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25 July 2022
“Out of practice” truck driver guilty of smuggling 110 in refrigerated trailerRead the Press Release
LAREDO, Texas – A 36-year-old border crossing Visa holder out of Nuevo Laredo, Mexico, has admitted to conspiring to transport an undocumented alien, announced U.S. Attorney Jennifer B. Lowery.
Marthin Rueda Alcorta pleaded guilty to his role in smuggling 110 undocumented individuals in a refrigerated trailer.
On May 24, Rueda Alcorta drove a tractor trailer into the Border Patrol (BP) checkpoint north of Laredo. He drove erratically through an inspection lane and nearly hit a K-9 until authorities ordered him to stop.
Law enforcement conducted a search of the trailer and discovered 110 people in his trailer. All were later determined to be illegally present in the country and were from Mexico, Guatemala, Honduras and El Salvador.
As part of his plea, Rueda Alcorta admitted he was desperate for money. He sought out an alien smuggler and agreed to drive undocumented individuals from Laredo to San Antonio for $5,000.
Rueda Alcorta was previously employed as a truck driver but admitted he was “out of practice.”
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Rueda Alcorta faces up to 20 years in federal prison and a $250,000 maximum fine. He may also lose his status as a visa holder.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
Vancouver Man Sentenced to 16 Years in Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for transporting two teen girls across state lines, drugging and sexually abusing them, and selling them to other men for sex.
Johnl Jackson, 34, was sentenced to 200 months in federal prison and 5 years’ supervised release.
According to court documents and trial testimony, in 2016, Jackson met and befriended Keonte Desmond Scott, 23, also of Vancouver, after Scott’s release from prison. Jackson sold Scott cocaine and eventually began coaching him in commercial sex trafficking. In late 2016, Scott began a relationship with Jackson’s future co-defendant and fellow Vancouver resident Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they soon began using Petrovic to recruit and traffic other minor females.
By the summer of 2018, Scott returned to prison and Petrovic began working directly with Jackson. In late August 2018, Petrovic targeted a 15-year-old female on social media that Petrovic and Scott had previously trafficked, and convinced the girl to meet under false pretenses. Jackson, armed with a firearm, Petrovic, and another adult woman drove to Eugene to pick her up. When the group arrived, the girl was accompanied by a 14-year-old friend. On the drive back to Vancouver, Jackson supplied both girls with drugs and was overheard talking about how they are going to make them some money.
In Vancouver, Jackson supplied them with even more drugs and then Jackson and Petrovic engaged in sex acts with the heavily intoxicated girls. At some point they went to a house for Jackson to get additional cocaine. Inside the house, they sent one of the girls back to a room to engage in sexual acts with the drug supplier in exchange for drugs and money. Jackson and Petrovic later took the girls to a gathering at an auto shop in Battle Ground, Washington where they forced one of the girls to have sex with an adult man and took the money that the man paid her. The other girl, convinced Jackson and Petrovic were going to kill her, was able to escape with a man from the shop who helped her get back home.
Jackson and Petrovic took the remaining girl to a residence in Northeast Portland where she was forced to have sex with one man for $300 and forcibly raped by another. The girl ultimately was able to escape the hotel they later took her to and was rescued several hours later by her grandfather.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and two accomplices with sex trafficking of children and transporting minors with intent to engage in sexual activity.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on November 17, 2021, Jackson and Petrovic were charged by a second superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity.
On March 11, 2022, Jackson was convicted at trial by a federal jury in Portland.
On July 22, 2020, Petrovic was charged by criminal information with distributing a controlled to a person under 21 and pleaded guilty, resolving both of her criminal cases. She will be sentenced on April 23, 2023.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking. On May 31, 2022, Scott was sentenced to 97 months in federal prison and five years’ supervised release.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
U.S. Attorney Parker recognizes Service Dog Awareness Week, reminds public that ADA, FHA protect service animals & ownersRead the Press Release
CINCINNATI – United States Attorney Kenneth L. Parker recognized the observance of Service Dog Awareness Week in Ohio from July 25 through 29 and reminded the public of the valuable contributions that service animals make in our communities. Parker noted the federal laws that protect these animals and those who use them.
“The Department of Justice continues to receive many questions about how the Americans with Disabilities Act (ADA) applies to service animals,” U.S. Attorney Parker said. “The ADA generally requires state and local government agencies, businesses, and non-profit organizations to allow service animals to go most places where the public can go, unless doing so would ‘fundamentally alter’ the nature of the goods or services provided to the public.”
A service animal is any breed of dog that has been individually trained to do work or perform tasks directly related to a person’s disability. Accordingly, entities that have a “no pets” policy generally must modify the policy to allow service animals into their facilities. Entities can, however, ask an individual to remove a particular service animal if such animal is not housebroken or if the service animal is out of control and the handler does not take effective action to control the animal. When there is a legitimate reason to ask that a service animal be removed, staff must offer the person with the disability the opportunity to obtain goods or services without the animal’s presence.
Additional information about ADA protections involving service animals is available at https://beta.ada.gov/topics/service-animals/.
The Fair Housing Act, which applies to many types of public and privately-owned housing, also offers protections for residents or applicants with a disability who use a service animal or other animal to assist with their disability. More information about the Fair Housing Act is available at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview.
Mr. Parker added that anyone who believes they have experienced discrimination because of their use of a service animal can report potential violations directly to the U.S Attorney’s Office. A referral form is now available at the office’s main website at https://www.justice.gov/usao-sdoh.
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U.S. Attorney Announces Charges in Four Separate Insider Trading Cases Against Nine Individuals, Including Former U.S. Congressman, Former FBI Agent Trainee, Tech Company Executives, and Former Investment BankerRead the Press Release
Former U.S. Congressman Charged with Insider Trading Based on Inside Information Obtained from Consulting Work
Former FBI Agent Trainee and Friend Charged with Insider Trading Based on Inside Information Stolen from the Trainee’s former Girlfriend
Network of Individuals Charged with Insider Trading based on Inside Information obtained from the Former Chief Information Security Officer of Telecommunications Company
New York-based Investment Banker Charged with Insider Trading for Using Stolen Information about Potential Investments to Tip Trading Friend
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”) announced charges in four separate insider trading cases, collectively charging nine defendants with securities fraud and other related charges, including in some cases, obstruction of justice. These cases involve trading based on confidential information misappropriated from entities and individuals in a variety of industries and reflect the U.S. Attorney’s Office for the Southern District of New York’s broad investigative reach and continued resolve to root out corruption in our financial markets. The defendants in these cases made between hundreds of thousands and millions of dollars from illegal securities trading based on material, non-public information that was stolen from numerous sources.
U.S. Attorney Damian Williams said: “The message of today’s arrests is simple: My Office remains as committed as ever to rooting out insider trading in all forms. Insider trading erodes the trust and confidence of the investing public in our capital markets. We will continue to investigate and prosecute those who cheat in the markets by using insider information to line their own pockets. The four cases charged today–involving a former politician, a former member of law enforcement, California-based technology company executives, and a New York-based investment banker–demonstrate the breadth and scope of our focus on catching and prosecuting these criminals in all areas of our financial system.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “The four cases laid out here illustrate insider trading continues to plague our financial markets. The specifics of each case may vary, however they all have one thing in common - everyone involved let greed dictate their actions and made trades based on material non-public information. The crimes we allege threaten both the integrity of our financial markets and investors’ faith in them. Our actions demonstrate we remain committed to ensuring a level playing field for all.”
According to the allegations contained in the Indictments filed in Federal Court and other publicly available information:[1]
United States v. Buyer
STEPHEN BUYER, a former U.S. Congressman from Indiana, engaged in two separate, but interrelated insider trading schemes to steal material non-public information that he obtained through consulting work and place timely, profitable securities trade based on that stolen information. First, in or about March and April 2018, BUYER purchased shares of Sprint Corporation (“Sprint”) ahead of the April 29, 2018 public announcement that T-Mobile US, Inc. (“T-Mobile”) and Sprint would merge, in a deal valued at $26.5 billion. Prior to the public announcement of the transaction by T-Mobile, executives at T-Mobile told a small, trusted group of consultants that they had retained to work on the deal, including BUYER, about the merger and directed them to keep the information confidential. BUYER breached his duty of confidentiality to T-Mobile and misappropriated that information by purchasing shares of Sprint across several brokerage accounts, including his own accounts, an account held jointly with his cousin, and an account in the name of a close personal friend (“Individual-1”). Across these accounts, BUYER made more than $126,000 from the purchase and subsequent sale of Sprint stock after the merger was publicly announced.
In or about June through August 2019, BUYER traded in shares of Navigant Consulting, Inc. (“Navigant”) ahead of Navigant’s acquisition by consulting and advisory firm Guidehouse. As with Sprint, BUYER determined through his consulting work for Guidehouse that Guidehouse intended to acquire Navigant, and misappropriated that information by purchasing Navigant shares ahead of the public announcement of the acquisition. BUYER purchased Navigant shared across several brokerage accounts, including accounts in his own name, joint accounts held with family members, and Individual-1’s account. In total, Buyer made more than $223,000 from his illegal Navigant trades.
BUYER, 63, of Noblesville, Indiana, has been charged with four counts of securities fraud, each of which carries a maximum term of 20 years in. BUYER was arrested this morning and the case has been assigned to U.S. District Judge Richard M. Berman.
United States v. Markin and Wong
In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million dollars in illegal profits by trading in stock based on inside information that MARKIN misappropriated from his then-girlfriend, who was then an attorney at a major law firm in Washington D.C. assigned to work on the acquisition of Pandion Therapeutics (“Pandion”) by Merck & Co. (“Merck”). To carry out the illegal insider trading scheme, MARKIN secretly looked through his girlfriend’s confidential work documents, without her permission, and learned that in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s then-share price. After misappropriating this material non-public information from his girlfriend, MARKIN purchased shares in Pandion, and tipped several friends and family members, including WONG. WONG, in turn, purchased hundreds of thousands of dollars’ worth of Pandion shares, and told at least eight other people to purchase Pandion shares. In total, MARKIN and WONG directly or indirectly caused more than twenty people to trade in Pandion stock based on the material non-public information that MARKIN misappropriated from his girlfriend resulting in millions of dollars of illegally obtained trading profits.
At the time of the relevant trades, MARKIN had been accepted into the Federal Bureau of Investigation as a new agent trainee. In addition to perpetrating the insider trading scheme, MARKIN lied to conceal his illegal Pandion trades. In or about June 2021, after MARKIN and his girlfriend had ended their relationship, and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, MARKIN’s former girlfriend called him to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority (“FINRA”) into trading in Pandion stock. In response, MARKIN lied to her and falsely claimed that he did not trade in Pandion stock. In addition, in or about November 2021, MARKIN lied to FBI agents when he was interviewed about his Pandion trading, conduct that forms the basis for a separate charge against MARKIN for making false statements.
MARKIN, 31, of Washington Crossing, Pennsylvania, has been charged with nine counts of securities fraud and eight counts of tender offer fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy and one count of making false statements, each of which carries a maximum term of 5 years in prison, and was arrested this morning.
WONG, 38, of New York, has been charged with eleven counts of securities fraud and ten counts of tender offer fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy, which carries a maximum term of 5 years in prison and was arrested this morning. The case has been assigned to U.S. District Judge Edgardo Ramos.
