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11 July 2022
U.S. Attorney Breon Peace to Lead Attorney General's Subcommittee on White Collar CrimeRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, has been selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
“I am honored that Attorney General Garland and my colleagues on the Attorney General’s Advisory Committee have chosen me to lead the White Collar Fraud subcommittee,” stated United States Attorney Peace. “The Attorney General has made clear that the vigorous and fair enforcement of corporate criminal policies is a department priority. The subcommittee, which includes many of my outstanding U.S. Attorney colleagues from around the country, will thoughtfully advise on issues of significance in this area in furtherance of the department’s mission to protect investors, consumers, employees, corporations and the integrity of financial markets from sophisticated wrongdoers. I look forward to serving in this important role.”
The AGAC was established nearly 50 years ago to give United States Attorneys a voice in department policies and to advise the Attorney General of the United States.
U.S. Attorney Announces Results of Multi-Faceted Strategy to Combat Fraud Related to COVID-19Read the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved to date by the Middle District of Florida’s efforts to combat fraud related to COVID-19. Those efforts have included complementary actions by the Criminal, Asset Recovery, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“Throughout the pandemic, my office and our law-enforcement partners have used all available methods to combat fraud related to COVID-19, and we will continue to do so,” stated U.S. Attorney Handberg. “After the United States instituted multiple programs to financially assist those most harmed by the pandemic, criminals sought to defraud those programs for personal enrichment at the expense of the taxpayers who funded these programs. We will continue to disrupt these fraud schemes, prosecute those who commit crimes, and return ill-gotten gains through our efforts.”
On the criminal-enforcement front, the United States Attorney’s Office and federal, state, and local law enforcement agencies joined together in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the Task Force has prosecuted 34 defendants for fraud schemes designed to exploit federal programs created or expanded to address the COVID-19 pandemic, including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), and the Main Street Lending Program (“MSLP”). These defendants collectively sought to defraud the United States of over $39 million. Twenty-five of those defendants have already been found guilty, while prosecution remains pending against nine defendants. (See chart for criminal case details.)
For example, Keaujay Hornsby, a/k/a “Plug,” (26, Tampa); Kareem Spann, a/k/a “Reem,” (27, Tampa); and Tywon Spann, a/k/a “Weez” (25, Tampa) pleaded guilty to a racketeering conspiracy related to numerous violent, drug trafficking, and COVID-19 related frauds that were committed in furtherance of a criminal enterprise called “Robles Park.” Hornsby and Kareem Spann have also pleaded guilty to committing violent crimes in aid of racketeering and discharging firearms in aid of crimes of violence. Eriaus Bentley (29, Tampa) and the three other defendants have each also pleaded guilty to conspiring to commit fraud and identity theft, and committing numerous substantive acts of fraud and identity theft.
“Robles Park” is a criminal organization whose members and associates engaged in acts involving murder, assault, intimidation, narcotics trafficking, unemployment insurance fraud, identity theft, obstruction of justice, and other crimes.
In another matter, Alexander Leszczynski (22, North Redington Beach) has been charged with wire fraud, bank fraud, and money laundering; he is pending trial on those charges. Leszczynski used fictitious charitable entities, such as Love & Bliss, Inc., to engage in numerous frauds. The schemes included fraudulently applying for and receiving two PPP loans, engaging in a check kiting scheme, and attempting to deposit $2.7 million of worthless checks into the Love & Bliss, Inc. business account. The United States ultimately seized the PPP proceeds from an account Leszczynski controlled. In a separate fraud scheme, Leszczynski filed fraudulent warranty deeds purporting to deed himself and his businesses 10 properties around the United States collectively valued at more than $300 million.
In addition to the work of the Criminal Division, the District’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $14 million of PPP, EIDL, and UI funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. The District’s Civil Division has similarly combatted fraud related to COVID-19 through its enforcement efforts.
