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21 July 2023
Zachary Northey, 30, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for distributing heroin.Read the Press Release
Acting United States Attorney Susan Lehr announced that Zachary Northey, 30, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for distributing heroin. Senior United States District Judge John M. Gerrard sentenced Northey to 110 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
From November 26, 2018, to January 2, 2019, Northey was distributing heroin in Lincoln. During this time, one of Northey’s customers overdosed twice but was revived through medical intervention. On January 8, 2019, Northey delivered heroin to that same individual, who overdosed on a third occasion and subsequently died.
This case was investigated by the Lincoln Police Department.
Waukon Office Manager Pleads Guilty in Six-Year Embezzlement SchemeRead the Press Release
An office manager who stole over $200,000 from her employer, a Northeast Iowa tax preparation business, pled guilty July 19, 2023, in federal court in Cedar Rapids.
Heather Leigh Migliore, age 51, from Waukon, Iowa, was convicted of one count of wire fraud.
At the plea hearing, and in a plea agreement, Migliore admitted that, from January 2015, through November 2021, she stole no less than $200,000 from her employer, a tax preparation business with offices in Waukon and Decorah, Iowa. Migliore was the business’s office manager and had responsibility for its finances, including making payroll and paying bills. Migliore used a signature stamp of the owner of the business to write and sign checks to herself. To cover up her scheme, Migliore then deleted the checks from the business’s electronic bookkeeping system. Beginning in July 2019, Migliore also made over $20,000 in fraudulent credit card charges on the business’s credit cards. Migliore used the stolen funds to pay her personal expenses.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Migliore remains free on bond. Migliore faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Winneshiek County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-1015.
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Venezuelan Man Pleads Guilty to Distributing Thousands of Fentanyl PillsRead the Press Release
BOSTON – A Venezuelan man pleaded guilty today in federal court in Boston to trafficking fentanyl.
Frank Bienvenido Perez Diaz, 42, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 15, 2023.
On April 16, 2021, Perez Diaz sold over 2,000 counterfeit fentanyl pills to a cooperating witness.
The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years in prison and no greater than 40 years in prison, as well as at least four years of supervised release, and a fine of up to $5,000,000. Perez Diaz will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction and the Norfolk Sheriff’s Office. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney’s Office will announce winner of drug prevention PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Attorney’s Office will be announcing the high school winner of the U.S. Attorney’s Office Drug Prevention Public Service Announcement (PSA) Contest this weekend at the 77th Annual OVAC Rudy Mumley All-Star Football Game.
United States Attorney William Ihlenfeld asked high schools in the Northern District of West Virginia to create a drug-free message to share with students, encouraging them to spread the message of the dangers of drugs to their peers.
The contest was open to all high schools in the 32 counties of the Northern District of West Virginia. Students were encouraged to write, act, and produce in their own television PSA, promoting a drug-free high school.
All videos were judged by a panel of law enforcement partners and public affairs professionals from across the country, including those from other U.S. Attorney’s Offices, the FBI, and the Drug Enforcement Administration. The winner will receive an award from the U.S. Attorney’s Office during the game, and the PSA will be shared on the stadium’s large screen and scoreboard.
The OVAC Rudy Mumley All-Star Football Game is Saturday, July 22 beginning at 7:15 p.m.at Wheeling Island Stadium.
Two Connecticut Men Charged with Using Stolen Identities to Steal VehiclesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned a nine-count indictment charging TYSHON WALKER, 38, of Naugatuck, and ELVIS PEREZ, also known as “Pops,” 58, of Bridgeport, with offenses related to a series of vehicle thefts from dealerships utilizing personal information from identity theft victims.
The indictment was returned on July 11, 2023. Perez was arrested on July 19 and Walker surrendered to law enforcement yesterday. They appeared yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty. Perez was ordered detained and Walker was released on a $250,000 bond.
As alleged in the indictment, since at least September 2020, Walker, Perez, and others utilized personal information stolen from residents of Connecticut and other states to apply for vehicle loans at dealerships in Connecticut, New Jersey, Pennsylvania, Delaware, and Rhode Island for motorcycles, an all-terrain vehicle, and other performance vehicles. Once the loan was approved by the dealership using the identity theft victim’s information, Walker would send a series of runners, including Perez, Mark Goff, and Thomas Owen, to pick up the vehicle utilizing a fictitious driver’s license that included the identity theft victim’s information and a photograph of the runner. The vehicle was then transported back to Connecticut for resale on Facebook Marketplace.
The indictment charges Walker and Perez with conspiracy to commit wire fraud and bank fraud, an offense that carries a maximum term of imprisonment of 30 years. Walker is also charged with three counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, two counts of aggravated identity theft, which carry a mandatory consecutive term of imprison of two years on each count, and two counts of interstate transportation of stolen vehicles, which carry a maximum term of imprisonment of 10 years on each count. Perez is also charged with one count of aggravated identity theft and one count of interstate transportation of stolen property.
Goff, 48, and Owen, 26, both of Ansonia, previously pleaded guilty to conspiracy and identity theft charges stemming from this scheme and await sentencing.
In a related case, Nuvar Foster, 30, of Waterbury previously pleaded guilty to interstate transportation of stolen vehicle stemming from the fraudulent purchase of a 2020 Harley Davidson motorcycle from a dealership in Warwick, Rhode Island in December 2020. On February 21, 2023, he was sentenced to five years of probation and ordered to pay restitution of $20,000, the amount he received when he resold the motorcycle.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants who are awaiting trial are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation the FBI’s New Haven Safe Streets/Gang Task Force, the Bridgeport Police Department, the Hopkinton (R.I.) Police Department, the Westtown – East Goshen Regional (Pa.) Police Department, and the Washington Township (N.J.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Heather M. Cherry.
Top Source of Supply in Juvenile Fentanyl Case Charged, Thousands of Pills Found Stashed in MicrowaveRead the Press Release
A top source of supply in the Carrollton juvenile fentanyl case – which has resulted in at least 14 juvenile overdoses, four of them fatal – has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Julio Gonzales, Jr., 18, was charged via criminal complaint on July 14 with conspiracy to distribute fentanyl. He was arrested at his residence on Thursday and made his initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Friday morning.
His roommate, 19-year-old Adrian Martinez-Leon, was also arrested Thursday and subsequently charged via criminal complaint with drug conspiracy. He, too, made his initial appearance before Magistrate Judge Toliver on Friday.
During a search of their residence, DEA agents found thousands of fentanyl-laced M-30 pills stuffed in the microwave, a partial kilogram of cocaine tucked in a plastic food storage container, bulk U.S. currency hidden in the closet, and numerous firearms, including a pistol equipped with an illegal Glock switch, littered throughout the home.
“Another domino has fallen in the Carrollton juvenile fentanyl overdose saga,” said U.S. Attorney Leigha Simonton. “Rest assured, the Justice Department will not stop until their entire fentanyl trafficking infrastructure has been dismantled. Our kids’ futures are too important to allow this to continue. “
“These arrests demonstrate the continued resolve of DEA Dallas to investigate this organization to the fullest extent possible,” said DEA Special Agent in Charge Eduardo A. Chávez. “Local street dealers, transporters, bulk suppliers, and anyone in between should know DEA Dallas is still committed to holding everyone in this organization, and others like it, accountable for selling fentanyl to our communities.”
According to the complaint, in February 2023, a 16-year-old dealer who delivered the fentanyl pills that killed a 14-year-old girl in December 2022 allegedly identified Mr. Gonzales, whom he called “J-Money,” as his supplier. In text messages, the child discussed “J-Money” with Eduardo Navarrete, one of the first dealers charged in the scheme. They identified “J-Money” as their “plug,” street parlance for a source of supply.
At least four other cooperating defendants also allegedly identified “J-Money” as their source of supply and tied him to an address in Dallas’ Oak Cliff neighborhood. Three of the cooperating defendants immediately identified a photograph of Mr. Gonzales as the man they knew as “J-Money.” One admitted to agents that the thousands of pills sold during a DEA controlled purchase operation were sourced by Mr. Gonzales. Instagram messages between Mr. Gonzales and the defendants negotiating pill prices and quantities corroborated these accounts.
In June 2023, agents surveilling Mr. Gonzales observed him allegedly conduct a hand-to-hand drug transaction with a subject who then ducked into a nearby alleyway, crushed the pills, and smoked them. They also observed his roommate, Mr. Martinez-Leon, allegedly conduct a hand-to-hand transaction with a subject outside their front door.
Mr. Gonzales and Mr. Martinez-Leon are the ninth and tenth defendants charged in the wake of the Carrollton overdoses, which have claimed the lives of four middle and high school students to date. To date, five have pleaded guilty.
A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Gonzales and Mr. Martinez-Leon will face up to 40 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department’s SWAT team, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Three Men Found to be Illegally Possessing Firearms Headed to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that three men who illegally possessed firearms were sentenced today by United States District Judge Elizabeth E. Foote. The three defendants who were sentenced today are as follows:
Christopher Joel Cox, 28, of McLeod, Texas was sentenced to 70 months in prison, followed by 3 years of supervised release for being a prohibited person in possession of firearms. On April 24, 2022, a deputy with the Caddo Parish Sheriff’s Office conducted a traffic stop of a vehicle being driven by Cox. The deputy noticed a pistol laying on the back passenger floorboard and Cox and his passenger gave consent to search the vehicle. During the search, the deputy recovered several loaded firearms from inside the vehicle. After further investigation, law enforcement officers learned that he had an active warrant from Colorado and he was subsequently arrested. Cox was previously convicted of Assault 2-Strangulation-Attempted in Colorado in 2018 and was prohibited from possessing any firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Caddo Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Brian C. Flanagan.
Jelantis J. Chatman, 28, and Courvisier U. Glover, 24, both of Shreveport, were each charged with being a convicted felon in possession of a firearm. Chatman was sentenced to 30 months in prison and Glover was sentenced to 32 months in prison. Both men will serve 3 years of supervised release following their release from prison.
The charges stem from a traffic stop which occurred on September 16, 2022. An officer with the Shreveport Police Department stopped the vehicle which was being driven by Chatman and in which Glover was the passenger. During a subsequent search of the vehicle, officers found a loaded Glock pistol with an extended magazine under Chatman’s seat, as well as a loaded Glock pistol under Glover’s seat.
Chatman and Glover each have prior felony convictions and knew that they were prohibited from possessing a firearm or ammunition. Chatman’s prior felony convictions are for simple burglary in 2015, and possession of a firearm by a convicted felon in 2018 in U.S. District Court in the Western District of Louisiana. Glover has an extensive criminal history, including being convicted twice for possession of a firearm by a person convicted of domestic abuse battery, in 2018 and 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Shreveport Police Department and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
These cases are 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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Thomasville, Georgia, Resident Convicted in Meth Distribution CaseRead the Press Release
VALDOSTA, Ga. –A Thomasville, Georgia, resident was convicted by a federal jury this week of possessing with intent to distribute a large quantity of methamphetamine.
Ryan Loyd Reeves, 50, was convicted on July 19 of one count of possession with intent to distribute methamphetamine in a one-day trial before U.S. District Judge Hugh Lawson. Reeves faces a minimum mandatory sentence of ten years up to a maximum sentence of life imprisonment to be followed by five years of supervised release and a $10,000,000 fine. Sentencing is scheduled for Nov. 15.
“The U.S. Attorney’s Office is committed to supporting local law enforcement’s efforts to prevent the distribution of the most dangerous illegal drugs into their communities and hold dealers accountable for their crimes,” said U.S. Attorney Peter D. Leary. “We are thankful for the continued partnership between law enforcement at all levels to make our communities safer for all citizens.”
“Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “These drug traffickers must now deal with the consequences of their actions.”