United States v. Bhardwaj, Kakkera, and Saeedi
From November 2020 through April 2020, AMIT BHARDWAJ, SRINIVASA KAKKERA, ABBAS SAEEDI, engaged in an insider trading scheme in which BHARDWAJ, who was the Chief Information Security Officer (“CISO”) of Lumentum Holdings Inc. (“Lumentum”), misappropriated material, non-public information belonging to Lumentum and then traded on that information himself and tipped his criminal associates, including KAKKERA, SAEEDI, Dhirenkumar Patel, and Ramesh Chitor, in connection with two separate potential acquisitions by Lumentum, Coherent, Inc. (“Coherent”) and Neophotonics Coproration (“Neophotonics”).
In approximately December 2020, BHARDWAJ learned that Lumentum was considering acquiring Coherent. Based on this material, non-public information, BHARDWAJ himself purchased Coherent stock and call options, and BHARDWAJ tipped two friends – including Dhirenkumar Patel – and a close family relative and these individuals all traded in Coherent securities as a result. BHARDWAJ and Patel agreed that Patel would pay BHARDWAJ fifty percent of the profits that Patel earned by trading in Coherent based on the MNPI provided by BHARDWAJ. When Coherent’s stock price increased substantially following the January 19 Announcement, AMIT BHARDWAJ, his close family member, his friend Patel, and another friend, closed their positions in Coherent securities and collectively profited by nearly $900,000.
In or about October 2021, BHARDWAJ learned that Lumentum was engaged in confidential discussions with Neophotonics about a potential acquisition. BHARDWAJ provided this MNPI to SRINIVASA KAKKERA, ABBAS SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities as a result. In connection with Chitor’s trading, BHARDWAJ and Chitor agreed that Chitor and Bhardwaj would split the profits equally. When Neophotonics’ stock price increased substantially following the announcement of the acquisition in November 2021, KAKKERA, SAEEDI and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits.
After they were interviewed by the Federal Bureau of Investigation voluntarily and served with federal grand jury subpoenas on approximately March 29, 2022, BHARDWAJ, KAKKERA and SAEEDI took steps to obstruct the federal investigation of their conduct. On the day of the March 29, 2022 FBI interviews, BHARDWAJ drove to the homes of certain of his co-conspirators to encourage them not to tell the federal authorities the truth about their insider trading scheme. BHARDWAJ, KAKKERA, SAEEDI, and Dhirenkumar Patel then met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme, as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme. BHARDWAJ also solicited assistance from Patel in seeking to ensure that any potential incriminating information from BHARDWAJ’s work laptop would be deleted.
BHARDWAJ, 49, of San Ramon, California, who was arrested this morning, has been charged with seven counts of securities fraud and two counts of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
KAKKERA, 47, of Pleasanton, California, who was arrested this morning, has been charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
SAEEDI, 47, of Fremont, California, who was arrested this morning, has been charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
The case has been assigned to U.S. District Judge Gregory H. Woods.
Also unsealed today were charges against Dhirenkumar Patel and Ramesh Chitor, who have separately pled guilty and are cooperating with the Government in this case.
United States v. Goel
BRIJESH GOEL was an investment banker in the financing group at a major international investment bank in New York, New York (the “Investment Bank”). In that position, GOEL received confidential, internal emails directed to the Investment Bank’s Firmwide Capital Committee, which contained detailed information and analysis about potential mergers and acquisitions transactions the Investment Bank was considering financing. In violation of the duties that he owed to the Investment Bank, GOEL misappropriated that confidential information and tipped a friend, who worked at another investment bank in New York, New York (“CC-1”), with the names of potential target companies from these FWCC emails, typically during in-person meetings (such as when the two met to play squash). CC-1 then used that MNPI to trade call options, including short-dated, out-of-the-money call options, in brokerage accounts that were in the name of CC-1’s brother. GOEL and CC-1 agreed to split the profits from their trading. Between approximately 2017 and 2018, GOEL tipped CC-1 on at least seven deals in which the Investment Bank was involved, yielding total illegal profits of approximately $280,000.
Between approximately May and June 2022, GOEL also obstructed investigations by a Grand Jury in the Southern District of New York and the U.S. Securities and Exchange Commission. Specifically, GOEL deleted and asked CC-1 to delete electronic communications regarding this insider trading scheme, including during an in-person meeting that CC-1 consensually recorded.
GOEL, 37, of New York, New York, has been charged with four counts of securities fraud and one count of obstruction of justice, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum term of 5 years in prison. GOEL was arrested yesterday, and the case has been assigned to U.S. District Judge P. Kevin Castel.
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The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Justice’s Office of the Inspector General. He further thanked the Securities and Exchange Commission and the victim law firm and companies for their cooperation and assistance across these investigations.
These cases are being handled by the Office’s Securities and Commodities Fraud Task Force. United States v. Buyer is in the charge of Assistant U.S. Attorneys Jordan Estes, Kiersten Fletcher, and Elizabeth Hanft. United States v. Markin and Wong is in the charge of Assistant U.S. Attorneys Kiersten Fletcher, Nicolas Roos, and Negar Tekeei. United States v. Bhardwaj, Kakkera, and Saeedi is in the charge of Assistant U.S. Attorneys Richard Cooper and Noah Solowiejczyk. United States v. Goel is in the charge of Assistant U.S. Attorney Joshua Naftalis.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Three Philadelphia-Area Men Charged in Connection with Scheme to Wash and Alter Checks Stolen from USPS Collection BoxesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Naod Tsegay, 22, of Collingdale, PA; Fode Bangoura, 20, of Philadelphia, PA; and Zyier Williams, 19, also of Philadelphia, PA, were arrested and charged by Indictment with bank fraud, aggravated identity theft, possession of stolen United States Postal Service (USPS) keys, and possession of stolen mail. The charges arise from the defendants’ alleged scheme to fraudulently alter and deposit personal and business checks that had been stolen from the U.S. mail.
The Indictment alleges that between March and June 2021, Tsegay and his co-defendants recruited individuals to provide their bank account and debit card information, and then used those recruits’ bank accounts to deposit checks that had been stolen from blue USPS collection boxes located throughout the Eastern District of Pennsylvania. Each of the victims confirmed that they placed their checks in the mail at various blue collection boxes near their homes but their checks never reached the intended recipients. According to the Indictment, after altering the checks by changing the designated payees and increasing the dollar amount of the checks—often from a nominal sum to a payment of several thousand dollars—Tsegay allegedly deposited the stolen checks into the recruits’ bank accounts and later withdrew or attempted to withdraw the fraudulently deposited funds. The Indictment further alleges that Tsegay was ultimately found in unlawful possession of dozens of checks and money orders stolen from USPS collection boxes, as well as two Arrow Keys—keys belonging to USPS that are used by Postal employees to access blue collection boxes throughout the District. The total amount stolen or attempted stolen as a result of the defendants’ scheme exceeded $200,000.
“The United States Postal Service provides an essential service to nearly every citizen, often conveying income, bills and expenses which are the basis of many livelihoods,” said U.S. Attorney Romero. “If you choose to tamper with or steal U.S. mail for any reason, you can be assured that the federal government will conduct an intense investigation and aggressive prosecution, as we intend to in this case.”
“The United States Postal Inspection Service investigates many different crimes that affect the Postal Service, its customers, or that use the mail in the commission of the crime,” said Damon Wood, Inspector in Charge of the Philadelphia Division. “One of its original missions however, was to investigate the theft of mail. When folks use the mail to pay bills, send birthday cards, send business documents, or simply hope to receive a new pair of shoes that were ordered online, they should do so without fear that those items might be stolen. We have been working, and will continue to work, to identify, investigate, arrest, and support the prosecution of those responsible for stealing mail and shaking our collective trust in the mail system. I want to thank the United States Attorney’s Office and the numerous local police departments for working with us to bring these charges against these three individuals.”
If convicted, the defendants face mandatory terms of imprisonment and a fine of at least $1 million.
The case was investigated by the U.S. Postal Inspection Service and the Yeadon Borough Police Department, and is being prosecuted by Assistant United States Attorney Jessica Rice.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Staffing Company Owner Pleads Guilty to Payroll Tax CrimesRead the Press Release
A former New York City resident pleaded guilty today to willfully failing to collect and pay over employment taxes to the IRS on behalf of the temporary employment staffing agency he owned and operated.
According to court documents and statements made in court, Steven Heppenheimer, 73, owned and operated a temporary employment business under two names, PTP Staffing Associates Inc. and PPS Associates Inc. From 2013 through 2017, Heppenheimer did not file any of the required quarterly payroll tax returns. As owner of the company, Heppenheimer was legally obligated to withhold from employee wages and pay over to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. During that time, Heppenheimer withheld approximately $292,000 in payroll taxes from his employees’ wages, but he did not pay over any of these funds to the IRS.
Heppenheimer is scheduled to be sentenced on Jan. 25, 2023. He faces a maximum penalty of five years prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ann M. Cherry and Brittney Campbell of the Tax Division are prosecuting the case.
St. Louis County man enters plea avoiding trial on numerous counts of robberyRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie A. White accepted a plea of guilty from Demetrius Smith on today’s date prior to the start of his jury trial. A grand jury previously indicted Smith on several counts of armed robbery and weapons charges.
Demetrius Smith, 35, was scheduled to stand trial this week on several counts of armed robbery stemming from a crime spree that began in mid-to-late November 2018. According to court documents, Smith pleaded guilty to four robbery counts, and one attempted robbery. As part of the plea, the parties will ask the Court to sentence Smith to 22 years in federal prison at a hearing scheduled for October 25, 2022.
Smith committed armed robberies of the:
T-Mobile store in Creve Coeur, Missouri on Nov. 15, 2018
MetroPCS store in Bridgeton, Missouri on Nov. 21, 2018
Bucky’s Express in Overland, Missouri, and QuikTrip in Maryland Heights, Missouri, on Nov. 24, 2018
7-Eleven (attempted robbery) in St. Louis County on Nov. 24, 2018
The investigation revealed Smith would use his cell phone to call the targeted stores to see if a manager was present. Smith thought that with a manager present, he was more likely to access the safe during the robbery. He walked by the stores immediately before each robbery. He waited for a moment when there were no customers and only a single employee in the store before robbing it. If a customer came in during the robbery, he abandoned the robbery and fled.
On November 26, 2018, police from the Overland Police Department located Smith at his apartment as they were investigating the robbery of the Bucky’s Express. Police searched the car that Smith rented and which he used during the robberies. The car contained the duffel bag used in the second robbery. The car contained the gloves worn by Smith in the second, third, fourth, and fifth robberies. The car also contained a firearm, which Smith admitted to possessing. This firearm was the firearm used by Smith in all five robberies. At the time of his arrest, Smith was wearing black pants and a black sweatshirt. The black sweatshirt was the sweatshirt worn by Smith during the second, third, fourth, and fifth robberies. The pants were the pants worn by
Smith during the first, third, fourth, and fifth robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Overland Police Department; the Bridgeton Police Department; the Creve Coeur Police Department; the Maryland Heights Police Department; and the St. Louis County Police Department.
Springfield, Illinois, Man Sentenced to 84 Months in Prison for Possession with Intent to Distribute Five Grams or More of Actual MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Michael Bale, 44, of the 4000 block of Sandhill Road was sentenced on July 22, 2022, by U.S. District Judge Sue E. Myerscough to 84 months in prison for possessing with intent to distribute five grams or more of methamphetamine (actual).
Bale was indicted in March 2020 and pleaded guilty in March 2022.
The statutory penalties for possessing with intent to distribute five grams or more of methamphetamine (actual) are up to 40 years in prison, up to a $5,000,000 fine, up to life of supervised release, and restitution as determined by the district court.
The Drug Enforcement Administration, Illinois State Police, and Springfield Police Department investigated the case. Assistant United States Attorney Matthew Z. Weir represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally by the Drug Enforcement Agency. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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.
