. There has been no determination of liability.
Kingsport Man Sentenced to Life in Prison for Role in Fentanyl Overdose DeathRead the Press Release
GREENEVILLE, Tenn. – On April 29, 2024, Terrance Lamont Hines, 42, of Kingsport, Tennessee, was sentenced to life in prison by the Honorable J. Ronnie Greer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing hearing, Judge Greer determined that Hines was both an armed career criminal under the applicable federal statutory law and a career offender under the federal sentencing guidelines. Following his incarceration, Hines will be on supervised release for 10 years.
Following a five-day trial, on June 26, 2023, a federal jury in Greeneville found Hines guilty of conspiring to distribute 400 grams or more of fentanyl with a resulting death in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(A), multiple counts of distributing fentanyl in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C), possessing with intent to distribute more than 40 grams of fentanyl in violation of 21 U.S.C. § 841(a)(1) and 841(b)(1)(B), possessing a firearm in furtherance of drug trafficking in violation of 18 U.S.C. § 924(c), and possessing firearms by a convicted felon in violation of 18 U.S.C. § 922(g).
According to the evidence presented at trial, on December 3, 2020, the victim, a 52-year-old Kingsport woman, died in her home in Sullivan County. The victim’s husband located her unresponsive body. A subsequent autopsy and toxicology tests revealed that the victim had overdosed on fentanyl. After a lengthy battle with chronic pain, the victim had begun self-medicating with controlled substances she purchased from others.
Following a lengthy investigation by the Tennessee Bureau of Investigation (TBI), investigators were able to establish that Hines had supplied the fentanyl that resulted in the victim’s death and had distributed the fentanyl through a series of lower-level dealers and users. Three codefendants, Shaina K. Langford, 34, of Jonesborough, Tennessee, Adam Presnell, 37, of Knoxville, Tennessee, and Robin Hutchins, 63, of Kingsport, Tennessee, were part of the chain of distribution. Hines sold the fentanyl to Hutchins, who sold it to Presnell, who sold it to Lanford, who supplied it directly to the victim. Hutchins, Presnell, and Lanford previously pleaded guilty to conspiracy to distribute fentanyl.
After identifying Hines, investigators coordinated three controlled purchases of fentanyl from Hines. Investigators also obtained search warrants for Hines’ business, OD Records, and his apartment, both located in Kingsport. When executing those search warrants on July 20, 2021, investigators located evidence that was introduced at trial, including a 9mm pistol, over 100 grams of fentanyl with a street value exceeding $116,000, $1,400 in cash, an assault rifle, and other drug paraphernalia.
The jury specifically found that Hines had conspired to supply the mixture of fentanyl that caused the victim’s death.
Hines’ codefendants have been sentenced or are awaiting sentencing. Lanford was sentenced on November 20, 2023, to 120 months in prison. Presnell was sentenced on January 3, 2024, to 84 months in prison. Hutchins entered a plea of guilty on June 12, 2023, and she is scheduled to be sentenced on August 19, 2024.
“Fentanyl is an exceedingly dangerous drug, and overdose deaths from fentanyl have become all too common across Tennessee and the nation,” said United States Attorney Francis M. Hamilton III. “The United States Attorney’s Office and our law enforcement partners will continue to use every available resource to prosecute those who traffic fentanyl to provide justice to the victims and to deter others who might be considering trafficking in fentanyl.”
The criminal indictment was the result of an investigation by the Tennessee Bureau of Investigation and the Sullivan County Sheriff’s Office with assistance from the Drug Enforcement Administration and the Kingsport Police Department. This investigation was led by TBI Special Agent Scott Lott.
Assistant United States Attorneys Emily Swecker and Mac Heavener represented the United States.
This case was brought as 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 communication, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring results.
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Justice Department Secures Agreement to Resolve Sexual Harassment Lawsuit Against Savannah, Georgia, LandlordRead the Press Release
The Justice Department announced today that Iraj Shambayati, a landlord who owns and manages over 45 residential properties in and around Savannah, Georgia, has agreed to pay $600,000 to resolve allegations that he violated the Fair Housing Act (FHA) by sexually harassing and retaliating against his female tenants for over 15 years.
“No female tenant should have to endure sexual harassment and abuse in the sanctity of her own home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a clear message to housing providers and property owners: when you exploit your power and sexually harass and abuse tenants, the Justice Department will aggressively use federal civil rights laws to hold you accountable. As we mark National Fair Housing Month, we want survivors of these heinous acts to know that we stand with them and we encourage them to speak out and report complaints of unlawful sexual harassment.”
“Sexual harassment by a landlord is never acceptable,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “This consent order takes Iraj Shambayati out of the property management business and emphasizes the Justice Department’s commitment to hold accountable landlords who would use their power to exploit tenants.”
Under the consent order approved by the United States District Court for the Southern District of Georgia, Shambayati and two other defendants, 1511 Rosewood LLC and IDHD Properties LLC, will pay $590,000 in monetary damages to female tenants and prospective tenants harmed by Shambayati’s conduct, as well as a civil penalty to the federal government. The order requires the defendants to vacate any retaliatory eviction judgments obtained against these tenants and to take steps to correct the tenants’ credit histories. The defendants are also prohibited from managing residential rental properties in the future and must retain an independent property manager for the properties.
The lawsuit, filed in August 2023, alleged that, since at least 2008, Shambayati harassed female tenants by making repeated and unwelcome sexual comments and advances, inappropriately touching their bodies without their permission, entering their homes without their permission or knowledge, requesting sexual acts from them in exchange for rent or other housing-related benefits and taking retaliatory actions against female tenants who rejected his sexual advances or complained about the harassment.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Georgia handled the case.
Individuals who believe that they may have been victims of sexual harassment at rental dwellings owned or managed by Iraj Shambayati should contact the Justice Department at [email protected] or [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, option 2 for sexual harassment and then option 2 for Shambayati.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered nearly $12 million for victims of such harassment.
The FHA prohibits discrimination in housing based on sex, race, color, religion, national origin, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals can report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291 or submitting a report online. Individuals can also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Recovers Fraudulent Transfer of Proceeds Arising from Kickback SchemeRead the Press Release
The Justice Department announced today that it reached a settlement worth over $16 million with Floyd Calhoun Dent, III arising from a health care fraud judgment against Dent as well as fraudulent transfer claims against Dent, certain members of his family, his family trust and several corporations owned or controlled by Dent that received millions in assets that were the proceeds of the fraud.
Dent, along with two other individuals, was found liable by a South Carolina jury in 2018 for submitting false claims to Medicare and TRICARE, in violation of the Anti-Kickback Statute and the False Claims Act. A judgment was subsequently entered against Dent and the other two individual defendants jointly for $114 million. The judgment was affirmed by the Fourth Circuit Court of Appeals in 2021.
Prior to the judgment, but after Dent’s company, BlueWave Healthcare Consultants Inc., which he owned jointly with co-defendant Brad Johnson, had been served with a Department of Health and Human Services Inspector General subpoena (IG subpoena), Dent transferred tens of millions of dollars in assets, which were the proceeds of his health care fraud scheme, to his spouse, his parents, his in-laws, a family trust and 10 corporations owned and/or operated by Dent. These transfers started within a few months of service of the IG subpoena and continued through 2015. In 2016, the District Court froze 12 parcels of real property that were owned by Dent and his spouse and certain of the Dent corporations.
In 2019, the United States filed an action under the Federal Debt Collection Procedures Act (FDCPA) against Dent and his spouse, the Dent children and the family trust, Dent’s parents and in-laws, the 10 Dent corporations, Dent’s sister, Dent’s long-time friend, two of Dent’s long-term employees and the spouse of one such employee. The 2019 lawsuit sought to recover amounts transferred by Dent to these entities and individuals.
As part of the settlement announced today, Dent, his spouse and his family, the family trust and the 10 Dent corporations are surrendering nearly all of their assets, which are valued at over $33.6 million, including 22 parcels of real property worth approximately $19 million, $5 million in gold and silver coins, $8 million in cash and $1 million in vehicles, boats, farm equipment and other personal property. The settlement requires the assets be surrendered to the Justice Department and the Liquidating Trustee for now bankrupt Health Diagnostic Laboratories Inc. (HDL), a blood testing laboratory that participated in the health care fraud with Dent and his co-defendants. The HDL Liquidating Trustee will split these assets between the United States and other creditors of HDL pursuant to a bankruptcy court agreement. The United States’ share of the recovered assets is expected to exceed $16 million.
“The payment of kickbacks has the potential to corrupt medical decision-making and to increase the cost of healthcare,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who pay or receive such kickbacks, as well as those who improperly seek to benefit from such violations by receiving the illegal proceeds.”