The Attorney General has 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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases identified in the linked chart have been investigated by the Federal Bureau of Investigation, United States Secret Service, Internal Revenue Service—Criminal Investigation, Department of Labor—Office of Inspector General, U.S. Postal Service, Federal Housing Finance Agency, Small Business Administration, Federal Deposit Insurance Corporation—Office of Inspector General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Middle District of Florida COVID Fraud Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss Amount
Tampa Division
Richard Simpkins (47)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.9M
Joseph Abdo (39)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Jorge Gutierrez Echeverria (33)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$150k
Steve Moodie (33)
Melinda Hernandez (33)
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$550k
Alexander Leszczynski (22)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$200k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Greg Pizzo, Candace Rich, Diego Novaes, and Jennifer Peresie
Orlando Division
Don Cisternino (46)
Wire fraud
Maximum Prison Term: 20 Years
Illegal Monetary Transactions
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: Two Years Consecutive
PPP
$7.2M
Emmet Bowens (53)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Chauncey Bratt and Amanda Daniels
Fort Myers Division
Daniel Joseph Tisone (34)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: 2 Years Consecutive
Possession of Ammunition by a Prohibited Person
Maximum Prison Term: 10 Years
PPP/EIDL/MSLP
$2.6M
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Trent Reichling and Shannon Laurie
Ocala Division
Levelle Harris (36)
Wire Fraud (14 counts)
Maximum Prison Term: 20 Years
PPP
$1.2M
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Rolanda Wingfield (39)
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
UI
$135k
Keith Nicoletta (49)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
PPP
$1.9M
Randy Jones (34)
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
EIDL/UI
$250k
Rosenide Venant (37)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
EIDL/PPP
$413k
Julio Lugo (45)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
EIDL/PPP
$4.4M
Keaujay Hornsby (26)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann (27)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones and Tiffany Fields
Orlando Division
Daniel Johnson (34)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Unlawful transfer of firearm
Maximum Prison Term: 5 Years
UI
$2.3M
This COVID Fraud case from the Orlando Division are being handled by AUSA Emily Chang
Fort Myers Division
Anthony Bruey (36)
Amber Bruey (35)
Conspiracy to commit wire fraud
Maximum Prison Term: 30 Years
Wire fraud
Maximum Prison Term: 30 Years
Conspiracy to commit money laundering
Maximum Prison Term: 10 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$881k
Edrica Leann Watson (30)
False statement to a lending institution
Maximum Prison Term: 30 Year
PPP
$392k
Liliana Gonzalez (31)
Wire fraud
Maximum Prison Term: 20 Years
PPP
$169k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Trent Reichling and Jesus M. Casas
Sentenced Cases
Tampa Division
Louis Thornton, III (63)
Wire Fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson (48)
Corey Quinn (35)
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim (52)
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway (47)
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley (29)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Tywon Spann (25)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, and SAUSA Chris Poor
Orlando Division
Jacquavius Smith (21)
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache (40)
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison (43)
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys (39)
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban (36)
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, and Jennifer Harrington
Fort Myers Division
Casey Crowther (36)
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
This COVID Fraud case from the Fort Myers Division was handled by AUSA Trent Reichling
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
U.S. Attorney Announces Extradition of Brazilian Citizen from Paraguay for Participation in Money Laundering and Unlicensed Money Transmitting SchemesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KASSEM HIJAZI, a citizen of Brazil, was extradited to the United States from Paraguay on July 8, 2022. HIJAZI was extradited on charges of money laundering and operation of an unlicensed money transmitting business, for his involvement in a cross-border money laundering operation.
U.S. Attorney Damian Williams said: “As alleged, Kassem Hijazi agreed to launder the proceeds of narcotics trafficking, and for years operated an illegal money transmitting business, the proceeds of which were further laundered into and out of the United States. Thanks to the continued efforts and coordination with our law enforcement counterparts in Paraguay, Hijazi, a Brazilian national, has now been extradited to the U.S. to face the consequences of his crimes.”
HIJAZI was arrested on August 24, 2021, in Paraguay. He was presented and arraigned today before U.S. Magistrate Judge James L. Cott. The case is assigned to U.S. District Judge Gregory H. Woods.
According to the allegations contained in the Indictment[1]:
Between 2018 and October 2020, KASSEM HIJAZI orchestrated a money laundering operation and operated an unlicensed money transmission business. Specifically, in December 2019 and between October and December 2020, HIJAZI laundered funds that he believed were proceeds derived from narcotics trafficking. Between 2018 and 2020, HIJAZI operated an unlicensed money transmission business that included sending funds from overseas into and out of the United States, including into the Southern District of New York. HIJAZI, using his illegal money transmission business, further laundered funds related to that business into and out of the United States in support of his crimes.