Sioux City Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced July 15, 2022, to 64 months’ imprisonment.
Abby Bringman, 34, from Sioux City, Iowa, pled guilty February 4, 2022, in federal court in Sioux City to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that from January 2021 through September 2021, Bringman and others distributed more than 20 pounds of methamphetamine. On September 29, 2021, Bringman was apprehended while retrieving a five-pound package of methamphetamine that was delivered by the US Postal Service from her source of supply in California. The package had been intercepted by the US Postal Service and was covertly delivered by agents to an address in Akron, Iowa. Bringman was found in possession of the US Postal package containing methamphetamine as well as approximately 1.5 additional pounds of methamphetamine which law enforcement later seized from Bringman’s vehicle. Agents also seized more than $22,000 from Bringman and her residence. Bringman admitted that over the previous several months she had previously received several packages from her source in California containing a total 15 to 20 pounds of methamphetamine. Bringman also admitted the money seized was drug proceeds and she planned to distribute some or all of the methamphetamine to other persons.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Bringman was sentenced to 64 months’ imprisonment and must serve a 3-year term of supervised release following imprisonment. There is no parole in the federal system. Bringman remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4079.
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Sioux City Man Pleads Guilty to Meth ChargesRead the Press Release
Aurelio Solorio, age 37, from Sioux City, Iowa, pled guilty July 22, 2022, in federal court in Sioux City, to possession with intent to distribute methamphetamine.
At the plea hearing, Solorio admitted that on May 24, 2021, he was stopped for suspected OWI. A search of Solorio’s vehicle revealed 90 grams of pure methamphetamine which Solorio admitted he planned to sell to other persons. Law enforcement also seized a .380 handgun from Solorio’s storage shed. Solorio was previously convicted of conspiracy to distribute a controlled substance in the United States District Court for South Dakota in 2011, and as a result, Solorio was under federal supervised release at the time he committed the instant offense.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Solorio remains in custody pending sentencing. Solorio faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4001.
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Rockledge Man Sentenced to Four Years for Conspiring to Distribute Pharmaceutical Opiates from IndiaRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Michael Achille (57, Rockledge) to four years in federal prison for conspiracy to distribute tapentadol, a pharmaceutical opiate that is a Schedule II controlled substance. Achille had pleaded guilty on May 16, 2022.
According to court documents, Achille worked with conspirators to obtain international shipments containing thousands of pills of tapentadol, among other pharmaceutical controlled substances. The pills were sent to Achille from locations in India. Achille directed the packages to a fake name at an address in Cape Canaveral where he could retrieve the shipments. Achille then redistributed the pills in smaller quantities and shipped hundreds of those pills to addresses in Florida, Kansas, Louisiana, and other locations. The investigation revealed multiple shipments received by Achille in December and January 2021 involving more than 11,000 pills.
“Trafficking narcotics destroys the fabric of society and make victims out of communities,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “The outstanding law enforcement partnerships between HSI, Drug Enforcement Administration, U.S. Postal Inspection Service, Rockledge Police Department, U.S. Customs and Border Protection, and the Brevard County Sheriff’s Office ensured this criminal will now face the consequences of his actions.”
This case was investigated by Homeland Security Investigations, with assistance from the Drug Enforcement Administration, the Brevard County Sheriff’s Office, U.S. Customs and Border Protection, and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Rensselaer Man Sentenced to 70 Months for Pandemic-Related FraudRead the Press Release
ALBANY, NEW YORK – Hector J. Sanchez, age 30, of Rensselaer, New York, was sentenced today to 70 months in prison for defrauding pandemic-related unemployment insurance and small business loan programs.
The announcement was made by United States Attorney Carla B. Freedman; Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his prior guilty plea, Sanchez admitted to making false unemployment insurance claims to the New York State Department of Labor (NYSDOL) using the identifying information of other people and personally receiving $131,560 in pandemic-related benefits. He also admitted to obtaining a $12,500 Paycheck Protection Program (PPP) loan for a non-existent car wash business. Sanchez agreed to pay restitution to NYSDOL and the PPP lender.
United States District Judge Mae A. D’Agostino ordered Sanchez’s federal sentence to be served consecutive to undischarged New York State terms of imprisonment for separate firearms and narcotics offenses. Judge D’Agostino also imposed a 3-year term of supervised release, to begin after Sanchez is released from prison.
The case was investigated by USPIS, USDOL-OIG, and HSI, with assistance from the NYSDOL Office of Special Investigations and the Albany Police Department. The case was prosecuted by Assistant U.S. Attorney John T. Chisholm.
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, among other methods, 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.
Rapid City Man Charged with Causing a Fire and Careless DrivingRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Causing a Fire, Use of a Motor Vehicle off Designated Roadways, and Careless and Reckless Driving.
Dillon Rose, age 22, was indicted on May 19, 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollman on July 20, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to six months in custody and/or a $1,500 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 6, 2021, in Custer County, Rose carelessly and recklessly operated a motor vehicle off a designated roadway on the Buffalo Gap National Grasslands and caused a fire that burned approximately 2,600 acres.
The charges are merely accusations and Rose is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Forest Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Rose was released on bond pending trial. A trial date of September 27, 2022, has been set.
Repeat Offender from Cheyenne Sentenced for Drug and Firearm OffensesRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that DANIEL PATRICK GUTIERREZ, age 36, of Cheyenne, Wyoming, was sentenced for conspiracy to distribute methamphetamine, distribution of methamphetamine, using and carrying a firearm during and in relation to a drug trafficking crime, and felon in possession of a firearm on July 15, 2022 before Federal District Court Judge Alan B. Johnson. Gutierrez was sentenced to 360 months’ imprisonment, 10 years of supervised release, and ordered to pay $400 in special assessments.
In December 2020, the Wyoming Division of Criminal Investigation began an investigation into the distribution of methamphetamine in Natrona County. The investigation revealed that Gutierrez was purchasing pound-quantities of methamphetamine in the Denver area. He would often trade firearms for methamphetamine. Gutierrez, with the help of his co-conspirators, was responsible for the distribution of over seven pounds of methamphetamine in the Cheyenne and Casper areas. On August 13, 2021, Gutierrez was arrested and law enforcement found firearms and ammunition in a search of his Cheyenne home.
“Thanks to the cooperation of multiple local law enforcement agencies in this case, the government removed dangerous firearms and methamphetamine from the streets of Casper and Cheyenne,” said Acting U.S. Attorney Vassallo. “Gutierrez was previously convicted of two prior serious felony drug convictions – once in 2003 and again in 2009. Despite these interactions with the criminal justice system, Gutierrez continued to engage in criminal conduct that endangered communities across Wyoming. The long prison sentence Gutierrez has been ordered to serve ensures that a dangerous, repeat offender is removed from our community.”This crime was investigated by the Wyoming Division of Criminal Investigation, Casper Police Department, Laramie County Sheriff’s Office, and the Cheyenne Police Department. The case was prosecuted by Assistant United States Attorneys Christyne M. Martens and Margaret M. Vierbuchen.
Case Number: 0:22-cr-00007-ABJ
Queens Man Pleads Guilty to Pandemic-Related Fraud ChargesRead the Press Release
ALBANY, NEW YORK – Melvin Ansong, age 26, of Corona, New York, pled guilty today to mail fraud, aggravated identity theft and wire fraud in connection with schemes in which he obtained more than $190,000 in unemployment insurance benefits and government-backed loans meant to provide relief from the economic effects of the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
In pleading guilty, Ansong admitted that he fraudulently obtained $165,182 in unemployment insurance benefits from the New York State Department of Labor (NYSDOL) in the names of 13 other people and an additional $18,480 in benefits from the Arizona Department of Economic Security in the name of another individual. Ansong further admitted that he fraudulently obtained an $8,000 Economic Injury Disaster Loan from the U.S. Small Business Administration (SBA) by claiming that he owned a pet grooming company when in fact no such company existed.
As part of his plea agreement, Ansong agreed to pay restitution in the amounts of $165,182 to the State of New York, $18,480 to the State of Arizona, and $8,000 to the SBA.
The mail and wire fraud convictions each carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Ansong is scheduled to be sentenced on October 28, 2022 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by USDOL-OIG, USPIS, and HSI, with assistance from U.S. Customs and Border Protection’s New York Field Office and the NYSDOL’s Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorneys Alexander P. Wentworth-Ping and Joshua R. Rosenthal.
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, among other methods, 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.
Pittsburgh Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
PITTSBURGH, PA - A former Pittsburgh resident pleaded guilty in federal court on July 22, 2022, to violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Ronald Lewis III, 34, formerly of the City’s East Hills neighborhood, pleaded guilty to conspiracy to distribute 28 grams or more of cocaine base (in the form commonly known as “crack”) before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that beginning in 2019, agents with the FBI and other agencies investigated drug trafficking activity in Pittsburgh’s Hill District neighborhood, and elsewhere. As part of that investigation, agents conducted court-authorized interceptions of telephonic communications over a telephone utilized by codefendant Victor Simmons, who was convicted in February 2021 of conspiring with Lewis to distribute 28 grams or more of cocaine base. Through those intercepted communications, surveillance, and other evidence, the Government would have proven that Lewis distributed cocaine base to Simmons on several occasions between January and April 2020, which Simmons, in turn, redistributed to others. In connection with his plea, Lewis admitted that the quantity of cocaine base attributable to him was at least 28 grams but less than 112 grams.
Judge Haines scheduled sentencing for December 2022. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court returned Lewis to the custody of the United States Marshals Service. The defendant has been detained since his arrest in May 2020.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation’s Greater Pittsburgh Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the multi-agency investigation that included the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations), the Allegheny County Sheriff’s Office, and the Pennsylvania Office of the Attorney General.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pilot Charged in Cocaine Trafficking Scheme Extradited from ParaguayRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that RONIER SANCHEZ ALONSO, 46, a citizen of Mexico who is charged in a cocaine trafficking conspiracy, has been extradited from Paraguay.
On December 14, 2016, a grand jury in Bridgeport returned an indictment charging Sanchez and others with conspiracy to possess with intent to distribute five kilograms or more of cocaine on board an aircraft registered in the U.S. Sanchez has been detained since he was arrested in Asuncion, Paraguay, on March 25, 2021.
Sanchez is scheduled to be arraigned today at 2:30 p.m. before U.S. Magistrate Judge Thomas O. Farrish in Hartford.
As alleged in court documents, Sanchez conspired with others to transport approximately 1700 kilograms of cocaine from South America to the U.S. On August 6, 2016, Sanchez and Rupert De Las Casas flew a private jet, which was registered in the U.S., from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. De Las Casas was the pilot and Sanchez was the co-pilot. From Venezuela, the jet was to fly to Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. The plane crash-landed just short of a landing strip in Venezuela. Sanchez, De Las Casas and another co-conspirator evaded capture by Venezuelan authorities, and the cocaine was diverted back to Colombia.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
De Las Casas, who last resided in Florida, pleaded guilty and is detained while awaiting sentencing.
Another co-conspirator, Arrinson De La Cruz, who had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted, was charged separately for his role in this scheme and other drug trafficking activity. De La Cruz, a citizen of the Dominican Republic who had resided in Wolcott, Connecticut, pleaded guilty and, on November 20, 2019, was sentenced to 144 months of imprisonment.
This investigation is being conducted by the Drug Enforcement Administration New Haven Task Force, which includes members of the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The DEA Country Office in Paraguay, Interpol and the Paraguayan National Police have assisted the investigation.
U.S. Attorney Avery thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. State Department for coordinating the extradition proceedings in this matter, the U.S. Marshals Service for managing the defendant’s safe transport from Paraguay to the U.S., and Paraguayan Attorney General Sandra Quiñonez and her office for their assistance with the extradition.