Previously, in 2022, the United States resolved claims against a long-time friend of Dent and a long-term employee of Dent and the employee’s wife. These claims settled for a combined total of $2.4 million, which was split between the United States and the HDL Liquidating Trustee.
“This recovery demonstrates our commitment to protect our federal health care programs so they can serve the people who need them most,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina.
The settlement announced today resolves the 2018 judgment against Dent in favor of the United States under the False Claims Act. It also resolves the United States’ allegations under the FDCPA that Dent’s transfer to certain family members, family corporations and the family trust were fraudulent transfers.
The settlement was the result of a coordinated effort between the Civil Division’s Fraud and Corporate/Financial Litigation Sections and U.S. Attorney’s Office for the District of South Carolina. Senior Trial Counsel Alicia J. Bentley and Trial Attorney Andrew Warner of the Civil Division and Assistant U.S. Attorneys James Leventis, Johanna Valenzuela and Joanna Stroud and Anne Frate (paralegal) for the District of South Carolina handled the FDCPA matter.
The cases are United States ex rel. Lutz, et al. v. BlueWave Healthcare Consultants, Inc., et al. (D.S.C. Case No. 9:14-cv-00230-RMG) (False Claims Act judgment) and United States v. AROC Enterprises, LLC, et al. (D.S.C. Case No. 9:19-cv-234 RMG) (Federal Debt Collection Procedures action).
The False Claims Act claims against Dent were adjudicated against him and other defendants. The fraudulent transfer claims resolved by the settlement are allegations only and there has been no determination of liability as to those claims.
SettlementJury Finds U.S. Army Major Guilty After He Smuggled Guns to Ghana in Blue Barrels of Rice and Home GoodsRead the Press Release
WILMINGTON, N.C. – A federal jury convicted a United States Army Major, currently assigned to Fort Liberty, on charges of dealing in firearms without a license, delivering firearms without notice to the carrier, smuggling goods from the United States, illegally exporting firearms without a license, making false statements made to an agency of the United States, making false declarations before the court, and conspiracy. Kojo Owusu Dartey, age 42, faces a maximum penalty of 240 months when sentenced on July 23, 2024.
“We are partnering with law enforcement agencies across the globe to expose international criminals – from money launderers to rogue international arms traffickers capable of fueling violence abroad,” said U.S Attorney Michael Easley. “Through a partnership with Ghanaian officials, this rogue Army Major was convicted at trial after smuggling guns to Ghana in blue barrels of rice and household goods. I want to thank the Ghana Revenue Authority and the International Cooperation Unit Office of the Attorney-General of Ghana for their assistance in the investigation. I also commend the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) attachés to U.S. Embassy Accra and the U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division for their significant assistance to this prosecution.”
“Far from being a victimless crime, firearms trafficking threatens public safety across our nation and beyond,” said Toni M. Crosby, Special Agent in Charge of the ATF Baltimore Field Division. “The Baltimore Field Division is proud to partner with the Ghana Revenue Authority and ATF’s Charlotte and Louisville Field Divisions for this investigation, which has kept firearms off the streets — preventing them from being used in any number of killings and other crimes — and ended this international firearm trafficking scheme.”
The Ghana Revenue AuthorityAccording to court records and evidence presented at trial, between June 28 and July 2, 2021, Dartey purchased seven firearms in the Fort Liberty area and tasked a U.S. Army Staff Sergeant at Fort Campbell, Kentucky, to purchase three firearms there and send them to Dartey in North Carolina. Dartey then hid all the firearms, including multiple handguns, an AR15, 50-round magazines, suppressors, and a combat shotgun inside blue barrels underneath rice and household goods and smuggled the barrels out of the Port of Baltimore, Maryland, on a container ship to the Port of Tema in Ghana. The Ghana Revenue Authority recovered the firearms and reported the seizure to the DEA attaché in Ghana and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division. At the same time, Dartey was a witness in the trial of U.S. v. Agyapong. A case that involved a 16-defendant marriage fraud scheme between soldiers on Fort Liberty and foreign nationals from Ghana that Dartey had tipped off officials to. In preparation for the trial, Dartey lied to federal law enforcement about his sexual relationship with a defense witness and lied on the stand and under oath about the relationship.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The ATF, Army Criminal Investigation Division and the U.S. Department of Commerce’s Office of Export Enforcement investigated the case. Assistant U.S. Attorney Gabriel J. Diaz prosecuted it with technical assistance from David Ryan, DOJ Counterintelligence and Export Control Section.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00165-M-RJ-1.
Jury Finds Sioux City Man Guilty of Kidnapping and Possessing Ammunition as a Felon and Drug UserRead the Press Release
A recidivist felon was convicted by a jury on April 26, 2024, after a 5-day trial in federal court in Sioux City.
Bobby Rhoden, age 49, from Sioux City, Iowa, was convicted of one count of kidnapping and one count of possession of ammunition by a felon and drug user.
Evidence at trial showed that Rhoden used threats to get his victim, a former girlfriend, into his car to help him recover a phone she had taken. Over the next 36 hours, he brutalized her, and drove her to at least two locations in an effort to find his phone. The victim escaped Rhoden by running away from him to a neighbor’s house. As she ran, Rhoden fired his gun at or near her. A subsequent investigation of the kidnapping revealed live ammunition and a spent casing in the garage where Rhoden lived, and one of the locations where he held his victim.
Rhoden was previously convicted of two counts of forgery in Scott County, Iowa, possession with intent to deliver a controlled substance in Scott County, Iowa and conspiracy to distribute 50 grams or more of methamphetamine in the United States District Court for the Northern District of Iowa.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Rhoden remains in custody of the United States Marshal pending sentencing. Rhoden faces a possible maximum sentence of life imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being investigated by the Sioux City, Iowa Police Department, ATF and is prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04073.
Follow us on Twitter @USAO_NDIA.
Joint Statement on Fatal Officer-Involved Incident in the Grand Rapids AreaRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten, the Justice Department’s Civil Rights Division, and the FBI Field Office Detroit today issued the following statement concerning the fatal officer-involved incident that led to the death of Samuel Sterling in Kentwood, Michigan on Wednesday, April 17, 2024.
“The U.S. Attorney’s Office for the Western District of Michigan, the Justice Department’s Civil Rights Division, and the FBI Field Office Detroit are monitoring the ongoing state investigation into the circumstances that led to the tragic death of Samuel Sterling. We will continue to coordinate with our state and local law enforcement partners. If in the course of the state investigation, evidence reveals a potential violation of federal criminal statutes, we will take appropriate action.”
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Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon.
According to court documents, Marcus Delars Branson, 27, was found in possession of a firearm by U. S. Probation Officers during a visit to his home. Branson had a prior felony conviction for bank robbery and was on supervised release.
On July 25, 2023, Branson was indicted by a federal grand jury for being a felon in possession of a firearm. He is scheduled to be sentenced on July 30, 2024, and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Matt Allen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Jackson County Man Sentenced to over 8 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Jackson County man was sentenced to 105 months in federal prison for possession with intent to distribute 70 grams of methamphetamine.
James Richard Morgan, 42, of Jackson County, was sentenced in U.S. District Court in Gulfport.
According to court documents, on September 11, 2018, Morgan and co-defendant Karlos Brown sold 70 grams of 42% pure methamphetamine in the parking lot of a Walmart in Pascagoula, Mississippi.
Morgan and Brown were indicted by a federal grand jury on May 17, 2022. Both defendants pled guilty to possession with intent to distribute methamphetamine. Brown was sentenced on February 27, 2023, to 70 months in prison.
U.S. Attorney Todd W. Gee and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.
The case was investigated by the Federal Bureau of Investigation, the Pascagoula Police Department, and the Mississippi Bureau of Narcotics.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor- led, intelligence driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Ideal Man Sentenced for Larceny and Prohibited Person in Possession of a FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Ideal, South Dakota, man convicted of Larceny and Prohibited Person in Possession of a Firearm. The sentencing took place on April 24, 2024.
Tredell Long Crow, age 27, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to a pay $200 special assessment to the Federal Crime Victims Fund. Long Crow was furthered ordered to pay restitution in the amount of $1,786.66.
Long Crow was indicted by a federal grand jury in September of 2023. He pleaded guilty on February 1, 2024.
The convictions stem from conduct that occurred in July of 2023. On July 15, 2023, Long Crow stole a vehicle from a residence in Sioux Falls, South Dakota, which he drove to a residence in Ideal, on property that is part of the Rosebud Sioux Indian Reservation. In the early morning hours of July 16, 2023, Long Crow was involved in an argument with two individuals in Ideal, during which he brandished and discharged a firearm.