* * *
HIJAZI, 49, is charged with two counts of money laundering, each of which carry a maximum penalty of 20 years in prison; two counts of international money laundering, each of which carry a maximum penalty of 20 years in prison; and operation of an unlicensed money transmitting business, which carries a maximum penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Williams praised the outstanding investigative work of the Drug Enforcement Administration and Homeland Security Investigations. He also thanked law enforcement partners in Paraguay, particularly the Public Ministry’s Attorney General’s Office and the National Anti-Drug Secretariat. Finally, he thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. Marshals Service, for their support and assistance in the defendant’s extradition.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Sarah Mortazavi is in charge of the prosecution.
[1] The charges in the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Three Members of International Fraud and Money Laundering Conspiracy Convicted in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the convictions last week of MIRCEA CONSTANTINESCU, NIKOLAOS LIMBERATOS, and ALEXANDRU RADULESCU for their participation in an international conspiracy to commit a variety of offenses, including access device fraud, wire fraud, bank fraud, and aggravated identity theft, following a seven-day trial before the Honorable Sidney H. Stein.
United States Attorney Damian Williams said: “As the jury recognized, these defendants participated in a prolific ATM skimming and money laundering ring that spanned years and continents. They caused staggering losses by, among other things, stealing account numbers and personal identification numbers of their victims using sophisticated technology. Because of yesterday’s verdict, they will no longer be able to ‘cash out’ on others’ identities.”
As proven at trial:
MIRCEA CONSTANTINESCU, NIKOLAOS LIMBERATOS, and ALEXANDRU RADULESCU were members of an international “ATM skimming” and money laundering organization (the “Skimming Organization”). From approximately 2014 to 2019, the Skimming Organization made millions of dollars by installing sophisticated machinery on ATMs and point-of-sale machines, capturing unsuspecting bank customers’ card numbers and PINs, reencoding that information on counterfeit cards, and then “cashing out” those cards to withdraw as much money as they could.
The Skimming Organization sent crews of “install” and “cash out” workers to travel throughout the country, carrying out numerous skimming operations at various banks and on point-of-sale machines. The operations often lasted a period of days. After cashing out, the teams would take a cut of the money earned and provide the rest to the Skimming Organization’s leaders.
LIMBERATOS and RADULESCU were leaders of the Skimming Organization, who ran teams of “install” and “cash out” workers, oversaw the manufacture and repair of skimming devices, cased ideal locations, organized skimming jobs, and made millions of dollars as a result. LIMBERATOS also participated in laundering the proceeds of the skimming jobs, including through a restaurant business he owned. CONSTANTINESCU helped to send and receive packages containing skimming and skimming-related equipment, worked with an engineer who fashioned skimming devices, and laundered money for the Skimming Organization from the United States to Romania.
CONSTANTINESCU, LIMBERATOS, and RADULESCU were among 33 defendants charged in connection with this case.
* * *
CONSTANTINESCU, 48, of Queens, New York, was convicted of one count of conspiring to commit access device fraud, one count of conspiring to commit wire and bank fraud, one count of aggravated identity theft, and one count of conspiring to commit money laundering. Those counts carry a maximum potential sentence of 59 years and six months in prison, and a mandatory minimum sentence of two years of in prison.
LIMBERATOS, 56, of Deer Park, New York, was convicted of one count of aggravated identity theft. Shortly before trial, LIMBERATOS pled guilty to one count of conspiring to commit access device fraud, one count of conspiring to commit wire and bank fraud, and one count of conspiring to commit money laundering. Those counts together carry a maximum potential sentence of 59 years and six months of in prison, and a mandatory minimum sentence of two years in prison.
RADULESCU, 36, of Romania, was convicted of one count of aggravated identity theft. Shortly before trial, RADULESCU pled guilty to one count of conspiring to commit access device fraud, one count of conspiring to commit wire and bank fraud, and one count of access device fraud. Those counts together carry a maximum potential sentence of 54 years and six months in prison, and a mandatory minimum sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
All three defendants are scheduled to be sentenced by Judge Stein on October 13, 2022, at 2:30 p.m. (CONSTANTINESCU), 3:00 p.m. (LIMBERATOS), and 3:30 p.m. (RADULESCU).
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Elizabeth Hanft, Samuel P. Rothschild, Maggie Lynaugh, and Robert B. Sobelman are in charge of the prosecution.
