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1 September 2023
Three St. Louis Area Residents Accused of Pandemic FraudRead the Press Release
ST. LOUIS – The final defendant of three indicted in July and accused of defrauding pandemic assistance programs appeared in court Thursday to plead not guilty to charges.
Shanay Bolden, 32, of Florissant, Shonta Woods, 38, of St. Louis County, and Ashley Luckett, 32, of St. Louis, were each indicted July 12 on one count of wire fraud conspiracy and two counts of wire fraud. Bolden faces an additional wire fraud count.
Woods appeared in U.S. District Court in St. Louis Thursday, where she pleaded not guilty. Bolden pleaded not guilty July 27 and Luckett pleaded not guilty July 14.
The indictment alleges two fraudulent schemes. In the first, Bolden submitted at least eight applications to Missouri’s State Assistance for Housing Relief Program, which was intended to aid renters and landlords during the COVID-19 pandemic, the indictment says. Bolden falsely claimed to be a landlord and paid Woods to electronically submit the applications, then paid kickbacks to Woods and her purported tenants, the indictment says. In addition to the kickbacks, Bolden spent part of the $126,500 she received in the scheme on personal items, including purchases that she made at Saks Fifth Avenue, the indictment says.
Woods submitted more than 12 fraudulent rental assistance applications on behalf of Bolden, Luckett and herself, the indictment says, receiving tens of thousands of dollars in return. At least two were submitted on behalf of Luckett, who received $20,400, the indictment says.
The second scheme alleged in the indictment involved the Paycheck Protection Program, which was aimed at helping small businesses and their employees. Bolden falsely claimed to own a lawn services company and Luckett falsely claimed to own a catering company, receiving PPP loans of $18,750 and $20,107 respectively, the indictment says.
Each charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Texas man pleads guilty to posting 2020 election-related threats to Georgia officialsRead the Press Release
ATLANTA - A Texas man has pleaded guilty to posting a message online threatening several Georgia public officials following the 2020 election.
“All across this country our fellow citizens and neighbors, including many retirees, choose to serve as elections officials, poll workers, and in other capacities to help ensure free and fair elections in the United States. They serve out of a patriotic duty and appreciation for our nation and deserve to do so without fear of retaliation or threats of violence,” said U.S. Attorney Ryan K. Buchanan. “Stark threatened officials working at all levels of the election process including elected office holders and a volunteer poll worker. His egregious conduct placed our democracy in jeopardy, striking at the heart of the process we assume to be insulated from such attacks. Our office will remain steadfast in partnering with federal, state, and local authorities to safeguard those who work to secure our elections.”
“This case marks another destructive example of threats of violence to the election community and law enforcement,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will not tolerate the criminal targeting of the men and women responsible for administering our elections and ensuring that every eligible voter has the opportunity to exercise the most fundamental right in our democracy: the right to vote.”
“This guilty plea plainly shows that anyone who threatens election officials online will be investigated by the FBI and held accountable for their words” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We must take calls to violence seriously, whatever their form, especially when they have the potential to result in physical harm and undermine the integrity of U.S. elections.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Around Jan. 5, 2021, Chad Christopher Stark posted a message to Craigslist entitled, “Georgia Patriots it’s time to kill [Official A] the Chinese agent - $10,000.” The message included the following: “It’s time to invoke our Second Amendment right it’s time to put a bullet in the treasonous Chinese [Official A]. Then we work our way down to [Official B] the local and federal corrupt judges. It’s our duty as American Patriots to put an end to the lives of these traitors and take back our country by force. . . . If we want our country back we have to exterminate these people. One good loyal Patriot deer hunter in camo and a rifle can send a very clear message to these corrupt governors.. milita up Georgia it’s time to spill blood…. we need to pay a visit to [Official C] and her family as well and put a bullet her behind the ears. Remember one thing local law enforcement the key word being local….. we will find you oathbreakers and we’re going to pay your family to visit your mom your dad your brothers and sisters your children your wife… we’re going to make examples of traitors to our country… death to you and all you communist friends.”
Chad Christopher Stark, 55, of Leander, Texas, pleaded guilty to one count of a sending a threat using a telecommunications device. A sentencing date has not yet been set.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
The FBI is investigating this case.
Assistant U.S. Attorney Brent Alan Gray and Sean F. Mulryne, Director of Enforcement & Litigation in the Election Crimes Branch of the DOJ Criminal Divison’s Public Integrity Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Terrebonne Parish Man Sentenced on Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – TATUM DARDAR, 26, from Terrebonne Parish, was sentenced on August 31, 2023 to 33 months imprisonment, 2 years supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Eldon E. Fallon, after pleading guilty to a two count superseding bill of information which charged him with conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and possession with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, DARDAR took part in a conspiracy to distribute methamphetamine throughout Terrebonne Parish and surrounding areas for over a year. Agents with the Drug Enforcement Administration recovered telephone calls between DARDAR and a known conspirator where they discussed their narcotics trafficking. Agents also arrested DARDAR after a traffic stop wherein a distributable amount of methamphetamine was located within the interior of his vehicle.
This case was investigated by the U.S. Drug Enforcement Administration, the Terrebonne Parish Sheriff’s Office, the Louisiana State Police, and the Houma Police Department. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Sturgis Woman Sentenced to 14 Years in Federal Custody for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Sturgis, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine). The sentencing took place on August 28, 2023
Devan McKenzie, 27, was sentenced to 14 years in federal prison, followed by five of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McKenzie was indicted for three counts of Conspiracy to Distribute a Controlled Substance (methamphetamine, heroin, and fentanyl) by a federal grand jury in December of 2021. She pleaded guilty on April 14, 2023.
Beginning around February of 2020, McKenzie began selling controlled substances with Brook and Dustin Staeffler. The group made arrangements to obtain the drugs in Colorado and then transport them to South Dakota. McKenzie transported the substances on several occasions and recruited her own sub-distributors to further sell the drugs in the Rapid City area. Overall, the conspiracy was responsible for at least 1.29 kilograms of methamphetamine, 857.5 grams of fentanyl, and 860.5 grams of heroin. During the investigation, law enforcement executed search warrants at McKenzie’s residence, and located drugs and items indicating she was actively engaged in selling illegal substances.
This case was investigated by the Unified Narcotics Enforcement Team, which is local a drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
McKenzie was immediately remanded to the custody of the U.S. Marshals Service.
St. Louis Man Admits Fatally Shooting Another over a Drug DebtRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Friday admitted fatally shooting someone who was trying to collect a drug debt.
Terrell Donta McDaniel, 41, pleaded guilty in front of U.S. District Judge Sarah E. Pitlyk to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and one count of discharge of a firearm during a drug trafficking crime.
In the plea agreement and in court, McDaniel admitted agreeing to sell 10 grams of fentanyl to Andre Nash on Nov. 2, 2022 for $500. But McDaniel did not give Nash the full amount of fentanyl that he paid for, and Nash began looking for McDaniel to collect the debt.
When Nash learned McDaniel was staying at a vacant house in the 4100 block of Clara Place, he went there and entered the house. McDaniel shot Nash twice in the chest and once in the face, killing him.
McDaniel and several others wrapped Nash’s body in tarps and plastic and placed him in the trunk of a stolen car, dumping the body in the 5900 block of St. Louis Avenue after dark that day. The body was discovered the next morning.
McDaniel is scheduled to be sentenced November 29.
The fentanyl conspiracy charge carries a penalty of up to 20 years in prison, a $1 million fine, or both. The discharge of a firearm charge is punishable by a sentence of up to life in prison, a $250,000 fine, or both.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI.
St. Louis County Mother, Son Accused of Disability FraudRead the Press Release
ST. LOUIS – A St. Louis County, Missouri mother and her son were indicted this week in U.S. District Court in St. Louis and accused of defrauding the Supplemental Security Income Program with false claims of a mental disability.
Gino Rives, 35, of Edmundson, appeared in court Friday and pleaded not guilty to one count of conspiracy to commit mail and wire fraud, five counts of wire fraud and five counts of theft of government funds. His mother, Zella Rives, 57, also of Edmundson, appeared in court Thursday and pleaded not guilty to the same charges, with the addition of one count of making a false statement.
The indictment alleges that from May 11, 2010 to August 30, 2023, the Rives defrauded the Social Security Administration’s Supplemental Security Income Program out of more than $88,000 by falsely claiming that Gino Rives had mental disabilities and had little or no income or resources. They claimed he had never worked, owned nothing, couldn’t drive and was unable to pay bills or use a bank account, the indictment says.
They concealed Gino Rives’ construction and tree trimming work, his mixed martial arts career, a 2009 conviction for financial exploitation of the elderly, his ownership of vehicles and homes and receipt of $721,000 worth of checks from an elderly individual, “A.B.,” before her death in April of 2023.
Gino Rives was charged in a separate indictment in April with one count each of access device fraud and fraudulently effecting transactions after being accused of fraudulently using A.B.’s credit card to purchase $4,788 in Southwest Airline tickets. He pleaded not guilty to those charges.
The conspiracy and wire fraud charges each carry a potential penalty of up to 20 years in prison, a $250,000 fine, or both. The charge of making a false statement is punishable by up to five years in prison, a $250,000 fine, or both, and the theft of government funds charge is punishable by up to 10 years in prison and the same fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Six Oklahomans Charged with Cares Act FraudRead the Press Release
OKLAHOMA CITY – Earlier this week, a criminal indictment was unsealed charging six Oklahoma residents with fraudulently obtaining nearly $1 million in Paycheck Protection Program (PPP) loans, announced U.S. Attorney Robert J. Troester.
On August 16, 2023, a federal grand jury returned a sealed, 28-count indictment against MARQUITA DESHAWN SHAW, 39, and AMIE STREET, 39, both of Lawton, Oklahoma, and COREY DONTA SHAW, 40, ERIC DEWAYNE SHAW, 38, MARQUS DEJUAN SHAW, 39, and SHATARA MARIE BREVELLE, 38, from Oklahoma City, Oklahoma. The indictment charges conspiracy to commit wire fraud, wire fraud, money laundering, making false statements to a financial institution, making false statements, and false representation of a social security number. The indictment was unsealed on August 29, 2023. All defendants, except Corey Shaw, have been arrested and released on conditions. A warrant has been issued for Shaw and he is considered a fugitive.
The indictment alleges that the defendants conspired to submit false and fraudulent loan applications through the PPP loan program. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided more than $2 trillion in relief for individuals and businesses adversely affected by the COVID-19 pandemic. The CARES Act also authorized the Small Business Administration to create the PPP to promote lending to small businesses affected by the pandemic for job retention and certain other expenses.