In 2022, Long Crow was convicted of Possession of a Controlled Drug or Substance in Minnehaha, County, South Dakota. As a result of this conviction, it is illegal for Long Crow to possess firearms or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
This case was investigated by the Sioux Falls Police Department, the Rosebud Sioux Tribe Law Enforcement Services, the Tripp County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Long Crow was immediately remanded to the custody of the U.S. Marshals Service.
Huntington Man Sentenced for Making False Declaration in Bankruptcy CaseRead the Press Release
HUNTINGTON, W.Va. – John Christopher Spence, 67, of Huntington, was sentenced today to five years of federal probation, including six months on home detention with GPS monitoring, and fined $5,000 for making a false declaration in a bankruptcy case.
According to court documents and statements made in court, on or about April 30, 2019, Spence filed for bankruptcy as an individual and separately on behalf of Park Place Properties LLC, one of his businesses. In the days and weeks leading up to his filing for bankruptcy, Spence made extravagant purchases including the buying of airfare to Grand Cayman Islands, Aruba, and Las Vegas, Nevada. Spence admitted that he made these purchases knowing that he would be filing for bankruptcy and did so with the intent of defrauding creditors through the bankruptcy process.
Spence also admitted that he knew he was required to identify creditors and submit various schedules of assets and liabilities and a statement of financial affairs in each bankruptcy case. Each schedule and statement of financial affairs was filed in U.S. Bankruptcy Court under criminal penalty for false swearing, concealing property, and obtaining money or property by fraud. On May 30, 2019, Spence caused to be filed Schedule A/B, a disclosure document, and a statement of financial affairs in his individual bankruptcy case. Spence failed to disclose that he had legal or equitable interests in condominiums in Gatlinburg, Tennessee; Scottsdale, Arizona; Avon, Colorado; Port Saint Lucie, Florida; and Myrtle Beach, South Carolina. Spence admitted that he falsely stated on his Schedule A/B that he did not own or have any interest in condominiums. Spence further admitted that he lied about his legal or equitable interests in any condominiums during a meeting of creditors in his bankruptcy case on June 6, 2019.
At the time he filed for bankruptcy, Spence owned a 100 percent interest in J.C. Spence Company LLC. Spence admitted that failed to disclose in each bankruptcy case that he owned J.C. Spence Company LLC, that he held a 100 percent interest in this company, and that this company possessed substantial assets.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI). The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-184.
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Highlands County drug dealer sentenced to prisonRead the Press Release
MIAMI – On April 25, a Highlands County drug dealer was sentenced to 121 months in federal prison, followed by four years of supervised release, after previously pleading guilty to distribution of cocaine and possession with intent to distribute 500 grams or more of cocaine.
On March 15, May 4, and May 17, 2023, Nichiren Shoshu Smith, aka Nick Drop, 48, of Sebring, Florida, sold cocaine base, commonly known as crack cocaine, in Sebring. On May 19, 2023, law enforcement officers discovered over a kilogram of cocaine, approximately 115.5 grams of cocaine base and more than $7,000 in Smith’s residence. Smith has a prior conviction for possession with intent to distribute cocaine base in the Southern District of Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division and Sheriff Paul Blackman of the Highlands County Sheriff’s Office (HCSO) announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division and HCSO investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14038.
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Hays County Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
AUSTIN, Texas – A San Marcos man was sentenced in a federal court in Austin to 120 months in prison for possession with intent to distribute fentanyl.
According to court documents, Colten Romeo Thayer, 20, was arrested during a traffic stop on Aug. 29, 2022. During a search of his vehicle, Hays County Sheriff’s deputies found a bag containing 11 grams of fentanyl. Thayer had been purchasing fentanyl pills from other dealers in and around Hays County for personal use and for the purpose of selling. Thayer pleaded guilty Dec. 21, 2023.
Co-defendant Anthony Perez Rios pleaded guilty to one count of possession with intent to distribute 40 grams or more of a mixture or substance containing fentanyl. He remains in federal custody, scheduled to be sentenced May 23.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Drug Enforcement Administration and San Marcos Police Department investigated the case.
Assistant U.S. Attorney Gabriel Cohen prosecuted the case.
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Former NSA Employee Sentenced to over 21 Years in Prison for Attempted EspionageRead the Press Release
DENVER – Jareh Sebastian Dalke, 32, of Colorado Springs, was sentenced today to 262 months in prison for attempted espionage in connections with his efforts to transmit classified National Defense Information (NDI) to an agent of the Russian Federation.
According to court documents, Dalke pleaded guilty in 2023 to six counts of attempting to transmit classified NDI to a foreign agent. From June 6 to July 1, 2022, Dalke was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer. Dalke admitted that between August and September 2022, in order to demonstrate both his “legitimate access and willingness to share,” he used an encrypted email account to transmit excerpts of three classified documents to an individual he believed to be a Russian agent. That person was an FBI online covert employee. All three documents from which the excerpts were taken contain NDI, are classified as Top Secret//Sensitive Compartmented Information (SCI) and were obtained by Dalke during his employment with the NSA.
“This defendant, who had sworn an oath to defend our country, believed he was selling classified national security information to a Russian agent, when in fact, he was outing himself to the FBI,” said Attorney General Merrick B. Garland. “This sentence demonstrates that that those who seek to betray our country will be held accountable for their crimes. I am grateful to the FBI Denver and Washington Field Offices for their extraordinary work on this case.”
“This sentence should serve as a stark warning to all those entrusted with protecting national defense information that there are consequences to betraying that trust,” said FBI Director Christopher Wray. “Dalke believed he was passing classified information to an agent of the Russian government. The hard work of our FBI employees prevented that from happening and any potential harm to the United States.”
“Two primary objectives of the U.S. Attorney’s Office for the District of Colorado include keeping our citizens safe, and safeguarding the United States of America,” said U.S. Attorney Cole Finegan for the District of Colorado. “Not only is this case an exceptional example of federal law enforcement cooperation, but the sentence Mr. Dalke received today reflects the seriousness of the actions he took in attempt to injure our country and help a foreign government.”
"Every day, every FBI employee works to uphold the Constitution and protect the American people and our way of life. But it’s not every day we thwart a would-be spy among our own intelligence community ranks. Luckily such an occurrence is rare," said FBI Denver Special Agent in Charge Mark Michalek. "If Dalke had been successful, the repercussions would have been severe. The penalty imposed reflects this."
On or about Aug. 26, 2022, Dalke requested $85,000 in return for all the information in his possession. Dalke claimed the information would be of value to Russia and told the FBI online covert employee that he would share more information in the future, once he returned to the Washington, D.C.-area.
Dalke subsequently arranged to transfer additional classified information in his possession to the purported Russian agent at Union Station in downtown Denver. Using a laptop computer and the instructions provided by the FBI online covert employee, Dalke transferred five files, four of which contain Top Secret NDI. The other file was a letter, which begins (in Russian and Cyrillic characters) “My friends!” and states, in part, “I am very happy to finally provide this information to you… I look forward to our friendship and shared benefit. Please let me know if there are desired documents to find and I will try when I return to my main office.” The FBI arrested Dalke on Sept. 28, 2023, moments after he transmitted the files.
As part of his plea agreement, Dalke admitted that he willfully transmitted files to the FBI online covert employee with the intent and reason to believe the information would be used to injure the United States and to benefit Russia.
The FBI Washington and Denver Field Offices investigated the case.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section handled the prosecution.
Former NSA Employee Sentenced to over 21 Years in Prison for Attempted EspionageRead the Press Release
Jareh Sebastian Dalke, 32, of Colorado Springs, was sentenced today to 262 months in prison for attempted espionage in connections with his efforts to transmit classified National Defense Information (NDI) to an agent of the Russian Federation.
According to court documents, Dalke pleaded guilty in 2023 to six counts of attempting to transmit classified NDI to a foreign agent. From June 6 to July 1, 2022, Dalke was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer. Dalke admitted that between August and September 2022, in order to demonstrate both his “legitimate access and willingness to share,” he used an encrypted email account to transmit excerpts of three classified documents to an individual he believed to be a Russian agent. That person was an FBI online covert employee. All three documents from which the excerpts were taken contain NDI, are classified as Top Secret//Sensitive Compartmented Information (SCI) and were obtained by Dalke during his employment with the NSA.
“This defendant, who had sworn an oath to defend our country, believed he was selling classified national security information to a Russian agent, when in fact, he was outing himself to the FBI,” said Attorney General Merrick B. Garland. “This sentence demonstrates that that those who seek to betray our country will be held accountable for their crimes. I am grateful to the FBI Denver and Washington Field Offices for their extraordinary work on this case.”