This case is being prosecuted by Assistant U.S. Attorney Rahul Kale through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Phoenix Man Sentenced to 40 Months for Six Valley Bank RobberiesRead the Press Release
PHOENIX, Ariz. – Last week, Anthony Medina, 36, of Phoenix, Arizona, was sentenced by United States District Judge John J. Tuchi to 40 months in prison. Medina previously pleaded guilty to two counts of Bank Robbery. Medina was also ordered to pay full restitution for losses sustained during the six bank robberies.
Over the course of two months in 2021, Medina committed six bank robberies. He stole money from Phoenix branches of Chase Bank, Desert Financial Credit Union, US Bank, and Wells Fargo Bank. Medina was apprehended after fleeing the scene of the sixth robbery. Medina committed the robberies to obtain money to purchase fentanyl and methamphetamine.
The FBI, assisted by the Phoenix Police Department, conducted the investigation in this case. Assistant U.S. Attorney Coleen Schoch, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00539-PHX-JJT
RELEASE NUMBER: 2022-123_MEDINA# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
New Britain Man Sentenced to 8 Years in Federal Prison for Distributing Fentanyl and Crack in HartfordRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SAMUEL QUILES, 38, of New Britain, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 96 months of imprisonment, followed by five years of supervised release, for distributing fentanyl and crack cocaine in Hartford.
According to court documents and statements made in court, in November 2019, the FBI’s Northern Connecticut Gang Task Force and Hartford Police initiated an investigation targeting drug dealers and their drug suppliers who were operating principally in Hartford’s South End. The investigation revealed that Quiles, who had a lengthy criminal history, was selling narcotics in the area of Heath and Rowe Streets in Hartford. Between January and March 2020, investigators made controlled purchases of distribution quantities of fentanyl and crack from Quiles and a 16-year-old juvenile he employed.
Quiles was arrested on March 4, 2020, on a state warrant charging him with firearm and reckless endangerment offenses related to a shooting incident that occurred in January 2019. While detained in state custody, Quiles arranged for his girlfriend, Iris Colon, to continue his narcotics trafficking activities. Colon was arrested on April 15, 2020. At the time of her arrest a search of Quiles’ and Colon’s Dwight Street residence revealed approximately 130 grams of fentanyl and drug paraphernalia.
Quiles has been detained since his state arrest. On February 22, 2022, he pleaded guilty in federal court to one count of conspiracy to possess with intent to distribute, and distribution of, 40 grams of fentanyl and a detectable amount of cocaine base (“crack cocaine”).
Colon pleaded guilty to the same charge on February 24, 2022, and awaits sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Naturalized U.S. Citizen Guilty of International Parental KidnappingRead the Press Release
CAMDEN, N.J. – A naturalized U.S. citizen who had been living in India was convicted of obstructing the parental rights of his child’s mother by kidnapping the child and failing to return the child to the United States when ordered to do so, U.S. Attorney Philip R. Sellinger announced today.
Amitkumar Kanubhai Patel, 38, of Vadodara, India, formerly of Edison, New Jersey, was convicted on July 22, 2022, of one count of international parental kidnapping following a five-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court.
According to documents filed in this case and the evidence at trial:
The child’s mother and Patel were in a relationship and resided together in New Jersey from August 2015 through July 2017. The two never married. In November 2016, Patel and the child’s mother had a child, who was born in Edison Township.
According to the child’s mother, Patel wanted to take the child to India to introduce him to Patel’s parents and obtain DNA testing, which Patel claimed was necessary for the child to claim property that Patel’s family owned in India. Patel also told the child’s mother that in order to obtain an Indian visa for the child, he would need to secure sole custody, which required them to go to court. Patel instructed the mother to tell the court that they had a mutual understanding regarding the custody of their child. Patel instructed the mother to state that she did not have a work permit, and since she was unemployed, she could not care for her child.
On May 1, 2017, Patel took the child’s mother to New Jersey Superior Court, Chancery Division Family Court, in order to obtain sole custody of the child. According to the mother, the majority of the hearing was conducted in English with no translator. At the time of the hearing, the mother spoke limited English. The mother answered the court’s questions as she had been instructed by Patel. The mother was not represented by an attorney during the hearing.
On May 2, 2017, the New Jersey Superior Court granted Patel sole legal custody of the child premised on the consent of the child’s mother to the arrangement, but specifically reserved for the mother the ability to file for joint legal custody if she so chose in future. Upon receiving the court order, Patel obtained visas to India for himself and the child, and booked air travel, telling the child’s mother that they would only be gone for two weeks to a month. Patel then took the child to India and after several days in India, called the mother and said that he was never bringing the child back to the United States. The child’s mother obtained legal counsel and returned to the New Jersey Superior Court. On Oct. 16, 2018, the New Jersey Superior Court entered an order directing Patel to return the child to the United States immediately.
On Oct. 19, 2018, the mother’s counsel emailed the October 16, 2018, family court order to Patel, who did not return the child to the United States. On Oct. 2, 2020, Patel and the child flew from India to the United Kingdom. Upon arrival, Patel was arrested based on a provisional arrest request submitted by the United States. After a custody hearing in London pursuant to the Hague Convention, the London Court ordered it was in the best interest of the child that the child be returned to his paternal grandparents in India. Patel was subsequently extradited to the United States to stand trial.
The international parental kidnapping offense of which Patel stands convicted carries a maximum penalty of three years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 22, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline McGuire in Philadelphia, with the investigation leading to the guilty verdict. U.S. Attorney Sellinger also thanked members of the Department’s Office of International Affairs, the U.K. Crown Prosecution Service and the Metropolitan Police for their assistance in the extradition.
The government is represented by Deputy U.S. Attorney Andrew Carey and Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Morgan Hill Man Sentenced to More Than 17 Years for Child Sexual Abuse OffensesRead the Press Release
SAN JOSE – Johnny Ray Wolfenbarger was sentenced today to 210 months in federal prison for the attempted production of child pornography, the attempted coercion and enticement of a minor to engage in child pornography production, and the receipt of child pornography, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan. The sentence was handed down by United States District Judge Edward J. Davila.
“All children, wherever they are, must be protected from being preyed upon by a sexual predator,” said United States Attorney Stephanie M. Hinds. “Johnny Ray Wolfenbarger leveraged the extreme poverty and desperation of foreign families to perpetrate sexual abuse on their young children. His prison sentence reflects these vile acts and the immeasurable harm he caused to these children’s lives.”
“Child exploitation deprives children of their basic rights to safety and well-being. The physical and emotional trauma the defendant inflicted on child victims may alter their lives for years to come,” said FBI San Francisco Special Agent in Charge Sean Ragan. “Children deserve to be free from exploitation. It is of utmost importance to the FBI that children are made safe and that the creators of child pornography are caught and pay for their crimes.”
“CBP protects the public from many threats. The prosecution of child predators is only one aspect of our multi-faceted mission,” said CBP Acting Director of Field Operations Bruce Murley. “We will continue to work closely with our Federal and State law enforcement partners to ensure the safety of the most vulnerable in our society.”
Wolfenbarger, 65, of Morgan Hill, was convicted by a federal jury on August 12, 2021, of all child sexual abuse offenses charged against him. According to evidence presented at trial, the FBI initiated an investigation into Wolfenbarger after receiving a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC) that Wolfenbarger received and distributed child pornography using his email account. In 2016, a federal magistrate judge issued a search warrant authorizing the FBI to examine the contents of the email account for child pornography. The FBI executed the warrant on the email account and discovered numerous images and videos of child pornography, chats detailing Wolfenbarger’s solicitation of livestreamed child sex abuse shows, and receipts for money transfers by Wolfenbarger to numerous sex traffickers the Philippines who were selling these shows. The chats demonstrated that Wolfenbarger customized these livestreamed sex shows by directing the children to engage in specific sex acts on camera.
Further trial evidence showed Wolfenbarger traveled to the Philippines throughout 2015 and early 2016. On August 2, 2016, he returned to the United States. Upon his arrival, an FBI Special Agent interviewed Wolfenbarger. Wolfenbarger admitted during the interview that the email account belonged to him. He further admitted that he solicited, paid for, and directed livestreamed child sex abuse shows from numerous women in the Philippines. Wolfenbarger directed the children in the shows to engage in sex acts by themselves, upon each other, and upon adults, and directed the use of bottles, vibrators, and other sex toys during these acts. He also directed adults in the show to engage in sex acts upon the children and to use the sex toys upon them. The children who were in these shows engaging in sex acts, Wolfenbarger admitted, were twelve years old and younger – including as young as four years old.
Wolfenbarger further described that he watched the livestreamed child sex abuse on his desktop and laptop computers at his home in California. Trial evidence showed that he paid for the live webcam sessions via Western Union and by using the tip function of the webcam service. Western Union records documented over $25,000 in money transfers from Wolfenbarger to individuals in the Philippines. On several occasions, Wolfenbarger sent money to the children or their guardians for living expenses and to purchase sex toys and web cams, with the explicit understanding that he would receive sex shows in return.
The government’s trial evidence included Wolfenbarger’s recorded statements, records of his chats, images and videos of child pornography attached to emails that Wolfenbarger received and sent, and Western Union records of money transfers sent by Wolfenbarger to pay for the livestreamed child sex abuse.
In a memo filed for sentencing, the government highlighted Wolfenbarger’s callousness towards the children. Online sexual exploitation of vulnerable children in the Philippines has greatly increased in recent years due to demand from pedophiles in wealthy Western nations, the government described. In this case, the government outlined how the extreme poverty of the young victims and their families provided extensive leverage to Wolfenbarger, who used his payments to induce the young victims and their families to create sex shows for him. Several sex chats feature victims’ requests for money to pay for food, overdue rent, school fees, and other necessities. As an example, in one chat a young victim asked Wolfenbarger for money to attend a school Christmas party with her cousin. Wolfenbarger wired her approximately $30 worth of Philippine Pesos, then added, “dad need a good show later my daughter.”
The federal jury convicted Wolfenbarger of all counts in the superseding indictment. The mandatory minimum and statutory maximum sentences for the crimes are as follows:
- for attempted production of child pornography in violation of Title 18, United States Code, Sections 2251(a) and (e): imprisonment for a minimum term of 15 years and a maximum term of 30 years; and a minimum term of supervised release of 5 years and a maximum of life;
- for attempted coercion and enticement of a minor to engage in the production of child pornography in violation of Title 18, United States Code, Section 2422(b): imprisonment for a minimum term of 10 years and a maximum term of life; and a minimum term of supervised release of 5 years and a maximum of life; and
- for the receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2): imprisonment for a minimum term of 5 years and a maximum term of 20 years; and a minimum term of supervised release of 5 years and a maximum of life.
In addition to the 210 month prison term, Judge Davila sentenced Wolfenbarger to a 15 year term of supervision upon release from federal prison. The defendant was in custody at the hearing and begins serving his prison term immediately.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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 http://www.justice.gov/psc.
Assistant United States Attorneys Marissa Harris and Maia Perez prosecuted the case, with the assistance of paralegal Mimi Lam and legal assistants Susan Kreider and Sahib Kaur. The prosecution is the result of an investigation by the Federal Bureau of Investigation and United States Customs and Border Protection.
Mexican national admits to smuggling bundles of cocaine in car batteryRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old woman has admitted to possession with intent to distribute more than four kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
On May 14, Marisol Sanchez-Sanchez attempted to drive a sport utility vehicle into the primary inspection lane of a Border Patrol (BP) checkpoint located near Sarita. There, authorities searched her vehicle and discovered four bundles of cocaine hidden inside the vehicle’s battery compartment.