The indictment alleges the defendants created fictitious businesses and made numerous false and misleading statements about those businesses for the purpose of obtaining PPP loans. In support of the fraudulent loan applications, the defendants conspired to submit fake and altered documents, including altered and fictitious bank statements, identification documents, and tax records. The indictment further alleges that MARQUITA DESHAWN SHAW created fictitious identities to fraudulently obtain additional PPP loan proceeds that she subsequently transferred into bank accounts that she controlled. She is also charged with making false statements about her finances in applications for Housing and Urban Development housing benefits.
“Our advanced analytic tools make it possible for the Pandemic Response Accountability Committee (PRAC) data scientists and the PRAC Fraud Task Force to uncover complex fraud schemes in millions of rows of data,” said Steve Hanson, manager of the PRAC Fraud Task Force. “Through coordination and innovation, we're able to identify clusters of fraud where egregious cases of theft occurred, ensuring that those who stole pandemic relief funds are held accountable.”
“In the midst of unprecedented economic hardship experienced by so many during the pandemic, there are those who opted to take advantage of the aid offered through lies and deceit,” said U.S. Attorney Robert J. Troester. “My office will aggressively pursue those who wrongfully take advantage of government assistance and taxpayer funds.”
As part of the PRAC Task Force, this investigation was conducted by the PRAC, along with their law enforcement partners with the Social Security Administration (SSA)-Office of Inspector General (OIG), Small Business Administration (SBA)-OIG, U.S. Agency for International Development (USAID)-OIG, U.S. Department of Housing and Urban Development (HUD)-OIG, Internal Revenue Service (IRS)-Criminal Investigations (CI), U.S. Postal Inspection Service, Oklahoma State Bureau of Investigation, Lawton Police Department, Oklahoma City Police Department, and the Mid-States Organized Crime Information Center (MOCIC), Springfield, MO.
The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the PPP, and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
The case is being prosecuted by Assistant U.S. Attorneys Danielle London and William Farrior.
The public is reminded these charges are merely accusations and that each defendant is presumed innocent unless proven guilty. Reference is made to court filings for further information.
Second Texas men pleads guilty in case involving faulty military partsRead the Press Release
COLUMBUS, Ohio – Two Texas men are convicted of crimes related to providing faulty parts to the U.S. military.
Philip R. Huddleston, 58, of Ft. Worth, Texas, pleaded guilty in U.S. District Court here today.
Since 2013, Huddleston was a civilian employed as a quality assurance specialist at the Defense Contract Management Agency. Since 2018, Huddleston also co-owned WM Industries, a DoD contractor in Beaumont, Texas, who sold and supplied a variety of military parts to the DoD.
Huddleston co-owned the DoD parts business with Gregory Gotreaux, 56, of Beaumont, Texas, who is also convicted in this scheme.
According to court documents, Huddleston and Gotreaux conspired to supply the United States with unapproved and substituted parts on 41 orders totaling at least $704,000.
Specifically, from November 2019 through September 2021, Huddleston and Gotreaux provided nonconforming parts used in various U.S. military defense and weapons systems. The defendants were paid by the Defense Finance and Accounting Service (DFAS) located in Columbus.
The two men pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property.
Parties involved with Huddleston’s plea agreement have recommended a sentence of 24 to 37 months in prison.
The defendants have agreed to pay $706,000 in restitution, which includes approximately $2,100 for testing costs to the Department of Defense.
Sentencing of the defendants take place at future hearings and will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI); announced the guilty pleas. Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney J. Michael Marous are representing the United States in this case.
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Second Defendant Sentenced to 18 Months in Prison for Role in Conspiracy to Make a Destructive DeviceRead the Press Release
Richland, Washington – August 31, 2023, United States District Judge Mary K. Dimke sentenced Connor Goodman to 18 months in the custody of the United States Bureau of Prisons, to be followed by a three-year term of court supervision after he is released from federal prison. Goodman was sentenced today after having plead guilty on March 16, 2023, to Conspiracy to Make an Unregistered Destructive Device. In fashioning an appropriate sentence, District Judge Dimke considered the seriousness and dangerousness of Goodman and his co-defendant’s, Daniel Anderson, actions.
Goodman’s plea and sentence stemmed from a several months long investigation into a group of individuals that advocated for the use of violence against perceived government overreach. During the investigation, co-defendant Anderson solicited explosive material from members of the group. In response, Goodman purchased fireworks which were provided to Anderson for the construction of an explosive device. Subsequently, in December 2021, the FBI and other law enforcement agencies executed search warrants at Anderson and Goodman’s residences. Following the search warrant execution at Anderson’s residence, special agents located a small fully constructed destructive device. Also located at Goodman’s residence were multiple firearms, including a sawed-off shotgun.
On March 23, 2023, Anderson plead guilty to Conspiracy to Make an Unregistered Destructive Device. On August 17, 2023, Anderson was sentenced to 12 months and 1 day in prison, followed by three years of court supervision.
“As the U.S. Attorney, I will not tolerate any efforts to threaten or target public servants dedicated to protecting and supporting our community. Mr. Goodman bought materials for the explicit purpose of constructing an explosive device that presented a very real danger. I commend the FBI and their law enforcement partners, who identified this conspiracy and who serve diligently to keep our country and communities safe and strong.”
“Mr. Goodman and his co-conspirator took active steps to further their ideology through violence” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, our Joint Terrorism Task Force was able to disrupt their activities before they could injure or kill anyone with their destructive device. I thank the investigators and partners who work tirelessly on the JTTF, the Eastern District of Washington US Attorney’s Office, and urge the public to remain vigilant for those who would use violence to advance an agenda.”
The case was investigated by the FBI’s Seattle Field Office, Inland Northwest Joint Terrorism Task Force (“INJTTF”). This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
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Second Bvi Man Charged in the Same Week with Alien SmugglingRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Kamoy King, 26, of Tortola, BVI, was charged on August 31, 2023, with bringing illegal aliens to the United States for private financial gain. King is the second BVI man charged this week with alien smuggling.
According to court documents, on August 30, 2023, at approximately 9:00 p.m., U.S. Customs and Border Protection Air and Marine Operations agents were patrolling United States waters when they observed a vessel operated by King enter Haulover Bay, St. John. The vessel did not display any navigational lights as required by law. Agents attempted to stop the vessel by activating their blue police lights and sirens, but King refused to stop the vessel. King eventually complied after agents fired flare warning shots and was taken into custody. U.S. Border Patrol agents stationed at the Haulover Bay trail later discovered four illegal aliens hiding on the beach. Neither King nor the four individuals found on the beach could produce any legal documentation that authorized their presence in the United States.
This case is being investigated by Department of Homeland Security, U.S. Customs and Border Protection Air and Marine Operation, and U.S. Border Patrol and prosecuted by Assistant United States Attorney Kyle Payne.
United States Attorney Delia L. Smith reminds the public that a complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ringleader and Key Co-Defendant Sentenced to Prison for Leading Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Bisheem Jones, also known as “Bosh,” 37, of Philadelphia, Pennsylvania, was sentenced today to 25 years in prison, to be followed by three years of supervised release, for leading a scheme to traffic over 140 firearms from southern West Virginia to Philadelphia. Shyheem Woodard-Smith, also known as “Peanut” and “Nut,” 23, of Philadelphia, was also sentenced today to five years in prison, to be followed by three years of supervised release, for his key role in the gun trafficking conspiracy.
A federal jury found Jones guilty after evidence at trial proved he oversaw a conspiracy that recruited straw purchasers in the Beckley area to buy firearms that Jones and his co-conspirators took back to Philadelphia to sell for profit. Jones was convicted of interstate travel with the intent to deal in firearms without a license, conspiracy to travel interstate with the intent to deal in firearms without a license and conspiracy to commit money laundering on December 16, 2022, after five days of trial.
From in and around June 2020 to in and around July 2021, Jones and his co-conspirators trafficked over 140 firearms. Over 50 of the firearms were recovered at crime scenes primarily in Philadelphia and were connected to two homicides, crimes of domestic violence, and other violent offenses.
“Bisheem Jones brought deadly and tragic results to the streets of Philadelphia and elsewhere,” said United States Attorney Will Thompson. “Today’s sentence reflects the harm Jones caused and offers a warning to others who seek to traffic in firearms illegally and bring violence to our communities.”
Jones selected the firearms the straw purchasers bought and provided the money to purchase them. Jones also paid the straw purchasers with money or drugs to buy the firearms. The straw purchasers falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that they were the buyers of the firearms when they knew they were purchasing them for Jones and his interstate gun trafficking conspiracy.
“ATF’s mission is to protect the public by keeping firearms out of the hands of violent criminals,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division, which includes West Virginia. “One of the ways we accomplish our mission is by identifying the sources of crime guns and taking swift action before those firearms can be used to cause harm. This case demonstrates how criminals illegally acquire firearms, and how ATF and our law enforcement partners work together to disrupt these networks. I commend the investigative team and the United States Attorney’s Office for their diligent work and for their commitment to keeping our communities safe.”
The federal money laundering statutes Jones violated served to significantly increase his federal prison sentence. This investigation is unique in that agents were able to identify financial transactions that promoted Jones’ firearms trafficking enterprise and violated federal money laundering statutes. In particular, from approximately June 2020 to approximately July 2021, Jones used peer-to-peer payment apps to transfer money to various individuals in Philadelphia and Beckley. Those funds were ultimately used to purchase firearms in the Southern District of West Virginia. The firearms were then transported from Beckley to Philadelphia, where they were sold for a profit. That money was used to purchase more firearms in the Beckley area. Jones used his bank account to pay the straw purchasers and deposit proceeds from selling the firearms in Philadelphia.
“The investigative prowess of IRS Criminal Investigation special agents and our law enforcement partners disrupted the financial flow of funds supporting illegal firearms trafficking,” said Acting Special Agent in Charge Kareem A. Carter of the Washington, D.C. Field Office. “IRS-CI is committed to the dismantling of criminal networks that pose a threat to public safety.”
Woodard-Smith played an instrumental role in the firearm trafficking conspiracy, traveling from Philadelphia to Beckley with Jones to oversee the purchase of firearms at Beckley-area stores. Woodard-Smith also encouraged his fellow traffickers to obliterate the serial numbers of the firearms before putting them on the street.
