Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 August 2022
Former Accountant for Chicago Construction Company Charged with Embezzling Millions in Company FundsRead the Press Release
CHICAGO — A former senior accountant for a Chicago construction company has been indicted on federal fraud charges for allegedly embezzling millions in company funds.
RICHARD A. MANDARINO entered false payment requests in the construction company’s accounting system, causing checks to be issued to vendor companies for goods and services that Mandarino knew were never provided, according to an indictment returned Thursday in U.S. District Court in Chicago. Mandarino then converted those payments to his and others’ personal use, the indictment states. Mandarino allegedly concealed the thefts by creating fictitious credits and offsets in the construction company’s accounting system.
Mandarino committed the alleged fraud from 2015 to 2017 while he resided in Canada and worked on the construction company’s Canadian business projects, the indictment states. The charges allege that Mandarino fraudulently embezzled and obtained more than two million Canadian dollars.
The indictment charges Mandarino, 43, of Scarborough, Ontario, Canada, with three counts of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Final Defendants, Including Former Correctional Officer, Sentenced for Prison Corruption Scheme at Jessup Correctional InstitutionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced a former Correctional Officer, an inmate, and an outside “facilitator” this week in connection with a federal racketeering conspiracy at the Jessup Correctional Institution (JCI), involving inmates and outside facilitators paying bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison. With this week’s sentencings, all 15 defendants charged in this case have now been convicted and sentenced to up to more than five years in federal prison.
On August 10, 2022, Judge Chuang sentenced former Correctional Officer Dominique Booker, a/k/a “Star,” age 45, of Baltimore, to 27 months in federal prison, followed by three years of supervised release. On August 11, 2022, Judge Chuang sentenced inmate William Cox, a/k/a Dollar, age 45, to 33 months in prison, consecutive to his state term of imprisonment, followed by three years of supervised release; and today Judge Chuang sentenced facilitator Laurice Norfleet, age 44, of Taneytown, Maryland, to time served, and six months of home detention as part of three years of supervised release.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert Green, of the Maryland Department of Public Safety and Correctional Services.
JCI is a maximum-security prison located in Jessup, Maryland.
According to the defendants’ plea agreements, Booker, Cox, and Norfleet conspired with other COs, including CO Chanel Pierce, inmates, and outside facilitators to smuggle contraband into JCI, including narcotics, alcohol, tobacco, and cell phones. According to their plea agreements and other court documents, COs accepted or agreed to accept payments from facilitators and/or inmates as consideration for smuggling contraband into JCI. Inmates acted as both wholesalers and retailers of contraband, often obtaining profits that far exceeded the profits that could be made by selling similar drugs on the street.
During the investigation, law enforcement intercepted phone calls and text messages in which the defendants discussed contraband to be smuggled into JCI, as well as the payment of bribes. Several of the inmate defendants, including Cox, had contraband cell phones, which they used to facilitate their smuggling activities. As detailed in her plea agreement, CO Booker conspired with inmate Cox, with whom she had a romantic relationship, and others, to smuggle contraband, including controlled dangerous substances, such as Suboxone, into JCI and then distribute the contraband to inmates. In January 2019, a search of Booker and her vehicle as she entered JCI revealed contraband, including plastic baggies containing the synthetic cannabinoid K-2, which she intended to smuggle into the prison.
As detailed in Norfleet’s plea agreement, she was the facilitator for her boyfriend and co-defendant, inmate Page Boyd. Norfleet admitted that on several occasions she obtained contraband, including controlled substances such as Suboxone which she provided to a co-conspirator in Baltimore. The co-conspirator then delivered the contraband to COs to smuggle into JCI for Boyd, on Norfleet’s behalf. Boyd then redistributed most of that Suboxone to other inmates at a significant profit. For example, during one jail call Boyd informed Norfleet that he was selling the Suboxone strips for $50 per strip inside JCI, far more than they sell for outside of prison.
Chanel Pierce, age 29, of Pikesville, Maryland, was previously sentenced to 21 months in federal prison for her role in the conspiracy and inmate Page Boyd, age 38, was sentenced to four years in federal prison, consecutive to his state term of imprisonment.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who is prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Federal Indictment Returned for Theft of Guns from WalmartRead the Press Release
Columbia, SOUTH CAROLINA — A federal grand jury returned a four-count indictment against Christopher Cunningham, 33, of Columbia, for conspiracy to steal guns from Walmart, theft of guns from Walmart, possession of stolen guns, and possession of a firearm by a convicted felon
The indictment alleges that on March 6, 2022, Cunningham and an unknown co-conspirator entered Walmart after the close of business and stole four firearms from the store’s inventory. The indictment further alleges that this incident happened after Cunningham was convicted of a crime punishable by more than one year.
Cunningham faces a maximum penalty of five years on the conspiracy charge and 10 years on each of the remaining charges. He is currently detained pending trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the City of Columbia Police Department. Special Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
###
Federal Assault Charge Follows Early Morning Shootout with Federal AgentsRead the Press Release
NASHVILLE – Michael Clay, 30, of Nashville, was charged today with assaulting a federal officer, following an early morning shootout that occurred during the execution of an arrest warrant, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
According to the criminal complaint, Deputy U.S. Marshals and officers with the U.S. Marshals Fugitive Task Force went to a residence on University Court, in Nashville, to execute a criminal homicide arrest warrant for Clay. Officers entered the residence and learned that Clay was upstairs and armed with an AR-style rifle. Attempts were made to have Clay come downstairs. Instead of coming downstairs, however, Clay pointed the rifle down the stairs in the direction of officers. Officers then heard a “click” followed by the sound of racking ammunition into the rifle’s chamber. Clay then fired several times at the officers and the officer’s exchanged gunfire, wounding Clay.
The charge carries a penalty of up to 20 years in prison upon conviction.
This case is being investigated by the FBI, and Assistant U.S. Attorney Ahmed Safeeullah is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Colorado Springs Man Sentenced to more than 21 Years for Bank RobberiesRead the Press Release
Denver- The United States Attorney’s Office for the District of Colorado announces Jared Lincoln Fitzgerald, age 46, of Colorado Springs, was sentenced to 262 months in federal prison for four counts of bank robbery, including one with force.
“Bank robberies are crimes of violence that traumatize the victims, and we are dedicated to seeking justice for those victims,” said U.S. Attorney Cole Finegan. “We are grateful for our partners at the FBI Rocky Mountain Safe Streets Task force for their work and commitment to hold bank robbers accountable.“
According to the plea agreement, on July 24, 2020, the defendant, wearing a face covering and a yellow hard hat, entered the MidFirst Bank on North Cook Street in Denver. He approached the desk of a bank employee and showed the employee a note that said, “This is a robbery.” The defendant then told three bank employees, “There is a problem. The problem is you’re being robbed.” The defendant lifted the front of his shirt to reveal what appeared to be a black handgun in his waistband. He ordered the employees to the vault and began yelling at them. At one point, the defendant began counting down and the employees feared they would be shot. Once the vault was opened, he took money, ordered the employees to stay inside the vault, and exited the bank.
On October 9, 2020, the defendant entered the same MidFirst Bank on North Cook Street in Denver. He approached the gate to the teller line with what appeared to be a gun in his hand. He ordered bank employees, both present during the previous MidFirst robbery, to access the vault room. The defendant forced all the bank employees into the vault room. He said, “If the cops come, there will be a shootout” and ordered the employees to open the safe. The defendant removed cash and left the bank.
On April 13, 2021, the defendant entered the Power Credit Union on East Evans Avenue in Pueblo. He asked to speak to the manager. He displayed a robbery note threatening the employees. He directed employees into the vault and ordered them to open it. At one point, the defendant told a credit union employee he would take them hostage if the police showed up. He removed cash and left the credit union.
On July 20, 2021, the defendant entered the Wells Fargo Bank on West 44th Avenue in Wheat Ridge. He was armed with a semi-automatic handgun that he kept in a holster on his hip and was clearly visible to the employees. He stated in a loud voice he needed to speak with a manager about fraudulent checks. He identified himself as a law enforcement official. When the manager spoke with him, the defendant displayed a note that said “This is a robbery. I am armed with a gun.” He ordered the employees to the vault and ordered the manager to put money into a bag he provided. He then left the bank.
Agents and task force officers from the FBI Rocky Mountain Safe Streets Task Force executed warrants on the defendant’s house, storage locker and vehicles, locating items matching the clothing worn and weapons used in the robberies.
Senior Judge Christine M. Arguello sentenced the defendant on August 10, 2022. She also sentenced him to five years supervised release.
“Jared Lincoln Fitzgerald committed four takeover-style robberies, all while he was under supervision for previous bank robberies,” said FBI Denver Special Agent in Charge Michael Schneider. “Fitzgerald clearly knew the consequences of his actions and still chose to break the law and terrorize his victims. This lengthy sentence is appropriate for this defendant; keeping him behind bars helps keep our communities safe.”
This case was investigated by the FBI Rocky Mountain Safe Streets Task Force. Assistant U.S. Attorney Brian Dunn prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case number: 21-cr-00274-CMA
Charleston Man Sentenced to 25 years for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA —Scott Ashley Cascone, 48, of Charleston, was sentenced to 25 years in federal prison for production of child pornography.
Evidence presented to the Court showed that on November 18, 2015, a Homeland Security Investigations (HSI) agent working undercover in a chat room observed an individual with the user name “unclebaddy” post a web link that contained a child pornography video. The IP address matched the residence of Cascone. During the investigation, HSI agents also learned that Cascone was being investigated by the West Virginia State Police for having online sexual communications with a 14-year-old West Virginia girl. Follow up investigation by HSI determined that on three occasions Cascone enticed the minor to produce sexually explicit images of herself, and to text the images to Cascone. HSI agents ultimately executed search warrants on Cascone’s residence and Dropbox account and found numerous images and videos of child pornography. Cascone was interviewed and admitted to electronically sending sexually explicit images of himself to the minor and receiving sexually explicit images of the minor.
Senior U.S. District Judge Margaret B. Seymour sentenced Cascone to 300 months in federal prison, to be followed by a lifetime term of court-ordered supervision. Judge Seymour also ordered Cascone to pay $27,500 in restitution. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by HSI and the West Virginia State Police. Assistant U.S. Attorney Dean H. Secor prosecuted the case.
###
Canadian Man Admits Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man admitted possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Perth De, aka “Parthasarthie Kapoor,” 48, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Jan. 21, 2020, De was arrested at Newark Liberty International Airport pursuant to a fugitive warrant issued by on behalf of the government of Canada, which previously charged De with sexually assaulting minors. During a search incident to De’s arrest, law enforcement found several cellular phones in De’s luggage. A subsequent forensic examination of one of the cellular phones revealed numerous videos of children being sexually abused. The forensic examination further revealed that some of the videos had been distributed from the cellular phone.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for Dec. 19, 2022.U.S. Attorney Sellinger credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and with the U.S. Department of State, Diplomatic Security Service, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Camden Man Sentenced to 10 Years in Prison for Illegally Possessing a WeaponRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for illegally possessing a weapon, U.S. Attorney Philip R. Sellinger announced.
Anthony D. Parker, aka “Papa Smurf,” 38, of Camden, was convicted at trial in March 2022 before U.S. District Judge Noel L. Hillman of one count of being a felon in possession of a weapon. Parker has three previous convictions for illegally possessing a weapon, as well as prior drug convictions.