Three Former Hawaii Correctional Officers Convicted of Civil Rights Violations for Assaulting an Inmate and Attempting to Cover it UpRead the Press Release
On July 8, after a three-week trial, a federal jury convicted three former correctional officers at the Hawaii Community Correctional Center — Jason Tagaloa, 31, Craig Pinkney, 38, and Jonathan Taum, 50 — for assaulting an inmate in violation of his civil rights and for obstructing justice in attempting to cover up the violation. A fourth officer, Jordan DeMattos, previously pleaded guilty for his role in the assault and cover up, and testified for the government at trial. After the jury’s verdict, Judge Leslie Kobayashi ordered the U.S. Marshals to take the defendants into custody pending their sentencing hearings.
The evidence at trial established that the defendants assaulted the inmate in the prison’s recreation yard. Over the course of two minutes, the defendants punched and kicked the inmate in the head and body while he was lying face-down in a pool of his own blood. The inmate suffered a broken nose, jaw and eye socket. After the beating, the defendants wrote false reports in which they omitted almost all of the force they had used. When the prison opened an investigation, the defendants met to get their stories straight and brainstorm false excuses they would give for having used force. Ultimately, the Hawaii Department of Public Safety fired all four officers.
“These defendants abused the trust given to them as law enforcement officers when they violently assaulted an inmate and lied to cover it up,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will prosecute corrections officials who violently assault inmates inside our jails and prisons, and abuse their official positions to cover-up their crimes. We are committed to using our civil rights laws to ensure that the rights of all individuals, including those in custody, are fully protected.”
“This prosecution and verdict affirm our office’s commitment to ensuring every person’s civil rights are protected under the law,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “We will continue to enforce those rights the Constitution and other federal laws provide.”
“The FBI will always investigate when a person's civil rights are violated,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “As correctional officers, they were held to upholding the standards of law enforcement officers within the state prisons and they did not do so in this case. The FBI will vigorously pursue justice for those whose civil rights were violated.”
The maximum penalties for the charged crimes are 10 years of imprisonment for the deprivation-of-rights offense, 20 years of imprisonment for the false report offenses and five years of imprisonment for the conspiracy offense.
The FBI conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Craig Nolan of the District of Hawaii, and Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
Three Former Hawaii Correctional Officers Convicted of Civil Rights Violations for Assaulting an Inmate and Attempting to Cover it UpRead the Press Release
WASHINGTON – On July 8, after a three-week trial, a federal jury convicted three former correctional officers at the Hawaii Community Correctional Center — Jason Tagaloa, 31, Craig Pinkney, 38, and Jonathan Taum, 50 — for assaulting an inmate in violation of his civil rights and for obstructing justice in attempting to cover up the violation. A fourth officer, Jordan DeMattos, previously pleaded guilty for his role in the assault and cover up, and testified for the government at trial. After the jury’s verdict, Judge Leslie Kobayashi ordered the U.S. Marshals to take the defendants into custody pending their sentencing hearings.
The evidence at trial established that the defendants assaulted the inmate in the prison’s recreation yard. Over the course of two minutes, the defendants punched and kicked the inmate in the head and body while he was lying face-down in a pool of his own blood. The inmate suffered a broken nose, jaw and eye socket. After the beating, the defendants wrote false reports in which they omitted almost all of the force they had used. When the prison opened an investigation, the defendants met to get their stories straight and brainstorm false excuses they would give for having used force. Ultimately, the Hawaii Department of Public Safety fired all four officers.
“These defendants abused the trust given to them as law enforcement officers when they violently assaulted an inmate and lied to cover it up,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will prosecute corrections officials who violently assault inmates inside our jails and prisons, and abuse their official positions to cover-up their crimes. We are committed to using our civil rights laws to ensure that the rights of all individuals, including those in custody, are fully protected.”
“This prosecution and verdict affirm our office’s commitment to ensuring every person’s civil rights are protected under the law,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “We will continue to enforce those rights the Constitution and other federal laws provide.”
“The FBI will always investigate when a person's civil rights are violated,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “As correctional officers, they were held to upholding the standards of law enforcement officers within the state prisons and they did not do so in this case. The FBI will vigorously pursue justice for those whose civil rights were violated.”
The maximum penalties for the charged crimes are 10 years of imprisonment for the deprivation-of-rights offense, 20 years of imprisonment for the false report offenses and five years of imprisonment for the conspiracy offense.