The drugs weighed 4.4 kilograms and have an estimated street value of more than $100,000.
U.S. District Judge Drew Tipton will impose sentencing Oct. 19. At that time, Sanchez-Sanchez faces up to 40 years in federal prison and a possible $5 million maximum fine.
She was permitted to remain on bond pending that hearing.
BP and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney John Marck is prosecuting the case.
Mexican National Sentenced to More Than 17 Years in Federal Prison for Trafficking Fentanyl and HeroinRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Alexander Juarez-Sanchez, a/k/a Jose Manuel Flores, age 37, a citizen of Mexico most recently residing in Indianapolis, Indiana, to 210 months in federal prison, followed by five years of supervised release, for conspiracy to distribute controlled substances, for possession with intent to distribute controlled substances, specifically fentanyl and heroin, and for illegally re-entering the United States after removal. Juarez-Sanchez was convicted of those charges on May 31, 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Field Office Director Lyle Boelens of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), Baltimore Field Office; and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA), Washington Division.
According to the evidence presented at his five-day trial, on August 5, 2020, Juarez-Sanchez and a co-conspirator were arrested near Hagerstown, Maryland, by officers of the Maryland State Police (MSP) following a traffic stop for following another vehicle too closely on I-81. The driver, who was driving a vehicle with expired Indiana license plates registered to another car, was not able to provide any identification, could not identify the passenger (Juarez-Sanchez), and fumbled through questions about where they were going. A K-9 unit was subsequently called, and after the dog alerted for drugs, a search of the vehicle yielded approximately $47,000 in cash, just under two kilograms of fentanyl and one kilogram of heroin, and other indicators of drug smuggling.
Juarez-Sanchez and the driver initially provided false names, however, their fingerprints and photographs matched those taken when they had previously been in United States Border Patrol or ICE custody. Evidence taken from the two men’s cell phones showed that, before their arrest, they had traveled directly from Burbank, California, where Juarez-Sanchez had obtained seven kilograms of drugs, four kilograms of which he had sold to a buyer in Kentucky for $44,000 the day before his arrest in Maryland. Phone evidence also revealed that the men had conducted a similar trip to California in early July 2020 and transported an unknown quantity of drugs for sale to a buyer in a northern suburb of Chicago, Illinois. The driver entered a guilty plea in the case and is due to be sentenced in October 2022.
United States Attorney Erek L. Barron commended the Maryland State Police, ICE ERO, and DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adam K. Ake and Special Assistant U.S. Attorney Amy L. Schwartz, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Martinsburg man guilty of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Descott Thomas Fedee, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Fedee, 32, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Fedee, a person prohibited from having firearms because of a prior conviction, admitted to having a .380 caliber pistol in May 2021 in Berkeley County.
Fedee faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg man guilty of fentanyl chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jayce Allen Holben, III, of Martinsburg, West Virginia, has admitted to a fentanyl charge, United States Attorney William Ihlenfeld announced.
Holben, 21, pleaded guilty today to one count of “Aiding and Abetting Distribution of Fentanyl.” Holben admitted to selling fentanyl in January 2021 in Berkeley County.
Holben faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Magalia Resident Sentenced to 12 Months in Prison for $77,000 FEMA Fraud in Connection with the Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge William B. Shubb sentenced Deborah Laughlin, 66, of Magalia, today to 12 months in prison and ordered to pay $77,249 in restitution for making false statements in an application for FEMA benefits in connection with the 2018 Paradise Camp Fire, U.S. Attorney Phillip A. Talbert announced.
According to court documents, FEMA provided disaster benefits to certain qualified individuals whose primary residence was damaged or destroyed in the Camp Fire. On Nov. 15, 2018, Laughlin falsely claimed a mobile home at 7209 Skyway in Paradise as her primary residence at the time of the Camp Fire. In fact, at the time of the Camp Fire, other individuals were renting and residing in the mobile home located at this address. Based on her false statement, she received $7,886 to replace essential items damaged by the disaster and $1,788 for two months of rental assistance. In addition, Laughlin received temporary housing from FEMA in a manufactured home from approximately June 2019 until April 2021. The money and housing Laughlin received caused an actual loss to the United States of at least $77,249.
This case was the product of an investigation by the Department of Homeland Security Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger prosecuted the case.
Members of the public who suspect fraud involving disaster relief efforts, including California wildfires or COVID-19 relief efforts, or who believe they have been a victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. Alternatively, information can be submitted via email to DHSOIGHotline@dhs.gov.
Local Paving Company Owner Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – The owner of a local paving company pleaded guilty today to tax evasion in connection with a seven-year scheme to underreport income on his tax returns.
Robert Brainard, 52, of Weymouth, pleaded guilty to one count of tax evasion. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 17, 2022. Brainard was charged on July 15, 2022.
Brainard, the former owner of Got Pavement Needs, Inc., underreported income on his personal tax returns for tax years 2014 through 2021, resulting in an income tax loss of more than $593,993. In addition, to hide his control of the business, Brainard transferred ownership of his company in a straw sale, while maintaining control over the company’s operations and income.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Little Eagle Man Indicted for Burglary, Assault, and Arson ChargesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Domestic Assault Resulting in Serious Bodily Injury, and Arson.
Dustin Jade Red Fox, age 30, was indicted on July 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 21, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 21, 2022, in Little Eagle, Red Fox burglarized a home and assaulted one of its occupants. Red Fox then attempted to burn down the home by starting a fire.
The charges are merely accusations and Red Fox is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Standing Rock Agency. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Red Fox was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Justice Department, EPA and State of Colorado Settlement with DCP Operating Company LP Resolves Clean Air Act Violations at Natural Gas Plants in ColoradoRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA), and the State of Colorado today announced a settlement with DCP Operating Company LP and five other subsidiaries of DCP Midstream LP that will strengthen leak detection and repair practices at eight natural gas processing plants in Weld County, Colorado, located within the Denver Metro/North Front Range Ozone Nonattainment Area.
The settlement was filed today in the U.S. District Court for the District of Colorado along with a complaint that alleges DCP violated leak detection and repair requirements in federal and state clean air laws, resulting in excess emissions of volatile organic compounds (VOC) and other pollutants to the atmosphere. As part of the settlement, DCP will take corrective actions and pay a $3.25 million civil penalty for the alleged violations.
“Leaks from equipment like valves, pumps, and connectors are a significant source of harmful air pollutants,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “Enforcement actions like this are critical to improving air quality, particularly in places facing air quality challenges like Weld County.”
“EPA continues to deliver cleaner air through the rigorous enforcement of the Clean Air Act,” said EPA Regional Administrator KC Becker. “This settlement will reduce emissions of over 288 tons of volatile organic compounds and 1,300 tons of methane from production areas near northern Colorado communities, a majority of which are disproportionately impacted by pollution.”
“The Air Pollution Control Division’s Leak Detection and Repair Program is among the most innovative programs in the nation. Because of our inspectors and enforcement action team, we are able to hold DCP accountable to reducing their emissions from potential leaks,” said Jill Hunsaker Ryan, Executive Director of the Colorado Department of Public Health and the Environment (CDPHE). “The resources obtained from the settlement will help contribute to our Community Impact Fund, a program which supports community-led environmental justice projects.”
“The Colorado Attorney General’s Office is proud to support the Air Pollution Control Division in this important work to protect and improve Colorado’s air quality, particularly in communities disproportionately impacted by air pollution,” said Colorado Attorney General Phil Weiser. “This settlement serves as a model for addressing complex issues through collaboration between our state agencies and federal counterparts like EPA and the Department of Justice.”
Under the settlement, DCP has agreed to strengthen its leak detection and repair practices at the Greeley, Kersey/Mewbourne, Platteville, Roggen, Spindle, O’Connor and Lucerne natural gas processing plants, as well as the to-be-constructed Bighorn natural gas processing plant. These commitments include installing equipment that leaks less pollution to the atmosphere, reviewing compliance with leak detection and repair requirements, and repairing leaking equipment faster. DCP will also improve staff training for leak detection and repair at its facilities. Additionally, DCP has agreed to use optical gas imaging technology to improve the visual detection of leaks and address them quickly.
DCP will also install additional pollution reduction measures at the Kersey/Mewbourne natural gas processing plant that are intended to mitigate the harm caused by its past emissions. Specifically, DCP will install a dry seal recompression system on two turbines at the Kersey/Mewbourne plant. This project will cost an estimated $1.15 million and is expected to reduce VOC emissions by 26 tons per year and methane emissions by 375 tons per year.
The Denver Metro/North Front Range nonattainment area, which includes Weld County, does not meet national air quality standards for ground-level ozone pollution. Equipment leaks at DCP’s plants emit VOCs, which lead to the formation of ground-level ozone. Ozone contributes to serious public health concerns, including respiratory illness, aggravation of existing heart disease and temporary breathing difficulty for people with asthma. Young children and the elderly are especially sensitive to these impacts. Leaks from equipment at DCP’s plants also emit methane, a powerful greenhouse gas.
Working with CDPHE, EPA’s enforcement program is increasing efforts in Colorado to ensure compliance and protect the health of vulnerable populations. Several of the natural gas processing plants covered under this settlement are located in disproportionately impacted communities.
The consent decree is available for public viewing in the attached. The United States will publish a notice of the Consent Decree’s lodging with the U.S. District Court for the District of Colorado in the Federal Register, and will accept public comment for 30 days after the notice is published. The Federal Register notice will also include instructions for submitting public comment.
Justice Department Files Lawsuit and Proposed Consent Decrees to End Long-Running Conspiracy to Suppress Worker Pay at Poultry Processing Plants and Address Deceptive Abuses Against Poultry GrowersRead the Press Release
Decree Provisions Would Stop the Exchange of Compensation Information, Ban President of Data Consulting Firm from Industry, Subject Settling Poultry Processors to 10-Year Antitrust Compliance Monitor; Decree Would also Prohibit Deceptive Conduct Towards Chicken Growers that Lowers Their Compensation
The Department of Justice filed a civil antitrust lawsuit in the U.S. District Court for the District of Maryland against a data consulting firm and its president, as well as three poultry processors, to end a long-running conspiracy to exchange information about wages and benefits for poultry processing plant workers and collaborate with their competitors on compensation decisions in violation of the Sherman Act.
The lawsuit also alleges that two of the poultry processors violated the Packers and Stockyards Act by engaging in deceptive practices associated with the “tournament system,” which pits chicken growers against each other to determine their compensation. At the same time, the department filed proposed consent decrees with Defendants Webber, Meng, Sahl and Company (WMS) and its President, G. Jonathan Meng, as well as Cargill Inc., Cargill Meat Solutions Corporation, Sanderson Farms Inc. and Wayne Farms LLC.
“Through a brazen scheme to exchange wage and benefit information, these poultry processors stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action puts companies and individuals on notice: the Antitrust Division will use all of its available legal authorities to address anticompetitive conduct that harms consumers, workers, farmers and other American producers.”
“I’m so pleased to see the close partnership between the Department of Agriculture (USDA) and the Justice Department has led to enforcement that is good for farmers,” said Andy Green, USDA’s Senior Advisor for Fair and Competitive Markets. “This resolution yields significant reforms to the poultry tournament system, including ending one of its most troubling aspects around deceptive base prices, and enhancing transparency in contracting, earnings and inputs that will protect and benefit growers — as USDA has proposed in our Packers & Stockyard Act rulemaking.”
If approved by the court, the proposed consent decree with data consulting firm WMS would ban WMS from providing surveys or any other services that facilitate the sharing of competitively sensitive information in any industry. Jonathan Meng, WMS’s President, is also subject to the terms of the consent decree in his individual capacity.