“This sentence should serve as a stark warning to all those entrusted with protecting national defense information that there are consequences to betraying that trust,” said FBI Director Christopher Wray. “Dalke believed he was passing classified information to an agent of the Russian government. The hard work of our FBI employees prevented that from happening and any potential harm to the United States.”
“Two primary objectives of the U.S. Attorney’s Office for the District of Colorado include keeping our citizens safe, and safeguarding the United States of America,” said U.S. Attorney Cole Finegan for the District of Colorado. “Not only is this case an exceptional example of federal law enforcement cooperation, but the sentence Mr. Dalke received today reflects the seriousness of the actions he took in attempt to injure our country and help a foreign government.”
On or about Aug. 26, 2022, Dalke requested $85,000 in return for all the information in his possession. Dalke claimed the information would be of value to Russia and told the FBI online covert employee that he would share more information in the future, once he returned to the Washington, D.C.-area.
Dalke subsequently arranged to transfer additional classified information in his possession to the purported Russian agent at Union Station in downtown Denver. Using a laptop computer and the instructions provided by the FBI online covert employee, Dalke transferred five files, four of which contain Top Secret NDI. The other file was a letter, which begins (in Russian and Cyrillic characters) “My friends!” and states, in part, “I am very happy to finally provide this information to you… I look forward to our friendship and shared benefit. Please let me know if there are desired documents to find and I will try when I return to my main office.” The FBI arrested Dalke on Sept. 28, 2023, moments after he transmitted the files.
As part of his plea agreement, Dalke admitted that he willfully transmitted files to the FBI online covert employee with the intent and reason to believe the information would be used to injure the United States and to benefit Russia.
The FBI Washington and Denver Field Offices investigated the case.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section handled the prosecution.
Federal grand jury indicts postal worker for stealing mailRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Christopher Porter, 37, of Angola, NY, with two counts of theft of mail and six counts of delay of mail by a postal employee. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz T. Wright, who is handling the case, stated that according to the indictment, in October 2021, and January 2022, Porter, a United States Postal Service employee in Angola, embezzled mail and stole gift cards included in the embezzled mail. In addition, on six separate occasions in March 2022, Porter opened mail, delaying its delivery.
Porter was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released on conditions.
The indictment is a result of an investigation by the United States Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent-in-Charge Matthew Modafferi.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Jury Convicts Penn Hills Man on Drug Trafficking and Firearms OffensesRead the Press Release
PITTSBURGH, Pa. - After deliberating for less than two hours, a federal jury on April 18, 2024, found Harry E. Duncan guilty of three counts of violating federal drug and firearms laws, United States Attorney Eric G. Olshan announced. The verdict of guilt included one count each of possession with intent to distribute fentanyl, cocaine, and crack cocaine; possession of firearms and ammunition by a convicted felon; and aiding and abetting the straw purchase of three firearms.
Duncan, 36, of the Penn Hills area of Pittsburgh, Pennsylvania, was tried before United States District Judge Christy Criswell Wiegand in Pittsburgh.
According to Assistant United States Attorneys Jerome A. Moschetta and Benjamin C. Dobkin, who prosecuted the case, the evidence presented at trial established that, in the fall of 2022, Duncan was the subject of an investigation by Allegheny County Police narcotics detectives for suspected involvement in drug trafficking. On November 18, 2022, the detectives served a search warrant on Duncan’s residence, finding in the basement over 1,000 stamp bags of fentanyl, significant amounts of unpackaged fentanyl powder, powder cocaine, and crack cocaine hidden in the ceiling. Throughout the basement, the detectives also discovered a large quantity of drug packaging materials, scales, cash, and 11 different cell phones.
In addition to the drugs and drug trafficking paraphernalia, detectives found a Ruger AR-556 semi-automatic rifle, a Winchester 12 gauge shotgun, several hundred rounds of ammunition, and several pistol cases. Further investigation revealed that Duncan, who previously had been convicted of a felony, had engaged a former drug customer to unlawfully straw purchase the rifle and two of the pistols. In December of 2020, at Duncan’s direction, that person lied on background investigation paperwork and falsely stated that they were the purchaser of the firearms, when, in fact, the firearms were for Duncan. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Judge Wiegand scheduled sentencing for August 29, 2024. The law provides for a maximum total sentence of up to 40 years in prison, a fine of up to $2.5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the defendant’s prior criminal history. Pending sentencing, the Court remanded Duncan into the custody of the United States Marshals.
The Allegheny County Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to Duncan’s prosecution.
FCI Schuylkill Inmate Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jared Sebaugh, age 36, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, pleaded guilty on April 26, 2024, before U.S. District Court Judge Julia K. Munley, to the charge of assault with a dangerous weapon.
According to United States Attorney Gerard M. Karam, Sebaugh, formerly of Olmstead Falls, Ohio, admitted to assaulting another inmate with a dangerous weapon with intent to do bodily harm. The charges stem from an incident in February 2023 in which Sebaugh assaulted another inmate with a prison-made weapon consisting of a combination lock attached to a cloth strap.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each charge is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
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Doctor sentenced to 10 years in prison for unlawfully dispensing controlled substancesRead the Press Release
MIAMI – On April 25, a Weston doctor was sentenced to 10 years in federal prison, followed by three years of supervised release for running a pill mill type pain clinic.
The sentence comes after Osmin Morales, 72, of Weston, Florida, was convicted in January of conspiracy to unlawfully dispense and distribute controlled substances, and six counts of unlawfully dispensing controlled substances.
Under federal law, a physician is authorized to dispense (prescribe) controlled substances only when there is a legitimate medical basis for doing so, and the dispensing is consistent with accepted standards of professional medical practice.
Morales established a purported pain management clinic in which he issued prescriptions for controlled substances, principally oxycodone, morphine, and alprazolam (a tranquilizer commonly known by its brand name, Xanax) to most patients who sought them, without any appropriate medical basis. On many occasions, Morales issued prescriptions for controlled substances without examining the patients, often when he was not even present in the clinic. Morales also often pre-wrote many prescriptions for controlled substances and provided them to his office managers to hand out for cash payments of $250 to regular patients, with the purpose of unlawfully maximizing the clinic’s profits.
Some of Morales’s former patients testified during trial that they had often obtained prescriptions for oxycodone, morphine, and alprazolam from the office staff without seeing Morales. One patient’s mother testified that she had begged Morales to stop prescribing narcotics to her daughter, because she was becoming dysfunctional, but he continued prescribing them.
Medical records from Morales’s office described a number of medical examinations he had purportedly conducted of patients which described the patients’ symptoms and included Morales’s diagnoses for which he prescribed opioids to them. However, official records from the U.S. Customs and Border Protection (CBP) confirmed that on many of the dates for those purported examinations, Morales had been out of the country. A Drug Enforcement Administration (DEA) agent testified that Florida’s prescription drug monitoring program showed that during the time of the indictment, Morales had prescribed opioids to more than a thousand patients, most often the maximum available doses. The DEA agent also researched numerous patients by name and found that nearly one-third of them had criminal records relating to drug dealing.
A pain medicine expert witness testified that none of the patient medical records he had examined contained any proper medical basis for the use of opioids, such as oxycodone or morphine, nor any basis for the use of benzodiazepines, such as alprazolam. The pain medicine expert also testified that the combination of opioids and benzodiazepines that Morales regularly prescribed, both of which are central nervous system depressants, created an enhanced risk of overdose and death.
A former member of the Morales’s office staff testified that she had collected approximately $4,000 per day, in cash, from patients to whom Morales provided controlled substance prescriptions. On most of those days, Morales had not been present at the clinic.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, announced the sentence.
DEA Miami Field Division investigated the case with assistance from CBP. Assistant U.S. Attorneys Frank Tamen and Theodore Joseph O’Brien prosecuted it. Assistant U.S. Attorneys Emily Stone and Mitchell Hyman handled asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20255.
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District of New Jersey Collects $214 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the District of New Jersey collected a total of $214 million in Fiscal Year 2023. Of this amount, $33.4 million was collected in criminal actions and $13.4 million was collected in civil actions. The district also collected $91 million in cases the office handled jointly with other U.S. Attorney’s Offices and components of the Department of Justice, including $90.9 million in civil actions and $60,851 in criminal actions. In addition, the district recovered $71.5 million in civil bankruptcy proceedings where individuals and businesses owed debts to federal agencies. And the district, working with partner agencies and divisions, collected $4.7 million in asset forfeiture actions.