Woodard-Smith pleaded guilty to interstate travel with the intent to engage in dealing firearms without a license. Woodard-Smith is among 18 defendants who pleaded guilty in connection with the firearms trafficking. Jones and Woodard-Smith are the final defendants to be sentenced. Other convicted defendants include:
- Denise Johnson, 26, of Beckley, sentenced to three years and 10 months in prison for conspiracy to travel interstate with the intent to engage in dealing firearms without a license;
- Donte Webster, 23, of Beckley, sentenced to two years and nine months in prison for making false statements in acquisition of firearms;
- Derrick Woodard, also known as “D,” 27, of Philadelphia, sentenced to two years in prison for interstate travel with the intent to engage in dealing firearms without a license;
- Terri Lawhorn, 29, Fayetteville, sentenced to two years in prison for making false statements in acquisition of firearms;
- Hassan Abdullah, also known as “San,” 28, of Philadelphia, sentenced to one year and six months in prison for interstate travel with the intent to engage in dealing firearms without a license;
- Maurice Johnson, 37, of Mount Hope, sentenced to one year in prison for interstate travel with the intent to engage in dealing firearms without a license; making false statements in acquisition of firearms; and
- Brandon Lawson, 33, Oak Hill, sentenced to nine months in prison for transferring a firearm to an out-of-state resident.
United States District Judge Frank W. Volk imposed the sentences.
Thompson commended the excellent investigative work by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service-Criminal Investigation (IRS-CI), and the Philadelphia Police Department. Thompson also commend Assistant United States Attorneys Negar M. Kordestani and Steve Loew and the office’s trial team.
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.
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. 5:22-cr-46.
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Readout of the Justice Department’s Engagement with Two Ukrainian Delegations to Strengthen Anti-Corruption Efforts and Serve Victims and Witnesses of CrimeRead the Press Release
From Aug. 28 to Aug. 31, the leadership of Ukraine’s three anti-corruption bodies met with Justice Department officials in Washington, D.C. Their visit was sponsored by the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL). Separately, Department officials met with a delegation from the Victim and Witness Coordination Centre of the Ukrainian’s Prosecutor General’s Office, in a visit that was also funded by INL.
On Wednesday, Attorney General Merrick B. Garland welcomed to the Justice Department the anti-corruption delegation, which was led by the National Anti-Corruption Bureau (NABU) Director Semen Kryvonos, Specialized Anti-Corruption Prosecutor’s Office (SAPO) Chief Prosecutor Oleksandr Klymenko, and High Anti-Corruption Court (HACC) Chief Justice Vira Mykhailenko. They were accompanied by the Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor at U.S. Embassy Kyiv Jared Kimball, who is providing guidance, case-based mentoring, and capacity building to SAPO and NABU.
AG Garland with (l to r) DAAG and Counselor to AG for International Affairs Bruce Swartz; SAPO Chief Prosecutor Oleksandr Klymenko, NABU Director Semen Kryvonos, HACC Chief Justice Vira Mykhailenko and Resident Legal Advisor Jared Kimball.
The anti-corruption delegation met with Criminal Division leadership including Deputy Assistant Attorney General and Counselor for International Affairs Bruce C. Swartz, OPDAT leadership, the Justice Department’s Office of International Affairs (OIA), the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Task Force KleptoCapture leadership. They also met with FBI Director Christopher Wray and the FBI’s Criminal Investigative Division.
The meetings provided an opportunity to demonstrate the United States’ unwavering support and confidence in their critical work in targeting high-level corruption, strengthening cooperation on financial investigations, and understanding what challenges they are facing and how the Department can help. The partnership includes facilitating communication with Ukrainian agencies on U.S. and Ukrainian cases involving corrupt actors and seized assets and working with OIA to improve the Mutual Legal Assistance process for both parties.
The Department reaffirmed its full commitment to support the independence of these anti-corruption institutions through technical support and capacity building provided by the Resident Legal Advisor in Kyiv and other Department expertise.
On Tuesday, Criminal Division Deputy Assistant Attorney General Anjali Chaturvedi and representatives of the Department’s War Crimes Accountability Team, based in the Criminal Division’s Human Rights and Special Prosecutions Section, and representatives of the Justice Department’s Office of Victims of Crime, Office on Violence Against Women, National Security Division’s Office of Justice for Victims of Overseas Terrorism, and U.S. Attorney’s Office for the District of Columbia met at the Department with a delegation from the Victim and Witness Coordination Centre that was recently created in the Office of the Prosecutor General of Ukraine. Attorney General Garland welcomed the delegation and focused on the importance of supporting Ukrainian victims. The head of the Centre, Dr. Veronika Plotnikova, led discussions for the delegation. Following the meeting, the delegation visited the U.S. Attorney’s Office for the District of Columbia to learn more about how the Department supports crime victims and witnesses. The delegation also met with representatives of the FBI’s Victim Services Division.
AG Garland with Dr. Veronika Plotnikova and other members of DOJ, INL the Ukraine Prosecutor General’s Office, and Ukrainian Embassy.
Earlier this year, Attorney General Garland met Prosecutor General (PG) Andriy Kostin and discussed the matter of supporting victims and witnesses of crime. In February, PG Kostin met with some of the Justice Department’s top victim witness support experts. The Centre was subsequently created by PG Kostin on April 11.
Department officials offered expertise and support to enhance the implementation of mechanisms in Ukraine to assist victims and witnesses during the criminal justice process as Ukraine investigates and prosecutes Russian war crimes and other atrocities.
The Department of Justice is proud to stand by our Ukrainian law enforcement partners in their courageous and crucial work and looks forward to continuing to assist in any way we can.
Rapid City Man Sentenced to 10 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography. The sentencing took place on August 29, 2023.
Nathan David Hankins, 30, was sentenced to two 10-year terms in federal prison, to run concurrently. Hankins’ federal custody time will run consecutively with a previously imposed state custody sentence. Hankins was also sentenced to lifetime supervised release and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Hankins was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in December of 2019. He was convicted at a court trial on March 23, 2023.
Hankins was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to a download of child pornography from Hankins’ Google account. The Internet Crimes Against Children Taskforce executed a search warrant on Hankins’ residence and located several devices. A forensic examination of those devices found hundreds of images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Hankins was immediately remanded to the custody of the U.S. Marshals Service.
Owner of Oregon Payroll Services Company Pleads Guilty to Employment Tax SchemeRead the Press Release
An Oregon man pleaded guilty today to willfully failing to pay more than $24 million in payroll taxes owed to the IRS.
According to court documents and statements made in court, Robert Kohnle of Lake Oswego, was the president, secretary, and chief executive officer of Real Benefits Group Inc., dba Aliat. As a professional employer organization, Aliat provided payroll and payroll-related services for its clients. Aliat was responsible, pursuant to service agreements with its clients, for receiving the payroll taxes withheld from the wages of clients’ employees, including federal income and Social Security and Medicare taxes, and paying those payroll taxes to the IRS.
Beginning in the fourth quarter of 2016 through the fourth quarter of 2022, Kohnle received payroll withholdings from Aliat’s clients but did not pay it over to the IRS as required by the client service agreements. Kohnle instead used the money to pay Aliat’s other expenses and creditors, including himself. In total, Kohnle caused a tax loss to the IRS of $24,816,602.
Kohnle is scheduled to be sentenced on Jan. 8, 2024, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Natalie K. Wight for the District of Oregon made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department's Tax Division are prosecuting the case.
Owner of Kansas Metal Company Pleads Guilty to Employment Tax SchemeRead the Press Release
A Kansas man pleaded guilty today to willfully failing to pay federal employment taxes.
According to court documents and statements made in court, Douglas Furnell of Leawood, was the owner and operator of Western Metal Company, a Louisburg-based manufacturer of custom metal products. As such, he was responsible for paying over to the IRS the federal income and Social Security and Medicare taxes withheld from his employees’ wages. From the first quarter of 2015 through the second quarter of 2020, however, Furnell did not timely pay the withholdings to the IRS nor file the requisite quarterly employment tax returns. In total, Furnell caused a tax loss to the IRS of approximately $333,983.
Furnell is scheduled to be sentenced on Dec. 14, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kate E. Brubacher for the District of Kansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Erika V. Suhr of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas are prosecuting the case.
Organized Crime Drug Enforcement Task Force Defendants Sentenced to Federal Prison for Trafficking NarcoticsRead the Press Release
LAFAYETTE, La. – Three defendants from Lafayette, Louisiana who were involved in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation have been sentenced, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced the following defendants:
Brandon Anderson, 30, was sentenced to 188 months (15 years, 8 months) in prison, followed by 5 years of supervised release. He pleaded guilty on December 21, 2021, to conspiracy to distribute and possess with intent to distribute controlled substances.
Cord Anderson, 34, was sentenced to 120 months (10 years) in prison, followed by 5 years of supervised release. He pleaded guilty on May 30, 2023, and admitted to possessing at least 350 but not more than 500 grams of methamphetamine.
Tory Phillips, 32, was sentenced to 88 months (7 years, 4 months) in prison, followed by 5 years of supervised release. He pleaded guilty on December 21, 2021, to conspiracy to distribute and possess with intent to distribute controlled substances.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation resulted in a federal indictment against several defendants for conspiring together to distribute and possess with intent to distribute heroin, methamphetamine, and cocaine in the Morgan City area. Law enforcement agents began an investigation in September 2019 into the drug trafficking activities of Anderson, Phillips, and their co-defendants. During the conspiracy, Brandon Anderson supplied heroin to his co-defendants who in turn sold the heroin for profit. Agents intercepted phone calls during the court-authorized intercepts on the phone of his co-defendant, Jhailen Zeno, and observed Anderson travel to narcotics transactions with Zeno. Anderson also set up narcotics transactions and traveled to conduct the transactions. Vehicles used in these narcotics transactions were a 2014 Audi and a 2014 Range Rover.
In October 2020, law enforcement agents learned that Anderson was in Houston, Texas and during that time he was receiving phone calls from individuals in Lafayette requesting a supply of narcotics. Agents obtained a warrant to search a residence in Lafayette that Anderson had been utilizing in his drug trafficking activities. On October 21, 2020, agents executed the search warrant and located the Audi A7, and Ranger Rover seen previously, as well as a 2015 Mercedes C300. Inside the trunk of the Mercedes agents found approximately 600 grams of cocaine and 500 grams of heroin. Anderson pleaded guilty to conspiracy to possess with intent to distribute at least 1 kilogram but less than 3 kilograms of heroin.
Through their investigation, agents learned that Phillips communicated with his co-conspirators about traveling to Houston with co-defendant Kendrick James. On June 29, 2020, agents conducted surveillance of Phillips’ vehicle and observed him arrive at a residence in Houston, stay for a few minutes, and leave. Law enforcement officers with the Sulphur Police Department stopped the vehicle belonging to Phillips and conducted a traffic stop after the driver committed a traffic infraction. Officers performed a probable cause search of the vehicle and a pat down search of Phillips and James and found a bag hidden in Phillips’ groin area. The bag contained a brown substance weighing approximately 20 grams. A field test was conducted, and the substance was identified as heroin. Phillips admitted to conspiracy to distribute and possession with intent to distribute controlled substances.