The proposed consent decree with defendant poultry processors Cargill, Sanderson Farms and Wayne Farms would prohibit them from sharing competitively sensitive information about poultry processing plant workers’ compensation. It would also:
- Impose on the poultry processors a court-appointed compliance monitor who, for the next decade, will ensure their compliance with the terms of the proposed decree;
- Grant the court-appointed monitor broad authority to ensure their compliance with all federal antitrust laws as they relate to their poultry processing facilities, workers at their poultry processing plants, chicken growers, integrated poultry feed, hatcheries, transportation of poultry and poultry products, and the sale of poultry and submit regular reports on the processors’ antitrust compliance;
- Permit the Antitrust Division to inspect the processors’ facilities and interview their employees to ensure compliance with the consent decree; and
- Require the companies to commit to pay $84.8 million, collectively, in restitution for poultry processing plant workers who were harmed by the information exchange conspiracy.
These terms would expire 10 years after the consent decree is approved by the court.
Additionally, the proposed consent decree with Sanderson Farms and Wayne Farms would resolve alleged violations of the Packers and Stockyards Act, which prohibits, among other things, deceptive practices in poultry markets. As alleged in the complaint, poultry processors use a “tournament system” to adjust a chicken grower’s “base payment” based on how well the grower performs relative to other growers. The poultry processors, however, control nearly all the key inputs, including the chicks delivered to the growers and their poultry feed, that often determine a grower’s success. In allocating this financial risk to their chicken growers, Sanderson Farms and Wayne Farms failed to provide information that would have allowed their growers to evaluate and manage their financial risk. The proposed consent decree would:
- Prevent Sanderson Farms and Wayne Farms from penalizing chicken growers by reducing their base payments as a result of relative performance, while still allowing for incentive, bonus and other types of payments to growers;
- Require expanded information disclosures in grower contracts, consistent with proposed transparency rules set out by the USDA; and
- Prohibit retaliation against growers who raise antitrust concerns with the court-appointed compliance monitor or the government.
As required by the Tunney Act, the proposed consent decrees, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decrees during a 60-day comment period to Lee F. Berger, Chief, Civil Conduct Task Force, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Maryland may enter the final judgment upon finding it is in the public interest.
Today’s lawsuit is part of a broader investigation into anticompetitive labor market abuses in the poultry processing industry. Anyone with information about poultry industry collusion, competitors sharing non-public compensation information, anticompetitive conduct violations against workers or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov. The division will forward complaints about the settling processor defendants to the court-appointed antitrust monitor where appropriate. Information about anticompetitive practices in livestock and poultry markets can also be submitted to the USDA and Justice Department Agricultural Markets Enforcement Partnership at www.farmerfairness.gov.
The claims resolved by the resolutions announced today are allegations only and there has been no determination of liability.
Jury finds driver guilty of smuggling seven in tractor cabRead the Press Release
LAREDO, Texas – A federal jury in Laredo has convicted a 39-year-old man from Petal, Mississippi, for smuggling seven undocumented aliens in the sleeper cab of his tractor-trailer, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 15 minutes before convicting Daniel McLaurin following a one-day trial.
On April 22, McLaurin drove his tractor-trailer into a Border Patrol (BP) checkpoint on IH-35 north of Laredo. At inspection, law enforcement asked McLaurin if there were any passengers in his vehicle. At that time, he stated that he had one passenger and that they were both U.S. citizens.
Shortly thereafter, authorities asked McLaurin if he would consent to drive his tractor-trailer through an X-ray scanner, and he agreed. It revealed images in the sleeper cab that appeared to be human bodies. They conducted a search and discovered seven undocumented individuals inside of the tractor cab.
Later, they were determined to be unlawfully present in the country.
U.S. District Judge Marina Garcia Marmolejo presided over trial and will impose sentencing at a later date. At that time, McLaurin faces up to 10 years in prison and a possible $250,000.00 maximum fine.
He was permitted to remain on bond pending that hearing.
U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Gerard A. Cantu and Brandon Bowling prosecuted the case.
Jessamine County Man Sentenced to 93 Months for Distribution of Marijuana and Money LaunderingRead the Press Release
LEXINGTON, Ky. — A Nicholasville, Ky., man, Demetrius Burt Catching, 32, was sentenced to 93 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to the distribution of marijuana and money laundering.
According to Catching’s plea agreement, he admitted to distributing marijuana in the Lexington area, and then taking the proceeds from the marijuana sales and placing large sports bets and wagers at various Indiana casinos. According to the plea, Catching was banned from one of the casinos, on January 9, 2021, so he recruited others to go in his place to make his wagers and bets. Cash from the wagers was deposited in bank accounts in Catching’s name. Catching was also ordered to forfeit approximately $215,000 in proceeds from his drug trafficking and money laundering offenses, and ordered to serve an additional, consecutive term of 55 months, for supervised release violations on previous convictions.
Catching pleaded guilty to the new charges in March 2021.
Under federal law, Catching must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigations; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Todd Justice, Nicholasville Police Department, jointly announced the sentence.
The investigation was conducted by the IRS – Criminal Investigations, DEA, U.S. Probation Office, the Indiana Gaming Commission, and the Nicholasville Police Department. The United States was represented by Assistant U.S. Attorneys Roger West and Andrea Mattingly Williams.
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Jefferson County man facing 50-year prison term sentenced to 10 years for gun crimesRead the Press Release
ST. LOUIS – Today, U.S. District Judge John A. Ross sentenced a man from Jefferson County, Missouri who is already serving a 50-year prison term for the sexual exploitation of a minor to 10 years on gun charges. The 10-year sentence will be consecutive to the present 50-year prison term for a total of 60 years confinement.
On April 11, 2018, Jefferson County Sheriff’s deputies received a tip that Earl G. Rice Jr., who had active arrest warrants and a pending sex charge in St. Clair County, was preparing to flee to avoid arrest. Rice had a .45-caliber pistol in his pocket. After his arrest, deputies found more than 70 other rifles and shotguns, as well as two silencers.
Rice was indicted in U.S. District Court in St. Louis in 2018 on one felony count of being a felon in possession of a firearm and one felony count of possession of firearms without a serial number. A jury convicted Rice, 63, of those charges in March.
Rice was indicted in 2019 in U.S. District Court in the Southern District of Illinois on charges of child enticement, travel with the intent to engage in sex with a minor and producing sexually explicit images of that minor.
On Valentine’s Day in 2018, Rice drove from his home in Dittmer to the victim’s home in Belleville, then took her to a motel where he engaged in sex acts with her and produced sexually explicit images of her. He was convicted of those charges last year and sentenced to 50 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Department. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.
Guilty Verdict in Eight-year Money Laundering ConspiracyRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that on Monday a federal jury convicted a Bear, Delaware couple on charges of conspiracy to commit money laundering and various other money laundering offenses, in connection with an eight-year scheme to launder drug proceeds. The jury separately found that thirteen real properties were involved in the money laundering offenses and subject to criminal forfeiture. Circuit Judge Stephanos Bibas, sitting by designation, accepted the verdict.
According to court records and evidence presented at trial, between 2009 and 2017, Omar Morales Colon, age 45, and his wife Shakira Martinez, age 44, laundered over a million dollars in drug proceeds through the purchase of real estate properties in Delaware and Pennsylvania using their company, Zemi Property Management. They deposited drug money into several different bank accounts – and asked their friends and family members to do the same – and then used those funds to buy cashier’s checks that funded the property purchases. The government also presented evidence at trial that Colon made improvements to those properties using drug proceeds, including paying cash to have an underground bunker installed beneath his home in Bear, Delaware.
Colon was arrested on May 6, 2017, shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (DEA) subsequently discovered the secret underground bunker beneath Colon’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation.
U.S. Attorney Weiss commented on the case, “The defendant was a sophisticated drug trafficker who conspired with others, including members of the Sinaloa cartel, to bring vast amounts of cocaine into Delaware. He and Ms. Martinez also laundered the proceeds of his drug activity through the U.S. financial system. The DEA’s investigation led to the seizure of 17 kilograms of cocaine, pounds of marijuana, nearly $1 million in cash, and the conviction of a major drug trafficker. My office will continue working with our law enforcement partners to hold accountable those who profit from illegal drug operations by not only prosecuting them, but also endeavoring to deprive them of the fruits of their illegal activities.
“Colon and Martinez underestimated IRS-Criminal Investigation Special Agents’ hallmark expertise,” said IRS-CI Special Agent in Charge Yury Kruty. These defendants thought they could hide the source of their ill-gotten gains, but the overwhelming evidence presented to the jury during trial showed just how wrong they were. This guilty verdict is a reminder that our commitment to unraveling complex financial transactions and money laundering schemes remain unwavering.”
Colon was convicted in September 2021 of related counts – conspiracy to distribute five kilograms or more of cocaine and possession of marijuana with intent to distribute. Colon faces a mandatory minimum of ten years in prison when sentenced, with a maximum of life. Martinez faces a maximum of twenty years in prison. Judge Bibas will determine the defendants’ sentences, after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Jennifer K. Welsh and Meredith C. Ruggles are prosecuting the case. This case was investigated by the DEA Philadelphia Division and the IRS-Criminal Investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:17-cr-00047-LPS.
Four Defendants Sentenced in North Alabama Virtual Education SchemeRead the Press Release
Montgomery, Ala. – This week, four individuals were sentenced to federal prison for their part in a scheme to fraudulently enroll students in Alabama virtual schools, announced the United States Attorney’s Office for the Middle District of Alabama.
Today, the former superintendent of the Athens City Schools district, William L. (“Trey”) Holladay, III, was sentenced to 60 months in prison and ordered to pay $2,865,948.60 in restitution to Alabama State Department of Education (ALSDE). During the same hearing, Gregory (“Greg”) Earl Corkren received a sentence of 22 months’ imprisonment and was ordered to pay $1,303,514.28 in restitution to ALDSE. Finally, David Webb Tutt was also sentenced today to 24 months in prison and ordered to pay a fine of $15,000.00, plus $258,920.04 in restitution to ALDSE.
Earlier this week, Thomas Michael Sisk, formerly the superintendent of the Limestone County School district, was sentenced to 18 months in prison and ordered to pay a fine of $15,000.00 and restitution in the amount of $13,000.00 to ALDSE. Each defendant will be subject to three years of supervised release after serving his sentence. There is no parole in the federal system.
All four defendants had previously pleaded guilty to conspiring to fraudulently enroll students in public virtual schools and then falsely reporting those students to ALDSE. As a result of this conduct, districts received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. The various defendants then received, for their own personal use, portions of the state money. The defendants skimmed the state money through direct cash payments and payments to third-party contractors owned by the various co-conspirators. Corkren also pleaded guilty to aggravated identity theft.
In March of this year, another defendant charged in the scheme, William Richard (“Rick”) Carter, Jr., was found guilty after a four-week trial of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Carter’s sentencing hearing is scheduled for August 3, 2022.
Four Charged in Big Island Affordable Housing Corruption SchemeRead the Press Release
HONOLULU – A federal grand jury returned an eight-count indictment against Paul Joseph Sulla, Jr., 76, and Gary Charles Zamber, 53, both attorneys residing on the island of Hawaii (“Big Island”), on July 21, 2022. Both defendants are charged with six counts of honest services wire fraud and one count of conspiracy. Sulla is also charged with one count of money laundering.