U.S. Attorney Philip R. Sellinger“Part of the mission of our office is to ensure that defendants are held financially accountable for their criminal and civil wrongdoing. Our recoveries in fiscal year 2023 demonstrate this commitment. We pursue restitution for victims, ensure that defendants are made to forfeit assets they have accumulated through criminal activity, and recover federal funds obtained through fraud. We also recover debts owed to the United States in bankruptcy.”
Significant recoveries included a $14.7 million False Claims Act settlement the District of New Jersey entered into with Biotelemetry Inc. and Lifewatch Services Inc. Both companies were alleged to have knowingly submitted inflated claims for remote cardiac monitoring that were not supported by medical necessity. The district also recovered $4.25 million in an FCA settlement with Watermark Retirement Communities LLC, a senior living facility alleged to have received kickbacks in return for referrals to a nationwide home health agency which previously settled its liability with the government for $17 million. The district’s significant bankruptcy recoveries included over $18 million of delinquent tax debts for the IRS and over $16 million of outstanding commercial loans for the U.S. Small Business Administration.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Recoveries in bankruptcy are returned to the federal agencies that are creditors in the case.
Davenport Man Sentenced to 360 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced on April 17, 2024, to 360 months in federal prison, for conspiracy to manufacture, distribute and/or possess with intent to distribute five kilograms or more of cocaine and marijuana, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of firearms.
According to public court documents evidence presented at trial and sentencing, Kpangbala Benyan Blamah, 34, was identified by law enforcement as a suspect in multiple shooting incidents. During that investigation, it was revealed that Blamah was a leader of a drug distribution conspiracy in and around the Quad City Metro area. Evidence showed that Blamah was coordinating several trips to California for him and other members of the conspiracy, including in some cases, minors that Blamah had recruited to be a part of the conspiracy. Evidence also showed that Blamah had packages of controlled substances mailed from California to Davenport to various residences of members of the conspiracy. In total, Blamah was responsible for over 1700 kilograms of controlled substances, including marijuana and cocaine.
After completing his term of imprisonment, Blamah will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Dallas Man Pleads Guilty to Role in Large-Scale Cocaine ConspiracyRead the Press Release
BOSTON – A Dallas man pleaded guilty on April 26, 2024 in federal court in Worcester to his role in a nationwide large-scale cocaine trafficking conspiracy.
Javier Robledo Perez, 39, pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute five kilograms or more of cocaine. U.S. District Court Judge Margaret R. Guzman scheduled sentencing hearing for July 19, 2024.
Perez was a commercial truck driver based out of Dallas who transported approximately 30 kilograms of cocaine across state lines on behalf of a drug trafficking organization based in Mexico and Texas. In May 2020, Perez and his co-conspirators arranged for the delivery of 30 kilograms of cocaine to a cooperating witness in Massachusetts. In May 2020, Perez was stopped by law enforcement as he traveled into Massachusetts in his commercial semi-truck, from which 30 vacuum sealed bricks, containing approximately 30 kilograms of cocaine, were seized.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and the charge of possession with intent to distribute five kilograms or more of cocaine both carry a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Drug Enforcement Administration, Laredo and Dallas Divisions provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Cut Bank man sentenced to more than five years in prison for assaulting, shooting woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Cut Bank man was sentenced today to five years and nine months in prison, to be followed by three years of supervised release, for assaulting and then shooting and wounding a woman at a residence on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
The defendant, Luke Charles Wells, 33, pleaded guilty in November 2023 to assault with a dangerous weapon and to using a firearm during a crime of violence.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on July 16, 2023, Wells was intoxicated at a residence on the Blackfeet Indian Reservation, when he became angry at the victim, identified as Jane Doe. Doe was in a bathroom when Wells broke down the door and began assaulting her. Doe ran outside to escape. Wells chased her and pulled out a pistol. Doe tripped and fell, and Wells started shooting at the ground around her. Wells then hit Doe in the head with the gun several times before shooting and wounding her in the chest. Doe was transported to the hospital. Wells, disobeying officers’ commands and while armed, fled multiple law enforcement agencies in a vehicle pursuit before being tased and arrested.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case. The FBI, Blackfeet Law Enforcement Services, Cut Bank Police Department and Glacier County Sheriff’s Office conducted the investigation.
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Council Bluffs, Iowa Man Sentenced to 240 Months for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced April 16, 2024, to 240 months in prison for Conspiracy to Distribute a Controlled Substance, and 180 months for Possession of a Firearm by a Prohibited Person, to be served concurrently.
According to public court documents, Virgil Rude McIntosh, III, 47, pled guilty to conspiracy to distribute a controlled substance and prohibited person in possession of a firearm. Between December and July 2023, McIntosh was involved in a drug conspiracy credited for the distribution of over 30 kilograms of methamphetamine in the Council Bluffs metro area. Officers conducted a search warrant of McIntosh’s residence and seized methamphetamine and a loaded Sig Saur 9 mm handgun.
After completing his term of imprisonment, McIntosh will be required to serve ten years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force, the Division of Narcotics Enforcement, the Omaha Police Department, and the Council Bluffs Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Council Bluffs, Iowa Man Sentenced to 200 Months for Drug and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced April 16, 2024, to 200 months in prison on federal drug charges and a concurrent 180 months for a firearms crime.
According to public court documents, Jake Michael Flynn, 39, pled guilty to conspiracy to distribute methamphetamine and prohibited person in possession of a firearm. From October 2022 through April 2023, Flynn was a member of a conspiracy which distributed more than 50 kilograms of methamphetamine in the Council Bluffs area. A stolen vehicle was also recovered that was involved in prior burglaries in the Council Bluffs area. Additionally, a Sig Sauer Model P365 9x19 millimeter handgun was found in the vehicle with Flynn’s DNA. Flynn was previously convicted of a felony and therefore prohibited from legally possessing a firearm.
After completing his term of imprisonment, Flynn will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Task Force, the Division of Narcotics Enforcement, and the Council Bluffs Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Council Bluffs, Iowa Man Sentenced to 108 Months in Federal Prison for Child Pornography ChargesRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced April 16, 2024, to 108 months in prison for Receipt of Child Pornography.
According to public court documents and evidence presented at sentencing, Ivan Dean Joslin, 20, pled guilty to Receipt of Child Pornography. In May 2023, Joslin met a thirteen-year-old minor in Council Bluffs, Iowa and exchanged phone numbers. At his request, Joslin received over the internet sexually explicit images and videos of the minor.
After completing his term of imprisonment, Joslin is required to serve six years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Council Bluffs Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. / For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Clovis Businessman Sentenced to Prison for $1.4 Million COVID-19 Relief Money TheftRead the Press Release
FRESNO, Calif. — Ruben Mireles, 48, of Clovis, was sentenced today to one year in prison for stealing $1.4 million in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mireles owned and operated a farm labor contracting business in Kings County. His business initially went by the name Vista Pacific Labor Solutions Inc. (VPLS) and then changed its name to Calzona Ag Management Inc., doing business as Vista Pacific Farm Management (CAM).
In January 2021, after VPLS changed its name to CAM, Mireles caused CAM to apply for and receive a COVID-19 Paycheck Protection Program (PPP) loan for $1.4 million from the Small Business Administration (SBA). Then, in April 2021, Mireles caused VPLS to apply for and receive another PPP loan for $1.4 million from the SBA based on false information.
In the second loan application, Mireles falsely represented to the SBA that VPLS was a separate company from CAM when, in fact, VPLS and CAM were the same company. Mireles also falsely represented that he had not received any other PPP loans, even though he had previously received CAM’s loan. Finally, Mireles falsely represented that he was not subject to any pending criminal charges when he was actually facing state fraud charges.
Based on Mireles’ representations, VPLS’s loan application was approved and the $1.4 million, to which he was not entitled, was deposited into his bank account.
This case was the product of an investigation by the Federal Bureau of Investigation and the SBA Office of Inspector General with assistance from the California Department of Insurance. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Chicago Man Sentenced to 4.5 Years in Prison for Pandemic Unemployment Benefits Fraud and Aggravated Identity TheftRead the Press Release
PITTSBURGH, Pa. - A resident of Chicago, Illinois, has been sentenced in federal court to 54 months in prison, to be followed by three years of supervised release, and $20,000 in restitution on his conviction of mail fraud and aggravated identity theft, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Christian Matthews, 35.