According to court documents and evidence presented at trial, officers with the Thomas County/Thomasville Narcotics and Vice Division learned in Oct. 2021 that Reeves and co-defendant, Jennifer McGrotha, 46, of Ochlocknee, Georgia, were regularly working together to transport heroin, fentanyl and crystal methamphetamine from Atlanta to the Thomas County area for distribution. The pair used multiple vehicles during these trips to avoid detection, including vehicles that Reeves was supposed to be repairing for others. During the investigation, law enforcement determined Reeves and McGrotha were headed to Atlanta to obtain drugs; law enforcement initiated a traffic stop once they returned to Thomas County. A K-9 dog alerted on drugs inside the car. A subsequent search of the vehicle recovered 420 grams of methamphetamine intended for distribution into the community. Co-defendant McGrotha pleaded guilty to one count of possession with intent to distribute methamphetamine on May 11. She is scheduled for sentencing on Sept. 20.
The case was investigated by DEA and the Thomas County Sheriff's Office/Thomasville Police Department Narcotics and Vice Division. Criminal Chief Leah McEwen and Assistant U.S. Attorney Melody Ellis are prosecuting the case for the Government.
Suburban Chicago Doctor and His Surgical Center to Pay More Than $750,000 to Settle False Claims Act SuitRead the Press Release
CHICAGO — A suburban Chicago doctor and his surgical center will pay more than $750,000 to the United States to settle a civil lawsuit accusing them of submitting fraudulent claims to Medicare and a federal employee health program.
The suit in U.S. District Court in Chicago alleged that JOHN A. GREAGER, II and CANCER THERAPY ASSOCIATES, S.C. violated the False Claims Act by performing multiple mole removal procedures on patients on a single date but submitting or causing the submission of claims to Medicare and the Federal Employees Health Benefits Program (FEHBP) that made it appear as though the procedures had been performed on multiple dates. Through this practice, known as “unbundling,” Greager and CTA caused Medicare and the FEHBP to pay more than they would have paid if the procedures had been billed as having occurred at the same visit.
As part of a settlement agreement approved this week by U.S. District Chief Judge Rebecca R. Pallmeyer, Greager and CTA agreed to pay $757,879.90 to the United States. The settlement resolves a civil lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in the lawsuit prior to the settlement.
The settlement was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Conrad J. Quarles, Deputy Assistant Inspector General for Investigations of the U.S. Office of Personnel Management Office of the Inspector General. The government was represented by Assistant U.S. Attorney Virginia Hancock.
A separate criminal prosecution of Greager resulted in a 6-month prison sentence and a fine of $1 million.
U.S. v. Greager et al settlement agreementSt. Louis County Man Sentenced for Multiple FraudsRead the Press Release
ST. LOUIS – U.S. District Stephen R. Clark on Thursday sentenced a man from St. Louis County, Missouri to 15 months in prison and ordered him to repay $47,397 he’d stolen via two fraud schemes.
Dominique Lowery, 32, is the third person involved in multiple, connected frauds to be sentenced in the case.
In April, Judge Clark sentenced Christopher Tatum, 37, of St. Louis County, to 51 months in prison and ordered him to repay $103,481. In January, Monique Howard, 39, of St. Louis, was sentenced to four years of probation and ordered to repay $115,267.
Each admitted participating in bank fraud, a scheme to defraud a pandemic loan program, or both.
In March of 2019, Tatum, through his business, Final Lap Auto Center LLC, claimed to be offering to sell a 2014 Audi Q7 to Lowery and Howard. Lowery and Howard knew that Tatum didn’t own the vehicle, but applied for and received motor vehicle loans from credit unions. Tatum provided lenders a counterfeit motor vehicle title, with a forged signature of the director of the Missouri Department of Revenue, and fraudulent buyer’s orders.
Howard received a $18,600 loan from St. Louis Community Credit Union and a $18,540 loan from First Financial Federal Credit Union. Lowery received a $26,500 loan from Scott Credit Union. Lowery and Howard knew that the loans would not be secured with the Audi and knew they would not be repaying the loan and interest as promised. In exchange for their participation, Tatum paid both Lowery and Howard kickbacks from the proceeds of the illegal loans.
Howard also received two fraudulent loans for a 2015 Maserati. She made no payments and the car was eventually repossessed, creating a total loss of $74,000.
On April 26, 2021, Lowery submitted a fraudulent application for a Paycheck Protection Program loan, a pandemic-era program intended to help save jobs. Lowery falsely claimed that he operated a sole proprietorship that generated gross income of $104,196 in 2019. Lowery received $20,833. The loan was forgiven after Lowery falsely claimed that he used $17,389 of the illegally obtained loan proceeds on payroll costs. He actually used it for personal expenses.
On March 30, 2021, Tatum submitted a PPP loan application falsely claiming to be an independent contractor and lying about his business income. He received a total of $39,778.
Lowery pleaded guilty in March to two felonies: conspiracy to commit bank fraud and access device fraud. Tatum pleaded guilty to four: conspiracy to commit bank fraud and three counts of bank fraud. Howard pleaded guilty to the conspiracy charge, bank fraud and mail fraud.
The case was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry prosecuted the case.
St. Louis County Man Admits Three Pandemic-Related FraudsRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri on Friday pleaded guilty to federal charges and admitted fraudulently receiving more than $42,000 from two pandemic loans and unemployment compensation that included more pandemic funds.
Charles Carbon III, 37, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to two felonies: bank fraud and wire fraud.
On June 26, 2020, Carbon applied for and received a $10,000 Economic Injury Disaster Loan, which was supposed to help business owners struggling with pandemic-related business losses. In his plea agreement, he admitted lying about the existence and purpose of a business he claimed to own, as well as the payroll, revenue and number of employees.
On Aug. 6, 2020 Carbon fraudulently applied for a Paycheck Protection Program loan, again lying about the existence, purpose and finances of a business. Carbon received a $18,800 loan, which was supposed to be used for business owners to save jobs during the pandemic.
Carbon then falsely claimed to be a self-employed event planner who did not have any work between March and August of 2020, and received $14,174.80 in unemployment benefits. That included $300 per week in Federal Pandemic Unemployment Compensation. In paperwork, Carbon lied about work he did in March and omitted the pandemic loans that he’d received, his plea says.
As part of his plea, Carbon also admitted using four forged checks totaling $12,322.
The bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both. The wire fraud charge carries a potential punishment of up to 20 years in prison, a $250,000 fine or both.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.
Springfield, Illinois, Man Sentenced to 12 Months and One Day in Prison for Defrauding the Paycheck Protection ProgramRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Alex Jennings, 40 formerly of Lincoln, Illinois, was sentenced on July 20, 2023, to 12 months and one day in the federal Bureau of Prisons, to be followed by a three year term of supervised release, following his conviction for wire fraud. Jennings was further ordered to pay $46,666 in restitution.
At the sentencing hearing in front of Senior U.S. District Judge Sue E. Myerscough, the government presented evidence that Jennings defrauded the Small Business Administration and a private lender into providing him with two Paycheck Protection Program loans for which he did not qualify. Jennings instead spent the money to purchase two cars for himself.
Also at the hearing, Judge Myerscough noted that fraud by Jennings and others like him caused legitimate businesses to miss out on the aid they so desperately needed during a global pandemic. Judge Myerscough found that the defendant had defrauded the federal government and lender of over $40,000.
Jennings had previously pleaded guilty to the four counts of wire fraud in February 2023.
The statutory penalties for wire fraud count are up to 20 years’ imprisonment and up to a $250,000 fine, to be followed by up to three years of supervised release.
“The Paycheck Protection Program was supposed to help businesses stay open and keep workers employed during a global emergency,” said U.S. Attorney Gregory K. Harris. “However, many people instead applied for this money illegally. This office will continue its efforts to hold accountable those criminal opportunists who sought to take advantage of a worldwide pandemic for their own personal gain.”
“The U.S. Secret Service remains committed to identifying, investigating, and pursuing those who defraud the PPP and EDIL programs, which were designed to assist employers severely impacted by the COVID-19 pandemic,” said Stephen S. Webster, United States Secret Service Resident Agent in Charge, Springfield Resident Office. “Programs such as these were established to help those in need, not benefit fraudsters. We are proud of our partnerships with the federal, state, and local agencies who work collectively to hold these individuals accountable for their actions.”
The United States Secret Service investigated the case, with assistance from the Springfield Police Department. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution.
COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Spokane Man Sentenced to 18 Years for Production of Child PornographyRead the Press Release
Spokane – On July 20, 2023, U.S. District Judge Thomas O. Rice sentenced Dannie Paul Bowling, 42, of Spokane, Washington, to 216 months in federal prison for Production of Child Pornography. Bowling pleaded guilty on January 18, 2023. Judge Rice ordered Bowling to pay $6,000 in victim-related special assessments and be federally supervised for life after Bowling is released from prison.
According to court documents and proceedings, Bowling was on supervised release in a drug trafficking case when he exploited a 15-year old child by secretly filming her in various stages of undressing. Bowling also paid for nude photographs of minor victim, and used her to produce a video of her engaging in sex acts with Bowling. Bowling told the minor victim that he could sell her images to other people and paid her varying amounts between $80 and $1,000. At times he even had the minor victim hold a sign with the buyer’s name to prove she was real. Hidden surveillance camera footage and images and videos of the minor victim were found on Bowling’s phone, which law enforcement searched pursuant to a federal search warrant. At sentencing, and not withstanding the evidence to the contrary, Bowling denied selling the minor’s images and videos.
After today’s sentencing, United States Attorney Vanessa R. Waldref stated, “Mr. Bowling’s criminal behavior is a stark reminder to parents and communities everywhere to be vigilant in protecting our children.” U.S. Attorney Waldref continued, “I’m grateful for the task forces and seamless law enforcement partnerships in the Eastern District of Washington. These partnerships are absolutely necessary to protect the most vulnerable among us and keep our communities safe and strong.”
“This significant sentence should serve as a warning to those who would harm the children of our communities.” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI and our partners are dedicated to the protection of those who cannot protect themselves and will ensure those that perpetrate these heinous acts are brought to justice.”
This case was pursued as part of Project Safe Childhood and investigated by the Missing and Exploited Children Task Force (MECTF).
Project Safe Childhood is a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The MECTF is dedicated to protecting the children of Washington State by assisting and investigating missing child and exploitation cases. Washington State Patrol (WSP) MECTF partnered with Homeland Security Investigations (HSI) in Spokane on a Task Force housed at the HSI Spokane office. The Task Force includes Special Agents, Detectives, and Analysts from WSP, HSI, Spokane PD, and representatives from outlying Counties dedicated to serving the children and communities of the region. The MECTF traces its origins to 1999, when the Washington Legislature established a task force on missing and exploited children under the direction of the Chief of the state patrol, RCW 13.60.110.
This case was investigated by Homeland Security Investigations with assistance from U.S. Probation. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
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South Bay Man Charged with Fraud in Alleged Scheme to Use His Position with Technology Company to Divert Software License PaymentsRead the Press Release
SAN JOSE – Kevin Chao, a former executive at a technology company with offices in San Jose, Calif., appeared on charges he engaged in a years-long scheme to defraud his employer by directing millions of dollars of business to entities he controlled and by diverting more than $2 million in software license fees to benefit himself and co-conspirators, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation, Special Agent in Charge Robert K. Tripp. Richard Sze and Suryanarayana Murthy Bobba, both former employees of the same technology company as Chao, face related charges. Chao made his initial appearance before the Honorable Nathanael M. Cousins, United States Magistrate Judge.
Chao, 64, of Mountain View, was charged in an Information filed July 19, 2023. Chao was a former Global Business Director at a technology company identified in the Information as Company-1. According to the Information, Chao had a duty of loyalty to, and a duty to disclose outside business to, Company-1. Instead, the Information alleges, Chao engaged in a scheme in which he directed millions of dollars in business to entities in which he had an interest but kept his control and financial interest secret from Company-1.