In addition, Alan Scott Rudo, 55, a former Housing Specialist for the Hawaii County Office of Housing and Community Development, and Rajesh P. Budhabhatti, 62, a private businessman on the Big Island, were charged in separate informations with conspiracy to commit honest services wire fraud. Rudo pleaded guilty to the charge before United States Magistrate Judge Rom A. Trader on July 18, 2022.
The indictment alleges a conspiracy and a scheme to deprive the public of its right of honest services spanning more than six years. According to court documents and information presented in court, Rudo solicited and accepted multiple bribes and kickbacks from Sulla, Zamber and Budhabhatti in exchange for performing, and agreeing to perform, official acts while working for the Hawaii County Office of Housing and Community Development (OHCD).
According to the indictment and informations, the defendants deceived the public into believing that Rudo was dutifully working on their behalf to provide affordable housing, when in reality he was using his official position to obtain money from Sulla, Zamber and Budhabhatti in the form of bribes and kickbacks. Rudo abused his official position with the OHCD to ensure the County approved three affordable housing agreements (AHAs) involving Luna Loa Developments, LLC, West View Developments, LLC and Plumeria at Waikoloa, LLC. These companies were variously owned, controlled, and used by the defendants to obtain public benefits related to development projects in South Kohala, Kailua-Kona, and Waikoloa. Through the AHAs, the defendants fraudulently obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs).
Sulla is also charged in the indictment with money laundering. According to the allegations, he laundered the proceeds of the conspiracy and scheme to commit honest services wire fraud in an attempt to conceal, among other things, the source, location, and ownership of those proceeds.
Indictments and informations are merely allegations, and defendants Sulla, Zamber, and Budhabhatti are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Budhabhatti is scheduled to enter a guilty plea to the information before United State District Judge Jill A. Otake on August 1, 2022. Rudo is set for sentencing before Judge Otake on October 31, 2022.
The crimes of conspiracy and scheme to commit honest services wire fraud each carry a maximum penalty of 20 years imprisonment and a fine of $250,000. Money laundering carries a maximum penalty of 20 years imprisonment and a fine of twice the value of the property involved in the transaction, which in this case is over $1,000,000.
As part of the investigation, the United States has recovered over $2.3 million in criminal proceeds and 45 affordable housing credits connected to the charges. As part of his guilty plea, Rudo agreed to forfeit his interest in those funds and the 45 affordable housing credits, as well as other real estate connected to the charges. Rudo has also agreed to a money judgment against him in the amount of $2,114,170.
This case is the result of an on-going investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Mohammad Khatib and Sydney Spector are prosecuting the case.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE- Bryant D. Aron, age 37, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady following a conviction for being a felon in possession of a firearm and ammunition, announced United States Attorney Clifford D. Johnson.
Aron was sentenced to 120 months in prison followed by 3 years of supervised release.
According to documents in this case, on May 24, 2019, Aron was the driver of a vehicle involved in a high-speed chase with the Fort Wayne Police Department. During the pursuit, Aron crashed his vehicle, then exited it, and led police on a short foot pursuit. At the time of his apprehension, a loaded magazine was found in his pocket. A loaded firearm was also found inside the vehicle. Aron’s prior criminal history revealed that he had multiple felony convictions out of Allen County Superior Court which prohibited his possession of a firearm or ammunition. Aaron was convicted of the illegal possession of the firearm and ammunition at the conclusion of a two-day jury trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former Nurse Pleads Guilty to Fraudulently Obtaining FentanylRead the Press Release
CHARLOTTESVILLE, Va. – A former registered nurse who worked in the Emergency Department at Sentara Martha Jefferson Hospital (SMJH) in Charlottesville, pled guilty today to obtaining controlled substances, fentanyl, and hydromorphone, by fraud.
Angelica Franklin, 36, of Chesterfield, Virginia, waived her right to be indicted and pled guilty today to one count of acquiring or obtaining controlled substances by misrepresentation by fraud, forgery, or deception.
According to court documents, Franklin was a registered nurse with the Virginia Department of Health Professions Board of Nursing. On August 16, 2021, she began working in the Emergency Department of SMJH in Charlottesville.
Franklin admitted today that in September 2021, she knowingly and intentionally entered fraudulent verbal orders for fentanyl and hydromorphone into the SMJH electronic medical records system on behalf of physicians who did not issue the verbal orders. Franklin then obtained the fentanyl and hydromorphone from the SMJH automated dispensing cabinet but did not administer the controlled substances to patients.
In addition, Franklin admitted to unlawfully obtaining controlled substances fentanyl, hydromorphone, oxycodone, and alprazolam while working as a nurse at three Richmond-area health care facilities: Stony Point Surgery Center, Vibra Hospital, and The Laurels of Willow Creek.
In total, across all facilities, Franklin unlawfully obtained approximately 4,450 mcg of fentanyl, 80 mg of hydromorphone, 3,600 mg of oxycodone, and 14 mg of alprazolam.
Franklin is scheduled to be sentenced on November 10, 2022 and faces a maximum penalty of four years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by U.S. Attorney Christopher R. Kavanaugh, Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice’s Criminal Division, Washington Division Special Agent in Charge Jarod A. Forget, Richmond District Office Assistant Special Agent in Charge Christopher C. Goumenis of the Drug Enforcement Administration (DEA), and Metro Washington Field Office Special Agent in Charge George A. Scavdis of the Food and Drug Administration - Office of Criminal Investigations (FDA-OCI).
The DEA, FDA-OCI, Virginia State Police, U.S. Department of Health and Human Services, and the Virginia Department of Health Professionals are investigating the case.
Assistant Chief Alexis Gregorian of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ronald M. Huber are prosecuting the case. The U.S. Attorney’s Office for the Eastern District of Virginia provided valuable assistance.
Former Member of the National Guard Sentenced for Possessing a Firearm While Engaging in Violent Extremist Online DiscussionsRead the Press Release
NORFOLK, Va. – A former member of the National Guard was sentenced today to 4 years and 9 months in prison for unlawfully possessing several firearms while also using illegal controlled substances.
According to court documents, on June 3, 2020, Francis Harker, 22, of Norfolk, and an associate discussed “interrupting an unjust stop” by trapping law enforcement at a shopping mall in Virginia Beach. Harker obtained a semi-automatic rifle the same day as that discussion, and falsely stated on the required purchase paperwork that he was not an unlawful user of any controlled substances, when in fact, he used illegal drugs, including LSD. The following year, he purchased a handgun and made the same false statement.
In a court authorized search on November 2021, the FBI found firearms and illegal drugs at his residence, as well as approximately 100 blank COVID-19 vaccination cards. Harker, who was a member of the National Guard, took the cards from the National Guard and mailed them to associates across the country. Harker’s electronic devices and social media accounts contained statements espousing violence towards law enforcement, extremism, and white supremacy. Images he possessed include an image emblazoned with the words “Rape the Cops,” an image of himself doing a Hitler salute, and imagery stating, “there is no god but Hitler.” Harker also admitted to interacting online with members of a group called “The Base”, which the defendant described as a “group interested in terrorism.” Also found during the search was a backpack in the trunk of Harker’s car that contained components for several Molotov cocktails.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorneys Joe Depadilla and Rebecca Gantt prosecuted 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. 2:21-cr-132.
Former Long Beach Police Officer Sentenced to Nearly 6 Years in Federal Prison for Distributing Child Pornography While on DutyRead the Press Release
LOS ANGELES – A former Long Beach Police officer was sentenced today to 70 months in federal prison for distributing sexually explicit images of children, including when he was on duty.
Anthony Brown, 57, formerly of Lakewood and who now resides in Island, Kentucky, was sentenced by United States District Judge Virginia A. Phillips, who also ordered him to pay a fine of $15,000 and to be placed on lifetime supervised release once he is released from prison.
Brown pleaded guilty on March 21 to one count of distribution of child pornography.
From October 2019 through May 2020, Brown used MeWe, an internet-based messaging application, to engage in graphic sex chats with other users in which he posed as his wife and discussed encouraging fictitious minor female relatives to participate in group sex acts. While logged on and while he was on duty as a Long Beach Police Department officer, Brown distributed images of teenage and prepubescent girls engaged in sexually explicit conduct.
Brown was a Long Beach Police officer for 27 years. He left the force in 2021 after his arrest on state charges of possession and distribution of child pornography. The Los Angeles County District Attorney’s Office dismissed those charges in light of the federal case.
Homeland Security Investigations and the Long Beach Police Department investigated this matter.
Assistant United States Attorney Kathrynne N. Seiden of the General Crimes Section prosecuted this case.
Former Gadsden County Deputy Sheriff Sentenced to Federal Prison in Connection with Narcotics Trafficking InvestigationRead the Press Release
TALLAHASSEE, FLORIDA – Former Gadsden County Sheriff’s Office deputy Joseph Barnes, Jr., 54, of Chattahoochee, Florida, was sentenced to 10 months in federal prison after pleading guilty to one count of giving a false statement to a federal officer. The sentenced was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Criminal conduct by those sworn to uphold the law represents the greatest and most harmful betrayal of public trust,” stated U.S. Attorney Coody. “The corrupt acts of an individual law enforcement officer endanger, rather than protect, the public. Moreover, such illegal conduct erodes the public’s trust in the legions of brave men and women who faithfully honor their oaths and place their lives on the line each day to keep our communities safe. We will vigorously investigate and prosecute any officer who betrays both their oath and the public’s trust.
Court documents reflect that during an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, agents determined that then-deputy Barnes was actively aiding an individual involved in the distribution of narcotics in the Gadsden County area. Covert recordings captured Barnes physically examining the drug trafficker’s vehicle to determine if law enforcement had attached a GPS tracking device prior to the vehicle’s use to transport illegal drugs. In a subsequent covert recording, Barnes used his Gadsden County K-9, which was trained to detect the odor of narcotics, to determine if a K-9 would alert to drugs within a hidden compartment of the drug trafficker’s vehicle. Barnes’ K-9 alerted to the presence of the narcotics, but Barnes took no law enforcement action. Instead, Barnes gave the trafficker advice on how to evade law enforcement detection in the future. When questioned later by agents of the Federal Bureau of Investigation, Barnes made multiple false statements regarding his awareness of the drug trafficking activity and his efforts to facilitate the criminal conduct. Upon Barnes’ arrest he was immediately terminated by the Gadsden County Sheriff’s Office.
“Law enforcement officers are given incredible power to enforce the law and ensure justice," said Sherri E. Onks, Special Agent in Charge of FBI Jacksonville. "The FBI and our law enforcement partners will always work together to stop abuse of power to insure the public's continued confidence in law enforcement. Any officer who tarnishes the badge by taking advantage of their position for personal gain must and will be held accountable.”
“Law enforcement officers take an oath to protect their community. When one violates that oath, it betrays the trust of the very people they are sworn to protect,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence sends a clear message that DEA will continue to work with our federal, state, and local law enforcement partners to hold those who participate or aid in the distribution of illegal narcotics accountable for their actions.”
The case stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targets drug trafficking organizations. This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. OCDETF Lead Task Force Attorney, Assistant United States Attorney Eric K. Mountin prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former California Correctional Officer Pleads Guilty to Civil Rights Violations for Assaults on Inmates and Cover up Inside CSP-SacramentoRead the Press Release
SACRAMENTO, Calif. — Arturo Pacheco, 40, of Elk Grove, pleaded guilty today to criminal civil rights violations for the on‑duty assault of two inmates entrusted to his care and to submitting false reports about those incidents in an attempt to cover them up, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pacheco was a correctional officer at California State Prison, Sacramento (CSP-Sacramento). On September 15, 2016, while escorting an inmate, Pacheco grabbed the legs of the inmate, pulling the legs out from under him. The inmate, whose hands were handcuffed behind his back, fell forward onto the concrete floor, breaking his jaw, several teeth, and suffering other injuries. That inmate was transported to UC Davis Medical Center where he received treatment for his injuries. Approximately two days later, the inmate suffered a pulmonary embolism and died. While the inmate was receiving treatment, Pacheco, a sergeant, and other correctional officers began falsifying reports to cover up the incident.