According to information presented to the Court, Matthews fraudulently obtained personal identifying information belonging to other people and used it to file claims for pandemic-related unemployment benefits. The Pandemic Unemployment Assistance Program was created to provide economic support to certain individuals unemployed as a result of the COVID-19 pandemic. Matthews used online marketplaces to purchase identifying information, including Social Security numbers, that had been stolen from victims. He then created fictitious businesses and used them to obtain mailing addresses from companies that rent shared office space. Finally, he used the stolen identity information to file fraudulent claims for Pandemic Unemployment Assistance benefits in states including Arizona, Nevada, and Pennsylvania, and had the resulting benefit cards sent via U.S. Mail to multiple business locations, including an office building in Pittsburgh, where Matthews would retrieve and use the benefits.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Department of Labor Office of the Inspector General, United States Department of Homeland Security Investigations, United States Postal Inspection Service, and Findlay Township Police Department for the investigation leading to the successful prosecution of Matthews.
Buffalo man pleads guilty to child pornography and cyberstalking chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Raymond Brooks, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession of child pornography by an individual with a prior sex offense conviction, and cyberstalking, which carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz T. Wright, who handled the case, stated that in January 2019, Brooks was convicted in Erie County Court of Possessing a Sexual Performance by a Child. On April 23, 2020, law enforcement searched Brooks’ cell phone, locating images and videos containing child pornography. Some of the images and videos depicted prepubescent minors engaged in violent sexual conduct. In January 2021, Brooks contacted a 15-year-old victim via Snapchat, and persuaded her to produce sexually explicit images of herself and send them to him. Brooks then contacted the victim repeatedly via Snapchat and threatened her to send more sexually explicit images or videos, or he would distribute the existing images and videos to her family members, friends, and other Snapchat users. As a result, the victim created more sexually explicit images and videos.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for October 3, 2024, before Judge Sinatra.
Brazilian Man Pleads Guilty and Sentenced on Charges of Escape from Federal CustodyRead the Press Release
BOSTON – A Brazilian man residing in Framingham pleaded guilty in federal court in Worcester to escaping from federal custody.
Victor Rodrigues De Moura-Pereria, 20, pleaded guilty on April 26, 2024 before U.S. Magistrate Judge David Hennessy, who sentenced Rodrigues to time-served (approximately five weeks in prison) to be followed by one year of supervised release. Rodrigues was subsequently transferred into ICE custody and placed into removal proceedings.
In September 2021, Rodrigues was arrested in Arizona after unlawfully entering the United States. He was subsequently placed into removal proceeding in October 2021 but failed to report and was considered an absconder.
On Feb. 25, 2024, in Framingham, Rodrigues was approached by local law enforcement due to an outstanding warrant for his arrest. Rodrigues ignored officers’ commands and resisted arrest. Rodrigues was then transferred into the custody of federal immigration officials.
On Feb. 26, 2024, while being transported to the Wyatt Detention Center where he was to be detained while in custody of immigration authorities, Rodrigues made numerous attempts to escape. Specifically – while placed in full restraints and seated in the prisoner compartment of the transport van – Rodrigues attempted to unlock the passenger side door by pulling on the lock pin with his teeth. Rodrigues then forced his body through a small gap between the vehicle’s rear cage and passenger side window and into the vehicle’s storage compartment, where he pulled the emergency release pull tab, opened the rear door and jumped out onto the highway when the vehicle entered standstill traffic. After exiting the transport van, Rodrigues ran down the middle of the highway and disappeared.
Responding law enforcement subsequently located Rodrigues hiding inside a wooden fenced area behind a building in Waltham, approximately a quarter mile from where he exited the vehicle.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement today. Valuable assistance was provided by the Waltham Police Department and the Massachusetts State Police. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit prosecuted the case.
Attorney General Merrick B. Garland Statement on the Shootings of Law Enforcement in North Carolina During U.S. Marshals Task Force OperationRead the Press Release
This afternoon, a Deputy U.S. Marshal and two Task Force Officers were killed in the line of duty and multiple other officers were wounded while serving a state arrest warrant on a fugitive in Charlotte, North Carolina.
Attorney General Merrick B. Garland issued the following statement:
“Every single day, Deputy U.S. Marshals and Task Force Officers put their lives on the line to apprehend some of our country’s most dangerous criminals. Today, three of those dedicated public servants made the ultimate sacrifice. Multiple other officers were critically injured while carrying out this operation to protect their community.
"The Justice Department is heartbroken by the deaths of three of our own law enforcement colleagues, and we extend our deepest condolences to their loved ones as they grieve this unfathomable loss.”
Arizona Man Convicted of Operating A Jet Ski in A Negligent Manner at Lake Mead National Recreation AreaRead the Press Release
LAS VEGAS – An Arizona resident was found guilty on Thursday for operating a jet ski in a negligent manner that resulted in the death of a passenger at Lake Mead National Recreation Area.
United States Magistrate Judge Daniel J. Albregts presided over the two-day bench trial. Bryce Tyrone Verhonich, 47, was found guilty of operating a vessel in a negligent manner, failing to wear a personal flotation device, and failing to attach an engine cut-off switch lanyard. A sentencing hearing has been scheduled for August 5, 2024.
According to court documents and evidence presented at trial, on June 30, 2022, Verhonich and a passenger traveled from his houseboat on a jet ski toward the Hoover Dam. As conditions worsened, Verhonich made a sharp turning maneuver that resulted in Verhonich and his passenger falling off the jet ski. Neither Verhonich nor the passenger were wearing life jackets at the time. The passenger’s body was ultimately recovered from Lake Mead National Recreation Area on July 6, 2022.
United States Attorney Jason M. Frierson made the announcement.
This case was investigated by the National Park Service. Assistant United States Attorneys Edward D. Penetar and Brian Whang are prosecuting the case.
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Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Ricky Lee Smith, 55, of Laramie, Wyoming, was sentenced to 120 months in federal prison for possession of child pornography. According to court documents, On Jun. 25, 2023, law enforcement received a CyberTip from a provider of cloud-based services regarding the user of a Verizon phone with a Wyoming number that traced back to Smith, who is a registered sex offender. Investigators served a search warrant at Smith’s residence and found over 750 images of child pornography on Smith’s phone. Smith was indicted in November 2023 and pleaded guilty in January 2024. U.S. District Court Judge Alan B. Johnson imposed the sentence on Apr. 24. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Mackenzie R. Morrison.
Drug Trafficking
Michael E. Trujillo, II, 28, of Cheyenne, Wyoming, was sentenced to 41 months’ imprisonment for possession with intent to distribute fentanyl. According to court documents, on Sep. 26, 2023, the Cheyenne Police Department conducted a traffic stop on Trujillo’s vehicle for speeding. During the traffic stop a certified narcotics canine alerted to the presence of drugs. Officers searched the vehicle and Trujillo’s person and found approximately 33 grams of suspected fentanyl pills, seven grams of methamphetamine, and approximately three grams of cocaine. Trujillo was indicted in November 2023, and pleaded guilty in January 2024. U.S. District Court Judge Alan B. Johnson imposed the sentence on Apr. 24. This crime was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Timothy J. Forwood.
Firearms Offenses
Eric Lamario Mitchell, 41, of Cheyenne, Wyoming, was sentenced to 60 months’ imprisonment for being a felon in possession of a firearm and ammunition. According to court documents, on Jul. 13, 2023, the Cheyenne Police Department conducted a traffic stop on a vehicle where Mitchell was the front passenger. Officers located a .45 caliber 1911 handgun under his seat. Mitchell is a convicted felon and not allowed to possess firearms. Officers also executed a warrant for Mitchell’s hotel room and found a .22 caliber handgun under his mattress. Michell was indicted in November 2023, and pleaded guilty on Feb. 6. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Apr. 26. This crime was investigated by the Cheyenne Police Department, Wyoming Division of Criminal Investigation, and the DEA. The case was prosecuted by Assistant U.S. Attorney Paige Hammer.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
23 Lubbock Drug Traffickers Sentenced to Combined 218 Years in PrisonRead the Press Release
The final defendant arrested in a large-scale drug and gun bust in Lubbock in July 2023 has been sentenced, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In total, 23 defendants were sentenced to a combined total of 218 years in federal prison.
The final defendant, Beatrice Eunice Gutierrez, was sentenced by U.S. District Judge James Wesley Hendrix to 18 years in prison for possession with intent to distribute methamphetamine on Thursday.
“Project Safe Neighborhoods is designed to target an areas’ most dangerous offenders. Key to the initiative’s success are productive partnerships between state, federal, and local law enforcement,” said U.S. Attorney Leigha Simonton. “We hope the Lubbock community will feel more at ease knowing these defendants will spend significant time off their streets and behind bars.”
Members of the group are linked to at least one fatal overdose. The victim, identified in court documents as T.F., was located in a bedroom surrounded by blue pills later confirmed to contain fentanyl. Defendant Alexus Grubelnik later admitted she delivered the pills to his residence, hiding them under the doormat.