In addition to the prison term, Judge Hillman sentenced Parker to three years of supervised release and fined him $5,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Prosecutor’s Office, under the direction of Acting Camden County Prosecutor Grace C. MacAulay; and officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Criminal Division in Camden.
Brookings Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Brookings, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Seth Livingston, age 24, was indicted in August of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 1, 2022, and June 11, 2022, Livingston, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under State Law, knowingly failed to register and update his registration.
The charge is merely an accusation and Livingston is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Livingston was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Brighton Man Sentenced to More Than Five Years in Prison for Role in Cocaine Trafficking OrganizationRead the Press Release
BOSTON – A supervisor within a Boston-area drug trafficking organization (DTO) has been sentenced in federal court in Boston.
Arthur Hodges, 36, was sentenced on Aug. 10, 2022 by U.S. District Court Judge Denise J. Casper to 65 months in prison and three years of supervised release. On April 19, 2022, Hodges pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Hodges was charged with 23 others in June 2020 as part of Operation Snowfall, which ultimately resulted in the charging of two different drug trafficking conspiracies during the overall period of November 2018 through June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO for which Hodges was both a supervisor and a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life of the other residents. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Hodges oversaw a number of the Fidelis Way-related DTO members who were responsible for the packaging, selling, storing and distribution of drugs to, or collection of proceeds from, drug customers, drug runners or other drug distributors and suppliers. Hodges is estimated to have distributed between 280 and 840 grams of cocaine base during the course of his participation in the Fidelis Way DTO.
Hodges is the first defendant to be sentenced in the Fidelis-Way related drug conspiracy. Six defendants previously pleaded guilty. Two defendants pleaded not guilty and are pending trial.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brevard County Man Sentenced to 30 Years in Prison for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Christian H. Rice (31, Brevard County) to 30 years in federal prison, followed by 20 years of supervised release, for production and distribution of images and videos depicting the sexual abuse of a child. The court also ordered Rice to pay $18,143 in restitution and to forfeit a cellphone used to facilitate the commission of the offense. Rice had pleaded guilty on December 28, 2021.
According to court records, in June 2021, Rice sexually exploited Victim-1, a prepubescent child and produced two videos and several images depicting the sexual abuse of Victim-1. Rice then turned to the internet and distributed the images depicting the sexual abuse of Victim-1 to several users of a mobile messaging application. Rice asked the users to share the images with others. At least one other user, Robert Lee Ripley, shared two images depicting the sexual exploitation of Victim-1. The images and videos were found in Rice’s cellphone after two Task Force Officers responded to his residence with a search warrant that they had obtained as a result of cyber-tip issued by the National Center for Missing and Exploited Children (NCMEC). NCMEC’s cyber-tip revealed that Rice had uploaded 23 images and 4 videos to his email depicting the sexual abuse of children. The cyber-tip included the 2 videos and 1 image depicting the sexual abuse of Victim‑1, and other child sexual abuse images of victims that had previously been identified by NCMEC.
The forensic analyses of Rice’s cellphone showed that, in addition to the images and videos of Victim-1, he possessed 18 images and 11 videos of widely circulated child sex abuse materials.
On July 26, 2022, Robert L. Ripley was sentenced to 14 years in prison for distributing 2 images depicting the sexual exploitation of Victim-1 through a mobile messaging application.
“There is not a prison sentence long enough for the heinous sexual exploitation of children” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “Thanks to the law enforcement partnership between HSI and the Brevard County Sheriff's Office for detecting and stopping this individual from continuing to violate the innocence of a child.”
This case was investigated by Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boat Captain in Fatal Maritime Alien Smuggling Incident Near Point Loma Sentenced to 18 YearsRead the Press Release
Assistant U. S. Attorneys C. Seth Askins (619) 546-6692 and Lyndzie M. Carter (619) 546-8780
NEWS RELEASE SUMMARY – August 12, 2022
SAN DIEGO – Antonio Hurtado, the boat captain of the doomed vessel smuggling 32 migrants in May 2021 wherein three people died, was sentenced today in federal court to 18 years in prison. At the sentencing hearing, U.S. District Judge Janis L. Sammartino stated this “is the most egregious case I’ve ever had in my courtroom in over 15 years in the Southern District of California.”
As detailed in pleadings filed prior to the hearing, during the afternoon and evening of May 1, 2021, smugglers in Puerto Neuvo, Baja California, Mexico, shuttled undocumented migrants from the beach to a location approximately two hours offshore near the Coronado Islands where Hurtado and his 40-foot boat – named the “Salty Lady” – were waiting. Those individuals – including three unaccompanied minors – had agreed to pay between $15,000 and $18,000 to be smuggled into the United States illegally.
Throughout that night and into the early morning hours, Hurtado piloted his boat and its occupants through rainy conditions and rough seas from Mexico into United States territorial waters. Along the way, according to many of the smuggled migrants, Hurtado repeatedly used controlled substances and even lost consciousness for over an hour before passengers were finally able to wake him. Shortly thereafter, the vessel suffered engine failure. Hurtado ignored his passengers’ pleas to call the U.S. Coast Guard for help, and the vessel drifted closer and closer to land, inevitably running aground approximately 50 yards from shore near Point Loma. Knowing his boat was doomed as waves battered it and it began to list on its side, Hurtado jumped into the water and made his way to shore, abandoning his passengers – who had concealed themselves in the cabin and below deck at his direction – and leaving them to fend for themselves. When the vessel broke apart from the pounding of the surf, they were thrown into the water.
Park Rangers stationed at nearby Cabrillo National Park saw this event unfolding and immediately called the Coast Guard. Multiple agencies – including but not limited to the Coast Guard, the Harbor Police Department, the National Park Service, San Diego Lifeguard Services, San Diego Air and Marine Branch, Homeland Security Investigations, and United States Border Patrol – responded to the scene and began a massive rescue and recovery effort. Thanks to their swift response, they were able to rescue 29 undocumented migrants from the water. Tragically, they recovered three individuals who had been aboard the boat and did not survive – Maricela Hernandez-Sanchez, Victor Perez-Degollado, and Maria Eugenia Chavez-Segovia. Subsequently, the Medical Examiner determined that these three individuals had sustained blunt force trauma and drowned.
Based on statements from the surviving undocumented migrants, Hurtado was identified as the pilot of the boat, taken into custody, and transported to a Border Patrol station for processing. However, while there, he advised that he was “coming down” from his prior use of a controlled substance, so agents brought him to a hospital to detox. In the Border Patrol station, Border Patrol Agent Xalick Castorena knelt beside Defendant and attempted to apply an ankle restraint for security during transportation. When he did so, Hurtado looked around the room as if to assess the situation, turned to the left, and slammed his right knee into the side of Agent Castorena’s face, committing an assault on a federal officer that Judge Sammartino referred to as “violent” and “awful.”
“Thirty-two passengers put their savings and their lives in this defendant’s hands. His reckless behavior and egregious failure to seek assistance put every one of them at serious risk and caused the tragic loss of three lives,” said U.S. Attorney Randy Grossman. “This sentence recognizes the serious nature of these crimes and stands as a stern warning to smugglers: your profit-driven schemes will fail; we will prosecute you for your crimes; and we will obtain justice for your victims.” Grossman thanked the prosecution team and numerous federal agents and officers who pursued this case.
“Human smugglers have no respect for human life, as is demonstrated by this defendant,” said Chad Plantz, Special Agent in Charge for Homeland Security Investigations San Diego. “The deaths in this investigation could have been prevented had the defendant not treated these victims like dispensable cargo; HSI will not tolerate transnational criminal organizations attempting to further their multi-billion dollar enterprise in San Diego. HSI is committed to investigating smugglers and holding them accountable for their actions.”
“This prosecution highlights the U.S. Attorney’s Office and U.S. Coast Guard’s commitment to safeguarding our nation against illicit smuggling and protecting all individuals operating on our waters,” said Commander Ray A. Slapkunas, Deputy Sector Commander, Coast Guard Sector San Diego. “This extremely unfortunate case highlights that smuggling operations are inherently dangerous and sometimes deadly when people put their safety in the hands of those that do not have their best interest in mind. While nothing can bring back those individuals lost, today’s sentence serves as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those who seek to deliberately engage in the illegal and dangerous practice of human smuggling.”
“Collaboratively, the efforts of many law enforcement agencies, including that of the United States Attorney’s office resulted in Antonio Hurtado’s arrest, conviction, and just sentencing,” said Chief Patrol Agent Aaron M. Heitke. “This incredibly dangerous and unpredictable tactic has already claimed lives, yet smuggling organizations continue to enrich themselves by using it.”
“This event is a clear indication of the lack of concern smugglers have for vulnerable populations,” said San Diego Air and Marine Director Brandon Tucker. “Individuals put their lives in the hands of criminal organizations to enter the United States illegally through the unforgiving Pacific Ocean. Unfortunately, three lives were lost that day, but I am thankful for the efforts by Air and Marine Operations agents and our partner agencies to rescue and ensure the safety of the 29 individuals that were stranded at sea.”
After serving his custodial sentence, Hurtado will be on supervised release for a period of 3 years.
DEFENDANT Case Number 21-cr-1615-JLS
Antonio Hurtado Age: 40 San Diego, CA
SUMMARY OF CHARGES
Attempted Bringing In Illegal Aliens Resulting in Death and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)
Maximum penalty: Life in prison and $250,000 fine
Attempted Bringing In Illegal Aliens for Financial Gain and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2
Maximum penalty: 15 years in prison and $250,000 fine
Assault on a Federal Officer
Title 8, U.S.C., Section 111(a)(1) and (b)
Maximum penalty: 20 years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
United States Border Patrol
Air and Marine Operations (CBP)
National Park Service
United States Coast Guard
San Diego Harbor Police Department
San Diego Fire-Rescue Department
San Diego Lifeguard Services
Aurora Man Sentenced to 66 Months for COVID FraudRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Russell Ray Foreman, age 39, of Aurora, Colorado, has been sentenced to 66 months for money laundering and wire fraud.
According to the plea agreement, between March 29, 2020 and October 6, 2020, the defendant submitted seven several fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA). Two of the EIDL applications were approved and funded by the SBA. As a result of those fraudulent EIDL applications, LLCs created by the defendant received $196,500.00 in EIDL proceeds. He knowingly made false statements about the number of employees for each business, the gross revenues, the cost of goods sold, and the date each business was formed. On May 14, 2020, Foreman filed a false and misleading Paycheck Protection Program (PPP) loan application. As a result of the application, on May 26, 2020, an FDIC insured bank funded Foreman with a $20,052.00 PPP loan. He also aided and abetted a codefendant who made a false EIDL application and received $150,000.00.
Also, according to the plea agreement, the defendant laundered proceeds by causing the transfer of funds to his sister which was later returned to him.
At the sentencing hearing, the court considered that the defendant had been associated with unsuccessful applications under the CARES Act totaling over 2 million dollars.
Judge Raymond P. Moore sentenced Foreman on August 12, 2022. He also ordered restitution in the amount of $367,000.00.