There were various aspects of the alleged scheme. First, the Information alleges Chao defrauded his employer by working with other company employees, Sze, 56, of Saratoga, Calif. and Bobba, 55, of Los Altos, Calif., to direct software development service contracts to Zillsoft, a company they controlled. Chao, Sze, and Bobba did not inform Company-1 that they controlled Zillsoft. Chao allegedly directed millions of dollars in business to Zillsoft, then split the profits with Sze and Bobba. The Information further alleges Chao continued the scheme by arranging for the sale of Zillsoft to a third entity that also performed work for Company-1, and the co-conspirators again secretly profited from Company-1’s business with that entity.
According to the Information, Chao and Sze formed another entity, SPSoft China, also to steer contracts and payments to themselves. Chao profited about $5.4 million from this arrangement. He concealed his control and interest in the company from Company-1 to continue to direct millions of dollars in business to the entity, according to the allegations.
In another aspect of the scheme, Chao and Bobba arranged for Company-1 to obtain a license to a software program for Company-1, and then secretly arranged to divert more than $2 million to themselves without disclosing the diversion to Company-1.
Chao originally was arrested on October 29, 2021, on a criminal complaint. Chao is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343. After today’s appearance, Magistrate Judge Cousins released Chao on bond. Chao’s next appearance is scheduled for October 17, 2023, before Hon. Beth Labson Freeman, U.S. District Judge.
Sze was also previously arrested on a criminal complaint unsealed on October 29, 2021. Sze is now charged by an Information filed on April 24, 2023. Sze is charged with one count of conspiracy, in violation of 18 U.S.C. § 317, and he made his initial appearance on the Information on May 9, 2023. Sze was previously released pending further proceedings. Sze is set for a change of plea hearing before Judge Freeman on October 3, 2023.
Bobba was charged by an Information filed on April 24, 2023, with one count of conspiracy, in violation of 18 U.S.C. § 317. He made his initial appearance on the Information on May 16, 2023, and was released on bond. Bobba is set for a status conference before Judge Freeman on October 10, 2023.
The Informations and criminal complaints contain mere allegations that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Chao faces a maximum sentence of 20 years imprisonment, and defendants Bobba and Sze face a maximum sentence of 5 years imprisonment. Each defendant faces a fine of $250,000, plus restitution if appropriate, for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and forfeiture is being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys Chris Kaltsas and Sailaja M. Paidipaty are prosecuting the case with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Savannah man sentenced to 30 years in prison after pleading guilty to producing child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to decades in federal prison after pleading guilty to production of child pornography.
Perry Williams III, 24, of Savannah, was sentenced to 360 months in prison after previously pleading guilty to one count of Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Williams to pay restitution of $3,000, to register as a sex offender, and to serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Protecting our most vulnerable citizens from harm and exploitation is of paramount importance – and that requires stopping predators and removing them from our neighborhoods,” said U.S. Attorney Steinberg. “This substantial prison sentence will help ensure our community’s safety.”
As described in court documents and testimony, Savannah Police officers were alerted in January 2022 when a woman discovered videos on Williams’ phone showing the sexual exploitation of a child. During a subsequent search of Williams’ residence, investigators found videos and other evidence that Williams had used his phone to record four videos in which he performed sexually explicit acts on a child.
“Protecting the children in our communities remains a top priority for Homeland Security Investigations,” said Acting Special Agent in charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This sentence is a testament that HSI remains committed to identifying and holding accountable individuals who prey on our most vulnerable population.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by the Savannah Police Department and Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney Jennifer J. Kirkland.
San Francisco Felon Pleads Guilty to Trafficking FirearmsRead the Press Release
Rondell Cramer, 45, of San Francisco, pleaded guilty Thursday to unlawful dealing in firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 1, 2022, while driving in Fairfield, Cramer was pulled over for driving a vehicle without a license plate. The officer arrested Cramer for two outstanding felony warrants. A search of his vehicle resulted in the discovery of a Glock 9 mm caliber firearm, as well as a bill of sale for another firearm and stolen merchandise, much of which still had antitheft tags on them. Cramer is not allowed to possess firearms or ammunition because he has previously been convicted of six felony offenses, including a prior conviction for being a felon in possession of a firearm. A search of Cramer’s phones revealed multiple conversations showing that Cramer was buying firearms in Arizona under an alias, and then selling them in California. Follow-on investigation by the ATF confirmed that Cramer had been trafficking firearms since at least August 2020.
This case is the product of an investigation by the California Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Cramer is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 12, 2023. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is 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 U.S. Department of Justice 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.
Rock Hill Man with Pending Attempted Murder Charge Sentenced to 188 Months in Federal Prison for Illegally Possessing GunRead the Press Release
COLUMBIA, SOUTH CAROLINA — William Allen Austin, 50, of Rock Hill, was sentenced to 188 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on March 1, 2022, Austin drove to Pineville, NC, to stab his ex-girlfriend while she was at a new job orientation. Surveillance footage captured Austin driving into and fleeing from the facility, and witnesses identified him. The victim of the attack had an emergency protective order against Austin because of repeated threatening and harassing conduct from Austin, including slashing her car tires, following her to a hotel, sending threatening messages, and throwing a brick through her house window.
Austin was subsequently arrested by the York County Sheriff’s Office and the United States Marshals Service on March 3, 2022, for attempted murder related to the March 1 stabbing. At the time of his arrest, Austin possessed a 9mm Taurus pistol, which was loaded. Federal law prohibits Austin from possessing firearms or ammunition due to numerous prior felony drug convictions.
After Austin was released on bond out of Mecklenburg County, evidence showed that on April 4, 2022, Austin set fire to the victim’s residence in Rock Hill, SC. Surveillance footage showed Austin parking on a street behind the victim’s residence and walking towards her house, before running back to his vehicle. Within minutes of Austin leaving the scene, smoke was visible on surveillance video. York County Fire Department responded to the victim’s home, which was severely damaged and deemed uninhabitable.
United States District Court Judge Mary Geiger Lewis sentenced Austin to 188 months in prison to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the York County Sheriff’s Office, the York County Fire Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elle E. Klein is prosecuting the case.
Real Estate Developer Sentenced to 6 Years in Federal Prison for Paying $500,000 Cash Bribe to Corrupt L.A. Politician and OfficialRead the Press Release
LOS ANGELES – A real estate developer was sentenced today to 72 months in federal prison for paying a $500,000 cash bribe to then-Los Angeles City Councilman José Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of the developer’s downtown Los Angeles development project.
Dae Yong Lee, a.k.a. “David Lee,” 58, of Bel Air, was sentenced by United States District Judge John F. Walter, who also ordered him to pay a $750,000 fine, the maximum permitted by law.
At today’s sentencing hearing, Judge Walter highlighted why significant sentences are important for deterrence in white collar crimes, saying such defendants “don’t think they will get caught, don’t think they will get charged, and don’t think they will face significant terms of imprisonment.” Judge Walter further said that Lee “readily accepted and exploited” Huizar’s corrupt offer and showed a “lack of remorse and arrogance” in recorded telephone conversations when discussing his crimes. Lee’s “only regret is that he got caught,” the judge said.
Judge Walter also sentenced 940 Hill LLC, a Lee-controlled, Los Angeles-based company, to five years of probation and ordered it to pay the statutory maximum fine of $1.5 million, as well as the cost of prosecuting the case, along with requiring it to enact variance compliance measures to prevent future criminal activity.
At the conclusion of a nine-day trial in June 2022, a federal jury found each Lee and 940 Hill LLC guilty of one count of honest services wire fraud, one count of bribery, and one count of falsification of records in federal investigations.
Lee, a commercial real estate developer, was the majority owner and managing member of 940 Hill LLC and was planning to build a mixed-use development located at 940 South Hill Street in downtown Los Angeles, which was in Huizar’s council district. The development was to include 14,000 square feet of commercial space and more than 200 residential units.
In August 2016, after a labor organization filed an appeal that prevented the 940 Hill project from progressing through the city’s approval process, Lee called Justin Jangwoo Kim, a Huizar fundraiser, to request Huizar’s help in resolving the appeal. At the time, Huizar chaired the city’s Planning and Land Use Management (PLUM) Committee, a body that oversaw many of the city’s most significant commercial and residential projects.
In September 2016, George Esparza, then Huizar’s special assistant, informed Kim that Huizar would not help the 940 Hill project for free and would require a financial benefit. In 2017, after several months of bribe negotiations, Lee agreed to provide $500,000 in cash to Huizar and Esparza. Lee then made three payments of cash through Kim over a series of months, including in a paper bag, which Esparza then transferred to a liquor box to show to Huizar.
Two years after paying the bribe, 940 Hill LLC was served with a federal grand jury subpoena from the U.S. Attorney’s Office for records relating to Huizar, and, in response, Lee and 940 Hill LLC obstructed justice by making false entries in the company’s accounting records and then submitting false state and federal tax returns, which categorized the $500,000 bribe as a legitimate business expenditure for resolving the labor organization appeal.
“Despite enjoying a life of privilege and abundance, Lee wanted more,” prosecutors argued in a sentencing memorandum. “But instead of earning it, he wanted a guaranteed shortcut to circumvent the city process and silence community opponents threatening to thwart his attempts to expand his substantial real estate empire.”
Kim pleaded guilty in June 2020 to a federal bribery offense. Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy. Both men, who are cooperating with the investigation, testified against Lee at trial and are scheduled to be sentenced in October.
Huizar pleaded guilty on January 20 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of tax evasion. His sentencing hearing is scheduled for December 15. Huizar has agreed to seek a sentence of no less than nine years in prison, and prosecutors have agreed to recommend a sentence of no more than 13 years in prison.
In May, Judge Walter sentenced real estate development company Shen Zhen New World I LLC to five years of probation and the statutory maximum financial penalty of $4 million for its conduct in Huizar’s pay-to-play scheme, including providing more than $1 million in benefits to Huizar – among them, luxury trips to Las Vegas and a sham loan to settle a sexual harassment lawsuit filed against Huizar – in exchange for approval to build a 77-story skyscraper.
Former Los Angeles Deputy Mayor Raymond Chan is scheduled for a re-trial on March 12, 2024, on federal charges alleging he conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, and that he agreed to accept, while he was deputy mayor, more than $100,000 for official acts to benefit a project by a Chinese real estate developer. Chan also is charged with lying to federal investigators in this public corruption case.
The FBI investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section prosecuted these defendants.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Purcell Man Sentenced to Serve 210 Months in Federal Prison for Sexual Abuse in Chickasaw Indian CountryRead the Press Release
OKLAHOMA CITY – Earlier this week, MICHAEL CHARLES FIXICO, 45, of Purcell, Oklahoma, was sentenced to serve 210 months in federal prison for sexual abuse, announced United States Attorney Robert J. Troester.
On February 15, 2022, a 13-count Third Superseding Indictment was filed charging Fixico with multiple counts of sexual contact and abuse. On March 3, 2023, Fixico pleaded guilty to Count 7, sexual abuse. He was charged in federal court because he is an Indian and the crimes occurred within the boundaries of the Chickasaw Nation Reservation.
At a sentencing hearing on July 17, 2023, U.S. District Court Judge David L. Russell sentenced Fixico to serve 210 months in federal prison. In announcing the sentence, the court noted the seriousness of the offense, to afford deterrence to the criminal conduct, as well as the need to protect the public from further crimes by Fixico. Fixico will be required to register as a sex offender and was also placed on supervised release for the remainder of his natural life, under the supervision of the United States Probation Office.
This case is the result of investigations by the FBI Oklahoma City Field Office and the City of Purcell Police Department. Assistant U.S. Attorney Arvo Mikkanen prosecuted the case.
Reference is made to public filings for more information.