Over the course of the investigation, law enforcement seized more than 12,354 grams of fentanyl pills, 12,7311 grams of methamphetamine, 4393 grams of heroin, 31 grams of oxycodone, 1.26 grams of cocaine, 35 firearms, and $155,204 in U.S. currency.
Those sentenced include:
• Steven Paul Echols, sentenced to 210 months for possession with intent to distribute methamphetamine
• Rachel Michelle Melendez, sentenced to 210 months for possession with intent to distribute methamphetamine
• Nicolas Blake Pereida, sentenced to 240 months for distribution and possession with intent to distribute methamphetamine
• Brent Reed Angelle, sentenced to 188 months for possession with intent to distribute methamphetamine
• Alexus Michelle Grubelnik, sentenced to 135 months for distribution and possession with intent to distribute fentanyl
• Beatrice Eunice Gutierrez, sentenced to 216 months for possession with intent to distribute methamphetamine
• Erik Hans Grosstueck, sentenced to 216 months for possession with intent to distribute fentanyl
• Brian Jacob Miller, sentenced to 70 months for possession with intent to distribute fentanyl
• Alexander Erik Pierce, sentenced to 186 months for distribution and possession with intent to distribute fentanyl
• Christian Carlisle Enochs, sentenced to 60 months for possession with intent to distribute fentanyl
• Brannon Mikel Burns, sentenced to 42 months for distribution and possession with intent to distribute fentanyl
• Matthew Ryan Chandler, sentenced to 42 months for possession with intent to distribute fentanyl
• Loddy Max Montoya, sentenced to 42 months for possession with intent to distribute fentanyl
• Trey Matthew Parrish, sentenced to 96 months for distribution and possession with intent to distribute fentanyl
• Glen Donnell Nall, Jr., sentenced to 135 months for possession with intent to distribute methamphetamine
• Anthony Ray Morales, sentenced to 78 months for felon in possession of a firearm
• Ronny Paul Spruiell, sentenced to 210 months for distribution and possession with intent to distribute methamphetamine
• Kevontae Jalil Hawthorne, sentenced to 48 months for felon in possession of a firearm
• Daniel Anthony Moreno, sentenced to 30 months for felon in possession of a firearm
• Ethan Tyler Nieto, sentenced to 32 months for felon in possession of a firearm
• Martin Rosalez III, aka Wedo, sentenced to 41 months for felon in possession of a firearm
• Roberto Salinas, Jr., sentenced to 27 months for felon in possession of a firearm
• Tevin Terelle Carrington, sentenced to 63 months for felon in possession of a firearm
A number of the defendants were tied to Lubbock’s Project Safe Neighborhood zone, a high-crime hotspot where federal, state, and local law enforcement leaders collaborate to reduce violence and increase community safety. Many had extensive criminal histories, including child sexual assault, aggravated assault, burglary, fraud, manufacture and delivery of controlled substances, and unlawful carrying of firearms.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Lubbock Resident Agency, the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency, the United States Marshal Service, the Caprock HIDTA (High Intensity Drug Trafficking Area) Task Force, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sherriff’s Office, and the Texas Anti-Gang Task Force conducted the investigation and arrest operation. Assistant U.S. Attorney Sean Long is prosecuted the case along with Assistant U.S. Attorneys Jeff Haag, Ann Howey, Callie Woolam, Matt McLeod, and Ryan Redd.
The case is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program leverages the strengths of federal, state, and local law enforcement agencies to identify, disrupt, and dismantle the highest-level drug traffickers and drug trafficking networks using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information can be found at
28 April 2024
Two Men and a Woman Sentenced to Decades in Federal Prison Following Convictions for Kidnapping an FBI Employee at GunpointRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced an El Salvadoran man, a Guatemalan man, and a Kersey, Colorado, woman convicted of the following offenses: Kidnapping; Carjacking; Brandishing a Firearm During and in Relation to a Crime of Violence; Unlawful Possession of a Firearm by a Prohibited Person; and Unlawful Reentry after Deportation. The sentencings took place on April 12 and April 26, 2024, in Rapid City, South Dakota.
Deyvin Morales, age 29, of Guatemala, was sentenced on April 26, 2024, to 47 years in federal prison, followed by five years of supervised release.
Juan Francisco Alvarez-Sorto, age 25, of El Salvador, was sentenced on April 12, 2024, to 35 years in federal prison, followed by five years of supervised release.
Karla Lopez-Gutierrez, age 29, was sentenced on April 26, 2024, to 26 ½ years in federal prison, followed by five years of supervised release.
Alvarez, Morales, and Lopez were indicted by a federal grand jury in August of 2022. Lopez-Gutierrez pleaded guilty to Kidnapping and Brandishing a Firearm During and in Relation to a Crime of Violence on August 17, 2023. Alvarez and Morales were indicted again in December of 2023. On January 23, 2024, following a federal trial, Alvarez and Morales were found guilty of Kidnapping; Carjacking; Brandishing a Firearm During and in Relation to a Crime of Violence; Unlawful Possession of a Firearm by a Prohibited Person; and Unlawful Reentry after Deportation.
“The victim in this case was faithfully performing his duties when he found himself at the center of an absolute nightmare — fighting for survival in the back of his own car after these callous defendants carjacked, kidnapped, and held the victim at gunpoint for more than thirty minutes,” said U.S. Attorney Alison Ramsdell. “That men and women in law enforcement must face such profound risks to their lives while working to secure community safety is unacceptable and will not be tolerated. These lengthy sentences reflect those principles. Once again, we are grateful to the FBI and numerous other federal, state, local, and tribal law enforcement partners for their unwavering commitment to both this investigation and to the righteous mission we all serve in this community.”
“These sentences reaffirm the FBI’s steadfast commitment to protecting our personnel from acts of violence and intimidation,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “We extend our gratitude to the USAO-SD and law enforcement partners for their unwavering dedication. Justice has been served, and we continue to stand united against any attempt to endanger our workforce.”
In her sentencing comments, Judge Schreier declared the defendants’ actions among the most horrendous crimes she had seen as a judge.
According to evidence admitted at trial, on May 5, 2022, Alvarez, Morales, and Lopez traveled from Greeley, Colorado, into southwestern South Dakota for the purpose of trafficking and distributing controlled substances, including methamphetamine, fentanyl, and heroin. During their trip, the defendants encountered a South Dakota Highway Patrol Officer and engaged in a high-speed chase. The defendants eluded law enforcement at that time and hid in a remote area near Red Shirt, South Dakota.
Alvarez, Morales, and Lopez then decided to carjack the next vehicle to come along the area at which the defendants stopped on BIA Highway 41. At approximately 2:00 a.m. on May 6, 2022, a Federal Bureau of Investigation (FBI) Victim Specialist left an unrelated crime scene investigation near Oglala, South Dakota, and began traveling back towards his duty station in Rapid City. The FBI employee was driving his assigned FBI vehicle.
As the employee was heading North on BIA 41 near the Badlands overlook on Cuny Table, he passed a vehicle that was parked in the approach near the overlook. As he passed the parked vehicle, the parked vehicle’s lights turned on and the vehicle pulled out behind the employee. The employee, believing he was being pulled over by law enforcement, pulled his vehicle to the side of the road. After the employee pulled his vehicle over, he next realized there was a male at his window pointing a rifle at him and ordering him to get out of the vehicle. The employee realized that the male, identified as Alvarez, was not a law enforcement officer and also that the vehicle had blocked his own vehicle, preventing him from driving away.
Morales and Alvarez ordered the FBI employee out of his vehicle at gun point. The employee was ordered to get on the ground behind his vehicle while Alvarez was holding the rifle at the back of his head. The employee was ordered to keep his head down while on the ground. The group then robbed him of his wallet, money, credit cards, car keys, watch, and personal and work mobile phones.
The FBI employee was then ordered to get up and placed in the middle-rear seat of his government-issued vehicle, as the passenger side seat was blocked with items. While holding the rifle, Alvarez was seated in the front passenger seat of the employee’s vehicle and Morales, while armed with two handguns in his waistband, was seated in the rear driver’s side seat next to the employee. Lopez got into the driver’s seat of the employee’s vehicle. At this point, the defendants took control of the vehicle and took the employee hostage. As the group traveled North on BIA 41, they told the employee to cooperate and he would be safe, but if he did not, the group would come after his family and that they knew where he lived.