“We are proud of the work being done by our partners at IRS-CI to investigate and bring to justice people who took advantage of these programs that were designed to help people in need during the COVID-19 pandemic,” said U.S. Attorney Cole Finegan. “We will continue to prosecute anyone who tries to defraud the United States Government out of money that was made supposed to be used to keep small businesses afloat during this national emergency.”
“Today’s sentencing is a direct reflection of IRS Criminal Investigation’s commitment to investigating individuals who lined their pockets with Covid relief funds,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS Criminal Investigation has a 100% conviction rate for Covid relief fraud investigations prosecuted in federal court, and we will continue to hold criminals accountable that divert money intended for legitimate businesses.”
This case was investigated by the Internal Revenue Service - Criminal Investigations Denver Field Office (IRS-CI). Prosecution was handled by Assistant U.S. Attorney Robert M. Brown.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 21-cr-00165
Atlantic City Woman Sentenced to 18 Years in Prison for Drug Distribution OffensesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, woman was sentenced to 216 months in prison after being convicted at trial of two drug distribution offenses, U.S. Attorney Philip R. Sellinger announced today.
Rajeri Curry, 33, was previously convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute heroin, following a nine-day trial before U.S. District Judge Noel L. Hillman in Camden federal court. Judge Hillman imposed the sentence on Aug. 11, 2022, in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 17, 2018, law enforcement executed a search at Curry’s residence. Inside Curry’s home, law enforcement recovered heroin, stamped with the words “DOA” and “BODY COUNT,” which Curry intended to distribute to her customers in Atlantic City. Also, between March and June of 2018, Curry conspired with drug suppliers in Newark to distribute and possess with intent to distribute heroin and fentanyl.
In addition to the prison term, Judge Hillman sentenced Curry to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Acting Chief James A. Sarkos, and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William E. Reynolds, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit in Newark, and Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
11 August 2022
တၢတ် တီ ၢ�်တၢအ် ၀ဲၤကျိၤကျၢၢတ် ၢံ အ် တၢသ် မံသမိးကၢွ ကဒါ ် ကလၤံ ထးံ ဒခိထၣ် စံၣ်ညီပီတအ့ သ�စူ ၢဖှိၣ်အမၤဂ့ ၤထၣ်ီ ခွဲးယာ်လၢပှၤလၢအအၣ်ိ ဒးီ အးဲ ကလးံ ကျာိ အတ် ၢသ် တ့ ၢဘ် ၣ်လၢအစှၤ တဖၣ်အဂီၢ ်Read the Press Release
Download Karen translation
दक्षिण डाकोटा एकीकत न्याययक प्रणालील सीमित अङ्ग्रेजी प्रवीणता भएका िायिसहरूका लागि पहचिा सधार िरकाल न्याय ववभािल पिरावलोकि बन्द िरको छ।Read the Press Release
Download Nepali translation
Департамент юстиции закрывает проверку после облегчения Объединенной системой правосудия Южной Дакоты доступа для лиц с ограниченным знанием английского языкаRead the Press Release
Download Russian translation
York Man Indicted for Assaulting Fellow Postal EmployeesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Moody, age 34, of York, Pennsylvania, was indicted yesterday by a federal grand jury of assault on federal employees.
According to U.S. Attorney Gerard Karam, the indictment alleges that on December 10, 2020, Moody assaulted two of his fellow postal employees causing bodily injury.
The matter was investigated by the U.S. Postal Inspection Service and the Springettsbury Township Police Department. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
The maximum penalty for this offense is up to 20 years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Woman Sentenced to Prison for Interstate Stolen Property CrimeRead the Press Release
CHARLESTON, W.Va. – Mindy Turner, 51, was sentenced today to one year in prison, to be followed by three years of supervised release, for aiding and abetting the interstate transportation of stolen property.
According to court documents and statements made in court, Turner admitted to participating in a scheme with Millard Patrick, 53, to obtain vehicles totaling approximately $172,950 in value from car dealerships in Kentucky and West Virginia.
On June 28, 2021, Turner passed a bad check at a Louisville, Kentucky, dealership so she and Patrick could obtain a 2020 Ford Explorer with an approximate value of $53,500. The following day, the two transported that vehicle to West Virginia and were arrested after unsuccessfully attempting to trade that vehicle at a Charleston dealership for a more expensive Ford F-250. On July 14, 2021, while out on bond, Turner and Patrick passed a bad check at a Hurricane dealership to obtain a Jeep Cherokee with an approximate value of $60,056.22. The following day, the pair passed a bad check at a Ripley dealership to obtain a new Ford Explorer with an approximate value of $59,393.48. That same day, Patrick and Turner attempted to obtain a Ford F-150 with an approximate value of $64,108.24 from a Hurricane dealership. They were turned away when the check did not clear.
Patrick also pleaded guilty to aiding and abetting the interstate transportation of stolen property, and is scheduled to be sentenced on September 1, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the assistance provided by the Charleston Police Department, the Hurricane Police Department, the Jackson County Sheriff’s Office, and the Louisville, Kentucky, Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-18.
###
Woman Pleads Guilty to Accessory After the Fact to MurderRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Wednesday, August 10, 2022, BRIYAN LOVE, an Orleans Parish resident, pled guilty as charged to a violation of Accessory After the Fact to Murder.
LOVE pled guilty to Count One of the indictment, charging her with Accessory After the Fact to Murder, a violation of Title 18, United States Code, § 3. At sentencing, LOVE faces a maximum sentence of 15 years imprisonment, up to a $125,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Elizabeth Privitera, Inga Petrovich, and David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
Webster Woman Sentenced for Theft, Embezzlement,and Misapplication by Bank EmployeeRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Webster, South Dakota, woman convicted of Theft, Embezzlement, and Misapplication by Bank Employee was sentenced on August 8, 2022, by U.S. District Judge Charles B. Kornmann.
Angelica Jean Gebur, age 43, was sentenced to 60 days in federal prison, followed by two years of supervised release, restitution to Needs Anonymous Thrift Store in the amount of $38,986, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Gebur was indicted by a federal grand jury in February of 2022. She pled guilty on May 17, 2022.
The conviction stemmed from incidents beginning on or about March 22, 2018, and continuing through June 18, 2021, when Gebur, an employee of CorTrust Bank, a financial institution whose deposits were insured by the Federal Deposit Insurance Corporation (FDIC), defrauded CorTrust Bank of more than $1,000 of moneys, funds, assets, and securities entrusted to the custody and care of CorTrust Bank.
Gebur was employed as the lead customer service representative for the CorTrust Bank branch located in Webster. Needs Anonymous Thrift Store is a volunteer-run thrift store ministry located in Webster, and they banked with CorTrust Bank. The thrift store usually dropped off its weekly deposit bag at the bank’s drive-up window. The bag typically contained mostly cash. The bag did not include a completed deposit form, but rather a handwritten note of the total deposit amount.
In her capacity as a CorTrust Bank employee, Gebur often received the deposits from the thrift store that were meant to be deposited into the thrift store’s accounts at the bank. On multiple occasions, Gebur stole some of the cash from the thrift store’s intended deposits, kept it for herself, and used it for her own purposes.
This case was investigated by the FBI and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Gebur was allowed to self-report to the custody of the U.S. Marshals Service by September 13, 2022.
Waterbury Man Sentenced to More Than 6 Years in Federal Prison for Firearm and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KEVEN SANTOS, 24, of Waterbury, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 76 months of imprisonment, followed by four years of supervised release, for firearm possession and heroin distribution offenses.
According to court documents and statements made in court, in April 2021, Santos was on state parole. As a result of an investigation into activities, including multiple shootings, by members of the Paybacc Crypt street gang in Waterbury, Santos’ parole officer made the decision to conduct a compliance check. On April 16, 2021, state parole officers, Waterbury Police and Connecticut State Police located Santos and conducted the compliance check after they observed Santos carrying a bag and enter his car, which was parked near a residence on Easton Avenue in Waterbury. Inside the bag, investigators found and seized approximately 137 gross grams of cocaine, approximately 4.8 gross grams of crack, 29 Xanax pills, and a digital scale. A subsequent search of Santos’ residence revealed two loaded firearms, and a search of a garage that Santos had access to revealed approximately one kilogram of cocaine.
Santos has been detained in state custody since April 16, 2021. On May 2, 2022, he pleaded guilty in federal court to one count of possession with the intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a felon. Santos will begin serving his 76-month federal sentence today.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Waterbury Police Department and Connecticut State Police, with the assistance of Connecticut State Parole. The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
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. In May 2021, the Justice 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.
Virginia Man Sentenced to Nearly 20 Years in Prison for Murder Aboard Commercial Scalloping BoatRead the Press Release
BOSTON – A Virginia man was sentenced today in federal court in Boston after admitting to a 2018 murder aboard a scalloping vessel off the coast of Massachusetts.
Franklin Freddy Meave Vazquez, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 235 months in prison followed by three years of supervised release. On March 9, 2022, Meave Vazquez pleaded guilty to one count of murder in the second degree, one count of attempted murder and one count of assault with a dangerous weapon. Meave Vazquez, a Mexican national, is in the United States illegally and will be subject to deportation proceedings upon completion of his sentence.
“This was a horrific act of workplace violence. Today’s sentence, although it cannot erase the traumatic and pain caused to the families of the murder victim and the survivors of the brutal attack, I hope it brings some accountability. Mr. Meave Vazquez violently attacked three of his crewmates aboard a scalloping boat, killing one and seriously injuring the others,” said United States Attorney Rachael S. Rollins. “Meave Vazquez will now serve nearly 20 years behind bars, unable to endanger or harm any other people. I offer my condolences to the family of the murder victim and to the survivors and their loved ones.”
“Our thoughts are with each of the families, nothing can replace their loved ones”, said Coast Guard Rear Admiral John Mauger, Commander, First Coast Guard District. “Commercial fishing is a foundation of maritime commerce, and we are focused on ensuring the safety of the industry. We sincerely appreciate the teamwork with our federal partners in bringing justice to this case.”
“This murder was senseless and horrific, and so were the other unprovoked, violent assaults Mr. Vazquez committed, turning what should have been a regular day at work into a dreadful nightmare for his victims and their families,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “There is no question today’s sentence is just, given the brutality and indifference to human life this man has demonstrated. Removing dangerous criminals from our streets, and our seas, is a top priority of FBI Boston’s Violent Crimes Task Force.”
On Sept. 23, 2018, the scalloping vessel, The Captain Billy Haver, was sailing approximately 50 miles off the coast of Nantucket with seven crew members aboard, including Meave Vazquez and the three victims. While working inside the shucking house Meave Vazquez used a hammer to strike Victim A in the head and into unconsciousness. He then walked out onto the deck and stabbed Victim B multiple times with a long fishing knife. In response to the commotion, Victim C climbed up from the ice hold, was struck in the head by Meave Vazquez with the hammer and fell back down the ladder, bleeding from his head. Meave Vazquez then closed the cover to the ice hold and covered it with heavy baskets of scallops, preventing Victim C and another crew member from being able to exit the hold. Meave Vazquez then struggled with the vessel captain, whom he attempted to stab, before climbing to the top of the rigging with the hammer.
Victim A and Victim B were taken by a rescue boat to a nearby ship for medical attention where Victim B was pronounced dead.
Meave Vazquez remained at the top of the rigging until the Coast Guard arrived and was immediately taken into custody. He was transferred into federal custody upon arrival at the Boston port the following day.