Peoria, Illinois, Man Sentenced to 48 Months in Prison for Possessing a Firearm as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Terrance T. Dotson, 50, of the 1600 block of South Livingston Street, was sentenced on July 20, 2023, to 48 months’ imprisonment, to be followed by three years of supervised release, for possessing a firearm and ammunition as a felon.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in August 2022 a Peoria County Sheriff’s Deputy saw an SUV driven by Dotson veer off the road and strike a mailbox. An officer pulled Dotson over and, while approaching the SUV during the traffic stop, saw Dotson reach into the backseat area where another person was seated. An officer then shined his flashlight on the backseat and saw a handgun laying next to the passenger. Officers removed Dotson and others from the SUV and he was placed in the backseat of a police car. Officers later opened the door to talk to Dotson and saw him kicking at something on the floor that was then determined to be an ammunition magazine loaded with the same type of ammunition found in the gun in the SUV.
A complaint was filed against Dotson in August 2022, and a federal grand jury returned an indictment in September 2022. A superseding indictment followed in February 2023. Dotson pleaded guilty in March 2023. He has remained in the custody of the U.S. Marshals Service since the complaint was filed.
The statutory penalties for possessing a firearm as a felon are up to 15 years’ imprisonment, a possible $250,000 fine, and up to a three-year term of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Peoria County Sheriff’s Department; and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Dotson 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.
Peoria, Illinois, Man Sentenced to 40 Months in Prison for Possession of a Firearm as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Denzel L. Jordan, 29, of the 1200 block of North University Street, was sentenced on July 20, 2023, to 40 months in federal prison for possession of a firearm and ammunition, to be followed by three years of supervised release.
At the sentencing hearing before Senior U.S. District Judge Michael M. Mihm, the government presented evidence that in October 2022 Jordan, a felon, was stopped by Peoria Police after committing a traffic violation. When officers learned that Jordan’s license was suspended, they ordered him to exit his car but Jordan refused, causing police to forcibly remove him. During the resulting scuffle, an officer located a loaded handgun tucked into the back of Jordan’s waistband. The semiautomatic pistol had a live round in the chamber and 16 rounds of ammunition in the attached magazine. The backpack Jordan was wearing was found to contain two additional magazines, each fully loaded with 15 rounds of .40 caliber ammunition. The backpack also contained 56 additional rounds of .40 caliber ammunition.
A federal grand jury returned an indictment against Jordan in October 2022. He entered a guilty plea in March 2023. Jordan has remained in the custody of the United States Marshal Service while his case has been pending.
The statutory penalties for a possession of a firearm as a felon are up to 15 years’ imprisonment, a possible $250,000 fine, and up to a three-year term of supervised release. Jordan has forfeited the Smith & Wesson M&P pistol and the ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Jordan 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.
Omaha Man Sentenced to 37 Months for Marijuana Trafficking ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Ryan D. Terry, 40, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for conspiring to distribute and possess with intent to distribute marijuana. Terry received a sentence of 37 months’ imprisonment with a three-year term of supervised release to follow. There is no parole in the federal system. Terry was also ordered to pay a $10,000 fine.
A cooperating individual (“CI”) met with Terry and co-defendant Jeffrey Dailey (“Dailey”) for the purpose of buying 5 pounds of marijuana. Terry brought a tub containing pound quantities of marijuana in vacuum-sealed packages. Terry showed the CI two types, stating he had 20 pounds of one and 35 of the other. Terry and Dailey indicated they could obtain anything the CI wanted, and that the product was being transported directly from California. The CI agreed to buy all 20 pounds of one variety, take 5 pounds of the other variety, and obtain the remainder if the CI’s customer liked the 5 pounds. Terry and Dailey agreed to transport the marijuana to another location once they retrieved some additional bundles of the product from Terry’s home.
Agents observed Terry and Dailey retrieve large black duffel bags from Terry’s home and then place them into Dailey’s vehicle before driving away. A marked police cruiser began following Dailey’s car from several blocks away. As the cruiser tried to catch up with Dailey’s vehicle, Dailey pulled over and Terry began walking away on foot. Terry was apprehended nearby, and an officer conducted a traffic stop of Dailey’s vehicle. In the trunk police found approximately 49 pounds of marijuana.
A post-arrest, Mirandized statement by Terry indicated he had been selling marijuana in various quantities over the past 6 or more years, making between $100 per pound to $200 per pound, that he would receive anywhere from 10 pounds to up to 30 pounds per month, but that it varied based on the market conditions. According to Terry, the most he had ever received in a given month was 70 to 90 pounds.
A search of Terry’s Omaha home found several pounds of THC wax, “shatter” and edibles, electronic scales, packaging materials, and $116,500 in United States Currency, later confirmed as narcotics sales proceeds.
A financial investigation into Terry’s activities found that TNT Associates, LLC, the real properties located at 7610 Hartman Avenue, Omaha, Nebraska and 8608 Templeton Drive, Omaha, Nebraska were derived from proceeds of narcotics sales or otherwise used to facilitate the commission of narcotics sales. Each property was forfeited to the United States as part of the plea agreement in the case. Terry was allowed to retain his family home after paying to the United States $41,440, the amount of equity from drug proceeds.
Terry’s co-defendant, Jeffrey Dailey, has pleaded guilty and is awaiting sentencing which is scheduled for September 21, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Omaha Police Department.
Omaha Man Sentenced to 140 Months for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that William Lewis Gienger, 57, of Omaha, Nebraska, was sentenced today by Chief United States District Judge Robert F. Rossiter, Jr., for conspiring to possess with intent to distribute 50 grams or more of pure methamphetamine. Gienger received a sentence of 140 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
In February 2021, the DEA was investigating Tomas Lorenzo-Cruz for his role in distributing methamphetamine in the Omaha area. Pursuant to a court order, agents were intercepting Lorenzo-Cruz’s phone calls and messages. On February 21, 2021, a call from someone who identified themselves as “Bill” contacted Lorenzo-Cruz about purchasing some methamphetamine. The caller was eventually identified as Gienger. On the way to deliver 285 grams of pure methamphetamine to Gienger, Lorenzo-Cruz was stopped, and the methamphetamine was seized. After the traffic stop, Lorenzo-Cruz was intercepted calling Gienger and told him that the police just seized the methamphetamine that was to be delivered.
Lorenzo-Cruz was sentenced on May 16, 2023, to 135 months’ imprisonment.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the DEA and the Omaha Police Department.
Omaha Man Sentenced to 135 Months for Possessing with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Pedro Adolfo Robles, 36, of Omaha, Nebraska, was sentenced today by Chief United States District Judge Robert F. Rossiter, Jr., for Possessing with Intent to Distribute 500 grams or more of methamphetamine. Robles received a sentence of 135 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
On January 29, 2020, deputies with the Seward County Sheriff’s Office conducted simultaneous traffic stops on a Ford F150 pickup truck and a tow truck hauling a Cadillac Escalade while both were traveling on I-80 in Seward County. The Escalade was found to be smuggling 27 pounds of methamphetamine. Deputies determined that the Escalade had broken down in Hebron, Nebraska, and was being towed to Omaha, Nebraska. The owner of the Escalade, Gonzalez-Gardea, was a passenger in the F150 pickup truck. The driver of the F150 pickup truck, Rex Kmiecik, and a passenger riding with the tow truck, Pedro Robles, were also arrested. Kmiecik and Robles had driven from Omaha to help get the Escalade towed to Omaha.
Kmiecik was sentenced on September 13, 2021, to 132 months’ imprisonment. Gonzalez-Gardea was sentenced on August 23, 2021, to 135 months’ imprisonment.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Seward County Sheriff’s Office, the DEA, and the Omaha Police Department.
Omaha Man Sentenced for Tax Evasion and Role in Multi-Million Dollar EmbezzlementRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jeffrey Stenstrom, 42, of Omaha, Nebraska, was sentenced today by United States District Court Judge Brian C. Buescher to 30 months’ imprisonment for Income Tax Evasion and 78 months’ imprisonment for Conspiracy to Commit Money Laundering; these terms of incarceration were ordered to be run concurrently. There is no parole in the federal system. After his release from prison, Stenstrom will serve a two-year term of supervised release. As part of his sentence Stenstrom was ordered to pay $5,146,816.51 to victim property owners who were clients of Darland Properties, LLC and $1,954,505.10 in restitution to the Internal Revenue Service.
Stenstrom also admitted to forfeiture allegations and has forfeited his interest in a 2020 McLaren 600LT Spider, a lake home in Fremont, Nebraska, a home in Queen Creek, Arizona, two commercial properties in Nebraska, nearly $2.2 million in life insurance policy proceeds, approximately $ 74,743.00 in currency, and multiple items of jewelry and luxury watches.
Stenstrom owned and operated Stenstrom Services, Inc. (hereinafter SSI) from 2006 through approximately 2021. SSI described itself as a commercial remodeling and repair business. Brett Cook was the Vice President of Darland Properties, LLC. In that role, Cook was entrusted to negotiate prices for work to be completed on properties managed by Darland Properties and authorize payments to be made from the real estate trust accounts of Darland Properties’ clients. Stenstrom had been in a decades’ long relationship with Cook. Cook is now deceased.
Beginning in approximately 2015, Cook used his position as the Vice President of Darland Properties to direct repair work to SSI. SSI performed no skilled labor, had no employees, and all regular laborers were unskilled. Most of the work SSI performed on behalf of Darland Properties was subcontracted. Cook was the initial point of contact for many of the subcontractors and directed the subcontractors that all work must be run through SSI. Cook and Stenstrom used SSI to fraudulently obtain monies from Darland Properties’ clients by causing SSI to bill for work that was not performed, overbilling for work, and causing SSI’s inflated invoices to be submitted to insurance companies to obtain insurance proceeds to which Darland Properties’ clients were not entitled to.
From 2012 to 2016, Stenstrom derived income from Stenstrom Services. Stenstrom Services generated $752,744 in 2012, $469,140 in 2013, $641,010 in 2014, $731,091 in 2015, and $575,466 in 2016. On May 30, 2018, the IRS assessed $1,725,532.91 related to unpaid income tax owed by Stenstrom. On December 14, 2018, Stenstrom provided a signed Form 433-A to an IRS Revenue Officer. This form omitted numerous assets owned by Stenstrom that were being held in the name of a third party to include a second home in Queen Creek, Arizona valued at approximately $1,000,000, a Ferrari 488 Coupe valued at $200,000 to $300,000, a boat, an ATV, a Jeep, and a home located in Fremont, Nebraska, valued at approximately $450,000. Stenstrom also excluded the transfer of a home in Gilbert, Arizona, to another party for below fair market value.
In 2019, the IRS placed a tax levy on Stenstrom’s accounts. Cook and Stenstrom ceased directing work to SSI and began directing work to Midwest Property Maintenance Solutions (hereinafter MPMS) which was created by Cook and a family member of Cook. Cook, his family member, and Stenstrom used MPMS to fraudulently obtain money from Darland Properties’ clients by billing for work that had previously been completed by SSI, billing for work that was not performed, billing for warranties it did not provide and were previously paid for by Darland Properties’ clients, and overbilling for work that was done.
The proceeds from the wire fraud scheme were deposited into SSI’s, MPMS’s, and Cook’s bank accounts where the fraudulently obtained funds were commingled with legitimate funds. The funds were then transferred to various bank accounts held in Cook’s name, Stenstrom’s name, Cook’s family member’s name, AZ Midwest Properties, LLC, 14334 Industrial Road, LLC, and B & B Real Estate, LLC (a real estate partnership that Cook was a partner in), where they were further commingled with legitimate funds. The proceeds were then used to acquire residential and commercial real estate, luxury vehicles, life insurance policies, jewelry, watches, credit card purchases, and loan payments. Cook, Stenstrom, and Cook’s family member concealed the scheme by laundering the proceeds through various business and personal bank accounts, purchasing and selling the aforementioned assets, and subsequently using those proceeds to acquire additional assets. In total, the scheme resulted in excess of $5,100,000.00 being fraudulently obtained from Darland Properties’ clients for the personal benefits of Cook, his family member, and Stenstrom.