The group traveled to Hermosa, South Dakota, stopping at a gas station at the intersection of State Highway 40 and Highway 79. Once the group arrived at the gas station, Lopez went inside to purchase gas. As she got out of the vehicle to go inside the gas station, Alvarez locked the doors to the employee’s vehicle, and the doors remained locked while Lopez was out of the vehicle. Lopez then came back to the vehicle holding a gas can and zip ties. She entered the vehicle and conducted a U-turn and then went to a gas pump. The FBI employee noticed that after Lopez came back to the vehicle, Alvarez, who was brandishing the firearm, had the zip ties in his possession and was getting them out. As Lopez got out to pump gas, the doors to the vehicle were momentarily unlocked. Seizing the opportunity, the employee opened the rear driver’s side door, fought his way out of the vehicle, slipping out of his jacket to escape Morales' attempts to detain him, and sprinted inside the front doors of the gas station to escape.
The three defendants then fled from the gas station and drove to Rapid City, where they abandoned the FBI vehicle and switched to another vehicle. Alvarez and Morales were able to make it back to Greeley, Colorado, where they were ultimately arrested for their roles in the kidnapping and carjacking. During a search of the residence where Alvarez and Morales were arrested, law enforcement located firearms, including the rifle used during the kidnapping and carjacking, and controlled substances. Lopez was arrested soon afterward.
This case was investigated by the FBI, Department of Homeland Security’s Homeland Security Investigations and Immigration and Customs Enforcement, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Oglala Sioux Tribe Department of Public Safety, Rapid City Police Department, Greeley, Colorado Police Department, and the Custer and Pennington County Sheriffs’ Offices. Assistant U.S. Attorneys Jeremy R. Jehangiri and Paige Petersen prosecuted the case.
Alvarez, Morales, and Lopez were remanded to the custody of the U.S. Marshals Service to begin serving their sentences.
26 April 2024
Williams-Sonoma Ordered to Pay Record Civil Penalty for Violating an Administrative Order Prohibiting its Marketing of Imported Goods as Made in the USARead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), announced that Williams-Sonoma Inc. (Williams-Sonoma) has agreed to a settlement that requires it to pay more than $3 million in civil penalties and stop making false and misleading claims about the origins of its products.
In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that home products company Williams-Sonoma, doing business as Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, PBTeen, West Elm and Rejuvenation, violated an FTC administrative order that prohibits it from advertising wholly imported products and products containing significant imported content as “Made in the USA” in violation of the FTC Act and the Made in USA Rule.
In the stipulated order resolving this case, Williams-Sonoma admits the truth of the complaint’s allegations and agrees to pay a $3,175,387 civil penalty. The order also enjoins Williams-Sonoma from making misleading or unsubstantiated country-of-origin claims and includes recordkeeping and reporting obligations to ensure the company’s future compliance.
“The Justice Department will vigorously enforce laws to stop deceptive advertisers from making misleading and fraudulent claims to sell products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Williams-Sonoma misled consumers by touting products as made in the USA when at least one of them was made in China. We will continue to work with the FTC to stop deceptive marketing practices like this.”
“Williams-Sonoma claimed its products were made in the United States even though they were made in China,” said FTC Chair Lina M. Khan. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”
Trial Attorney Mary M. Englehart and Assistant Director Zachary Dietert of the Civil Division’s Consumer Protection Branch, as well as Assistant U.S. Attorney David DeVito for the Northern District of California and Julia Ensor of the FTC’s Bureau of Consumer Protection, handled the matter.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
Virginia Man Convicted of Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Virginia man was convicted for possession with intent to distribute fentanyl, U.S. Attorney Philip Sellinger announced today.
Djavon Holland, 37, of Virginia, was convicted on April 15, 2024, by a federal jury of two counts of possession with intent to distribute fentanyl following trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to court documents and evidence presented at trial:
In August 2021, law enforcement officials received information that Holland was engaged in narcotics trafficking in or around the Virginia area and New Jersey. On Aug. 12, 2021, a confidential source working with the Ocean County Prosecutor’s Office contacted Holland to arrange a meeting with a confidential source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). On several occasions, Holland drove to New Jersey and sold fentanyl to ATF’s confidential source.
The narcotics offenses each carry a minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $5 million. Sentencing will be scheduled at a later date.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Rossin Marchetti, and the Ocean County Prosecutor’s Office, under the direction of Ocean County Prosecutor Bradley D. Billhimer, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Megan N. Linares and Jenny Chung of the Office’s Criminal Division in Newark.
US Attorney’s Office Charges Labar Tsethlikai for Murder of Navajo ManRead the Press Release
ALBUQUERQUE – A Zuni man made an initial appearance on his Indictment related to the murder of a member of the Navajo Nation and is considered the prime suspect in a series of crimes targeting Native American men in Gallup, Zuni, and Albuquerque. He will remain in custody pending his detention hearing and arraignment, which is set for May 1, 2024.
Labar Tsethlikai, 51, an enrolled member of the Zuni Pueblo, is charged with murdering John Doe on January 18, 2024. John Doe was found deceased the next morning in a remote area of the Zuni Reservation on Route 7, approximately 300 yards eastbound of State Highway 602.
Prior to the murder, John Doe was last seen along East Highway 66 in Gallup, New Mexico.
According to court records, Tsethlikai is linked to a string of murders, kidnappings, robberies, sexual abuses, and assaults, in both Indian Country and the Albuquerque Metropolitan Area between May 2023 and April 2024. Through the investigation, 10 other potential victims have been identified, with 7 crimes occurring within Indian Country, 1 crime involving the victim being transported from Indian Country to Albuquerque, and 3 crimes occurring in the Albuquerque area. One other victim is believed to have died after being kidnapped.
Investigators tied Tsethlikai to the crimes through a common modus operandi, victim statements, video surveillance, EBT records, DNA analysis, and advanced cellular phone tracking. This comprehensive evidence placed Tsethlikai at or around each victim, including John Doe, during the relevant time periods.
If convicted, Tsethlikai faces up to life in prison followed by five years of supervised release.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department’s Sex Crimes Unit and Air Support Unit. Assistant United States Attorneys Matthew J. McGinley, Mark A. Probasco, and Eliot Neal are prosecuting the case.
The FBI continues to investigate Tsethlikai’s involvement in crimes against other victims. If you have reason to believe you or someone you know may be a victim, or have information about Tsethlikai, please call the FBI at (505) 889-1300 or submit tips online at tips.fbi.gov.
Labar Tsethlikai is approximately 5’7” and weighs 180 pounds. He is heavyset, has short brown hair, brown eyes, and wears glasses. He sometimes wears a gold bracelet. He is from Zuni, but travels extensively around New Mexico, including Gallup, Albuquerque, and Santa Fe. He is believed to work in the Native American jewelry industry and may be a Zuni jewely artist.
Tsethlikai drives a gold/brown Chevy Silverado, single cab truck, with dual exhaust, bearing license plate number WNMU0043.
This case is part of the Department of Justice’s Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This prosecution upholds the Department’s mission to the unwavering pursuit of justice on behalf of Indigenous victims and their families.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Department of Justice Announces Dillard University’s Completion of ADA Compliance MeasuresRead the Press Release
NEW ORLEANS - The United States Attorney’s Office for the Eastern District of Louisiana and Dillard University jointly announce the successful conclusion of a multi-year process to implement a number of improvements that create an accessible environment in compliance with the Americans with Disabilities Act (ADA).
In 2018, the United States Attorney’s Office and Dillard cooperatively entered into a renewal and extension of an original ADA settlement agreement signed in 2002. A thorough ADA survey of the entire campus noted several non-accessible campus features, ranging from the lack of handicap parking and wheelchair ramps to the need for signage for low vision/blind persons outside of classrooms and more. Dillard completed its ADA-compliance measures earlier this year with modifications to its website.
Dr. Rochelle L. Ford, Dillard University’s eighth president, identified inclusion and accessibility on campus as vital components of the University’s commitment to healthy, safe, and innovative communities. She commented:
“In the coming months, the University will open the doors of a new living, learning, and serving community building. In this space, accessibility is a top priority for the team leading design and construction. As the University continues to grow, it will double down on its commitment to being a welcoming and inclusive place for students and the wider community.”
Duane A. Evans, United States Attorney for the Eastern District of Louisiana, remarked:
“We appreciate Dillard’s cooperation and commitment to bring its campus into full compliance with the ADA, a hallmark of our nation’s federal civil-rights legislation. Ensuring accessible educational settings for the disabled now, creates greater professional and economic opportunities for them in the future. This joint endeavor is an across-the-board win for Dillard, its current and prospective students, and our region.”
AUSA Glenn Schreiber of the Civil Division handled the case for the U.S. Attorney’s Office.
For more information on the ADA, please call the department’s toll-free Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.