On March 10, 2020, law enforcement agents received information of an individual found in a vehicle stuck in a ditch. Agents responded and found Cord Anderson to be asleep inside the vehicle. He woke and attempted to flee from law enforcement but was apprehended. Inside the vehicle, agents found approximately 414 grams of a substance which was tested to be methamphetamine.
Five other defendants have already been sentenced in this case as follows:
Jhailen Zeno, of 27, of Lafayette, received a sentence of 85 months (7 years, 1 month) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
Jerrick Williams was sentenced to 8 months in prison, followed by 2 years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances.
William Williams was sentenced to 70 months (5 years, 10 months) in prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances.
Randy Dugas was sentenced to 8 months in prison, followed by 2 years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances.
Ericka Guidry was sentenced to 12 months and 1 day in prison, followed by 3 years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances.
Kendrick James is the only remaining defendant to be sentenced. His sentencing has been scheduled for October 31, 2023.
The case was investigated by the FBI, DEA, ATF, Sulphur Police Department and Lafayette Police Department, and was prosecuted by Assistant U.S. Attorney John W. Nickel.
The investigation and conviction of these defendants 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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Okaloosa County Sex Offender Found Guilty of New Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Harold Lavern Benedict, 73, of Crestview, Florida, was found guilty by a federal jury for receiving and possessing images of child pornography. The guilty verdict returned Wednesday afternoon, at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Protecting innocent children from sexual predators remains one of our highest priorities,” said U.S. Attorney Coody. “I commend our law enforcement partners and prosecutors who work tirelessly to identify these predators and bring them to justice so that they may never exploit a child again. Due to their collective efforts, our community is safer, and this repeat offender is exactly where he belongs – back behind bars.”
On June 27, 2022, a father was at Yellow River Park with his children in Milligan, Florida, and purchased gasoline for an older man who was stranded. The older man requested the father’s address and phone number to send him money, and when the father declined, the older man, who claimed to refurbish computers for a living, offered the father a laptop for his children. Upon arriving home, the father vetted the computer prior to giving it to his children, only to discover it contained child pornography. The father immediately contacted the Okaloosa County Sheriff’s Office (OSCO) and provided the laptop. Through the investigation, law enforcement was able to link a phone number, provided by the older man, to Harold Lavern Benedict, a local registered sex offender due to prior convictions for Attempted Sexual Battery on a Child Under 12, and Lewd and Lascivious Act. OCSO Investigators interviewed Benedict on September 2, 2022, and he admitted to using foreign internet web browsers to obtain child pornography at least once per month. Law enforcement obtained search warrants for several of Benedict’s electronic devices and determined that Benedict possessed over 700 images of child pornography. Benedict was engaged in such conduct from at least 2019 through 2023.
“This is an unusual case where all the pieces fell into place to expose the ongoing and disturbing criminal conduct of this individual,” said Okaloosa County Sheriff Eric Aden. “Once again, due to the dedication and expertise of our investigators and federal partners with the U.S. Department of Homeland Security and the U.S. Attorney’s Office, another child pornography consumer will be taken off our streets.”
“This recidivist sexual offender fed his perversion through a vast collection of explicit imagery depicting the sexual abuse of children,” said Homeland Security Investigations (HSI) Tallahassee Assistant Special Agent in Charge Nicholas Ingengo. “This case is yet another example of the unwavering commitment of HSI, alongside our law enforcement partners in Florida’s Panhandle, to investigate and vigorously prosecute those who prey upon our children.”
Sentencing is scheduled for November 15, 2023, at 2:00 p.m., at the United States Courthouse in Pensacola before United States District Judge T Kent Wetherell, II. Based on his prior child sex offense conviction, Benedict faces a minimum mandatory sentence of 15 years in federal prison, with a maximum of 40 years imprisonment.
This conviction was the result of an investigation conducted by the Okaloosa County Sheriff’s Office and the United States Department of Homeland Security. Assistant United States Attorney Jennifer Callahan prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Notice to Victims in United States v. Alexander PakhtusovRead the Press Release
WASHINGTON – Alexander Pakhtusov is charged in United States District Court for the District of Columbia in case number 19-cr-310. Mr. Pakhtusov was a seller on both Slilpp and Paysell (now called Blackpass) using the moniker “Mrtikov.” His overall involvement spanned from at least April 2016 through September 2019 and included listing for sale over 17 million economically valuable accounts of individuals held at various companies and banks. He actually sold over 14,000 sets of login credentials. The people who purchased those login credentials used those credentials to steal money from victim accounts.
On September 17, 2019, Mr. Pakhtusov was indicted. He was subsequently extradited to the United States and, on March 12, 2021, Mr. Pakhtusov pled guilty to one count of access device fraud and three counts of aggravated identity theft.
A sentencing hearing is currently scheduled for September 13, 2023 at 10:00 a.m. EST, before U.S. District Court Judge Trevor N. McFadden.
If you believe you were a victim of Mr. Pakhtusov’s fraud, please find more information here: https://www.justice.gov/usao-dc/united-states-v-alexander-pakhtusov.
North Anson Man Faces Mandatory Minimum 5+ Years for Fentanyl Trafficking in Somerset CountyRead the Press Release
BANGOR, Maine: A North Anson man pleaded guilty today in U.S. District Court in Bangor to possessing fentanyl with intent to distribute.
According to court records, in January 2023, Cody Mosher, 29, led law enforcement on a high-speed chase through Norridgewock and Madison. When Mosher was apprehended, officers located approximately 758.91 grams of fentanyl, 21 grams of cocaine, a substantial amount of cash, and more than 300 pills in the vehicle. Fentanyl is a powerful synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Just 2 mg of fentanyl is considered a lethal dose; the amount seized represented more than 379,000 lethal doses.
Mosher faces a mandatory minimum of five years and up to 40 years in prison and a fine up to $5 million, followed by a minimum of four years and up to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Office investigated the case.
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New Orleans Woman Federally Charged for Making a False Oath in a Bankruptcy MatterRead the Press Release
NEW ORLEANS, LOUISIANA – JEANNINE DUKES (“DUKES”), age 41, of New Orleans, Louisiana, was charged by a bill of information on August 30, 2023 for making a false oath in a bankruptcy matter in violation of Title 18, United States Code, Section 152(2), announced U.S. Attorney Duane A. Evans. If convicted, DUKES faces a maximum penalty of five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571. In addition, DUKES faces a term of supervised release of no less than three (3) years after her release from prison.
According to the bill of information , on November 19, 2021, DUKES did knowingly and fraudulently make a false oath or account in or in relation to any case under Title 11 in a bankruptcy case. Specifically, DUKES failed to disclose she had applied for a COVID-19 PPP Loan on May 18, 2021, and received approximately $20,527.00 in PPP funds on June 8, 2021.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Veterans Affairs, Office of the Inspector General and the Office of the U.S. Trustee, Region 5, in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of Financial Crimes Unit.
New Orleans Woman Federally Charged for Making a False Oath in a Bankruptcy MatterRead the Press Release
NEW ORLEANS, LOUISIANA – JEANNINE DUKES (“DUKES”), age 41, of New Orleans, Louisiana, was charged by a bill of information on August 30, 2023 for making a false oath in a bankruptcy matter in violation of Title 18, United States Code, Section 152(2), announced U.S. Attorney Duane A. Evans. If convicted, DUKES faces a maximum penalty of five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571. In addition, DUKES faces a term of supervised release of no less than three (3) years after her release from prison.
According to the bill of information , on November 19, 2021, DUKES did knowingly and fraudulently make a false oath or account in or in relation to any case under Title 11 in a bankruptcy case. Specifically, DUKES failed to disclose she had applied for a COVID-19 PPP Loan on May 18, 2021, and received approximately $20,527.00 in PPP funds on June 8, 2021.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Veterans Affairs, Office of the Inspector General and the Office of the U.S. Trustee, Region 5, in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of Financial Crimes Unit.
New Orleans Woman Federally Charged for Making a False Oath in a Bankruptcy MatterRead the Press Release
NEW ORLEANS, LOUISIANA – JEANNINE DUKES (“DUKES”), age 41, of New Orleans, Louisiana, was charged by a bill of information on August 30, 2023 for making a false oath in a bankruptcy matter in violation of Title 18, United States Code, Section 152(2), announced U.S. Attorney Duane A. Evans. If convicted, DUKES faces a maximum penalty of five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571. In addition, DUKES faces a term of supervised release of no less than three (3) years after her release from prison.
According to the bill of information , on November 19, 2021, DUKES did knowingly and fraudulently make a false oath or account in or in relation to any case under Title 11 in a bankruptcy case. Specifically, DUKES failed to disclose she had applied for a COVID-19 PPP Loan on May 18, 2021, and received approximately $20,527.00 in PPP funds on June 8, 2021.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Veterans Affairs, Office of the Inspector General and the Office of the U.S. Trustee, Region 5, in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of Financial Crimes Unit.
New Orleans Men Sentenced for Drug Trafficking OffensesRead the Press Release
NEW ORLEANS – On August 31, 2023, United States District Judge Ivan L.R. Lemelle sentenced SEAN MARTIN, age 56, and GENE JACKSON, age 53, both of New Orleans, for violations of the Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, MARTIN admitted to jointly possessing with the intent to distribute over a kilogram of heroin, over 400 grams of fentanyl, and a quantity of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C). JACKSON admitted to possessing with the intent to distribute approximately two ounces of heroin, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C).
Judge Lemelle sentenced MARTIN to 140 months imprisonment to be followed by a five-year term of supervised release. Judge Lemelle sentenced JACKSON to time served with three years of supervised release. Judge Lemelle also ordered MARTIN and JACKSON to pay a mandatory special assessment of $100.
This case is being investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney David Haller of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Sentenced for Being a Felon in Possession of a GunRead the Press Release
NEW ORLEANS, LOUISIANA – On August 29, 2023, United States District Judge Susie Morgan sentenced MORRIS SUMMERS, age 33, a resident of New Orleans, to 30 months in the Bureau of Prisons following his guilty plea for being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records and statements made in court, SUMMERS was convicted several years ago in another federal case before Judge Morgan of conspiring to distribute crack and conspiring to possess firearms in furtherance of drug trafficking. That case involved a violent gang that referred to itself as the “Ride or Die Gang”. In this case, SUMMERS admitted to being in the same area of the 8th Ward where “Ride or Die” had previously operated, while in possession of a Springfield Armory, Hellcat, 9 milli-meter caliber semi-automatic pistol. SUMMERS acknowledged his prior federal conviction as part of this guilty plea.