“This case shows that regardless of the tactics used to avoid tax obligations, IRS Criminal Investigation will take all necessary steps to unravel the scheme and bring those who break our tax laws to justice,” said IRS-CI Special Agent in Charge, Thomas F. Murdock. “This joint effort with the FBI and the U.S. Attorney’s Office demonstrates our commitment to ensuring the tax system is fair for all citizens.”
FBI Omaha Special Agent in Charge Eugene Kowel said, “In a clear-cut case of greed, Jeffrey Stenstrom and his co-conspirator embezzled more than five million dollars to support their lavish lifestyle. FBI Omaha is dedicated to investigating and holding accountable those, like Stenstrom, who fraudulently enrich themselves at the expense of their hard-working victims.”
“Today’s sentencing is the culmination of a three-year investigation into the criminal activities of Jeff Stenstrom and Brett Cook that involved the collaboration of our office and multiple federal and local law enforcement agencies spanning multiple states in addition to a parallel civil suit initiated by our office’s asset forfeiture unit,” said Acting United States Attorney Susan Lehr. “Today’s sentencing is an example of our office’s determination to work with our law enforcement partners to aggressively prosecute white collar criminals, to divest those criminals of the wrongfully obtained proceeds, and to seek restitution for victims.”
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.
Nye County Resident Sentenced to Prison for Distribution and Receipt of More Than 250,000 Images of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Pahrump, Nye County, resident was sentenced today by United States District Judge James C. Mahan to 108 months in prison followed by a lifetime term of supervised release for distributing and receiving more than 250,000 images depicting the sexual abuse of children as young as infants on an online peer-to-peer file sharing network.
David Michael Burak (41) pleaded guilty on February 24, 2023, to distribution or receipt of child pornography.
According to court documents, investigators with the Internet Crimes Against Children Task Force were investigating the sharing of child sexual abuse material on a peer-to-peer file sharing network. During the investigation, it was observed that a device was distributing files depicting child sexual abuse material. On July 19, 2022, investigators executed a search warrant on Burak’s residence. Part of the residence was used for a daycare business catering to pre-school age children. Investigators seized multiple digital devices that were later found to contain more than 250,000 files of child sexual abuse material. Forensics also showed that Burak used these devices to receive and make available for download files of child sexual abuse material on the internet.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Las Vegas Metropolitan Police Department investigated the case. United States Attorney Supriya Prasad prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or online at www.cybertipline.org.
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Nine South Carolina Department of Corrections Inmates and Six Others Charged in Nearly $5 Million Fraud SchemeRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury has returned a 51-count indictment against nine current or former inmates in the South Carolina Department of Corrections (SCDC) and six other individuals who were either friends or relatives of the inmates for wire fraud and conspiracy to commit wire fraud.
The indictment alleges that, beginning in March 2020 and continuing through December 2020, nine SCDC inmates engaged in a scheme to fraudulently obtain various COVID-19 unemployment benefits administered through the South Carolina Department of Employment and Workforce (SCDEW) and through Pennsylvania, North Carolina, Nevada, New Jersey, Missouri, Arizona, and California.
The indictment further alleges the defendants conspired and coordinated with other inmates and friends and relatives outside of SCDC to submit unemployment claims to SCDEW using the Personal Identification Information (PII) of both inmates in SCDC and individuals outside the prison system.
The incarcerated inmates harvested PII, like social security numbers and dates of birth, from other inmates and used the PII to apply for COVID unemployment benefits in the names of those inmates as well as themselves. Some inmates provided their PII willingly in exchange for a portion of the proceeds derived from the unemployment benefits. Other inmates had no knowledge that unemployment benefits were being applied for on their behalf.
The incarcerated defendants also obtained the PII of unwitting individuals outside of SCDC using various extortion schemes. One of the primary schemes utilized by the defendants was known as “Johning.” Using contraband cellphones within SCDC, inmates posed as younger males or females and lured individuals to send them nude or compromising photos. After obtaining the photos, the inmates contacted the victims posing as law enforcement. The inmates then extorted the victims into sending them money and/or photos of their social security cards and driver’s licenses.
The non-incarcerated defendants received the unemployment benefits in the names of the extortion victims and SCDC inmates in the form of government checks and prepaid Visa debit cards. They then used ATM withdrawals, wire transfers, and mobile banking applications to make the proceeds available to the incarcerated defendants.
In total, the indictment alleges the fraudulent scheme resulted in a loss of approximately $4,996,673.00 to the United States Government.
The specific charges in the indictment are as follows:
- Reginald Raynard White, Jr., an SCDC inmate, faces twenty counts of wire fraud and one count of conspiracy to commit wire fraud;
- Christopher Ford, an SCDC inmate, faces one count of wire fraud and one count of conspiracy to commit wire fraud;
- Marvin Lee Trotter, an SCDC inmate, faces two counts of wire fraud and one count of conspiracy to commit wire fraud;
- Dawn Hall, of Kansas City, MO, faces ten counts of wire fraud and one count of conspiracy to commit wire fraud;
- Benika Kershaw, Chester, SC, faces one count of conspiracy to commit wire fraud;
- Albert J. Cave, Jr., an SCDC inmate, faces one count of wire fraud and one count of conspiracy to commit wire fraud;
- Jason Andrew Cash, an SCDC inmate, faces eight counts of wire fraud and one count of conspiracy to commit wire fraud;
- Stepheno Lemain Alston, an SCDC inmate, faces seven counts of wire fraud and one count of conspiracy to commit wire fraud;
- James Griffin, an SCDC inmate, faces five counts of wire fraud and one count of conspiracy to commit wire fraud;
- John Travis Mace, an SCDC inmate, faces four counts of wire fraud and one count of conspiracy to commit wire fraud;
- Ronald Gene Harvey, an SCDC inmate, faces four counts of wire fraud and one count of conspiracy to commit wire fraud;
- Bridgette Cash, of Landrum, SC, faces one count of wire fraud and one count of conspiracy to commit wire fraud;
- Latasha Alston, of St. Helena Island, SC, faces eight counts of wire fraud and one count of conspiracy to commit wire fraud;
- Lori Robinson, of Monroe Township, NJ, faces one count of conspiracy to commit wire fraud;
- Jessica Howell, of Southport, NC, faces one count of conspiracy to commit wire fraud.
Each alleged count of wire fraud and each alleged count of conspiracy to commit wire fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000.All charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. This investigation remains ongoing.
The case was investigated by the United States Secret Service; the South Carolina Department of Corrections, Office of Inspector General; and the South Carolina Law Enforcement Division, with assistance from the South Carolina Department of Employment and Workforce. Assistant U.S. Attorneys Winston Holliday and Scott Matthews are prosecuting the case.
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Nevada Woman Sentenced to 5 Years Prison for Hiring Hitman on Dark Web to Kill Her Ex-HusbandRead the Press Release
SACRAMENTO, Calif. — Kristy Lynn Felkins, 38, of Fallon, Nevada, was sentenced Thursday to five years in prison for a murder for hire plot, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Felkins sent 12 bitcoin (valued at approximately $5,000 at the time) to a dark web hitman website, known as Besa Mafia, to have her ex-husband murdered. From February to May 2016, Felkins regularly communicated with the administrator of the site to pay and arrange for the murder of her ex-husband. Felkins gave the administrator the specific location of her husband in an attempt to have him murdered.
Besa Mafia operated as a “hidden service” on the Tor network, which is an anonymizing internet service that is known informally as the “dark web.” The Besa Mafia website, however, was actually a scam, and Felkins was not refunded the bitcoin she sent to the site, which is no longer in operation.
This case was the product of an investigation by Homeland Security Investigations (HSI), as part of the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from HSI, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force is a federal task force targeting all forms of dark web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorney Justin Lee prosecuted the case.
Moravia Man Sentenced to 41 Months for Unlawfully Possessing a Short-Barreled RifleRead the Press Release
SYRACUSE, NEW YORK –Duane Hollenbeck, age 54, of Moravia, New York, was sentenced today to serve 41 months in federal prison for possessing an unregistered short-barreled rifle.
United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement.
As part of his previously entered guilty plea, Hollenbeck admitted to possessing an unregistered AR-15 style American Tactical rifle. The rifle, which had a barrel length of less than 16 inches, was not registered to the defendant in the National Firearms Registration and Transfer Record, as required by federal law.
Chief United States District Judge Brenda K. Sannes also sentenced Hollenbeck to a 3-year term of supervised release, to begin after his imprisonment.
The case was investigated by the Federal Bureau of Investigation (FBI), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the New York State Police, with assistance from the Chenango County District Attorney’s Office. Assistant U.S. Attorney Geoffrey J. L. Brown prosecuted the case.
Minneapolis Man Pleads Guilty to Carjacking a PreacherRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to the armed carjacking of a preacher who was handing out bottled water to the homeless, announced U.S. Attorney Andrew M. Luger.
According to court documents, on August 1, 2021, Dwight Keith Eaglehawk, 34, approached the victim in a parking lot near Lake Street in south Minneapolis. The victim, a preacher, was handing out water bottles to homeless individuals. Eaglehawk approached the victim and requested two bottles of water before brandishing a Marlin .22 rifle and demanding the victim’s Dodge Dart. After taking the keys from the victim, Eaglehawk fled in the Dodge Dart.
Eaglehawk pleaded guilty yesterday in U.S. District Court before Senior Judge Ann D. Montgomery to one count of carjacking. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
Assistant U.S. Attorneys Evan B. Gilead and David P. Steinkamp are prosecuting the case.
Melrose Man Pleads Guilty to $375,000 Bank FraudRead the Press Release
BOSTON – A bank teller supervisor pleaded guilty today in federal court in Worcester for his role in defrauding his employer out of $375,000.
Pablo Rocha, 32, of Malden, pleaded guilty to one count of bank fraud. U.S. Senior District Court Judge Timothy S. Hillman scheduled sentencing for Nov. 16, 2023. Rocha was charged on June 26, 2023.
Between July 2022 and December 2022, Rocha worked as a bank teller supervisor at a federally insured bank in Massachusetts. Rocha used his access to the bank’s vault to steal cash. Rocha then covered his tracks by writing false entries in the bank’s records and by processing fake transactions in the bank’s electronic records system to make it appear that the cash had been shipped to the Federal Reserve Bank of Boston. In total, Rocha stole approximately $375,000.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, restitution and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Maryland Man Found Guilty in the First Degree Premeditated Murder of two DC Residents and Charges Involving Four OthersRead the Press Release
Defendants Fired 12 Shots at Six Young Men on a Sunday Afternoon
WASHINGTON – A Superior Court jury, today, returned guilty verdict on all counts against Jalen Browne, 22, of Upper Marlboro, MD, for the murders of Jovan Hill and Tariq Riley, on July 25, 2021, on Q Street NW, Washington, D.C. The verdicts were announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Browne was found guilty of two counts of first-degree premeditated murder while armed, four counts of assault with intent to kill while armed, and six counts of possession of a firearm during the commission of a crime of violence. A sentencing hearing is scheduled for October 13, 2023.
According to evidence presented at trial, shortly after 3:38pm on Sunday, July 25, 2021, the defendant disguised himself and walked around the 100 block of Q Street, NW, eventually lying in wait to shoot young men enjoying the hot summer day. The defendant, using a backpack to catch his shell casings, fired 12 shots in succession at six young men. Narrowly missing three of his targets, the Defendant hit Jovan Hill, Tariq Riley, and another man in the back. First responders found Jovan Hill and Tariq Riley on the ground. Both men were transported to nearby hospitals, but all life-saving efforts failed; both men died as a result of a single gunshot wound to the back.