U.S. Attorney Rollins, Admiral Mauger, FBI SAC Bonavolonta and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The investigation was led by the FBI’s Violent Crimes Task Force. Assistant U.S. Attorneys Christine Wichers and Laura J. Kaplan of Rollins’ Criminal Division prosecuted the case.
Virginia Man Charged with Conspiring to Launder Money Obtained from Internet-Enabled Romance ScamsRead the Press Release
NEWARK, N.J. – A Virginia man was charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced today.
Richard Agyeman Dua, 44, of Fredericksburg, Virginia, is charged by complaint with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
Agyeman laundered money obtained through romance scams through business accounts he opened in the name of Mineral Logistics. After receiving the romance scam victims’ money, Agyeman wired thousands of dollars to overseas bank accounts, including accounts in Canada, Hong Kong, and China. Many of the victims were told of a scheme involving gold or an inheritance held up overseas; at least one victim lost her house as a result of the fraud. Law enforcement estimates that Agyeman received at least $734,000 in fraudulent proceeds.
The money laundering conspiracy charge has a maximum term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, with the investigation leading to the charges. He also thanked the FBI in Richmond, Virginia, for its assistance.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Vancouver, Washington ‘Investment Advisor’ pleads guilty to defrauding friends and family of more than $4 million in investment ‘Ponzi scheme’Read the Press Release
Tacoma – An unlicensed “investment advisor” from Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to mail fraud in connection with his scheme to defraud investors, including friends and family members, out of more than $4 million, announced U.S. Attorney Nick Brown. Charles Richard Burgess, 66, faces up to 20 years in prison when sentenced by U.S. District Judge David Estudillo on November 4, 2022.
“For more than two decades Mr. Burgess led his victims to believe that he was successfully investing their funds for retirement. But in fact, since at least 2013, the investment fund was insolvent and losing value, and Burgess was stealing investor funds to line his own pockets,” said U.S. Attorney Brown. “More than two dozen people have lost retirement savings because of Mr. Burgess’s fraud.”
According to records filed in the case, in the mid-1990s Burgess began selling investments in an unregistered investment vehicle that Burgess called “the pool.” Burgess never became a registered or licensed investment advisor. But between January 1995 and April 2021, he convinced 64 people to invest $13.4 million in “the pool.” He sought investments from friends and family members with whom he had a trusting relationship. Burgess did nothing to screen the investors to see what type of risk they could tolerate, and he did not provide them with written materials about the nature of the investments.
Burgess told investors that he only took a share of the profit made by the investments and he claimed to some that he would personally absorb any losses. Burgess provided the investors with statements indicating their account balances had grown substantially over time. However, those statements were false. For example, in 2016 Burgess sent investors statements indicating their investments had grown about 10 percent that year. In fact, the investments lost money.
As early as 2013, Burgess was not able to repay all the investors’ principal, let alone the profits he was falsely telling them they had earned. In December 2013, Burgess owed investors $2.3 million in principal and represented that the value of investor accounts exceeded $4.2 million. In fact, at that time the pool’s assets were only about $711,000. By then end of December 2015, it was even worse, with investors being told their accounts totaled over $5.2 million, when the assets totaled only about $365,000. By the end of 2020, Burgess owed investors $4.5 million in principal and represented in year-end statements that the collective value of their accounts exceeded $10.3 million. In fact, the Pool’s assets totaled only $113,000.
As the financial picture worsened, Burgess paid off earlier investors with money from new investors –a classic Ponzi scheme.
Despite his assurances that he only took a share of the profit from the fund, Burgess actually used investor money for his own expenses. From 2014-2021 Burgess transferred $1.4 million to his personal account.
In all, 32 investors lost $4.3 million in principal payments that they had made to Burgess. Under the plea agreement, Burgess will be ordered to pay $4,359,113 to the victim investors. Prosecutors have agreed to recommend the low end of the sentencing guidelines range when Burgess is sentenced. Judge Estudillo is not bound by prosecutors’ recommendation and can impose any sentence up to the 20-year statutory maximum after considering the sentencing guidelines and other statutory factors.
The case was investigated by the FBI with assistance from the Washington Department of Financial Institutions.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Vallejo Man Indicted for Possession of Ammunition as a Felon and as the Subject of a Domestic Violence Protective OrderRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Raykheem Andrew Guthery, 30, of Vallejo, charging him with possession of ammunition as a felon and as the subject of a domestic violence protective order, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 9, 2022, law enforcement officers conducted a vehicle stop on Guthery for driving a car without license plates. Guthery pretended to be someone else, claimed he was not on parole or probation, and denied being armed. In fact, Guthery was on probation for felony assault and had a firearm loaded with an extended magazine concealed on his person. Officers discovered the firearm during Guthery’s arrest. The firearm was a non-serialized, privately manufactured firearm, known as a “ghost gun.” It was loaded with one round of .40-caliber ammunition in the chamber and another 17 rounds in an extended magazine.
Guthery is prohibited from possessing firearms or ammunition because he has been convicted of at least three felonies, including a 2016 felony conviction for forcible assault likely to cause grave bodily injury. He is also prohibited from possessing firearms or ammunition because he is the subject of a domestic violence protective order issued on April 15, 2021, by the Superior Court of California, Solano County.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Guthery faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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.
U.S. Attorney’s Office Announces Recent ADA Enforcement EffortsRead the Press Release
LEXINGTON, Ky. –The U.S. Attorney’s Office for the Eastern District of Kentucky is announcing some recent enforcement efforts under the Americans with Disabilities Act (the “ADA”). The ADA, which was signed into law on July 26, 1990 and recently passed its 32nd anniversary, is the nation’s foremost civil rights law for providing equal access and opportunity for people with disabilities. U.S. Attorneys’ Offices, who are tasked with enforcing the ADA in their jurisdictions, play a critical role in ensuring the goals of the ADA.
The ADA requires “places of public accommodation,” like restaurants and retail establishments, to provide individuals with disabilities equal access to facilities, both by removing physical barriers and by modifying policies or practices to permit appropriate access to people with disabilities.
The U.S. Attorney’s Office has recently resolved several matters involving businesses that are “places of public accommodation” under the ADA, including the following:
- Issuing a letter of resolution to Camporosso Wood Fired Pizzeria, in Fort Mitchell, Ky., where Camporosso agreed to remove obstructions to the restaurant’s accessible parking spaces caused by an expanded outdoor dining area installed in response to the COVID-19 pandemic. Camporosso also agreed to install signage at the designated accessible spaces, as required by the ADA.
- Entering into a settlement agreement with Burt 145, LLC, the owner of a building on 145 Burt Road in Lexington, Ky. that houses more than a dozen places of public accommodation, in which the company agreed to remove physical barriers at all the unit entrances and properly mark accessible parking spaces in its parking lot. The U.S. Attorney’s Office opened this matter after receiving a complaint from an individual who uses a wheelchair, who could not enter a business in the building without assistance because of a step at the store entrance.
- Entering into a settlement agreement with DZ Properties, LLC, the owner of a building that houses Jim’s Fine Wine & Spirits and a dentistry practice in Fort Mitchell, Ky., resolving a complaint regarding a lack of accessible parking.
- Issuing a letter of resolution to Lexington-based Magee’s Baking Company, resolving a complaint by an individual with disabilities who alleged that bakery staff attempted to exclude her from the restaurant after she could not provide documentation for her service animal, which is not required under the ADA. As part of the resolution, Magee’s agreed to adopt and maintain a Service Animal Policy, train its staff members on the ADA’s service animal requirements, and post signage permitting service animals.
Each of these referenced matters were handled by Assistant U.S. Attorney Carrie Pond. The U.S. Attorney’s Office will continue to work with businesses and the community in its efforts to ensure that individuals with disabilities have equal access to places of public accommodation under the ADA. Additional information about the ADA is available at www.ada.gov. To report potential civil rights violations, including potential violations of the ADA, contact the Department’s Civil Rights Division at civilrights.justice.gov, or contact the U.S. Attorney’s Office directly, at usakye-civilrights@usdoj.gov.
– END –
U.S. Attorney's Office Recognizes Employees for Outstanding Work in 2021Read the Press Release
The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in the year 2021.
"Each year, our office recognizes exceptional performance, leadership and effort put forth by employees of the United States Attorney’s Office in the Northern District on behalf of the residents and communities that we serve,” said First Assistant United States Attorney Michelle M. Baeppler,” "Whether it's combating violent crime, protecting taxpayers, assisting with case management or managing the needs of an office of over 200 employees, these award recipients embody the best of public service."
Details of the award winners are below:
National Association of Former United States Attorneys’ Exceptional Service Award
The National Association of Former United States Attorneys’ award recognizes exceptional service to the United States Attorneys’ Office, the Department of Justice and the United States in its award for Exceptional Service.
Awardee: Carol Skutnik
Excellence in Civil, Criminal, Paralegal and Administrative Support
Awarded for outstanding overall performance for a particular project/case/duty or series of projects/cases/duties in a respective office division.
Excellence in Civil Support
Kendall Miller
Excellence in Paralegal Support
Jennifer Miller
Excellence in Criminal Support
Judith Toth
Excellence in Administrative Support
Kerri Hesketh
New Legal Support Award
Awarded to a civil, criminal, or administrative support employee with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.
Awardee: Kelsey Sprenger
New AUSA Excellence Award
Awarded to an Assistant U.S. Attorney with less than five years of experience who demonstrates outstanding overall performance, a superior commitment to the mission of the Office and displays significant growth in the execution of their duties.
Awardee: Matthew Simko
The Jane Corrigan Award
Awarded to a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a “can-do” attitude, and whose demeanor is always engaging.
Awardee: Antoinette Burrell
Bernard A. Smith Award for Excellence in Appellate Advocacy
Awarded for exceptional advocacy in an appellate matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardee: Daniel Ranke
Excellence in Criminal Advocacy
Awarded for exceptional advocacy in a criminal matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardees: Michael Collyer, Megan Miller, Bryan Bricker, Allison Kretz
Excellence in Civil Advocacy
Awarded for exceptional advocacy in a civil matter. Nominees are considered for their professionalism, the difficulty of the legal arguments briefed or argued, and any other challenging case-related circumstances, regardless of verdict or court opinion.
Awardee: Suzana Koch
AUSA Supervisor of the Year
Awarded to a supervisor who has demonstrated superior professionalism, leadership, and management in the performance of their duties.
Awardee: Steven Paffilas
The Bill Edwards Career Award
Awarded to an Assistant U.S. Attorney with more than 15 years of experience who has demonstrated superior professionalism in the execution of their duties and excellence in leadership and mentorship throughout their career.
Awardee: Guillermo “Bill” Rojas
The Roberta Sladick Career Award
Named after former Northern District of Ohio employee Roberta Sladick and awarded to a support staff employee with more than 15 years of experience who has demonstrated superior professionalism in the execution of the support staff’s duties, and excellence in leadership and mentorship throughout the person’s career.
Awardee: Sarah Perkins
The Craig Tame Award for Excellence in Community Outreach Award
Named in honor of former Northern District of Ohio Law Enforcement Coordinator Craig Tame and awarded to an employee who demonstrates a commitment to community service and making the Northern District of Ohio a better place to live.