Judge Morgan also sentenced SUMMERS to serve three years of supervised release upon his release from imprisonment and ordered him to pay a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation , the New Orleans Police Department, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney David Haller of the Violent Crime Unit.
New Orleans Man Indicted for Violations of the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that TYRONE SMOTHERS, age 41, of New Orleans, Louisiana, was charged by a Federal Grand Jury on August 4, 2023, in a previously sealed three-count indictment for violations of the Federal Gun Control and Federal Controlled Substances Acts. The court unsealed the matter on September 1, 2023. Specifically, he is charged with possession with intent to distribute a controlled substance in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and one count of being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, SMOTHERS was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing multiple firearms on May 17, 2023. He is further alleged to have possessed fentanyl, cocaine, methamphetamine, and marijuana with the intent to distribute and possessed the firearms in furtherance of that drug trafficking offense.
If convicted of possession with intent to distribute, SMOTHERS faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release. If convicted of possession a firearm during a drug trafficking crime, he faces a minimum of five (5) years and a maximum of life imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release. If convicted of possession of a firearm by a convicted felon, he faces a maximum of fifteen (15) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. For each count of conviction, SMOTHERS faces a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.
New Orleans Man Indicted for Violations of the Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS - United States Attorney Duane A. Evans announced that TYRONE SMOTHERS, age 41, of New Orleans, Louisiana, was charged by a Federal Grand Jury on August 4, 2023, in a previously sealed three-count indictment for violations of the Federal Gun Control and Federal Controlled Substances Acts. The court unsealed the matter on September 1, 2023. Specifically, he is charged with possession with intent to distribute a controlled substance in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and one count of being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, SMOTHERS was previously convicted of felony offenses in Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. He is now charged with possessing multiple firearms on May 17, 2023. He is further alleged to have possessed fentanyl, cocaine, methamphetamine, and marijuana with the intent to distribute and possessed the firearms in furtherance of that drug trafficking offense.
If convicted of possession with intent to distribute, SMOTHERS faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, and at least three (3) years of supervised release. If convicted of possession a firearm during a drug trafficking crime, he faces a minimum of five (5) years and a maximum of life imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release. If convicted of possession of a firearm by a convicted felon, he faces a maximum of fifteen (15) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. For each count of conviction, SMOTHERS faces a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney Nicholas Rayburn of the Violent Crime Unit.
Missouri Man Sentenced to Federal Prison for Second Internet Stalking ConvictionRead the Press Release
SAN ANTONIO – A Missouri man was sentenced in a federal court in San Antonio on Wednesday to 72 months in prison for internet stalking.
According to court documents and evidence presented at trial, from May 2020 to September 2020, Mark Joseph Uhlenbrock, 69, with the intent to harass and intimidate another person, used the internet to engage in a course of conduct that caused substantial emotional distress to his victim. This course of conduct included posting nude photographs of the victim on the internet without the victim’s consent. Uhlenbrock was convicted by a federal jury at trial in May.
The conduct from this crime occurred while Uhlenbrock was still on supervised release for a 2016 federal conviction for internet stalking the same victim. In 2016, Uhlenbrock was sentenced to 41 months in federal prison, followed by three years of supervised release, after Uhlenbrock pleaded guilty to the same offense against the same victim. As part of his plea in that case, Uhlenbrock admitted that from January 2006 to August 2015, he caused substantial emotional distress by posting nude photographs of his victim on the internet without the victim’s consent.
“For years, Uhlenbrock weaponized the internet to try and destroy one woman's life—not just once but twice,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My hope is that this sentencing provides a sense of relief for the victim and sends a message that online stalkers like Uhlenbrock will be brought to justice.”
“This is a horrible crime with real consequences and trauma to the victim. Our agents and law enforcement partners are working to prevent these types of crimes every single day,” said Special Agent in Charge Oliver E. Rich Jr. for the FBI San Antonio Division. “No one should have to live in fear of their private lives being posted online for revenge by someone they trusted.”
The FBI investigated the case.
Assistant U.S. Attorneys William Calve and Karina O’Daniel prosecuted the case.
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Memphis Man Sentenced to 10 Years for Armed CarjackingRead the Press Release
Memphis, TN – On Friday, September 1, 2023, a federal judge sentenced the second of two men involved in an armed carjacking that occurred at a Memphis apartment complex in January 2022. Wesley Richardson, 21, of Memphis was sentenced to 121 months in federal prison for his role, said Kevin G. Ritz, United States Attorney for the Western District of Tennessee. U.S. District Court Judge Jon P. McCalla also ordered Richardson to serve five years of supervised release upon completion of his prison term.
There is no parole in the federal system.
On April 11, 2023, Richardson’s co-defendant, Memphis resident Derek Coach, 22, was also sentenced to 121 months in prison after previously pleading guilty to the carjacking. Judge McCalla also ordered that Coach serve three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Memphis Police Department.
According to United States Attorney Ritz and the information presented in court, on January 18, 2022, at approximately 7:00pm, the victim parked her 2015 Hyundai Elantra in the parking lot of her apartment complex when two men approached her with a gun. One of the men pointed a gun at her stomach and said, “Give me the keys and everything you have.” The men took the victim’s keys, cell phone, money, and bank cards before speeding away in her car.
Approximately two hours later, Memphis police officers spotted the victim’s car near S. Mendenhall and Cottonwood streets. When officers pursued the vehicle, the driver sped off, eventually crashing into a drainage ditch. Five occupants jumped out of the vehicle and fled on foot. Officers took three of the suspects into custody and recovered a black backpack with three loaded firearms from the scene.
Both Richardson and Coach admitted to participating in the carjacking. Richardson admitted that he pulled a loaded gun on the victim and stole her car. Coach admitted that he acted as the lookout.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Raney Irwin, who prosecuted this case, as well as law enforcement partners who investigated 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.
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Maryland Woman Charged for Role in Million Dollar Fraud at New Orleans Marine Forces Reserve FacilityRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that KAMILA HORAKOVA DUDLEY (“DUDLEY”), age 42, of Silver Spring, Maryland, was indicted on August 17, 2023.
As charged in the indictment, DUDLEY defrauded the United States Navy by the submission of fraudulent invoices for services allegedly provided at Marine Forces Reserve (MARFORRES) in New Orleans, Louisiana. DUDLEY was charged with one (1) count of Wire Fraud in violation of Title 18, United States Code, Section 1343. If convicted, DUDLEY faces a maximum penalty of twenty (20) years imprisonment, a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code , Section 3571, up to three (3) years of supervised release , restitution to the victim, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Evans commended the special agents of the Naval Criminal Investigative Service, the Defense Criminal Investigative Service, and members of the Defense Contract Audit Agency. The case is being prosecuted by Assistant United States Attorney Andre Lagarde of the Public Integrity Unit.
Marshall County Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
FERGUS FALLS, Minn. – A Marshall County man has been sentenced to 120 months in prison followed by 10 years of supervised release for possession of child pornography, announced United States Attorney Andrew M. Luger.
According to court documents, Keith Allen Barsness, 64, of Grygla, possessed multiple images and videos depicting prepubescent minors engaging in sexually explicit conduct. Acting on a tip, law enforcement obtained a search warrant for Barsness’s residence and found the pornographic images of minors on cell phones, tablets, and computers. Barsness voluntarily admitted to investigators that he had been searching the internet for and viewing child pornography “for years.”
On January 5, 2023, Barness pleaded guilty to one count of possession of child pornography and was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud.
This case was the result of an investigation conducted by Homeland Security Investigations and the Marshall County Sheriff’s Office.
Assistant U.S. Attorney Esther Soria Mignanelli prosecuted the case.
Maple Grove Man Sentenced to More Than 10 Years in Prison for Violent Carjacking at Blaine Grocery Store Parking LotRead the Press Release
MINNEAPOLIS – A Maple Grove man has been sentenced to 121 months in prison followed by three years of supervised release for an armed carjacking at a Blaine grocery store, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 24, 2022, Justin Michael Kittleson, 21, targeted two victims as they left the Cub Foods grocery store in Blaine and loaded groceries into their car. Kittleson approached one of the victims at the trunk of the car and pointed a gun at them. The second victim attempted to intervene, and a struggle ensued. The gun discharged, and the shot is believed to have grazed the second victim’s ear. Kittleson took control of the car and drove away. A 9MM shell casing was recovered at the scene by officers with the Blaine Police Department. After reviewing surveillance video footage and with the assistance from other members of the public, officers were able to identify and locate Kittleson. On September 29, 2022, law enforcement executed a search warrant at a residence associated with Kittleson and recovered two 9MM firearms (the same caliber as the casing found at the scene of the carjacking) and a hooded sweatshirt that matched the sweatshirt Kittleson was seen wearing in the surveillance footage.
On April 26, 2023, Kittleson pleaded guilty to one count of carjacking and one count of brandishing a firearm during and in relation to a crime of violence. He was sentenced on August 30, 2023, by Senior Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the FBI and the Blaine Police Department.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Malden Man Pleads Guilty to Trafficking Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Malden man pleaded guilty yesterday in federal court in Boston to trafficking fentanyl disguised as oxycodone and Xanax, as well as methamphetamine disguised as Adderall in and around the Malden area.
Igor Desouza, 27, pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine, 40 grams or more of fentanyl, and other controlled substances. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 1, 2023. Desouza was indicted by a federal grand jury in December 2021 along with co-defendant Matthew Ramos. Under the terms of Desouza’s plea agreement, he faces a sentence of 120 months in prison.
According to the charging documents, a search of the defendant’s residence in May 2021 resulted in the recovery of over 10,000 pills, which included over 2 kilograms of methamphetamine pills pressed to resemble Adderall or Xanax (some containing MDMA) and over 40 grams of fentanyl pills (some mixed with xylazine) pressed to resemble oxycodone. The search also resulted in the recovery of a firearm, loaded and unloaded magazines, hundreds of rounds of ammunition, LSD strips, oxycodone pills, MDMA pills, and oxycodone pills. A search warrant executed on Desouza’s phone yielded videos of him holding a firearm and pointing it at orange and blue pills, similar to the methamphetamine and fentanyl pills recovered during the search warrant at his home.The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to life in prison, at least four and up to a lifetime of supervised release and a fine of up to $5 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. The investigation was led by DEA’s New England Field Division’s Boston Tactical Diversion Squad. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Malden Police Department; and the Middlesex District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of the Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisville Felon Sentenced to Ten Years in Federal Prison for Stealing Firearms from a Licensed Firearms DealerRead the Press Release
Louisville, KY – A Jefferson County, Kentucky man was sentenced yesterday to 10 years in prison followed by a 3-year term of supervised release for burglarizing a federally licensed firearms dealer and illegally possessing a stolen firearm in Louisville, Kentucky.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, on November 25, 2021, Martavious Kincaide, 29, a convicted felon, stole firearms from a licensed firearms dealer’s business inventory. On December 6, 2021, Kincaide was in possession a Springfield Armory XD-M, 9-millimeter handgun, which was one of the firearms stolen from the licensed dealer. Kincaide later admitted to stealing the guns. In addition to the 10-year prison sentence, Kincaide was ordered to pay $13,600 in restitution. There is no parole in the federal system.