No witnesses provided information regarding the identity of the shooters. The government presented forensic, video surveillance, circumstantial, and motive evidence in securing a conviction on all counts.
In announcing the verdicts, U.S. Attorney Graves and Chief Smith commended the work of the officers and detectives with the Metropolitan Police Department who investigated the case, as well as members of the prosecution team, including: Charlie Bruce, Zachary McMenamin, and Paralegal Specialists Meridith McGarity, Lauren Douglas, and Tasha Harris. Finally, they thanked Assistant U.S. Attorneys Jeffrey A. Wojcik and Lauren Galloway who prosecuted the case.
Major Southeast Missouri Drug Trafficking Organization IndictedRead the Press Release
CAPE GIRARDEAU – Nineteen members of a Charleston, Missouri-based drug trafficking organization accused of being the main supplier of methamphetamine and fentanyl to southeast Missouri have been indicted on a felony drug conspiracy charge, U.S. Attorney Sayler A. Fleming announced Friday.
Arrests by federal, state and local law enforcement began Thursday, followed by arraignments in U.S. District Court in Cape Girardeau.
“As someone who grew up in Charleston, I can tell you that this case perfectly illustrates that drugs are not just a big city problem,” U.S. Attorney Fleming said. “Drugs, and the often-violent criminals who sell them, are a plague on otherwise law-abiding communities, big or small. This drug trafficking organization was the main supplier of methamphetamine and fentanyl in southeast Missouri, as you can see in the court records. I want to reassure the southeast Missouri community that this case is and will remain a priority for my office.”
All 19 defendants face a charge of conspiracy to distribute and possess with the intent to distribute controlled substances, including Demarcus P. Turner and Jadarius A. McCain.
Motions seeking to have Turner, McCain and three other defendants jailed until trial say that Turner and McCain were leaders of the drug trafficking conspiracy and also led a Charleston gang, “Just Bout Money,” or JBM. Hundreds of thousands of dollars have been seized during the investigation, as well as about 65 kilograms of methamphetamine, 3.55 kilograms of cocaine, 653.9 grams of fentanyl, 215 grams of MDMA and 5.85 kilograms of marijuana, the motion says.
The group received drugs in the mail and via couriers who flew or drove to their sources of supply, including Georgia-based co-defendant Damien Davenport, the motion says. Couriers were repeatedly intercepted with dozens of pounds of drugs in suitcases, it says.
The detention motion says JBM members have been linked to shootings in southeast Missouri and southern Illinois, including a Feb. 19, 2022 JBM-hosted party where two people were fatally shot and 14 others injured.
McCain pleaded not guilty to the charges Thursday. Turner is currently in state custody facing one felony count of second-degree murder and 15 counts of first-degree assault related to a July 2022 shooting in Sikeston, the motions say.
“The Missouri State Highway Patrol and the Southeast Missouri Drug Task Force are dedicated and committed to removing illicit drugs from our communities,” said Roger L. Phillips, director of the Missouri State Highway Patrol’s Division of Drug and Crime Control. “The JBM drug trafficking organization has devastated our communities for years by flooding them with pounds and pounds of illicit drugs, including methamphetamine, fentanyl, and cocaine. In addition to the harmful effects these drugs cause to their users, violence is often associated with these drug sales. This investigation has led to indictments not only in Missouri, but in multiple other states. We are proud of the efforts put forth by all the participating agencies, stand committed to protecting our citizens, and will continue to combat drugs being sold in our communities.”
"Drug trafficking organizations like this one are spider webs of illegal activity with connections across the country," said Assistant Special Agent in Charge Colin Dickey, lead of Drug Enforcement Administration investigations in Eastern Missouri. "DEA takes particular interest in dismantling and destroying them – from street level dealers and up the chain. It takes the combined efforts of multiple DEA offices and our federal, state and local partners to do this, but the effort is worth it to ensure these illegal drug operations cannot harm communities any longer."
“In addition to Missouri, members of this drug trafficking organization were also arrested in Arkansas, Georgia, and North Carolina,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “The success of this case is a prime example of the effective partnerships between the local, state, and federal levels. Local and state agencies have the eyes and ears on the ground to develop information which often leads to an initial investigation. While at the federal level, we expand investigations nationwide or worldwide when needed to dismantle an entire enterprise.”
“The organized drug distribution ring, known as the JBM or Just Bout Money gang, has been a cause of concern for the safety and well-being of the good citizens in Charleston,” said Mississippi County Sheriff Britton H. Ferrell. “The collaboration among federal, state, and local agencies in this operation demonstrates a commitment to dismantling such networks that endanger lives and contribute to harming our community.”
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 case was investigated by the Southeast Missouri Drug Task Force, the Missouri State Highway Patrol, the Drug Enforcement Administration, the FBI, the U.S. Marshals Service, the Mississippi County Sheriff’s Office, the Perry County Sheriff’s Office, the Charleston Department of Public Safety, the Sikeston Department of Public Safety and the Cape Girardeau Police Department. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.Madison County Man Sentenced to 5 Years for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Ryan Berte, age 33, of Eaton, New York, was sentenced today to serve 60 months in federal prison for receiving and possessing child pornography announced United States Attorney Carla B. Freedman, Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office, Inspector in Charge Ketty Larco-Ward, Boston Division, United States Postal Inspection Service (USPIS), and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli.
As part of his earlier guilty plea, Berte admitted that from at least February 24, 2021, through March 10, 2021, while employed as a mail carrier in Madison County, New York, he downloaded images and videos of child pornography which he also made available to third parties using a peer-to-peer file sharing program installed on his laptop. Berte also admitted that, on September 22, 2021, during a search of his home, he possessed hundreds of images and videos of child pornography on the same laptop.
Chief United States District Judge Brenda K. Sannes also sentenced Berte to 15 years of supervised release, to begin following his term of imprisonment. Berte will also be required to register as a sex offender upon his release from prison.
This case was investigated by USPS-OIG, USPIS, and the New York State Police, Bureau of Criminal Investigation (BCI), Computer Crimes Unit (CCU), Troop D Oneida. The case was prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Lincoln Man Sentenced for Conspiracy to Distribute Cocaine and Fentanyl Resulting in Death and Serious InjuriesRead the Press Release
Acting United States Attorney Susan Lehr announced that Russell L. Rucks, Sr., 52, of Lincoln, Nebraska, was sentenced today to 26 years’ imprisonment, for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a detectable amount of fentanyl, resulting in the death of one person and serious bodily injuries to two others, by Senior United States District Judge John M. Gerrard. Following his release from prison, Rucks will serve five years on supervised release. There is no parole in the federal system. Rucks will also forfeit $5,084.00 in cash to the United States of America, and he was ordered to pay $9,700.00 in restitution to the mother of victim who died.
On July 24, 2021, a Lincoln woman called 911 after her fiancé collapsed after returning home from a trip to a gas station. Lincoln Fire and Rescue, (LFR), arrived and performed lifesaving measures, including administering two doses of Narcan. After the second dose of Narcan, the victim began to regain consciousness and was transported to a Lincoln hospital. The victim later told investigators he had been purchasing small amounts of cocaine about every seven to 10 days from Russell Rucks, Sr. for about a year. Just before his overdose, he said he met with Rucks and bought $20 worth of what he believed to be cocaine. He snorted the cocaine and suffered an overdose. Phone records for the victim and Rucks confirmed the victim had been communicating about drug transactions. A medical expert reviewed first responder and hospital records for the victim and found he faced a substantial risk of death had he not been given Narcan.
On July 27, 2021, two Lincoln men overdosed at a residence in Lincoln. Both were found unconscious. Both were given Narcan and were hospitalized. One of the victims died on August 19, 2021, but the other victim eventually recovered. The surviving victim told investigators he pooled money with the victim who died, and they bought what they believed to be cocaine from Rucks. The surviving victim said he and the victim who died both used the “cocaine” which led to their overdoses. Investigators found phone messages between the surviving victim and Rucks on the day of the overdoses in which the surviving victim arranged to meet with Rucks. Several items of drug paraphernalia, all containing drug residue, were seized from the residence where the two victims were found, and lab testing showed these items all contained cocaine and fentanyl. A medical expert reviewed the first responder and hospital records for both victims determined that one victim died due to ingesting cocaine laced with fentanyl and the other was seriously injured due to ingesting those substances.
On August 11, 2021, Rucks was arrested and found in possession of a small amount of cocaine. On the same day, his son, Russell Rucks, Jr., was also arrested and was found in possession of $1,634 in cash. A search warrant was executed at their Lincoln residence which resulted in the finding of 6.8 pounds of cocaine, a scale, and $3,950 in currency. Rucks, Sr. waived his Miranda rights and told investigators he had been selling what he believed to be cocaine in the months prior to his arrest.
Russell Rucks, Jr., faces similar charges and is awaiting trial currently scheduled to begin in October of 2023.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force (Lincoln Police Department, Lancaster County Sheriff’s Office and UNL Police Department) and the Nebraska State Patrol.
Leader of “Genesis II Church of Health and Healing,” Who Sold Toxic Bleach as Fake “Miracle” Cure for COVID-19 and Other Serious Diseases, Guilty of Conspiracy to Defraud the United StatesRead the Press Release
MIAMI – A federal jury in Miami has found Mark Grenon, 65, and his three sons, Jonathan Grenon, 38, Jordan Grenon, 29, and Joseph Grenon, 36, guilty of conspiracy to defraud the United States by distributing an unapproved and misbranded drug. Jonathan and Jordan Grenon were also found guilty of contempt of court.
The Grenons, all of Bradenton, Florida, manufactured, promoted, and sold a product they named Miracle Mineral Solution (“MMS”). MMS is a chemical solution containing sodium chlorite and water which, when ingested orally, became chlorine dioxide, a powerful bleach typically used for industrial water treatment or bleaching textiles, pulp, and paper. The Grenons claimed that ingesting MMS could treat, prevent, and cure COVID-19. The FDA, however, had not approved MMS for treatment of COVID-19, or for any other use. Rather, in prior official warning statements, the FDA had strongly urged consumers not to purchase or use MMS for any reason, explaining that drinking MMS was the same as drinking bleach and could cause dangerous side effects, including severe vomiting, diarrhea, and life-threatening low blood pressure. See https://www.fda.gov/consumers/consumer-updates/danger-dont-drink-miracle-mineral-solution-or-similar-products. In fact, FDA received reports of people requiring hospitalizations, developing life-threatening conditions, and even dying after drinking MMS.
Before marketing MMS as a cure for COVID-19, the Grenons marketed MMS as a miracle cure-all for dozens of other serious diseases and disorders, such as cancer, Alzheimer’s disease, diabetes, HIV/AIDS, and leukemia, even though the FDA had not approved MMS for any use. The Grenons sold tens of thousands of bottles of MMS nationwide, including to consumers throughout South Florida. They sold this dangerous product under the guise of Genesis II Church of Health and Healing (“Genesis”), an entity they created to avoid government regulation of MMS and shield themselves from prosecution. Genesis’ own websites describe Genesis as a “non-religious church,” and defendant Mark Grenon, the co-founder of Genesis, has repeatedly acknowledged that Genesis “has nothing to do with religion,” and that he founded Genesis to “legalize the use of MMS” and avoid “going [ ] to jail.” The Genesis websites further stated that MMS could be acquired only through a “donation” to Genesis, but the donation amounts for MMS orders were set at specific dollar amounts, and were mandatory, such that the donation amounts were effectively just sales prices. The Grenons received more than $1 million from selling MMS.