The FBI conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Craig Nolan of the District of Hawaii, and Special Litigation Counsel Christopher J. Perras and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
State Prosecutor Is Sworn-In as Special Assistant United States AttorneyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. Attorney Dena J. King swore in Annabelle Chambers as a Special Assistant U.S. Attorney (SAUSA) for the U.S. Attorney’s Office’s Criminal Division in Asheville. Ms. Chambers is a state prosecutor with North Carolina’s 43rd Prosecutorial District which serves the Counties of Cherokee, Clay, Graham, Macon, Swain, Haywood and Jackson, under the leadership of District Attorney Ashley Welch.
The SAUSA position is a reflection of the partnership between the 43rd Prosecutorial District and the U.S. Attorney’s Office. State and federal authorities share concurrent jurisdiction over certain crimes. Concurrent jurisdiction allows for prosecution in either state or federal court. The U.S. Attorney’s Office and the District Attorney’s Office have established this formal partnership to ensure that the appropriate venue for prosecution is selected. The goal of this partnership is to make counties within the jurisdiction of the 43rd Prosecutorial District safer through a coordinated enforcement effort.
In making today’s announcement, U.S. Attorney King said, “The SAUSA program is an important tool we can use to make communities safer by identifying and prosecuting cases in federal court that result in the greatest local impact. I want to thank District Attorney Welch for her continued support of the program and for her ongoing coordination and cooperation with our office in our shared goal to protect our communities.”
“Cooperation across all levels of government is one of the most effective weapons we have in combatting crime," District Attorney Welch said. “The SAUSA program has proven an amazing tool for vigorous prosecution of criminal activity in the 43rd Prosecutorial District. This program demonstrates how a strong, successful and sustained federal and state partnership can help us safeguard our communities. I thank U.S. Attorney King for her continued support of SAUSA and anticipate additional initiatives involving her office and mine.”
As a dually-sworn state and federal prosecutor, Ms. Chambers will be primarily responsible for criminal cases arising out of the 43rd Prosecutorial District involving the violation of federal criminal statutes. Ms. Chambers will remain on the staff of the District Attorney’s Office but will serve in all respects as an Assistant U.S. Attorney in charge of overseeing the progression of federal cases from the initiation of federal charges to disposition and sentencing. Ms. Chambers will collaborate with state, local and federal agencies to identify and prioritize cases originating in state court for federal indictment. Ms. Chambers will also be responsible for drafting charging documents, search and arrest warrants, complaints, motions and responses, presenting matters before the grand jury, representing the United States before all federal courts in the Western District of North Carolina, and other such duties necessary for the successful prosecution of these cases.
Prior to joining the District Attorney’s Office, Ms. Chambers was an Associate with Asheville Legal, Wimer Snider, P.C. Before that, Ms. Chambers was an Assistant State Attorney with Florida’s 18th Judicial Circuit in Brevard County, where she prosecuted felony cases in Circuit Court. Ms. Chambers received her law degree from Stetson University College of Law and her undergraduate degree from Sewanee: The University of the South in Tennessee.
Spencerport Man Who Attempted to Have Sex with A Minor Going to Prison for 10 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Dale Trimmer, 47, of Spencerport, NY, who was convicted of attempted receipt of child pornography, was sentenced to serve 121 months in prison and 10 years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that beginning in December 2020, Trimmer used a chat application to attempt to communicate with minors online, including a person he believed was a 13-year-old girl, but was actually an undercover law enforcement officer. Trimmer was repeatedly informed that the child was only 13 and lived with her mother. Despite this, he engaged in sexually explicit conversations with the child, told her that he wanted to have sex with her, and attempted to solicit sexually explicit photographs. At one point, Trimmer attempted to conduct a live video chat with the child and sent the child a sexually explicit video of himself. Trimmer also sent the child photographs of gifts that he bought for the child. As the conversations continued, Trimmer discussed meeting the child for sex as well as plans for how they could carry on a sexual relationship. Trimmer was arrested on February 17, 2021.