Awardee: Michelle Heyer
Employee of the Year – Administrative Support
Awarded for exceptional overall performance, which demonstrates a superior commitment in the execution of the person’s duties in the Administrative Division.
Awardee: SharNette McCully
Employee of the Year – Legal Support:
Awarded to a Legal Support employee for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice, and the mission of the United States Attorney’s Office.
Awardee: Jesse Sherman
AUSA of the Year
Awarded to an Assistant United States Attorney for exceptional overall performance, taking into account all the required responsibilities in the performance of the person’s duties, which demonstrates a superior commitment to the interests of justice and the mission of the United States Attorney’s Office.
Awardees: Assistant U.S. Attorneys Robert J. Kolansky and Peter Daly
###
U.S. Attorney Announces $3.64 Million Settlement of Civil Fraud Lawsuit Against Menswear Company and Its Manager for Underpaying Customs Duties Owed on Apparel Imported into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, AnnMarie Highsmith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, and Francis Russo, Director, CBP Field Operations New York, announced today that the United States has filed and settled a civil lawsuit against Luchiano Visconti Loutie LLC d/b/a Luchiano Visconti (“LUCHIANO VISCONTI”), a New York-based company that imports and sells men’s apparel to retailers, as well as its manager, SASHA HOURIZADEH (“HOURIZADEH”). The settlement resolves claims that LUCHIANO VISCONTI and HOURIZADEH (collectively, “Defendants”) defrauded the United States by falsely underreporting to CBP the value of apparel imported from overseas in order to avoid paying customs duties owed on the goods.
U.S. Attorney Damian Williams said: “Luchiano Visconti and Hourizadeh engaged in a fraudulent scheme to cheat the Government of customs duties owed by falsely reporting the value of the apparel brought into this country. This Office is committed to combatting customs fraud and will continue to hold companies, as well as their executives, accountable when they mispresent the value of imported goods to evade paying legally required duties.”
Executive Assistant Commissioner AnnMarie Highsmith said: “Trade enforcement is a priority for CBP, and this settlement serves as a great example of collaborative efforts to enforce trade laws. The dedication of the men and women of the CBP Office of Trade, the Office of Chief Counsel, and the United States Attorney’s Office to protect a fair and competitive trade environment is vital to facilitating lawful trade.”
Under the settlement agreement approved by U.S. District Judge P. Kevin Castel, Defendants will pay $3,641,157 to the United States. As part of the settlement agreement, Defendants also made admissions regarding their conduct. LUCHIANO VISCONTI and HOURIZADEH admitted that LUCHIANO VISCONTI significantly underreported the actual value of imported menswear on entry documents filed with CBP and routinely underpaid customs duties on the menswear. Specifically, Defendants admitted that they regularly provided their customs brokers with information and documentation, including commercial invoices, that significantly understated the true value of the imported menswear and the price actually paid for the apparel. LUCHIANO VISCONTI and HOURIZADEH also admitted that, in some instances, they made changes to invoices provided by a foreign manufacturer before providing them to a customs broker. In other instances, as acknowledged by Defendants, foreign manufacturers transmitted invoices that LUCHIANO VISCONTI and HOURIZADEH knew or had reason to know did not reflect the actual value and price paid for the menswear.
As alleged in the Complaint filed in Manhattan federal court:
From December 2013 through August 2019, LUCHIANO VISCONTI and HOURIZADEH defrauded the United States by materially underreporting to CBP the value of imported apparel. Defendants knowingly submitted, or caused the submission of, customs entry forms and associated invoices to CBP that contained false valuations of the apparel.
In some cases, HOURIZADEH altered commercial invoices issued by a foreign manufacturer so that the invoices reflected lower and false prices. In other instances, a foreign manufacturer transmitted two categories of invoices to LUCHIANO VISCONTI and HOURIZADEH that, together, reflected the actual price paid for the apparel. The first category of invoices identified specific quantities and prices for the imported apparel. These invoices, in sum, reflected a substantially lower price than what LUCHIANO VISCONTI actually paid for the imported goods. The second category of invoices were for services relating to the production of the Menswear, such as “pre-production” services, “patent” services, and “designer” services. In reality, and as reflected in LUCHIANO VISCONTI’s own banking records, these invoices generally reflected an additional amount paid by LUCHIANO VISCONTI for the same shipment of apparel. Defendants, however, routinely failed to provide their customs broker with this second category of invoices, which constituted a substantial portion of LUCHIANO VISCONTI’s payments for the apparel.
In the settlement agreement, LUCHIANO VISCONTI and HOURIZADEH admitted, acknowledged, and accepted responsibility for the following conduct:
- From December 2013 through August 2019, LUCHIANO VISCONTI imported menswear from manufacturers based outside the United States, including Turkey and China (the “Foreign Manufacturers”).
- HOURIZADEH is the LUCHIANO VISCONTI manager who is responsible for managing the importation of the menswear and all customs entry issues, including the provision of relevant and necessary information and documentation to LUCHIANO VISCONTI’s customs brokers who prepared and submitted the entry summaries to CBP.
- LUCHIANO VISCONTI’s customs brokers used commercial invoices and other information provided by LUCHIANO VISCONTI and HOURIZADEH to determine the value of the menswear to declare to CBP and to calculate the amount of the customs duties owed. LUCHIANO VISCONTI and HOURIZADEH knew that the customs brokers would rely on the information and invoices when preparing the entry summaries submitted to CBP.
- LUCHIANO VISCONTI and HOURIZADEH regularly provided LUCHIANO VISCONTI’s customs brokers with information and documentation, including commercial invoices, that significantly understated the true value of the imported menswear and the price actually paid by LUCHIANO VISCONTI to the Foreign Manufacturers for the menswear.
- LUCHIANO VISCONTI did not pay over $1.8 million in customs duties that it was obligated to pay on the menswear.
* * *
In connection with the filing of the lawsuit and settlement, the Government joined a whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Williams thanked U.S. Department of Homeland Security, Homeland Security Investigations, and CBP for their investigative efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Charles S. Jacob is in charge of the case.
Two Methamphetamine Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Da Lee, 38, of Lawrenceville, Georgia, and Paul Mark James, 52, of Gastonia, North Carolina, to 168 months and 54 months in prison, respectively, for trafficking methamphetamine and marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to documents filed in this case and evidence introduced at Lee’s trial, from 2018 to 2020, Lee and James conspired to distribute methamphetamine in and around Catawba County. Court records show that while law enforcement investigators were investigating James’s drug distribution activities in Hickory, North Carolina, they determined that James frequently traveled out of state to purchase methamphetamine from his supplier in Georgia, later identified as Lee. On July 12, 2020, law enforcement conducted a traffic stop of James’s vehicle upon his return from a trip to Georgia. During the traffic stop, law enforcement found methamphetamine and marijuana in James’s vehicle, which Lee had provided to James. Court records show that the next day, law enforcement executed a search warrant at Lee’s Georgia residence, from which they seized a firearm, four pounds of marijuana, and more than $7,900 in cash. According to court records, over the course of the conspiracy, Lee supplied James with more than two pounds of methamphetamine.
On Feburary 23, 2022, a federal jury convicted Lee of conspiracy to distribute and to possess with intent to distribute methamphetamine and marijuana, and distribution of methamphetamine. Also in February 2022, James pleaded guilty to the same charges.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Catawba County Sheriff’s Office for their investigation of the case.
Assistant United States Attorneys Chris Hess and Taylor Stout prosecuted the case.
Two Men Federally Charged in Shooting at an FBI Agent in ColumbusRead the Press Release
COLUMBUS, Ga. –Two Columbus residents are facing federal charges alleging their involvement in the firing of multiple rounds at an FBI Agent in Columbus on July 28; one was remanded to federal custody following an initial appearance today, the other is in state custody. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
A federal indictment was returned on August 9 charging Jarvis Smith, 27, and Joshuia Brown, 24, with one count of forcible assault on a federal officer with a deadly weapon and one count of discharging a firearm during and in relation to a crime of violence. In addition, Smith is facing one count of possession of a firearm by a convicted felon. If convicted, Smith and Brown face a maximum of life in prison.
Brown had his initial appearance today before U.S. Magistrate Judge Charles Weigle; the government’s motion for detention for Brown was granted by the Court. Smith is currently being held on state charges and is anticipated to be brought into federal custody in the near future.
This case is being investigated by FBI, with assistance from multiple agencies including DEA, Columbus Police Department, Muscogee County Sheriff’s Office, Harris County Sheriff’s Office, Phenix City Police Department and Russell County, Alabama, Sheriff’s Office.
Assistant U.S. Attorneys Christopher Williams and Amy Helmick are prosecuting the case, with support from Assistant U.S. Attorney Leah McEwen.
Two Men Convicted of Laundering Proceeds of a Business Email Compromise SchemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two individuals yesterday on charges of money laundering as part of a business email compromise (BEC) scheme.
According to court records and evidence presented at trial, Onyewuchi Victor Ibeh, 33, of Mitchellville, Maryland, and Jason Eugene Joyner, 42, of Hyattsville, Maryland, participated in a scheme to launder the proceeds of a BEC scheme. In this scheme, conspirators infiltrate the computer systems of a victim company, including their email servers and email accounts, through phishing attacks or the use of malware. Once there, the conspirators impersonate the victim’s business partner and claim the business partner’s bank account information has changed. Intending to send the money to the business partner, the victim business instead sends the money to bank accounts controlled by the conspirators.
The defendants and their coconspirators laundered over $13 million fraudulently obtained from numerous victim businesses—including five who testified at trial—as a result of a scheme. The co-conspirators laundered the proceeds of the scheme through various financial transactions using dozens of bank accounts that they directly and indirectly controlled. Joyner’s role in the scheme was to withdraw the proceeds of the fraud in cash, which he delivered to other conspirators, including Ibeh. Ibeh’s role in the scheme was to manage the money laundering by causing conspirators to open bank accounts, which he used to wire money domestically and internationally. Ibeh spent the proceeds of the fraud on luxury items, including a custom jewelry piece costing close to $40,000.
Ibeh and Joyner conspired with, among others, Anthony Ayeah and Mouaaz Elkhebri, both of whom have also been convicted of conspiracy to commit money laundering.
Ibeh and Joyner were convicted of conspiracy to commit money laundering and money laundering. Ibeh and Joyner each face a maximum penalty of 20 years in prison when sentenced on November 4, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Ray, Inspector in Charge of Cybercrime and National Security of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict.
Assistant U.S. Attorney Christopher Hood, Assistant U.S. Attorney Russell Carlberg, and Special Assistant U.S. Attorney Elizabeth Bagwell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-200.
Two Members of a Drug Trafficking Organization Sentenced to Federal Prison and Ordered to Forfeit $2 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Rogelio Zamora, age 24, to two years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine. On August 8, 2022, Judge Russell sentenced co-defendant Hugo Maldonado Ortiz, age 53, to five years in federal prison, followed by three years of supervised release on the same charge. Judge Russell further ordered that Zamora and Ortiz must forfeit $2 million seized during the course of the investigation, as proceeds of drug trafficking.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Malik Aziz of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department; Chief Robert J. Contee III of the Metropolitan Police Department; Colonel Melissa Zebley, Superintendent of the Delaware State Police; and Colonel Robert Evanchick, Commissioner of the Pennsylvania State Police.