The federal jury also found defendants Jonathan and Jordan Grenon guilty of criminal contempt of court. The United States previously filed a civil case against the defendants and Genesis II Church of Health and Healing. See United States v. Genesis II Church of Health and Healing, et al., Case No. 20-21601-CV-WILLIAMS. In that civil case, the United States obtained court orders halting the Grenons’ distribution of MMS. The Grenons willfully violated those court orders and continued to distribute MMS. The Grenons also threatened the federal judge presiding over the civil case, and threatened that, should the government attempt to enforce the court orders halting their distribution of MMS, the Grenons would “pick up guns” and instigate “a Waco.”
During trial, the jury saw photos and video of a dirty rundown shed in Jonathan Grenon’s backyard in Bradenton, Florida, where the defendants were manufacturing their MMS. These photos showed dozens of blue chemical drums containing nearly 10,000 pounds of sodium chlorite powder, thousands of bottles of MMS, and other items used in the manufacture and distribution of MMS. The blue chemical drums of sodium chlorite powder—the primary active ingredient in MMS—had warning labels advising the product was toxic, flammable, and highly dangerous to consume.
Sentencing has been scheduled for October 6. At sentencing, the defendants face up to 5 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Assistant Commissioner Justine Green of the FDA’s Office of Criminal Investigations announced the conviction.
FDA’s Office of Criminal Investigations investigated the case. Assistant U.S. Attorneys Michael B. Homer and John Shipley of the Southern District of Florida are prosecuting it.
U.S. Attorney Lapointe commends and thanks the government of Colombia for its assistance. U.S. Attorney Lapointe also extends his gratitude to the Justice Department’s Office of International Affairs (OIA) and the Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogota, Colombia for their substantial assistance in securing the arrest and extradition of Mark Grenon to the United States.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 21-cr-20242.
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Leader of International Drug-Trafficking Organization Sentenced for Cocaine DistributionRead the Press Release
A leader of an international drug-trafficking organization (DTO) was sentenced today to life in prison for conspiring to distribute five kilograms or more of cocaine for importation into the United States.
According to court documents, between 2003 and April 2016, Gerardo Gonzalez-Valencia, aka Lalo, 45, was a leader of Los Cuinis, a DTO responsible for importing large quantities of cocaine from South America, Mexico, and elsewhere into the United States. Los Cuinis is closely aligned with the Cartel de Jalisco Nueva Generación (CJNG), which is based in the State of Jalisco in Mexico. Together, Los Cuinis and CJNG form one of the largest, most dangerous, and most prolific drug cartels in Mexico. They are responsible for trafficking significant quantities of illegal drugs into the United States and employing extreme violence to further that objective.
“Gonzalez-Valencia’s prosecution marks another step in the Justice Department’s pursuit of the top leadership of drug-trafficking organizations like Los Cuinis and the CJNG,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The significant sentence imposed today also reflects the magnitude of harm these drug-trafficking organizations wreak on our communities. The Criminal Division will continue to hold accountable those like Gonzalez-Valencia, who profit from importing large quantities of dangerous substances into the United States and who support the extraordinary violence committed in furtherance of that objective.”
Gonzalez-Valencia personally invested in and coordinated multi-ton shipments of cocaine for importation into the United States. Some of these shipments were interdicted by law enforcement, including the seizure of approximately 280 kilograms of cocaine from a semi-submersible interdicted by the U.S. Coast Guard and the seizure of 750 kilograms of cocaine concealed in frozen shark carcasses destined for the United States and seized by Mexican law enforcement. Gonzalez-Valencia also directed the murders of rival drug traffickers and used and supplied weapons in furtherance of the drug-trafficking conspiracy.
“Today’s sentencing sends a clear message to the leaders of drug cartels that DEA will stop at nothing to dismantle the criminal networks that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Under Gonzalez-Valencia’s leadership, Los Cuinis – a cartel closely aligned with the Jalisco (CJNG) Cartel – shipped massive quantities of cocaine into the United States and killed rivals that threatened the cartels’ trafficking organizations. The men and women of DEA are working relentlessly to hold all drug traffickers accountable that seek to profit from the Jalisco Cartel’s violent and deadly drug trafficking network.”
This case is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF).
The DEA Los Angeles Field Division investigated the case with the assistance from the U.S. Marshals Service, Investigative Operations Division.
Acting Assistant Deputy Chief Kaitlin Sahni and Trial Attorneys Kate Naseef and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The Justice Department’s Office of International Affairs provided significant assistance.
The Justice Department thanks Uruguayan authorities for their assistance in securing the arrest and extradition of Gonzalez-Valencia.
Las Vegas Man Convicted of Possessing Methamphetamine with the Intent to Distribute After Traffic Stop on I-80Read the Press Release
Acting United States Attorney Susan Lehr announced that Patrick Lewis McKinney, 42, of Las Vegas, Nevada, was sentenced today in federal court in Lincoln, Nebraska, for possessing with intent to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced McKinney to 78 months’ imprisonment. He was also ordered to serve three years of supervised release after his release from prison. There is no parole in the federal system.
On August 3, 2022, law enforcement had a sign out indicating a checkpoint was ahead on I-80 in Dawson County, Nebraska. Jeno Paulucci was the driver and McKinney was the passenger of a vehicle approaching that sign. Paulucci exited the highway and parked on the wrong side of the road. Law enforcement initiated a traffic stop and smelled a strong odor of marijuana coming from the vehicle. Paulucci did not have a driver’s license, registration, or insurance. Law enforcement subsequently searched the vehicle and located 63 grams of methamphetamine, cocaine, fentanyl pills, kief, and ecstasy pills. Law enforcement also located various dangerous weapons to include two machetes, multiple bladed weapons, a baton taser, and a firearm.
Jeno Paulucci has also pleaded guilty in this case. He will be sentenced on August 15, 2023.
This case was investigated by the Nebraska State Patrol.
Lansing Man Convicted of Threatening Federal Judge, Sheriff, and Court ClerkRead the Press Release
DETROIT –Kevin William Cassaday, 41, of Lansing, Michigan, was convicted by a federal jury last week of sending threats to public officials, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent in Charge of the Federal Bureau of Investigation, Detroit Field Division, and United States Marshal Owen Cypher.
Cassaday was convicted after a four-day jury trial before United States District Judge Laurie J. Michelson. The jury deliberated for less than two hours before returning a verdict of guilty on all counts.
At trial, the evidence showed that Cassaday threatened a federal district court judge’s chamber, Ingham County Sheriff Scott Wriggelsworth, and the Court of Claims clerk’s office. Cassady’s threatening communications to these public officials included: “I am going to get my guns and we are going to have a party,” “You want me to kill, I will start with you and your family,” and “I want the clerk dead!” At trial, the individuals that received Cassady’s threats explained that they were the most direct and persistent threats that they had ever received during their government service.
“Public officials should be free to serve their communities without worrying about threats to their lives. This offender’s threats to harm a member of the judiciary, an elected law enforcement official, and at least one other public employee caused undue concern for these employees. The jury has rightfully sent the message that threats to those serving the public will not be tolerated.” stated U. S. Attorney Dawn N. Ison.
“This verdict sends a clear message that threats of violence against a public official will not be tolerated,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “Mr. Cassaday intended to intimidate and create fear in victims whose jobs are integral to our justice system. The FBI and our law enforcement partners are committed to aggressively investigating those who threaten members of our community with violence.
The case was investigated by the Federal Bureau of Investigation and the United States Marshals Service. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
La Crosse Man Sentenced to 84 Months for Bringing over 2 Pounds of Methamphetamine into State for SaleRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua R. Wittenberg, 40, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 84 months in prison for possessing methamphetamine with intent to distribute. This prison term will be followed by a 5-year term of supervised release. Wittenberg pleaded guilty to the charge on April 11, 2023.
On November 7, 2023, law enforcement officers received a tip that Wittenberg was bringing a large amount of methamphetamine into La Crosse from Minnesota. Officers set up surveillance outside of Wittenberg’s apartment. Once Wittenberg arrived, a canine officer alerted to his truck. Officers then searched the truck and found over two pounds of methamphetamine.
Wittenberg was arrested and, when interviewed, he admitted that he had brought the methamphetamine to La Crosse to sell it. At the time of this offense, Wittenberg was on supervision for a prior drug conviction.
At sentencing, Judge Peterson noted Wittenberg’s crime was very serious and that the quantity of methamphetamine involved in this case harms the community by breeding violence and causing other collateral damage. Judge Peterson also noted that Wittenberg’s criminal history showed a pattern of drug dealing, with this most recent offense presenting an escalation in amount.
The charge against Wittenberg was the result of an investigation conducted by the La Crosse Police Department and the Monroe County Sheriff’s Office. Assistant U.S. Attorney Anita Marie Boor prosecuted this case.
Jury Finds Oahu Man Guilty of Sending E-Mail Threats to Bomb BuildingsRead the Press Release
HONOLULU – After a jury trial before United States District Judge Leslie E. Kobayashi, a federal jury today found Oahu resident and former Utah resident Brian Melvin Brandenburg (age 64) guilty of seven counts of sending e-mail threats to bomb buildings in the State of Utah and across the United States. Judge Kobayashi ordered the defendant’s continued detention in custody pending his sentencing, before her on November 9, 2023.
At trial, the evidence as to Counts 1 and 2 showed that on May 4, 2022, while in Hawaii, the defendant sent an e-mail to, among other people, persons identified as Victim 1 and 2 in the indictment, State of Utah Court employees who were within the Courthouse, threating to bomb the 3rd District Courthouse in Salt Lake City, Utah. Both employees were involved with the defendant’s then pending divorce case. According to the evidence presented at trial as to Count 3 – 7, on May 4 and 6, 2022, the defendant sent more e-mails to various recipients in Utah threatening to bomb the Utah State Capitol; Mayor’s Office in the Salt Lake City, Utah; every Ivy League School; the United States Courthouse in San Diego; and Hall Labs and the University of Utah Center for Medical Innovation both in Utah. According to the evidence presented at trial, the defendant told the FBI that he “wanted to get their attention.”
Count 1 carries a maximum sentence of 20 years of imprisonment and Counts 2 – 7 carry a maximum sentence of 10 years of imprisonment for each count. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, Provo Police Department, and the University of Utah Police department conducted the investigation that resulted in this conviction. Assistant U.S. Attorneys KeAupuni Akina and Darren W.K. Ching prosecuted the case.
Jury Convicts Armed Fort Myers Drug TraffickerRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Manuel Alfredo Dickerson Copland (29, Fort Myers) guilty of possession with the intent to distribute 40 grams or more of fentanyl, possession of a firearm in furtherance of a drug trafficking crime, possession of MDMA, possession of oxycodone, and attempted possession with the intent to distribute 500 grams or more of methamphetamine. Copland faces a maximum penalty of life in federal prison. His sentencing hearing has not yet been set. Copland had been charged in a superseding indictment on January 25, 2023.
According to testimony and evidence presented at trial, Copland was stopped in his vehicle on December 30, 2021, by members of the Lee County Sheriff’s Office Tactical Narcotics Team. Detectives found nearly 1,500 fentanyl pills, MDMA, oxycodone, and three firearms in Copland’s truck. Forensic evidence linked Copland to the drugs and firearms in the vehicle. During the subsequent investigation, information was obtained that revealed Copland was associated with mail packages that were believed to contain drugs that were being shipped to him in the Fort Myers area. As a result, the investigation identified a package containing approximately four pounds of methamphetamine that had been sent through the mail from California. The package was seized by the United States Postal Inspection Service. The intercepted package containing methamphetamine was linked to Copland through further investigation.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Mark R. Morgan and Patrick L. Darcey.
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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 18 was:
Jonathan Ray Gonsalez, 39, of Box Elder, on charges of sexual abuse, coercion and enticement and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Gonsalez faces life in prison, a $250,000 fine and five years to life of supervised release. Gonsalez was detained pending further proceedings. The FBI and Rocky Boy’s Police Department conducted the investigation. PACER case reference. 23-65.