Following the death of the inmate, investigators uncovered a second incident involving Pacheco. In that incident, on May 19, 2016, Pacheco had, unprovoked, discharged a canister of pepper spray at short range into the eyes of an inmate who was inside of a prison cell. Pacheco falsified his report in that case to make it appear as though his actions were justified in order to save the life of the inmate. In reality, the inmate was fully complying with commands, and any use of force at that time was unlawful.
As outlined in the factual basis to his plea agreement, Pacheco sent text messages to a friend after the May 2016 incident, commenting how “funny” the incident was and “[i]t’s all about how u write ur report”, “plus ur partners have ur back.” As Pacheco said, “[b]lood, broken glass, n just u n ur partners. … Green light!”
“Pacheco deprived inmates of their civil rights, abusing his position of authority as a correctional officer to harm them,” said U.S. Attorney Talbert. “While Pacheco thought a ‘green wall’ or code of silence would protect him, he was wrong. His crimes have come to light and today he has admitted to his assaults and cover up. Those who violate the public’s trust by harming inmates ‘under the color of law’ or by covering up wrongdoing must and will be held accountable.”
“The FBI is deeply committed to protecting the rights of all Americans, and those rights do not stop behind the walls of our prisons,” said Acting Special Agent in Charge Dennis Guertin. “Today’s guilty plea is the result of an intensive investigation conducted by the FBI and our partners at the California Department of Corrections and Rehabilitation and the United States Attorney’s Office. Corruption and civil rights violations within our prisons are some of the most difficult to detect and investigate, and we encourage anyone who has knowledge of similar crimes to reach out to any FBI field office or submit information to tips.fbi.gov.”
This case is the product of an investigation by the Federal Bureau of Investigation with the cooperation of the California Department of Corrections and Rehabilitation, Office of Internal Affairs. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
Pacheco remains out of custody pending sentencing. Fellow former California State Prison, Sacramento correctional officer, Ashley M. Aurich, charged separately, is pending sentencing as well.
Pacheco is scheduled to be sentenced by U.S. District Judge William B. Shubb on October 17, 2022. Pacheco faces a maximum statutory penalty of 20 years in prison on each of the false reporting counts and 10 years in prison on each of the assault counts and a $250,000 fine per count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Court Bars Grand Rapids Physician from Prescribing Controlled Substances and Orders Civil Judgment over Forged Opioid PrescriptionsRead the Press Release
GRAND RAPIDS – David D. Sova, D.O., of Grand Rapids entered into a settlement with the United States in which he agreed to a court order to never prescribe controlled substances. According to the terms of the consent decree entered by U.S. District Court Judge Jane M. Beckering, Dr. Sova is also ordered to pay $170,000 in civil penalties to resolve the United States’ allegations that he forged opioid prescriptions for his own use.
In its civil complaint, the United States alleges that Dr. Sova issued prescriptions for controlled substances without a legitimate medical purpose and outside the usual course of professional practice in violation of the Controlled Substances Act. Specifically, the United States alleges that Dr. Sova issued prescriptions for the opioids oxycodone and hydrocodone purportedly written for one of his patients. However, this patient never received these prescriptions, as Dr. Sova arranged for them to be filled and collected for his own personal use.
“Responsibility to protect against diversion of controlled substances starts with the provider,” said U.S. Attorney Mark A. Totten. “When a physician breaks the rules and diverts controlled substances for their own use, they cannot be entrusted to prescribe controlled substances to others and must face the legal consequences of their own misconduct. My office will continue to work with DEA and state law enforcement to enforce compliance with controlled substance prescribing laws.”
“Medical and dental professionals must not abuse the privilege of prescribing controlled substances,” said Drug Enforcement Administration Special Agent in Charge Orville Greene, Detroit Field Division. “DEA will continue to work with all levels of law enforcement to investigate allegations of unlawful prescribing.”
This case was investigated by DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The complaint and consent decree in this case can be found on the Court’s online docket under United States v. Sova, No. 1:22-cv-658 (W.D. Mich.).
The claims resolved by the consent decree are allegations only and there has been no determination of liability.
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Erie Man Sentenced for Selling HeroinRead the Press Release
Erie, Pa - A resident of Erie, Pennsylvania, has been sentenced in federal court to 18 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Alberto Arroyo-Amaro, 24.
According to information presented to the court, Arroyo-Amaro was involved in a sale of 41.91 grams of heroin on or about August 22, 2018.
Prior to imposing sentence, Judge Baxter stated, “The scourge of heroin in our community has led to many broken hearts and broken families.”
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police, Homeland Security Investigations and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Arroyo-Amaro.
Dulce man indicted for assault, kidnapping in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Shondo DeJesus was arraigned on a two-count indictment charging him with assault resulting in serious bodily injury and kidnapping in Indian Country. DeJesus, 35, of Dulce, New Mexico, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted DeJesus on July 14. On March 5, DeJesus allegedly assaulted a victim, identified in the indictment as Jane Doe, at his home in Ducle. Afterward, DeJesus allegedly kept Jane Doe in the home against her will until March 7. DeJesus allegedly committed the crimes on the Jicarilla Apache Reservation. Both DeJesus and Jane Doe are enrolled members of the Jicarilla Apache Tribe.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, DeJesus faces up to 10 years in prison for assault resulting in serious bodily injury and up to life in prison for kidnapping.
The Jicarilla Police Department investigated this case. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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District of Columbia Man Sentenced to 14 Years in Prison for Killing Man in Northeast WashingtonRead the Press Release
WASHINGTON – Gregory Washington, 32, of Washington, D.C., was sentenced today to a 14-year prison term for confronting and killing a man at his ex-wife’s apartment in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Washington pleaded guilty in April 2022, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed. The plea, which was contingent upon the Court’s approval, called for a 14-year prison term, consistent with the Court’s voluntary sentencing guidelines. The Honorable Rainey R. Brandt accepted the plea and sentenced him accordingly. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, Washington and his ex-wife had divorced in 2019 after less than a year of marriage. His communications with her made clear that he wanted to reunite, but she rejected that plan. On Oct. 24, 2019, Washington drove to his ex-wife’s apartment in the 900 block of 21st Street NE. He crept into the apartment about 5:10 a.m., and confronted the victim, Alie Labay, who was there with Washington’s ex-wife. The two men tussled, and Washington shot Mr. Labay three times. Mr. Labay, 32, who was unarmed, suffered gunshot wounds to the chest, back and arm. He died a short time later.
Washington fled the apartment after the shooting. He was arrested on Nov. 26, 2019. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Amy Trotto and former Victim/Witness Advocate Marcia Rinker. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Sitara Witanachchi and Prava Palacharla, who investigated and prosecuted the matter.
Declo Man Sentenced to 135 Months in Prison for Methamphetamine DistributionRead the Press Release
POCATELLO – Melvin Misael Alcaraz-Valdez, of Declo, Idaho, was sentenced to federal prison for possession with the intent to distribute methamphetamine, announced U.S. Attorney Josh Hurwit, today. Chief U.S. District Judge David C. Nye sentenced Alcaraz-Valdez to 135 months. Alcaraz-Valdez, upon completion of his time, was ordered to serve an additional five years of supervised release.
According to court records, in March 2020 through March of 2021, law enforcement investigated multiple individuals for distributing methamphetamine in the Minidoka and Cassia County area. Through the use of surveillance, undercover officers, controlled purchases, and search warrants, law enforcement found that Alcaraz-Valdez was actively engaged in the distribution of methamphetamine and was in possession of large quantities of methamphetamine. During the investigation law enforcement recovered more than four (4) pounds of methamphetamine.
U.S. Attorney Hurwit credited the cooperative efforts of the Drug Enforcement Administration, Idaho State Police, Cassia County Sheriff’s Office, Minidoka County Sheriff’s Office, Nampa Police Department, and Ada County Sheriff’s Department, which led to the charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Charleroi Man Pleads Guilty to Receiving Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH - A resident of Charleroi, Pennsylvania, pleaded guilty in federal court on July 21, 2022, to charges of receipt and attempted receipt of material depicting the sexual exploitation of a minor United States Attorney Cindy K. Chung announced today.
Joey Leroy Barton, 51, pleaded guilty to two counts before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that on March 28, 2019 and April 11, 2019, Barton received and attempted to receive digital images depicting the sexual exploitation of a minor while engaged in an online conversation with a minor over Facebook messenger.
Judge Stickman scheduled sentencing for July 21, 2022 at 10:30 a.m. The law provides for a total sentence of not more than 80 years in prison, a fine of $80,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the defendant remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations, the Roseville (Minnesota) Police Department, and the North Strabane Police Department conducted the investigation that led to the prosecution of Barton.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
CEO of Titanium Blockchain Pleads Guilty in $21 Million Cryptocurrency Fraud SchemeRead the Press Release
The CEO of Titanium Blockchain Infrastructure Services Inc. (TBIS) pleaded guilty Friday in the Central District of California for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering (ICO) that raised approximately $21 million from investors in the United States and overseas.
According to court documents, Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of TBIS, a purported cryptocurrency investment platform, and touted TBIS as a cryptocurrency investment opportunity, luring investors to purchase “BARs,” the cryptocurrency token or coin offered by TBIS’s ICO, through a series of false and misleading statements. Although he was required to do so, Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), nor did he have a valid exemption from the SEC’s registration requirements.
Stollery admitted that, to entice investors, he falsified aspects of TBIS’s white papers, which purportedly offered investors and prospective investors an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, how the offering was different from other cryptocurrency opportunities, and the prospects for the offering’s profitability. Stollery also planted fake client testimonials on TBIS’s website and falsely claimed that he had business relationships with the Federal Reserve and dozens of prominent companies to create the false appearance of legitimacy. Stollery further admitted that he did not use the invested money as promised but instead commingled the ICO investors’ funds with his personal funds, using at least a portion of the offering proceeds for expenses unrelated to TBIS, such as credit card payments and the payment of bills for Stollery’s Hawaii condominium.
Stollery pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on November 18 and faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region, made the announcement.
The FBI’s Los Angeles Field Office and the Federal Reserve Board’s Federal Reserve Board’s OIG Western Region San Francisco Office are investigating the case.
Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
California Woman Charged with Smuggling Marijuana Through Cyril E. King AirportRead the Press Release
St. Thomas, USVI – United States Attorney Delia L. Smith announced today that Joeva Elizabeth Williams of Sacramento, CA, appeared before Magistrate Judge Ruth Miller on July 25, 2022, following her arrest on Saturday, July 23, 2022, for possession with intent to distribute marijuana. She was ordered released upon the posting of a $10,000.00 unsecured bond.
According to court documents, on July 22, 2022, Williams arrived at the Cyril E. King airport on an inbound flight from that originated in Houston, TX. While conducting an inbound inspection of United Airlines flight #1908 , a Customs and Border Protection (CBP) canine alerted to the presence of narcotics in two suitcases. Williams later retrieved both suitcases from the luggage carousel and was later escorted by CBP officers to a secondary inspection. After conducting a search of Williams’ suitcases in secondary inspection, CBP officers discovered thirty-seven (37) vacuum-sealed packages containing a green, leafy substance which field-tested positive for marijuana. The total weight of the packages was approximately 20.44 kilograms.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by Homeland Security Investigations (HSI). United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.