According to their guilty pleas, between April 2020 and October 26, 2020, Zamora and Ortiz were part of a conspiracy to distribute drugs, specifically to possess with intent to distribute those drugs in Baltimore and elsewhere. As their part of the conspiracy, Zamora and Ortiz obtained cash, packaged it, and delivered the currency to couriers for transportation. Zamora and Ortiz admitted that they knew, or should have known, that the cash they transferred to and from members of the conspiracy was the proceeds from the sale of illegal drugs in Baltimore and elsewhere. The defendants and their co-conspirators traveled to locations in Michigan, Pennsylvania, Maryland, and elsewhere to receive large amounts of bulk currency, believed to be narcotics proceeds, and then transported or arranged the transport of the bulk cash to California on behalf of their drug trafficking organization.
During the investigation a total of more than $2 million was seized by or delivered to law enforcement. Investigators know that this amount of drug proceeds represents revenue from the sale of approximately seventy-five kilograms of cocaine. Accordingly, Zamora agreed that it was foreseeable to him that the conspirators would distribute between five and 15 kilograms of cocaine. Ortiz agreed that it was foreseeable to him that the conspirators would distribute at least five kilograms of cocaine.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, the Maryland Transportation Authority Police, the Maryland State Police, the Prince George’s County Police Department, the Montgomery County Police Department, the Metropolitan Police Department, the Delaware State Police and the Pennsylvania State Police for their work in the investigation and thanked the DEA in New York, New Jersey and Detroit for their assistance. Mr. Barron thanked Assistant U.S. Attorney Joan C. Mathias, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Two Defendants Charged with Firearms and Narcotics TraffickingRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that CESAR VASQUEZ, a/k/a “Aguila,” a/k/a “Primo,” and MICKY COLON, were arrested and charged in a nine-count Complaint with trafficking more than 50 firearms, along with methamphetamine and fentanyl, from Ohio to New York. VASQUEZ and COLON will be presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court later today.
U.S. Attorney Damian Williams said: “Illegal firearms, and especially military-style assault weapons, like many of those allegedly trafficked by these defendants, pose a dire threat to all New Yorkers. These weapons of war are designed to kill, and absent intervention from the dedicated federal, state, and local law enforcement agents who investigated this case, these guns could have been loose on the streets of New York City. That many of these guns were sold alongside narcotics only underscores the connection between drug trafficking and gun violence. We will continue to work with our dedicated partners at the DEA and NYPD to aggressively dismantle those networks that enable gun violence and endanger the lives of New Yorkers.”
DEA Special Agent-in-Charge Frank Tarentino said: “Fifty guns headed to criminal networks in New York were intercepted, preventing the potential for at least 50 instances of gun-related violence. These arrests and seizures clearly demonstrate DEA’s resolve to safeguarding our communities from the threats of drugs and guns. I would like to commend the tireless work and countless hours of collaboration by the New York Strike Force and U.S. Attorney’s Office Southern District of New York.”
NYPD Commissioner Keechant Sewell said: “The NYPD’s fight against the flow of illegal guns and narcotics into our city is at the forefront of our public-safety mission. The defendants in this case showed a callous disregard for human life, and we will never waver in our commitment to protect the people we serve – no matter where the threats to them originate. I want to thank the U.S. Attorney’s Office for the Southern District of New York, the DEA’s New York Division, and every local, state, and federal agency working with the Organized Crime Drug Enforcement Task Force for their efforts in this important investigation.”
As alleged in the Complaint filed today in Manhattan federal court[1]:
From at least June 2022 until their arrests today, VASQUEZ and COLON were part of a gun and narcotics trafficking operation that moved dozens of guns, alongside methamphetamine and fentanyl, from the Columbus, Ohio area to the Bronx. On five separate occasions, VASQUEZ, COLON, and their co-conspirators sold, or attempted to sell, firearms to undercover law enforcement agents. During three of those gun incidents, VASQUEZ, COLON, and their co-conspirators also sold, or attempted to sell, the undercover agents narcotics.
In total, VASQUEZ, COLON, and their co-conspirators sold law enforcement agents approximately 51 firearms, approximately 196 grams of methamphetamine, and a “sample” of fentanyl as a precursor to later fentanyl transactions. Included in the firearms that VASQUEZ, COLON, and their co-conspirators sold were more than a dozen assault rifles; other military-style weapons, including a semiautomatic shotgun and assault-type weapons that fire pistol rounds; and numerous handguns.
VASQUEZ and COLON were arrested early this morning in the Bronx, when they arrived from Ohio, bringing 23 guns and fentanyl into the city. Photos of some the firearms that VASQUEZ, COLON, and his co-conspirators sold are below.
Firearms Sold on June 4, 2022
Firearms Sold on June 17, 2022
Firearms Sold on June 23, 2022
Firearms Sold on July 6, 2022
Firearms Brought to the Bronx on August 11, 2022
VASQUEZ, 19, of Columbus, Ohio, has been charged in Count One with conspiring to traffic firearms, which carries a maximum sentence of 15 years in prison; in Count Two with trafficking firearms, which carries a maximum sentence of 15 years in prison; in Count Three with attempting to traffic firearms, which carries a maximum sentence of 15 years in prison; in Count Four with transferring a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison; in Count Five with attempting to transfer a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison; in Count Six with illegally dealing firearms, which carries a maximum sentence of five years in prison; in Count Seven with illegally transporting and distributing firearms, which carries a maximum sentence of five years in prison; in Count Eight with conspiring to traffic in methamphetamine and fentanyl, which carries a maximum sentence of 40 years in prison and a statutory minimum sentence of five years in prison; and in Count Nine with using and carrying firearms while engaging in the narcotics trafficking conspiracy, which carries a maximum sentence of life in prison and a statutory minimum sentence of five years in prison.
COLON, 21, of Columbus, Ohio, is charged in Count One, Count Three, and Counts Five through Nine of the Complaint. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
Mr. Williams also thanked the United States Attorney’s Office for the Western District of Pennsylvania for its assistance in the case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Andrew Jones and Christy Slavik are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Man Sentenced to 5 Years in Prison for Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
A Tulsa man who possessed a revolver and shotgun to protect himself and the illicit drugs he was distributing was sentenced in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced LeMorris Walton Jr., 33, to five years in federal prison followed by five years of supervised release. He pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime on Oct. 14, 2021.
“My office will hold accountable individuals like LeMorris Walton Jr. for their continued criminal behavior. Felons carrying guns and dealing drugs contribute to the violence and economic decay experienced in too many neighborhoods across Northeast Oklahoma,” said U.S. Attorney Clint Johnson. “Federal authorities and our partners at the Tulsa Police Department are committed to reducing violent crime and building strong, safe communities.”
On Nov. 9, 2020, Walton possessed firearms at his residence in Tulsa for the purpose of protecting and furthering his marijuana, cocaine, and methamphetamine distribution operation. The defendant possessed a Herman Weihrauch .38 special revolver, a Maverick 12 gauge shotgun, and 33 rounds of ammunition. Walton is also a felon and is prohibited from possessing firearms and ammunition.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi prosecuted the case.
This case is being prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Tri-Cities Man Sentenced to Ten Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aurelio James Gonzalez, 30, of Kennewick Washington was sentenced in federal court in Spokane for two counts of Distribution of Methamphetamine. Chief United States District Judge Stanley A. Bastian sentenced Gonzales to a total of 120 months in federal prison and ordered Gonzales to serve a five-year term of supervised release. Gonzales plead guilty on October 27, 2021.
According to court documents, in September 2021, DEA Tri-Cities, in partnership with the METRO Drug Task Force, identified Gonzales as a pound-level methamphetamine trafficker operating in the Tri-Cities area and elsewhere. Through the use of a confidential source, DEA conducted several recorded meetings with Gonzales as well as two separate controlled buys, where Gonzales sold the confidential source at total of approximately two pounds of methamphetamine. On February 17, 2021, a federal search warrant was executed at his residence in Kennewick, WA, where Gonzales lived with his significant other and two small children. Gonzales had taken one of those small children with him when he sold the methamphetamine to the DEA confidential source. When DEA executed the search warrant, agents located and seized cocaine, a digital scale, $14,805 in U.S. currency, ledgers about how to engage in money laundering, and a total of three firearms. Most of these items were located near a “Santa Muerte” shrine, depicted below, which is commonly associated with drug trafficking.
United States Attorney Waldref commended the joint efforts of law enforcement for working together to keep the Eastern District safe: “This case involved both largescale methamphetamine distribution as well the possession of several firearms in furtherance of Mr. Gonzales’s drug-trafficking organization.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Gonzales from our community for 10 years and reiterates the U.S. Attorney’s Office’s commitment to vigorously prosecute those who distribute poison in Eastern Washington.”
“This investigation illustrates the strong relationships we have with our federal, state and local partners as we work together to keep our communities safe, healthy and free from dangerous drugs,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of transnational drug trafficking and related offenses. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for these drug related offenses in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Drug Enforcement Administration Tri Cities Task Force in partnership with the Kennewick, Pasco and Richland Police Departments. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Toppenish Woman Charged with Drug Trafficking and Firearm OffensesRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Susen Ann Gorst, age 34, of Toppenish, Washington. The federal indictment charges Gorst with Possession with Intent to Distribute Fentanyl, Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Furtherance of Drug Trafficking.
According to an August 1, 2021 criminal complaint, the investigation into Gorst stems from information that she was supplying fentanyl pills to multiple users in the Yakima area. Based on this information, the Yakama Nation Police Department and Drug Enforcement Administration (DEA) conducted surveillance at the El Corral Motel in Toppenish, Washington, where Gorst allegedly was selling fentanyl. On July 22, 2022, agents and officers from the DEA Yakima Resident Office, Homeland Security Investigations, the Yakama Nation Police Department, Yakima Police Department, and Toppenish Police Department executed a search warrant of Gorst’s motel room, where enforcement seized fentanyl pills, methamphetamine, and a Smith and Wesson semiautomatic firearm.
“When law enforcement and our communities come together, we are able to make tremendous strides toward addressing the opioid crisis,” stated U.S. Attorney Waldref. “Our office has been prosecuting fentanyl cases vigorously – on the Yakama Nation and throughout Eastern Washington – as part of our ongoing efforts to build safer and stronger communities. Fentanyl is particularly lethal, and we are proactively working to prevent the tragedy it causes on a daily basis.”
This case involves a joint investigation led by the Drug Enforcement Administration’s Yakima Resident Office, Yakama Nation Police Department, Homeland Security Investigations, Yakima Police Department, and the Toppenish Police Department. The case is being prosecuted by Frances Walker, Assistant United States Attorney for the Eastern District of Washington.
The details contained in the charging documents are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tobacco Wholesaler Sentenced for PACT ViolationRead the Press Release
BOSTON – A tobacco wholesaler from Connecticut was sentenced today in federal court in Springfield for violating the Prevent All Cigarette Trafficking (PACT) Act.
Syed I. Bokhari, 57, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year of probation. The government recommended a sentence of 18 months in prison. Bokhari pleaded guilty on April 19, 2022. In a related civil forfeiture action, Bokhari agreed to forfeit seized tobacco, currency, and other assets, which resulted in the recovery of $2,197,985 by the government.