Joshua Raymond Suave, 34, of Great Falls, on charges of prohibited person in possession of a firearm and false statement during a firearms transaction. If convicted of the most serious crime, Suave faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Suave was detained pending further proceedings. The Great Falls Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 22-110.
Robert Ray Thoroughman, 61, of Fort Shaw, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Thoroughman faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Thoroughman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Cascade County Sheriff’s Office investigated the case. PACER case reference. 23-57.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 18 was:
Eric Fredrick Welch Jr., 22, of Billings, on charges of theft from a federal firearm licensee and possession of stolen firearms. If convicted of the most serious crime, Welch faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Welch was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 23-84.
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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Information Technology Consultant Sentenced to 21 Months for Stealing Hundreds of Thousands of Dollars from Small BusinessRead the Press Release
SAN DIEGO – Derek Gleeson, an Information Technology (“IT”) Consultant, was sentenced in federal court today to 21 months in prison for embezzling hundreds of thousands of dollars from a family-owned small business based in New Jersey.
In November 2022, Gleeson, pleaded guilty to a wire fraud charge, admitting that he charged the small business for IT hardware, software, and services that he never supplied. Gleeson also admitted that he ginned up or altered invoices in an effort to substantiate the fake charges he submitted to the company. According to the plea agreement, when the company grew suspicious and confronted Gleeson about the charges, he installed pirated software on the company’s servers, all to make it appear that he had purchased and installed legitimate software, when in fact he had not. The fraudulent scheme lasted for four years and resulted in over $600,000 in losses. Gleeson lived in Carlsbad, California at the time of the fraud.
"For years, this defendant took advantage of a position of trust that gave him full access to a small business’s IT system,” said U.S. Attorney Randy Grossman. “Fortunately, he has been held accountable for the significant impact his crime had on this business and its owners.” Grossman praised the excellent work of the prosecutors and FBI agents who worked on this case.
DEFENDANTS Case Number 20cr3246-DMS
Derek Gleeson Age: 51 Round Rock, TX
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
FBI
Hospital Employee Sentenced to 3 Years in Prison for Using Patient Information to Steal Pandemic Unemployment BenefitsRead the Press Release
NEWS RELEASE SUMMARY – July 21, 2023
SAN DIEGO – Matthew George Lombardo was sentenced in federal court to 36 months in prison for using his position as a clerk at a local hospital to steal patient identifying information and pass the information on to others in an attempt to steal Pandemic Unemployment Assistance (PUA) benefits.
Lombardo pleaded guilty in September 2022. According to the government’s sentencing memo, in August of 2020 Lombardo worked at a hospital as a Patient Service Representative where he had access to patient admission sheets, which included patient identifying information. Lombardo used that position to access that confidential patient information and provide it to a co-defendant for use in submitting PUA claims to the California Employment Development Department (EDD). Text messages between Lombardo and his co-defendants show they were looking for the most vulnerable victims. For example, on August 15, 2020, Lombardo texted a co-defendant “if you need social security numbers or anything I can pull that shit up at work.” The government’s sentencing memo further describes how Lombardo and his co-defendants deliberately took advantage of people in their most vulnerable state. For example, on August 22, 2020, Lombardo texted his co-defendant the name, date of birth, social security number, and address of a patient and wrote, “this guy died a few hours ago, how many names do we need?” The co-defendant texted back: “find me one who is still alive . . . someone 55 or younger who is on their way out.”
In imposing a 36-month sentence U.S. District Judge Cathy Ann Bencivengo noted that Lombardo was stealing public assistance benefits intended to help people during a national emergency and said she found the text messages deliberately targeting hospital patients to be “callous.”
"During a national healthcare emergency, Mr. Lombardo stole the identities of hospital patients to defraud the government of funds intended for people in crisis,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners are dedicated to pursuing such frauds and will hold the perpetrators accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.
“The DEA and its partners will continue to pursue justice for the citizens of San Diego,” said DEA Special Agent in Charge Shelly Howe.
DEFENDANT Case Number 21-CR-2154-CAB
Matthew George Lombardo Age: 54 San Diego
SUMMARY OF CHARGES
Count 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 20 years in prison
Counts 2 and 3: Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Maximum penalty: 2 years in prison
Count 4: Using Confidential Health Information for Personal Gain – Title 42, U.S.C., Section 1320d-6
Maximum penalty: 10 years in prison
AGENCY
Drug Enforcement Administration
United States Postal Inspection Service
United States Department of Labor, Office of the Inspector General
California Employment Development Department Investigation Division
San Diego County Sheriff’s Department
Healdton Resident Pleads Guilty to Defrauding Victim of More Than One Million DollarsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amber Nicole Pickelsimer, age 44, of Healdton, Oklahoma entered a guilty plea to an Information charging her with one count of Wire Fraud.
The Information alleged that between February 2019 and August 2020, Pickelsimer, for the purpose of executing or attempting to execute a scheme to defraud, caused to be transmitted, by means of wire communication in interstate commerce, a message through Facebook Messenger from a fictitious Facebook account to the victim’s Facebook account.
The charges arose from an investigation by the Federal Bureau of Investigation.
The investigation revealed that Pickelsimer created two fictitious Facebook accounts and used those accounts to extort the victim, demanding that the victim deliver large quantities of cash to a drop site. Pickelsimer eventually defrauded the victim of over $1,000,000.00. Because Pickelsimer operated in the Eastern District of Oklahoma and Facebook maintains its servers outside of the state of Oklahoma, Pickelsimer’s Facebook messages qualified as federal wire fraud.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Pickelsimer posted a personal recognizance bond at the conclusion of the plea hearing.
Assistant United States Attorney Kara Traster represented the United States.
Grand jury indicts two central Ohio men for bank robbery, gun crime in connection with I-70 shootoutRead the Press Release
COLUMBUS, Ohio – A federal grand jury here has returned a two-count indictment charging two central Ohio men with aiding and abetting bank robbery and aiding abetting the use of a firearm in a crime of violence.
Aden Abdullahi Jama, 20, of Reynoldsburg and Fazsal M. Darod, 23, of Columbus allegedly committed the crimes on July 6th, robbing a Fifth Third bank in Hilliard. Columbus Police and other law enforcement officers encountered them on I-70 near downtown Columbus after the robbery. A shootout followed during which a Columbus Police officer was severely injured and a third person in the car with Darod and Jama was killed.
The United States Marshals’ Southern Ohio Fugitive Apprehension Strike Team arrested Darod in the early morning hours of July 7 outside his Columbus residence. U.S. Marshals and Homeland Security Investigation agents arrested Jama at Chicago O’Hare International Airport on July 8 and is transporting him back to Ohio. Jama and Darod have been in custody since their arrests.
Aiding and abetting a bank robbery is punishable by up to 20 years in prison. Aiding and abetting the use of a firearm during a crime of violence carries a potential penalty of at least five years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Whitehall, Minerva Parka and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the indictment returned yesterday. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former University of Arizona Student Sentenced to 84 Months in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
TUCSON, Ariz. – Jonathan Edward Mayer, 22, of Tacoma, Washington, was sentenced on June 30, 2023, by U.S. District Judge Scott H. Rash to 84 months in prison. Mayer previously pleaded guilty to Conspiracy to Possess with Intent to Distribute Marijuana, Possession with Intent to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and three counts of Possession of Unregistered Firearms, specifically pertaining to a privately manufactured firearm, or “ghost gun,” machine gun conversion devices, and a silencer.
Mayer was attending the University of Arizona in October of 2021 when agents executed a search warrant on his apartment. Underneath his bed, agents found a bag of marijuana and a “ghost gun” with an automatic conversion switch that rendered it a machine gun. Agents also discovered $20,000 in U.S. currency, individually wrapped cocaine, a small bulk quantity of cocaine, six firearms, high-capacity magazines, a silencer, 10 grams of mushrooms, 15 grams of amphetamines, approximately one gram of LSD, and a gold money counter. Several firearms were seized, including a Glock pistol loaded with a 30-round magazine found in a backpack that Mayer carried around campus. Mayer admitted to mailing marijuana, mushrooms, and machine gun conversion devices through the United States Postal Service to various locations in the United States.
“Schools and guns are a dangerous combination,” said United States Attorney Gary M. Restaino. “The defendant got caught up with the wrong people from out-of-state, and his actions created a public safety risk here in Tucson.”
“The conviction and sentencing of Mayer is an excellent example of multiple law enforcement agencies combining their expertise and resources to combat narcotics and firearms trafficking. U.S. Postal Inspectors are committed to continuing our work to dismantle drug trafficking organizations to keep USPS customers and employees safe,” stated Acting Inspector in Charge Glen Henderson of the U.S. Postal Inspection Service, Phoenix Division.”
“I commend the outstanding work conducted by law enforcement in this investigation, which saved lives,” said DEA Phoenix Division Special Agent in Charge Cheri Oz. “DEA and our partners are dedicated to public safety and will continue to stand strong, protecting the communities we serve.”
The Drug Enforcement Administration (DEA)—Phoenix Division, the multi-agency Tucson Strike Force, the United States Postal Inspectors Service (USPIS)—Phoenix Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in this case in partnership with the Spokane, Washington Field Offices of the DEA and USPIS, local and regional law enforcement partners in Eastern Washington, and the University of Arizona Police Department.
Assistant U.S. Attorney Ryan P. DeJoe, District of Arizona, Tucson, handled the prosecution with assistance from Richard R. Barker and Stephanie Van Marter, Assistant United States Attorneys for the Eastern District of Washington.
CASE NUMBER: 21-CR-3187-TUC-SHR
RELEASE NUMBER: 2023-111_Mayer# # #
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 South Florida Pharmacy CEO Pleads Guilty to Lying to Federal InvestigatorsRead the Press Release
MIAMI – Patrick Smith, 71, of Palm Beach Gardens, Florida, the former CEO of Patient Care America (PCA), a compounding pharmacy located in Broward County, pled guilty today to one count of lying to federal agents who were investigating PCA for various health care fraud offenses.
According to court records, Smith admitted that in March of 2020 he voluntarily met with DCIS agents who were investigating PCA on allegations of health care fraud and payment of illegal kickbacks. During that interview, Smith lied to agents about his role in hiring the marketing groups who were paid by PCA to recruit Tricare patients. Smith claimed that he played no role in vetting the marketing groups, when in fact documents and witness testimony establish that he frequently met with the marketing groups and decided which to hire and on what terms. PCA paid over $40 million in kickbacks to the marketers. To date, a dozen of PCA’s marketers have been convicted and sentenced to prison terms of up to 13 years for their roles in the scheme.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida, and Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Service (DCIS), Southern Field Office, made the announcement.
Patrick Smith faces a maximum sentence of five years in prison. The Court has not set a date for sentencing yet.
DCIS investigated the case, with assistance from the Veterans Affairs-Office of Inspector General, the Food and Drug Administration-Office of Criminal Investigation, and FBI Miami.
Assistant U.S. Attorney Jon Juenger is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20532.
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Former Journalist Pleads Guilty to Transportation and Possession of Child Sexual Abuse MaterialRead the Press Release
A former journalist pleaded guilty today to transportation and possession of child sexual abuse material.
According to court documents, while visiting South Carolina in February 2020, James Gordon Meek, 53, of Arlington, Virginia, used an online messaging platform on his iPhone to send and receive images and videos depicting minors engaged in sexually explicit conduct, and to discuss his sexual interest in children. Some of the images and videos depicted prepubescent minors and minors under the age of 12, including an infant being raped. Meek brought the iPhone containing the child sexual abuse material back with him when he returned to Virginia.
Meek is scheduled to be sentenced on Sept. 29. He faces a mandatory minimum of five years in prison and a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force is investigating the case. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Valuable assistance was provided by the Arlington County Police Department.
Trial Attorney Whitney Kramer of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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.