During the investigation, investigators learned that in 2006, Trimmer was convicted in New York State Court of Disseminating Indecent Material to Minors and sentenced to serve six months in the Monroe County Jail followed by five years’ probation. Trimmer subsequently violated the terms of probation and was re-sentenced to serve one to three years in prison. In that case, Trimmer also used an online chat application to engage in sexually explicit online conversations with a person he believed was a 14-year-old female but was actually an undercover Monroe County Sheriff’s Office investigator. During those chats, Trimmer told the undercover investigator that he previously had sex with at least two minors in the past, and that he wanted to meet the minor for sex. The defendant was arrested after attempting to meet the minor in person.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
# # # #
Sells Man Sentenced to 25 Months for Assault with a Dangerous WeaponRead the Press Release
TUCSON, Ariz. – On Thursday, Kyle Devan Cachora, 28, of Sells, Arizona, was sentenced by United States District Judge Jennifer G. Zipps to 25 months in prison, followed by three years of supervised release. Cachora previously pleaded guilty to Assault With a Dangerous Weapon.
On July 2, 2020, Cachora, an enrolled member of the Tohono O’odham Nation, stabbed a Tohono O’odham woman. The offense occurred on the Tohono O’odham Nation in San Xavier, Arizona.
The FBI and Tohono O’odham Nation Police Department conducted the investigation in this case. Assistant U.S. Attorney Frances M. Kreamer Hope, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-00956-TUC-JGZ
RELEASE NUMBER: 2022-113_CachoraReality Show Cast Member Pleads Guilty to Running Nationwide Telemarketing Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that earlier today, JENNIFER SHAH pled guilty to conspiracy to commit wire fraud in connection with telemarketing.
U.S. Attorney Damian Williams said: “Jennifer Shah was a key participant in a nationwide scheme that targeted elderly, vulnerable victims. These victims were sold false promises of financial security but instead Shah and her co-conspirators defrauded them out of their savings and left them with nothing to show for it. This Office is committed to rooting out these schemes whatever form they take.”
According to the allegations in the Superseding Indictment, and statements made during the plea and other proceedings in the case:
From 2012 until March 2021, JENNIFER SHAH, together with others (collectively, the “Participants”) carried out a wide-ranging telemarketing scheme that defrauded hundreds of victims (the “Victims”) throughout the United States, many of whom were over age 55, by selling those Victims so-called “business services” in connection with the Victims’ purported online businesses (the “Business Opportunity Scheme”).
In order to perpetrate the Business Opportunity Scheme, Participants, including SHAH, engaged in a widespread, coordinated effort to traffic in lists of potential victims, or “leads,” many of whom had previously made an initial investment to create an online business with other Participants in the Scheme.
SHAH, among other things, sold leads to other Participants for use by their telemarketing sales floors with the knowledge that the individuals they had identified as “leads” would be defrauded by the other Participants, including by lying to Victims about how much they would earn after purchasing the business services and the purported success of others who had purchased the services. SHAH received as profit a share of the fraudulent revenue per the terms of their agreement with those Participants. SHAH often controlled each aspect of the frauds perpetrated by other Participants on the individuals they had identified by, among other things, determining which “coaching” sales floor could buy leads from them, selecting the downstream sales floors to which the “coaching” sales floor was permitted to pass the leads, choosing the firms to provide “fulfillment” services, that is, documents and records purporting to demonstrate that the services the Participants claimed to provide to those Victims were actual and legitimate, setting how much the downstream sales floors could charge, and determining which “products” each of the downstream sales floors could sell.
In approximately 2017, SHAH began operating a Manhattan-based sales floor that sold downstream “business opportunity” products to victims on lead lists provided by the defendant as part of the Business Opportunity Scheme (the “Manhattan Sales Floor”). Between 2018 and 2020, SHAH controlled the day-to-day operations of the Manhattan Sales Floor. Among other things, SHAH, with other Participants, moved certain operations for the Manhattan Sales Floor to Kosovo to avoid law enforcement and regulatory scrutiny. The salespeople at the Manhattan Sales Floor engaged in the same fraudulent sales practices as other telemarketing floors in the Business Opportunity Scheme: namely, lying to and misleading Victims into purchasing “business opportunity” products to ostensibly advance their non-existent online businesses.
SHAH undertook significant efforts to conceal her role in the Business Opportunity Scheme. For example, SHAH, among other things, incorporated her business entities using third parties’ names and instructed other Participants to do the same, used and directed others to use encrypted messaging applications to communicate with other Participants, and made numerous cash withdrawals structured to avoid currency transaction reporting requirements.