“This case is yet another example of what occurs when our federal and local law enforcement partners have longstanding solid working relationships,” said U.S. Attorney Bennett. “ATF and LMPD have demonstrated over time that working together is force multiplier resulting in a safer Louisville for all who live, work, and visit here. I commend both agencies for their continued focus on fighting violent crime and removing crime guns from our streets.”
“To reduce violent crime, ATF targets the sources of crime guns,” said Special Agent in Charge Morrow. “Many crime guns come from theft from vehicles, residences, and sometimes gun stores. In Kentucky, ATF investigates every theft from federal firearm licensees, and we work hard to recover stolen guns before they can be used to harm our community. I am proud of the work of the ATF Louisville Office and Louisville Metro Police Department. They should be commended for their prompt response and excellent result on this investigation.”
The case was investigated by the ATF Louisville Field Office and the Louisville Metro Police Department.
Assistant U.S. Attorney A. Spencer McKiness, of the U.S. Attorney’s Office, 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.
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Kuwaiti Man Charged with Abusive Sexual Contact on AirplaneRead the Press Release
NEWARK, N.J. – A Kuwaiti man appeared in federal court today for alleged abusive sexual contact with a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip Sellinger announced.
Hasan Naser Hussain Alenezi, 18, of Kuwait, is charged by complaint with one count of abusive sexual contact on an airplane. He had an initial appearance before U.S. Magistrate Judge José R. Almonte in Newark federal court and was released on $100,000 unsecured bond, with home detention and GPS monitoring.
According to documents filed in this case and statements made in court:
While on a Nov. 27, 2022, flight from Los Angeles, California, to Newark, Alenezi sat next to a female passenger, who was seated next to the window, instead of sitting in his assigned seat. Alenezi was unknown to the victim. While seated next to the victim, Alenezi repeatedly touched her groin and leg without her permission.
The abusive sexual contact charge is punishable by a maximum penalty of two years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Jenny Chung of the Office’s OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
alenezi.complaint.pdfKansas Owner of Construction Firms Pleads Guilty to Employment Tax SchemeRead the Press Release
A Kansas woman pleaded guilty today to willfully failing to account for and pay over employment taxes to the IRS.
According to court documents and statements made in court, Sheryl Clanton of Bucyrus, Kansas, owned and operated McCorkendale Construction Inc., a business specializing in the construction and maintenance of underground infrastructure. Clanton was President of McCorkendale from 2006 through 2011 and was responsible for filing quarterly employment tax returns and collecting and paying federal income and Social Security and Medicare taxes withheld from employees’ wages to the IRS. For the first quarter of 2010 through the last quarter of 2011, however, Clanton did not pay approximately $980,536 in employment taxes owed to the IRS.
In 2011, Clanton abandoned McCorkendale due to its outstanding tax obligations and a bank mortgage foreclosure, and started McClan Construction LLC. From the second quarter of 2012 through the fourth quarter of 2017, Clanton did not pay approximately $1.1 million in employment taxes or file quarterly payroll tax returns as required by law.
Clanton also operated a third underground construction business, NJ Trenching LLC, organized in late 2011. Between 2012 and 2015, Clanton did not report or pay nearly $100,000 of employment taxes owed to the IRS on behalf of NJ Trenching.
In total, Clanton caused a tax loss to the IRS exceeding $2.2 million.
Clanton is scheduled to be sentenced on Dec. 14, and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Dominick Giovanniello of the Justice Department's Tax Division are prosecuting the case.
Inmate Sentenced to Prison for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Iglesias McEntyre, 35, an inmate at the Federal Correctional Institution (FCI) Beckley, was sentenced today to one year in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate of a federal prison.
According to court documents and statements made in court, on October 14, 2022, McEntyre failed to clear a metal detector after numerous attempts. An FCI Beckley staff member conducted a visual search of McEntyre and found a handcrafted weapon commonly known as a “shank” in McEntyre’s underwear. The shank was a piece of metal approximately 5 3/4 inches long, sharpened to a point, with a toothbrush for a handle and thread wrapped around the handle to secure it. McEntyre admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess 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. 5:23-cr-50.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before Chief U.S. District Judge Brian M. Morris on a criminal complaint on Aug. 30 was:
Darius Rostas, 28, of Belgium, on charges of improper entry by alien. If convicted of the most serious crime, Rostas faces a maximum of six months in prison, a $100,000 fine and one year of supervised release. Rostas was detained pending further proceedings. The U.S. Border Patrol conducted the investigation. PACER case reference. 23-82.
Appearing before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 29 was:
Johan Siemens, 29, of Taber, Alberta Canada, on charges of illegal reentry. If convicted of the most serious crime, Siemens faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Siemens was detained pending further proceedings. The U.S. Border Patrol conducted the investigation. PACER case reference. 23-84.
Cornelius Froese, 26, of Vaeuxhall, Alberta, Canada, on charges of transporting illegal aliens. If convicted of the most serious crime, Froese faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Froese was detained pending further proceedings. The U.S. Border Patrol conducted the investigation. PACER case reference. 23-83.
Justin Arthur Berger, 35, of Helena, on charges of possessing an unregistered machine gun, possessing an unregistered short-barreled rifle and possessing unregistered silencers. If convicted of the most serious crime, Berger faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Berger was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Helena Police Department conducted the investigation. PACER case reference. 23-15.
Shawn Saddler, Sr., 56, of Box Elder, on charges of aggravated sexual abuse of a minor, and abusive sexual contact of a minor. If convicted of the most serious crime, Saddler faces a mandatory minimum of 30 years to life in prison, a $250,000 fine and five years to life of supervised release. Saddler was detained pending further proceedings. The FBI and Rocky Boy’s Police Department conducted the investigation. PACER case reference. 23-12.
Appearing on Aug. 28 was:
Jack Andrew Gillespie, 45, of Great Falls, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gillespie faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Gillespie was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Montana Highway Patrol conducted the investigation. PACER case reference. 23-74.
Appearing on Aug. 22 was:
Shawn Arrants, 36, of Bozeman, on charges of possession with intent to distribute meth and felon in possession of a firearm. If convicted of the most serious crime, Arrants faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Arrants was detained pending further proceedings. The Jefferson County Sheriff’s Office, Southwest Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 23-13.
Heather Marie Dawn Follette, 37, of Fort Peck, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Follette faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Follette was detained pending further proceedings. The FBI, Montana Highway Patrol, Bureau of Indian Affairs and Fort Peck Tribal Police conducted the investigation. PACER case reference. 23-43.
Brian Dean Bell, 40, of Dodson, on charges of assault with a dangerous weapon, assault resulting in serious bodily injury and possession of a firearm in furtherance of a crime of violence. If convicted of the most serous crime, Bell faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the assault crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime. Bell was detained pending further proceedings. The FBI and Fort Belknap Police Department conducted the investigation. PACER case reference. 23-03.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 29 was:
Rhonda Mae Felsman, 46, of Charlo, on charges of conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl. If convicted of the most serious crime, Felsman faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Felsman was released pending further proceedings. The Northwest Drug Task Force conducted the investigation. PACER case reference. 23-33.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 31 was:
Azuriah Austin Stallcup, 19, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Stallcup faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Stallcup was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 23-93.
Oliver Rowe, 32, of Brooklyn Park, Minnesota, on charges of possession with intent to distribute cocaine. If convicted of the most serious crime, Rowe faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and three years of supervised release. Rowe was released pending further proceedings. The Drug Enforcement Administration, Eastern Montana High Intensity Drug Trafficking Area Task Force and Montana Highway Patrol conducted the investigation. PACER case reference. 23-71.
Adolfo Vargas Lepe, 59, of Roberts, on charges of kidnapping. If convicted of the most serious crime, Lepe faces life in prison, a $250,000 fine and five years of supervised release. Lepe was detained pending further proceedings. The FBI conducted the investigation. PACER case reference. 23-79.
Appearing on Aug. 22 was:
Matthew Todd Stump, 53, of Joliet, on charges of possession of unregistered firearm. If convicted of the most serious crime, Stump faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release. Stump was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Carbon County Sheriff’s Office conducted the investigation. PACER case reference. 23-87.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Man Sentenced to 84 Months for Trafficking in Machinegun Conversion DevicesRead the Press Release
LONDON, Ky.— Bailey Tyler Monde, 20, of Freetown, Indiana, was sentenced 84 months in federal prison on Thursday, by U.S. District Judge Robert E. Wier, after pleading guilty to conspiracy to unlawfully transfer machineguns and one count of unlawful transfer of a machinegun.
According to Monde’s guilty plea agreement, he admitted to trafficking in Machinegun Conversion Devices, commonly known as “Glock switches,” which are designed to convert a Glock-type pistol into a fully automatic machinegun. Monde admitted to using Facebook Messenger for selling stand-alone Glock switches, including ten switches sold at one time in Corbin, Kentucky, as well as selling Glock handguns with the Glock switches installed on the weapons. A Glock switch, by itself, qualifies as a “machinegun” under federal law.
“Machinegun conversion devises are incredibly dangerous, and often quite simple to use,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “They easily convert handguns into fully automatic weapons that can fire a remarkable number of shots in just seconds. They are an acute danger to our communities, illegal under federal law, and a critical priority in our efforts to combat violent crime. With our valued partners at the ATF, we will do all we can to eliminate these frightening devices.”
“Machine guns are closely regulated because, in the wrong hands, they pose a deadly threat to our communities,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division. “This investigation showed how Bailey Monde worked to put dangerous machine gun conversion devices on the street and disregarded the safety of our communities. I commend the work of the ATF London Office and the United States Attorney’s Office, and I hope the message is clear that we aggressively pursue firearms traffickers and sources of crime guns.”
Under federal law, Monde must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier and Special Agent in Charge Morrow, jointly announced the sentence.
The investigation was conducted by the ATF. The United States was represented by Assistant United States Attorney Gregory Rosenberg.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Importer of Methamphetamine Sentenced to 45 Months in PrisonRead the Press Release
TUCSON, Ariz. –Emma Encinas-Obregon, 34, of Nogales, Sonora, Mexico, was sentenced last week by United States District Judge Raner C. Collins to 45 months in prison, followed by three years of supervised release. Encinas-Obregon pleaded guilty to Importation of Methamphetamine.