Established in 2010, the PACT Act is designed to prevent the evasion of state tobacco taxes on cigarettes and smokeless tobacco. The PACT Act requires, among other things, businesses to file a statement with the state tobacco tax administrator prior to shipping cigarettes or smokeless tobacco into that state.
Bokhari owned and operated a wholesale supply business in Scranton, Pa., that sold smokeless tobacco to customers in Massachusetts. Between 2010 and June 5, 2012, Bokhari’s business shipped smokeless tobacco to customers in Massachusetts without ever filing the required statement with the Massachusetts tobacco tax administrator.
United States Attorney Rachael S. Rollins; Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Office; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher L. Morgan of Rollins’ Springfield Branch Office prosecuted the case.
St. Simons man sentenced for bomb threat to IRS office in New YorkRead the Press Release
BRUNSWICK, GA: A Glynn County man was sentenced in federal court after admitting that he threatened to blow up an IRS office in New York.
Benjamin Stasko, 34, of St. Simons Island, was sentenced to time served and placed on three years of supervised release for his previous guilty plea on a charge of Interstate Transmission of a Threat to Injure, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Since his arrest in July 2020, Stasko has been in federal custody for a total of 21 months – slightly longer than the period of custody recommended under federal sentencing guidelines.
“Benjamin Stasko’s sentence includes a requirement for substance abuse treatment, which tackles the rationale behind his ill-advised, dangerous threat,” said U.S. Attorney Estes. “Considering the massive law enforcement response generated by his actions, it’s fortunate that the episode ended safely.”
Stasko admitted that on July 6, 2020, he posted a comment on a federal agency’s website, alleging that a pipe bomb had been planted in the Ted Weiss Federal Building in New York, New York, as a threat directed toward the Internal Revenue Service. Federal Protective Service officers with bomb sniffing dogs and officers from the New York Police Department searched the facility and found no explosives. Investigators later located and arrested Stasko in St. Simons.
“The safety of Internal Revenue Service employees and property is one of the statutory roles of the Treasury Inspector General for Tax Administration,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties are aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office and our law enforcement partners in assisting to protect the integrity of federal tax administration.”
The case was investigated by the U.S. Department of Treasury, Treasury Inspector General for Tax Administration; the New York Police Department; and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Gregory Gilluly Jr. and Joshua S. Bearden.
St. Louis man indicted on cyberstalking chargesRead the Press Release
ST. LOUIS – A man from St. Louis was indicted by a federal grand jury Wednesday on charges accusing him of threatening or cyberstalking five people since October.
Robert Merkle, 53, was indicted on three cyberstalking charges and two counts of transmitting a threat. Each charge carries a penalty of up to five years in prison.
The indictment accuses Merkle of threatening or harassing four people in January and one person in October.
A motion seeking to have Merkle held in jail pending trial says beginning in the summer of 2021, Merkle began harassing women online and via text messages. He sent text messages to women in Missouri and elsewhere containing rape threats, the motion says.
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 FBI and the Town and Country Police Department. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
Springfield Company Pays $1 Million Related to Federal Embezzlement, Bribery InvestigationRead the Press Release
SPRINGFIELD, Mo. – A Springfield company will pay more than $1 million in forfeiture to the federal government under the terms of a non-prosecution agreement announced today, which acknowledges the criminal conduct of two former executives who are involved in a related criminal investigation.
“Company owners and executives abused their leadership positions in an unrelated charity to illegally enrich themselves and their for-profit company,” said U.S. Attorney Teresa Moore. “More than $1 million from the health care charity, primarily funded by Medicaid reimbursements, was siphoned to Pro1 through a series of illicit payments over several years. Pro1 has accepted responsibility for the criminal conduct of its former executives and cooperated with the federal investigation. Those embezzled funds will be recouped by the government under the terms of this non-prosecution agreement.”
“When federal funds are misappropriated, it harms the U.S. government and its taxpayers,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation’s St. Louis Field Office. “Pro1 executives abused their positions by causing federal funds meant for charitable purposes to become part of a scheme designed for their own financial gain. This non-prosecution agreement holds Pro1 accountable and restores the funds to the federal government.”
“This non-prosecution agreement holds Pro1 accountable for its actions in a scheme that directly benefited Pro1 and certain owners of the company in over $1 million in cost-savings and reduced expenses,” said FBI Kansas City Special Agent in Charge Charles Dayoub. “It reiterates that public funds provided to non-profit organizations and companies are not to be abused and the FBI, alongside other federal agencies, is committed to ensuring the public’s money is not used for inappropriate purposes or personal gain.”
“The diversion and theft of over $1 million of federal sourced funds, designated for employment training, behavioral healthcare and other public services by former executives of Preferred Family Healthcare and Pro1, was a gross abuse of the positions of trust they once held,” said Special Agent-in-Charge Steven Grell, Dallas Region, U.S. Department of Labor, Office of Inspector General. “They chose their own personal gain and benefit over the greater good of the public and the nonprofit organization whom they served. This agreement demonstrates Pro1’s willingness to take corrective actions regarding the fraudulent actions of its former executives.”
“Our investigation uncovered a scheme spanning several years to siphon money from a community-based health center to a for-profit company,” said Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General Chicago Field Office. “Today, we’re holding Pro1 accountable for this scheme and recovering over $1 million in ill-gotten gains. This non-prosecution agreement reiterates government funds are provided to these charitable organizations to benefit the public, and self-enriching schemes to steal from these government programs will not be tolerated.”
Pro1 IAQ, Inc., a Missouri corporation with operations in Springfield and Boulder, Colorado, designs and sells indoor thermostats nationwide. By signing the non-prosecution agreement, representatives of Pro1 admitted that former executive officers engaged in a conspiracy to embezzle funds from Preferred Family Healthcare, Inc., a Springfield-based nonprofit corporation, from 2008 to November 2017. Pro1 benefited from acts of alleged criminal misconduct by the executives, who were also executives of the charity and channeled funds from Preferred Family Healthcare to financially enrich the firm.
Under the terms of the non-prosecution agreement, Pro1 must forfeit $1,057,617 to the federal government, which is the amount Pro1 gained from the conspiracy.
Among the specific actions acknowledged in the non-prosecution agreement, executives and employees of Preferred Family Healthcare were utilized to complete tasks related to Pro1 operations, sometimes working full time for Pro1 while being paid by the charity. Additionally, the charity paid Pro1 for the lease of a warehouse for approximately three years, and provided office space in the charity’s main office building at no cost to Pro1 for more than a year.
While Pro1 did not provide appropriate oversight regarding the actions of its agents, which could be considered willful blindness, many of the actions taken by Pro1’s executives were done without specific knowledge of the president and the corporate board of directors. Pro1, as a part of this investigation, has discontinued the leadership roles of those executives and has cooperated fully with the federal criminal investigation.
Preferred Family Healthcare agreed earlier this year to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which likewise acknowledges the criminal conduct of its former officers and employees.
Several former executives of Preferred Family Healthcare, former members of the Arkansas state legislature, and others have been convicted in federal court as part of the multi-jurisdiction, federal investigation. As part of the federal investigation, the former chief operating officer and chief financial officer of Preferred Family Healthcare were indicted by a federal grand jury on March 29, 2019. They pleaded not guilty, and are awaiting trial, which is scheduled to begin on Oct. 3, 2022.
The separate criminal cases are being prosecuted by Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf of the Western District of Missouri, Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Arkansas, and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas.
IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases. This is a combined investigation with the Western District of Missouri, the Western District of Arkansas, and the Eastern District of Arkansas.
Seffner Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Conspiracy to Impede and Defraud the IRSRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Ricky Gonzales has pleaded guilty today to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. Gonzales faces a maximum penalty of 20 years in federal prison on the conspiracy to commit wire fraud count, and up to, 5 years’ imprisonment on the conspiracy to defraud count.
According to the plea agreement, Gonzales owned and managed a construction company which he registered with the State of Florida. His company was named Ricky’s Construction Company and purported to supply construction services and a labor force to work for construction contractors.
As such, in order to comply with Florida law, Gonzales’s company was required to secure and maintain adequate worker’s compensation insurance coverage. The providers of worker’s compensation insurance base the premiums they charge and the amount of coverage they provide on the number of employees a company has, and the total annual payroll of those employees. Gonzales’s company had agreements with contractors and subcontractors to use workers purported to be his company’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Gonzales or others regularly received “payroll checks” from these contractors that were then cashed at various financial institutions in order to pay the purported “employees” of Ricky’s Construction.
During the conspiracy, Gonzales falsely and fraudulently represented in insurance applications that his company had very limited payroll and a very limited number of employees who worked on construction jobsites. He also caused the transmission of false and fraudulent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage.
In reality, Gonzales’s company received and cashed more than $7 million in checks from various construction contractors for his purported “employees”. This payroll figure far exceeded the very limited payroll figures that Gonzales had reported to his worker’s compensation insurance company. As a result, these employees performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were being manipulated to cover.
As a result of these misrepresentations, Ricky’s Construction also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties. Over the course of this conspiracy, Gonzales’s misrepresentations caused a loss to the Internal Revenue Service of approximately $1,094,450 in unpaid payroll taxes.
This case is part of a series of prosecutions related to similar construction industry-related fraud in the Tampa Bay area. This case was investigated by the Homeland Security Investigations, the Internal Revenue Service - Criminal Investigation, and the State of Florida Department of Financial Services -Division of Investigative and Forensic Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Seattle man convicted of distributing fentanyl in downtown Seattle while armed with a firearmRead the Press Release
Seattle – A 31-year-old Seattle man was convicted today in U.S. District Court in Seattle of three federal crimes related to his distribution of fentanyl pills in downtown Seattle, announced U.S. Attorney Nick Brown. Kendall Alston was arrested on March 23, 2022, after Seattle Police Officers noted his hand-to-hand drug sales. The officers had been surveilling the area of 3rd Avenue between Pike and Pine Streets as part of “Operation New Day.” The emphasis patrol was aimed at increasing public safety in the Pike/Pine corridor where drug sales had led the area to become a hot spot for other crimes including assaults and shootings.
“Mr. Alston was armed with a loaded handgun while dealing potentially deadly fentanyl pills in downtown Seattle,” said U.S. Attorney Nick Brown. “We continue to work with our federal, state, and local partners to address the sense of lawlessness that has permeated our streets. Not every case is appropriate for federal prosecution, but where guns and drugs intersect, we are prepared to use our federal resources to hold offenders accountable.”
According to records filed in the case and testimony at trial, an officer in an observation point above the street witnessed a person in distinctive clothing engaging in what appeared to be a hand-to-hand drug sale. The officer returned to street level and saw the person later identified as Alston make another drug sale. Officers moved in and took Alston into custody. Alston carried 244 blue pills that were later tested and found to contain fentanyl. In his backpack, Alston carried a loaded Hi-Point .45 caliber semi-automatic handgun.
After a 3-day trial the jury deliberated about three hours before finding Alston guilty of knowingly distributing fentanyl, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Following the guilty verdicts, Alston agreed to plead guilty to two additional counts of being a felon in possession of a firearm. The counts are related to his March arrest in downtown Seattle with the firearm, and a previous January 2022 arrest for shoplifting in Bellevue, where he was found to be carrying a different firearm.
Alston is prohibited from possessing firearms due to two felony convictions, a 2018 residential burglary conviction in Pierce County and a 2013 residential burglary conviction in King County.