On October 19, 2022, Encinas-Obregon entered the United States from Mexico through the Mariposa Port of Entry in Nogales, Arizona, in a 2011 Audi A4. Concealed inside the vehicle were 50 packages containing 23 kilograms of methamphetamines. Encinas-Obregon admitted to smuggling drugs into the United States on eight separate occasions since August 2022. Each time, after entering the United States, Encinas-Obregon would leave her car while shopping and members of a criminal organization would remove drugs from her vehicle. Encinas-Obregon was paid approximately $2,000 each time she smuggled drugs from Mexico into the United States.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Evan N. Wesley, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-02507-TUC-RCC
RELEASE NUMBER: 2023-130_Encinas-Obregon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Georgia Tech professor pleads guilty to tax fraudRead the Press Release
ATLANTA - John Crittenden, a professor of environmental engineering at the Georgia Institute of Technology and the former director of the Brook Byers Institute for Sustainable Systems, has pleaded guilty to tax fraud for lying on his tax returns by overstating his charitable deductions.
“Charitable giving is a virtue. But Crittenden avoided paying hundreds of thousands of dollars in taxes by lying about his charitable deductions to perpetrate a tax fraud scheme involving Chinese nationals,” said U.S. Attorney Ryan K. Buchanan. “Because of his actions Crittenden will no longer be employed by the university and will also be required to pay all taxes owed.”
“Crittenden’s guilty plea is the result of the determination and hard work of federal investigators and prosecutors who aggressively pursue allegations of tax fraud,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is determined to root out and prosecute anyone who would try to undermine the tax return system.”
“No matter the scheme or amount, do not falsify your tax returns,” said IRS Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman. “We have an incredible team of talented, intelligent agents trained to investigate these tax fraud schemes. Crittenden not only has to make amends by paying his owed taxes, but he also faces jail time, fines, and penalties for his decisions. This guilty plea is evidence that fraud does not pay.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: John Crittenden’s academic research focused on scalable water treatment systems and technologies. Crittenden had deep ties to China, in part due to his position at Georgia Tech and his research.
While employed at Georgia Tech and living in the United States, Crittenden partnered with a Chinese national, Duo Li, to operate several companies in China, including Beijing Keruiduo Environmental, Beijing Crittenden Environmental Technology Company, and Kunshan Techfirst. These companies, as well as individuals associated with Duo Li, wired hundreds of thousands of dollars either directly to the charitable donation arm of Georgia Tech, the Georgia Institute of Technology Foundation (GTF), or to Crittenden’s Bank of America account, after which he “donated” the funds to GTF. When the funds arrived at GTF, they were earmarked for Crittenden’s use at Georgia Tech. Regardless of how the funds reached GTF, Crittenden improperly and falsely claimed the transfers to GTF as charitable deductions on his tax returns without recognizing any of the transfers as income.
Crittenden also received transfers to his Bank of America account from Chinese nationals who were participating in post-doctoral research at Georgia Tech or their family members. Crittenden then “donated” these funds to GTF and improperly and falsely took a charitable deduction on his tax returns, while not recognizing any of the funds as income. Neither Georgia Tech nor GTF were aware that Crittenden was conducting this tax fraud scheme.
As part of the plea agreement, prior to sentencing, Crittenden must resign from all positions of employment at the Georgia Institute of Technology and the Georgia Tech Research Institute, pay all taxes owed for tax years 2011 through 2021, and fully cooperate with the Examination Division of the Internal Revenue Service in making a complete and accurate determination of all taxes, penalties, and interest that Crittenden owes.
Sentencing for Crittenden, 73, of Atlanta, Georgia, is scheduled for January 16, 2024, at 10:00 am before U.S. District Judge Leigh Martin May. Crittenden pleaded guilty to a criminal information charging him with making a false statement on a tax return, in violation of Title 26, United States Code, Section 7206(1).
This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Men Convicted of $18M Global Investment Fraud SchemeRead the Press Release
A federal jury in the Western District of Arkansas convicted four men yesterday for their lead roles in an investment fraud and money laundering conspiracy that cheated victims out of more than $18 million.
“The defendants abused their positions of trust to entice victims into parting with more than $18 million,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The defendants then used their financial backgrounds to systematically launder the money through a web of international bank accounts. This case stands as a stark message to those who defraud others for their personal gain: you will be found, you will be prosecuted, and you will be convicted.”
According to court documents and evidence presented at trial, between at least 2013 and 2021, John C. Nock, 55, of Fayetteville, Arkansas; Brian Brittsan, 67, of San Marcos, California; Kevin Griffith, 67, of Orem, Utah; and Alexander Ituma, 57, of Lehi, Utah, conspired to engage in an investment fraud scheme through an entity known as “The Brittingham Group,” which Nock founded. Together, the four defendants falsely represented the nature of their investment offerings and promised outsize returns to victims that, in reality, the defendants could not and did not produce. To promote and conceal the conspiracy, Nock and Brittsan directed victims to send their money to bank accounts that Griffith, Ituma, and other co-conspirators controlled. Once the money was in the hands of the co-conspirators, the defendants transferred victim money through a complex web of worldwide bank accounts.
“Plain and simple, these four individuals ran a fraudulent scheme. They falsely represented the nature of their business and lied about potential investment returns to bilk unsuspecting victims out of more than $18 million,” said IRS Criminal Investigation (IRS-CI) Chief Jim Lee. “I commend the Criminal Division’s Fraud Section who prosecuted the case, and our special agents and partners at the FBI uncovered the complex web of financial transactions that led to the defendants’ convictions yesterday.”
“The conviction of these defendants sends a strong message to criminals committing financial crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors millions of dollars,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI would like to remind investors to be diligent and gather as much information as possible before making any investment. The FBI will continue to work aggressively with our law enforcement partners to investigate and prosecute those who break the law and violate public trust.”
The jury convicted each defendant of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The defendants face a maximum of 20 years in prison on each count. The jury also convicted Nock of money laundering for which he faces a maximum of 10 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-CI and the FBI investigated the case. U.S. Attorney David Clay Fowlkes and the U.S. Attorney’s Office for the Western District of Arkansas provided invaluable assistance.
Trial Attorneys Philip Trout, Vasanth Sridharan, and Sara A. Hallmark of Criminal Division’s Fraud Section are prosecuting the case.
Four Defendants Sentenced for Role in ATM LarcenyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Crockett, Texas, man convicted of Bank Larceny. The sentencing took place on August 30, 2023.
Keivon Jones, 26, was sentenced to 21 months in federal prison, followed by three years of supervised release. He was ordered to pay approximately $100,000 in restitution and $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Jones, along with his co-defendants, were indicted for Bank Larceny and Transportation of Stolen Money by a federal grand jury in September of 2022. Jones pleaded guilty on May 8, 2023.
Three co-defendants were previously sentenced in this case:
- Kytorrion Young, age 32, was sentenced to 23 months in federal prison;
- Kendrick Kennedy, age 24, was sentenced to six months in federal prison; and
- Alton Himes, age 25, was sentenced to 19 months in federal prison.
According to court documents, on December 2, 2021, in the early morning hours, Jones, and his three co-defendants, approached an automated teller machine (ATM) belonging to Dakotaland Federal Credit Union located in Madison, South Dakota. One of the vehicles that Jones and his co-defendants were driving at that time was a stolen Ford F-350 pickup truck. The truck was stolen from a parking lot located on the campus of South Dakota State University in Brookings, South Dakota.
Jones and his co-defendants used the stolen truck and towing equipment, including straps and J-hooks, to physically break into the ATM and remove three cash boxes. After forcefully removing the boxes, Jones and his co-defendants stole the boxes and fled the area in the stolen pickup truck. They then traveled across state lines with the stolen cash.
The ATM was destroyed in the process of the larceny and was deemed a total loss, costing over $30,000 to replace. The total amount of cash stolen was $32,300, and it belonged to Dakotaland Federal Credit Union.
Jones’s co-defendants – Kytorrion Young, Alton Himes, and Kendrick Kennedy – knowingly participated with Jones in carrying out bank larceny.
This case was investigated by FBI. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Jones was immediately remanded to the custody of the U.S. Marshals Service.
Former Raleigh County Housing Director Sentenced for Federal Fraud CrimeRead the Press Release
BECKLEY, W.Va. – Laquenta Lowe, 46, of Beckley, was sentenced today to five years of federal probation and ordered to pay $8,954.76 in restitution for conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA).
According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from July 1, 2018 through May 31, 2019. Lowe was executive director of the RCHA from June 1, 2019, through April 30, 2021. During this time, RCHA administered programs that used federal funds including the Section 8 income-based rent subsidy program. RCHA kept the federal funds it received from the United States Department and Urban Development (HUD) in RCHA’s primary operating account at a West Virginia bank.
Lowe used her positions at RCHA to steal at least $7,978.91 in federal funds that HUD had disbursed to RCHA and knowingly converted the funds to her personal use and without authorization. Lowe admitted to receiving at least $6,728.82 of that amount in overtime compensation that she should not have received. Lowe further admitted to receiving at least $660.68 in travel-related expenses reimbursements that she should not have received for RCHA-related travel. Lowe also admitted to using a RCHA credit card issued to her to purchase a $199.99 smart watch for her personal use and without authorization.
“Laquenta Lowe abused a position of trust and stole from a program that provides critical services to some of our most vulnerable citizens,” said United States Attorney Will Thompson. “Our office is committed to prosecuting fraud of this nature to the fullest extent possible.”
Thompson made the announcement and commended the investigative work of the United States Department of Housing and Urban Development-Office of Inspector General (HUD OIG), the Federal Bureau of Investigation (FBI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
"HUD OIG is committed to protecting the integrity of federal housing programs and bringing justice to those who abuse HUD programs for personal gain," said Special Agent in Charge Shawn Rice with the U.S. Department of Housing and Urban Development, Office of Inspector General. "We will continue to work with our law enforcement partners to investigate and hold accountable bad actors and protect the programs that HUD beneficiaries rely on."
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Ryan Blackwell and Kristin Scott 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. 5:23-cr-7.
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Former Postal Employee Admits to Collecting Federal Worker’s Compensation Benefits While Also Working on Electric Scooters in Downtown St. LouisRead the Press Release
BENTON, Ill. – In a U.S. District courtroom Thursday, a former U.S. Postal Service carrier technician admitted to federal charges of making false statements to continue receiving worker’s compensation benefits while he was also working to service electric scooters in downtown St. Louis.
Torre C. Dilworth, 52, of Belleville, Illinois, pleaded guilty to two counts of making false statements to obtain federal employees’ compensation. For the charges, the maximum penalties are up to five years imprisonment and up to a $250,000 fine per count.
“The Federal Employees’ Compensation Act helps families keep up with their financial obligations when an employee is injured beyond their ability to stay on the job at full capacity,” said U.S. Attorney Rachelle Aud Crowe. “Individuals who choose to make false statements in order to continue to receive benefits will be held in full account of the law.”
“The U.S. Postal Service paid $1.31 billion in workers’ compensation costs in fiscal year 2022. The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs. However, a small percent abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs,” said Special Agent-in-Charge Scott Pierce, Central Area Field Office, U.S. Postal Service Office of Inspector General. “This guilty plea sends a clear message that workers’ compensation fraud is a federal crime, which carries serious consequences. The USPS OIG and the U.S. Attorney’s Office remain committed to safeguarding the integrity of the workers’ compensation program and ensuring the accountability and integrity of U.S. Postal Service employees.”
According to court documents, Dilworth was injured on the job while working as a carrier technician for the U.S. Postal Service in November 2014. As a result of his injury, he received worker’s compensation benefits under the Federal Employees’ Compensation Act, which is administered by the Department of Labor’s Office of Workers’ Compensation Programs.
To manage the FECA program, OWCP requires recipients to submit forms to disclose other employment or business ventures. OWCP uses the forms to periodically determine whether the recipient’s benefits should be reduced based upon increased wage-earning capacity.
From at least July 2019 until at least February 2023, Dilworth performed work for Bird Rides, a company that provides electric scooters for rent in downtown St. Louis, Missouri. During this same time period, Dilworth created a business enterprise known as “Electric Eagle” through which he serviced Bird Ride’s scooters. Through the work he performed for Bird Rides, Dilworth earned more than $220,000. On the forms that he submitted to the OWCP, Dilworth falsely stated that he had not performed any work, nor was he involved in any business enterprises, within the past 15 months.
Dilworth’s sentencing is scheduled for 1:30 p.m. on Dec. 6, 2023. The U.S. Postal Service Office of the Inspector General is conducting the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Former Phoenix Resident Sentenced to Prison for Producing Child Pornography Involving Three MinorsRead the Press Release
PHOENIX, Ariz. – Michael Martinez, 28, of Fort Worth, Texas, but formerly of Phoenix, Arizona, was sentenced Monday by United States District Judge Diane J. Humetewa to 40 years in prison. Martinez pleaded guilty on March 8, 2023, to three counts of Producing Child Pornography, involving three minors, ages 7, 5, and 3. When Martinez is released from prison, he will be on supervised release for the remainder of his life.
In 2016, when Martinez was 22 years old, he lived in Phoenix, Arizona, in a house with Child Doe 1 (age 7). As an acquaintance of Child Doe 1’s mother, Martinez had access to Child Doe 1 and took sexually explicit pictures and videos of the minor in January 2016. Later in 2016, Martinez moved residences and lived with Child Doe 2 (age 5) and Child Doe 3 (age 3), because he was a roommate of the minors’ mother. In this house, Martinez acted as a babysitter where he had access to the minors and took sexually explicit pictures and videos of both of them in November 2016. Further, Martinez admitted engaging in sex acts with the three minors. In 2022, Martinez was arrested in Texas where he had moved in 2017 after these events.
“The pain and harm caused to these victims is irreparable,” said Gary Restaino, United States Attorney for the District of Arizona. “The court’s sentence sends a strong message of deterrence to those who seek to hurt children.”
“Children deserve to feel and be safe in their homes,” said Myron T. Byrd, acting Special Agent in Charge of the FBI’s Phoenix field office. “Today’s sentencing should bring some closure to the families knowing this predator will be in federal prison for a very long time. I want to thank the members of the FBI Phoenix Crimes Against Children Squad for their work on this case and their commitment to protecting our children to ensure justice is served for them,” Byrd added.
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 Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Phoenix Police Department and the Federal Bureau of Investigation (Phoenix Division, Dallas Division, and FBI Headquarters). Assistant U.S. Attorneys Gayle L. Helart and Brett A. Day, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00272-PHX-DJH
RELEASE NUMBER: 2023-129_Martinez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Marine Arrested for Stealing More than $344,000 in Government Benefits and Submitting False Purple Heart Application to the United States Marine Corps Through His Local CongressmanRead the Press Release
BOSTON – A former United States Marine has been indicted by a federal grand jury in Springfield, Mass. for allegedly stealing benefit payments from the Department of Veterans Affairs and submitting a false Purple Heart application to the United States Marine Corps through his local Congressman.
Paul John Herbert, 52, of Shelburne Falls, Mass., was indicted on one count of theft of government money and one count of making false statements. Herbert was arrested this morning and was released on conditions following an initial appearance today in federal court in Springfield, Mass.
“Mr. Herbert’s alleged conduct is an affront to every veteran who has sacrificed to earn the honor of a Purple Heart and who is deserving of disability benefits. According to the indictment, he not only stole tens of thousands of dollars in disability benefits that are supposed to be used to help veterans in need, but he also falsely claimed to have suffered a traumatic brain injury during his deployment in an effort to receive a Purple Heart he didn’t deserve,” said United States Attorney Joshua S. Levy. “Every day, thousands of brave members of the military selflessly risk their lives to protect our country. Stealing from our country’s veterans or claiming valor where there is none is an insult to the honorable service members who sacrifice for our safety.”
“The VA Office of Inspector General remains committed to ensuring that VA benefits are administered to deserving recipients based on legitimate accounts of their military service,” said Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) Northeast Field Office. “The VA OIG thanks our partners at the Defense Criminal Investigative Service and the U.S. Attorney’s Office for their efforts in this joint investigation.”
“Individuals who steal veterans disability benefits and falsely represent themselves as decorated veterans of the U.S. Armed Forces degrade the service of the men and women who selflessly serve our country,” said Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS), Northeast Field Office, the law enforcement component of the Department of Defense Office of Inspector General. “Today's charges demonstrate our commitment to work with the U.S. Department of Veterans Affairs Office of Inspector General and the Department of Justice to investigate allegations of stolen military benefits.”
According to the indictment, from Jan. 1, 2010 to March 11, 2023, Herbert stole more than $344,000 in veterans disability benefits. In addition, on Oct. 24, 2018, Herbert allegedly submitted an application for a Purple Heart award to the United States Marine Corps through his local Congressman, in which Herbert falsely stated that he had suffered injuries, including traumatic brain injury, from a roadside explosion while deployed to Northern Iraq.
The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, VA-OIG SAC Algieri and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Church Pastor Sentenced to Two Years in Prison for Committing Pandemic Loan FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rooldy Alexandre, 54, of Willingboro, NJ, was sentenced to 24 months of incarceration, three years of supervised release, and restitution in the amount of $662,454 by United States District Judge Gerald J. Pappert for committing pandemic loan fraud in the name of the church for which he served as a pastor and on behalf of other members of the church.
The defendant was charged with, and pleaded guilty to, two counts of wire fraud in connection with his submission of false applications for U.S. Small Business Administration pandemic loans that are also known as Paycheck Protection Program (“PPP”) loans. While he served as the pastor and only employee of a Philadelphia church, the defendant was responsible for the church’s finances and controlled the church’s bank accounts. After the COVID-19 pandemic began, he first applied for a PPP loan using accurate information for the church but was not satisfied with the amount of the loan offered. He then reached out to a person in Florida who had prepared false PPP applications for others and asked that person to help him prepare a new PPP application for the church. The Florida consultant submitted false information about the church in the new application, and based on that false information, the church received an inflated loan of over $260,000. The defendant took a significant portion of the fraudulent loan proceeds for himself. He later submitted a false second-draw PPP loan application on behalf of the church and worked with his sister, Christella Dorval, charged elsewhere, to divert proceeds of the $250,000 loan to himself for personal use.
The defendant also offered to help other members of the church to apply for PPP loans. On behalf of two other members, he submitted loan applications, but he falsified information about the applicants. The defendant lied to the applicants and claimed that a fake Florida consultant had prepared their applications, and that they owed him 25% of any loan proceeds. When the applicants received the inflated loan proceeds based on the information falsely submitted by the defendant, they paid the 25% “consultant” fee, but unbeknownst to them the defendant again worked with his sister, Dorval, to divert their payments to himself for his own personal use.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
Florida Men Indicted for Possession with Intent to Distribute Fentanyl, Methamphetamine, and CocaineRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Emmanuel Dourthe (24, Deltona) and Brendan Wells (27, Tampa) with conspiracy to possess with the intent to distribute controlled substances, possession with the intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. For each of the controlled substance charges, if convicted, each faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. If convicted of the firearm offense, each faces a minimum mandatory of 5 years, and up to life, in federal prison to be served consecutive to any other sentence imposed.
According to the indictment, between February 6 and 14, 2023, Dourthe and Wells conspired with others to possess with the intent to distribute 500 grams or more of a mixture containing methamphetamine, 40 grams or more or a mixture containing fentanyl, and a mixture containing cocaine. The indictment further alleges that Dourthe and Wells possessed these substances with the intent to distribute them. Dourthe and Wells possessed a firearm during their commission of their drug offenses.
An indictment 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, the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Volusia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney Suzanne Nebesky.
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.
Florida Couple Sentenced for Sending Threatening Communications to Law Enforcement and Others in Northern OhioRead the Press Release
CLEVELAND – Akil Larry Joseph, 32, and Alexa Marie Logan, 31, both of Homestead, Florida, were each sentenced on Tuesday, August 29, 2023, by U.S. District Court Judge Donald C. Nugent to 46 months in prison after pleading guilty to four counts of cyberstalking and one count of interstate communications with intent to extort.
According to court documents, from November 2021 to July 2022, Joseph and Logan sent numerous threatening communications, via email and telephone, to multiple victims in the Northern District of Ohio, including an FBI agent, with the intent to obtain money from the victims. Over the course of an approximately two-year period, multiple communications sent by the couple, primarily via email, came to contain increasingly harassing and aggressive language, rhetoric, and tone.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher J. Joyce and Peter E. Daly.
Federal Grand Jury Indicts New Orleans Man for Drug and Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – DAVID SCOTT, age 19, a resident of New Orleans, Louisiana, was charged on August 24, 2023 in a previously sealed two-count indictment, announced U.S. Attorney Duane A. Evans. Count 1 charged SCOTT with possession with intent to distribute tapentadol, pursuant to Title 21 United States Code Sections 841(a)(1) and 841(b)(1)(C). Count 2 charged SCOTT with possession of a firearm in furtherance of a drug trafficking crime, pursuant to Title 18 United States Code Section 924(c).
If convicted of Count 1, SCOTT faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least 3 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 2, SCOTT faces a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, up to five years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.