Distribution of a controlled substance, possession of a controlled substance and unlawful possession of a firearm are punishable by up to ten years imprisonment. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a consecutive five-year prison sentence on top of any sentence imposed on the other counts.
U.S. District Judge Lauren J. King scheduled sentencing for November 9, 2022.
The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Casey Conzatti.
Savannah felon faces up to life in prison after admitting to day-long spree of armed robberiesRead the Press Release
SAVANNAH, GA: A Chatham County man faces a possible sentence of up to life in prison after admitting to a day-long spree of convenience store robberies.
Anthony Franzel Hamilton, 60, of Savannah, pled guilty to Conspiracy to Interfere with Commerce by Robbery, and Brandishing a Firearm in Furtherance of a Crime of Violence, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry up to life in prison, along with substantial financial penalties and up to five years of supervised release after completion of the prison term. There is no parole in the federal system.
“For 18 hours in a single day, Anthony Hamilton terrorized store employees so he could steal money,” said U.S. Attorney Estes. “Our law enforcement partners did outstanding work in bringing his rampage to a halt, and he now will be held accountable for his violent crimes.”
As described in court documents and testimony, Hamilton was armed with a semiautomatic pistol when he robbed the Savannah Mart on East DeRenne Avenue shortly after midnight on Nov. 22, 2020. For the next 18 hours, Hamilton robbed four more Savannah convenience stores, and attempted to rob another, while brandishing the firearm and in least one instance threatening to shoot a store employee.
Savannah Police officers searching for the getaway vehicle described by witnesses soon located Hamilton and took him into custody without incident, finding the pistol under the seat of the car.
Sentencing before U.S. District Court Judge R. Stan Baker will be scheduled upon completion of an investigation by U.S. Probation Services.
“Thanks to the efforts of our law enforcement partners at the Savannah Police Department and the Department of Justice’s Project Safe Neighborhoods, Anthony Hamilton’s crime spree was brought to an end,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His reckless disregard for the safety of the store employees and public easily could have turned into a tragedy. Fortunately, he is no longer a threat.”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods. It was investigated by the FBI and the Savannah Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Robert Lenard Booth Sentenced to Ten Years for Defrauding Investors of over $2 Million in International Boiler Room SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today that ROBERT LENARD BOOTH, a/k/a “Trevor Nicholas,” was sentenced to ten years in prison for defrauding investors of almost $2 million and laundering the proceeds as part of an international boiler room scheme. Back in April, a jury convicted BOOTH of conspiracies to commit securities fraud, wire fraud and money laundering. U.S. District Judge Jed S. Rakoff imposed the sentence in Manhattan federal court.
U.S. Attorney Damian Williams said: “For years, Robert Lenard Booth and his co-conspirators made fraud their business. They used elaborate paperwork and strategies for emotional manipulation to defraud individual investors, often repeatedly targeting the same victims and sometimes extracting from them their life savings. Today’s sentence holds him accountable and sends a message to those who engage in fraud that they will face consequences.”
According to previous filings in this case and the evidence presented at trial:
Previously a resident of Brooklyn, New York, BOOTH relocated overseas and spent years defrauding investors from Thailand and Panama. From at least June 2019 through August 2021, BOOTH ran, and conspired with others to run, a boiler room operation that sold investors nearly $2 million in securities that they never received. Targeting their victims repeatedly by phone, BOOTH and others pretended to be licensed brokers at real Manhattan brokerages, then used high-pressure tactics to pitch stocks at alleged discount prices. They followed up by sending the victims false documents to confirm the alleged stock purchases and trades.
Over time, the fraudsters established personal rapport with the victims and directed the victims to wire money—sometimes hundreds of thousands of dollars—to shell company accounts in New York, Hong Kong, and Singapore. To make the payments, a number of victims spent down their savings and took out loans and mortgages. To receive and launder the victims’ payments, BOOTH worked with other money launderers who established sham companies and then lied to banks to open U.S. bank accounts in the names of those companies.
In total, Booth’s boiler room defrauded at least 17 victims of $2,003,993.
* * *
On April 27, 2022, BOOTH, 68, was convicted of conspiracies to commit securities fraud, wire fraud and money laundering after a six-day jury trial before Judge Rakoff. In addition to the prison sentence, BOOTH was sentenced to 3 years of supervised release. Orders have also been entered for $2,003,883 in restitution and $780,981.86 in forfeiture.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office, HSI, IRS-CI, and their partnership with the J5. The J5 works together to gather information, share intelligence and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the U.K. and IRS-CI from the U.S.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Andrew Jones, Jane Y. Chong, and Andrew Thomas are in charge of the prosecution.
Rhode Island Man Pleads Guilty to Role in Drug Trafficking and Violent Kidnapping ConspiracyRead the Press Release
BOSTON – A Pawtucket, R.I. man pleaded guilty yesterday in federal court in Boston to charges related to a violent kidnapping and witness retaliation and intimidation scheme.
Anthony Basilici, 39, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, one count of possession and discharge of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to commit kidnapping and one count of conspiracy to obstruct justice by retaliating against a witness, victim or informant. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 7, 2022. Basilici was charged along with 12 co-conspirators in a superseding indictment in March 2020.
“The defendant’s conduct is nothing short of horrifying. Mr. Basilici actively and willingly participated in a violent scheme to kidnap, beat and terrorize a victim who he wrongly believed was working with law enforcement. Additionally, he possessed a firearm for the purpose of facilitating the heroin trafficking conspiracy that he was involved in,” said United States Attorney Rachael S. Rollins. “This case is another example of how drug trafficking activities drive violence in our communities. Pursuing drug traffickers and violent criminals is a top priority of my administration. We will find and prosecute those who threaten the health and safety of our communities. They will be removed from the neighborhoods they terrorize and harm.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
This case arose from a 2018 investigation into a wide-ranging heroin trafficking conspiracy in the Cape Cod area.
According to court documents, in 2019, law enforcement began investigating a Cape Cod drug trafficking organization (DTO), allegedly led by Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville as well as Pawtucket, R.I. Interceptions from Otero’s phone identified Basilici as a key member of the DTO.
On May 8, 2019, Basilici and, allegedly, others were involved in a shooting at a co-conspirator’s residence related to a drug debt allegedly owed Otero. Basilici was intercepted as he discussed hiding in the woods after the shooting, and changing his phone number to avoid arrest. Intercepted communications showed Basilici and, allegedly, others speaking in code about finding and hiding guns used in the shooting.
Additionally, according to court documents, in April 2019, Basilici’s co-conspirators lured a victim from Massachusetts to Rhode Island, where they kidnapped and held him, stripped him naked, assaulted and threatened to rape him, and then took his clothing and cell telephone. The purpose of this kidnapping and assault was to retaliate against the victim because the co-conspirators erroneously believed the victim was cooperating with law enforcement, and the assailants repeatedly yelled at the victim for being a “rat.” Basilici, for his part, video recorded the assault—which lasted over 18 minutes. Basilici provided this video to Otero, who further intimidated or attempted to intimidate other witnesses after the kidnapping by sharing the video with numerous others.
The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, a minimum of five years and up to life of supervised release and a fine of $5 million. The charge of possession and discharge of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of 10 years and up to life in prison, to be served consecutive to any other sentence imposed, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to obstruct justice by retaliating against a witness, victim, or informant provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle, Barnstable Police Chief Matthew K. Sonnabend and Barnstable County Sheriff James M. Cummings, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Repeat Methamphetamine Trafficker Is Sentenced to 14 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ronald Keith Scronce, 65, of Lincolnton, N.C., to 168 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, in July 2019, Scronce was on post release supervision for a state drug trafficking conviction. In accordance with the conditions of Scronce’s post release supervision, probation officers conducted a warrantless search of his residence, during which they seized methamphetamine. Between July and August 2021, law enforcement investigating the case determined that Scronce sold heroin and methamphetamine on multiple occasions. Scronce even wrote a Facebook post in which he referenced violence against “snitches” and traveling to the beach for the purpose of selling narcotics. On August 23, 2021, law enforcement arrested Scronce and executed a federal search warrant at his residence, seizing methamphetamine, cash, and two firearms.
On February 2, 2022, Scronce pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. At today’s sentencing hearing, Scronce’s sentence was enhanced due to his multiple prior convictions that led to his classification as a Career Offender, including prior convictions for Robbery with Dangerous Weapon, Sell/Deliver Morphine, Attempt Trafficking Methamphetamine, and Possession with Intent to Distribute Methamphetamine.
This case is the result of Organized Crime Drug Enforcement Task Force (OCDETF) investigation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Lincoln County Sheriff’s Office, the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Repeat Immigration Offender and Illegal Alien Pleads Guilty to Illegal ReentryRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jeronimo Quiahua-Garcia (21, Veracruz, Mexico) has pleaded guilty to illegally reentering the United States as a deported alien. Quiahua-Garcia faces a maximum penalty of two years in federal prison. A sentencing date has not yet been set.
According to court documents, Quiahua-Garcia was removed from the United States to Mexico on January 11, 2020, through Nogales, Arizona, and again on January 20, 2020, through Naco, Arizona. On May 24, 2022, law enforcement officers stopped a vehicle traveling southbound on I-75 in Hernando County, Florida. Quiahua-Garcia was a passenger in that vehicle, hidden among luggage in the back seat. Quiahua-Garcia did not know the driver of the vehicle. He said that he had paid the driver to transport him from Greely, Colorado to Plant City, Florida.
This case was investigated by United States Custom and Border Protection – United States Border Patrol, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Registered Sex Offender Sentenced for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JACOB WIEBELT (“WIEBELT”), age 39, of Ponchatoula, Louisiana, was sentenced for Possession of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (B)(2).
According to documents filed in federal court, the case against WIEBELT developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a user uploaded child sexual abuse material (“CSAM”) to the Discord messenger service. Specifically, the lead reflected that the user uploaded sexually explicit videos of children who were prepubescent in age. On November 1, 2021, Homeland Security Investigations (“HSI”) special agents along with the LBI executed a federal search warrant at WIEBELT’s home in Ponchatoula. Agents advised WIEBELT of his Miranda rights and, after waiving his rights, he confessed to possessing, sharing, and uploading CSAM. WIEBELT admitted he created a Discord account and stated that other Discord users would share CSAM on the website and he would save the CSAM to his cellular telephone. WIEBELT would then upload the saved CSAM from his phone to other Discord users.
United States District Judge Jay C. Zainey sentenced WIEBELT to one hundred twenty-one (121) months imprisonment, followed by ten (10) years of supervised release, continued sex offender registration, and pay a $100.00 special assessment fee.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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 www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Putnam County Man Sentenced to 10 Years in Prison for Sex Trafficking CrimeRead the Press Release
CHARLESTON, W.Va. – James Michael Pritt, 40, of Buffalo, Putnam County, was sentenced today to 10 years in prison, to be followed by 10 years of supervised release, for attempted sex trafficking of a minor. Pritt must also register as a sex offender.
According to court documents and statements made in court, on October 1, 2021, Pritt contacted another man online and arranged to pay him $150 in exchange for the man providing him with a 14-year-old girl for sexual intercourse. When Pritt arrived at the meeting location in South Charleston later that day, he was arrested.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task.
United States District Judge Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Andrew D. Isabell prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-200.
###