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SHAH, 48, of Park City, Utah, pled guilty today to one count of conspiracy to commit wire fraud in connection with telemarketing through which she victimized 10 or more persons over the age of 55, which carries a maximum sentence of 30 years in prison. As part of her guilty plea, SHAH also agreed to forfeit $6.5 million and to pay restitution up to $9.5 million.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as SHAH’s sentence will be determined by the judge.
SHAH is scheduled to be sentenced by U.S. District Judge Sidney H. Stein on November 28, 2022.
Mr. Williams praised the outstanding investigative work of HSI’s El Dorado Task Force.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Benet J. Kearney, Robert B. Sobelman, and Sheb Swett are in charge of the prosecution.
If you believe you have been a victim of the scheme described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or wendy.olsen@usdoj.gov.
Previously convicted sex offender sentenced again after accessing dark webRead the Press Release
McALLEN, Texas – An Edinburg man has been ordered to federal prison for receipt of child pornography, announced U.S. Attorney Jennifer B. Lowery.
James Archie Wells III, 63, pleaded guilty Dec. 2, 2021.
Today, U.S. District Judge Randy Crane ordered Wells to serve a 180-month sentence to be immediately followed by a lifetime of supervised release. At the hearing, the court heard and considered Wells’ previous convictions in Texas state court for indecency with a child and possession of child pornography. In handing down the sentence, Judge Crane noted that Wells had just finished serving his previous sentences a few months before he began re-offending. The court assessed sentencing enhancements for the number of videos, age of the victims and the sado-masochistic nature of the videos.
The investigation began when Wells resided at halfway house in Edinburg. Authorities learned that he had been viewing child sexual abuse videos and images on his phone.
Soon after, they seized Wells’ electronic devices. At that time, Wells admitted to using the dark web to download child sexual abuse materials on his phone and other multiple devices. Wells downloaded 371 videos of child pornography which included images of the sexual assault and rape of pre-pubescent children.
Wells will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation with the assistance of the Edinburg Police Department.
Assistant U.S. Attorney Michael Mitchell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Postal Worker Pleads Guilty to Delay or Destruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – DARIUS PATIN, age 34, a resident of New Orleans, Louisiana, pleaded guilty on June 7, 2022 before U.S. District Judge Eldon E. Fallon, announced U.S. Attorney Duane A. Evans.
According to court documents, PATIN was employed by the United States Postal Service as a City Carrier and was assigned to work at Carrollton Station, New Orleans, LA 70118. On or about April 28, 2021, PATIN secreted, destroyed, detained, and delayed approximately 1,377 pieces of mail that were recovered from a dumpster in an apartment complex. PATIN also unlawfully secreted, detained, and delayed approximately nine First Class letters, eight standard letters, four standard flats, and two periodicals in his personal vehicle.
PATIN pleaded guilty to an indictment charging him with delay or destruction of mail. He faces a maximum penalty of up to five (5) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment fee. Sentencing is scheduled for September 29, 2022 at 2:00 p.m. before U.S. District Judge Eldon E. Fallon.
U.S. Attorney Evans praised the work of the U.S. Postal Service Office of Inspector General in investigating this matter. Assistant U. S. Attorney Rachal Cassagne is in charge of the prosecution.
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Phoenix Brothers Sentenced to Prison for Dealing in Firearms Without a LicenseRead the Press Release
PHOENIX, Ariz. – On July 8, 2022, Jay Derek Ramirez Ramirez, 21, of Phoenix, Arizona, was sentenced by United States District Judge Susan M. Brnovich to 12 months and one day in prison. His brother, Juan Ali Ramirez Ramirez, 23, also of Phoenix, was sentenced on June 22, 2022, to 36 months in prison by Judge Brnovich. Both brothers previously pleaded guilty to Dealing Firearms Without a License.
In July and August 2020, the Ramirez brothers bought and sold at least 40 firearms for profit. Included in those 40 firearms were AR-type rifles, shotguns, Glock handguns, a stolen firearm, and a Privately Made Firearm (ghost gun), as well as an inert grenade, suppressors, body armor, and high-capacity magazines. Some of the firearms the brothers purchased and resold have been connected to crimes in the valley or were found in the hands of prohibited possessors. The Ramirez brothers advertised firearms for sale on social media and sold them out of their family tire shop.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, Firearms and Tobacco, 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-20-00512-SMB
RELEASE NUMBER: 2022-114_Ramirez Ramirez# # #
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.
Philipsburg Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philipsburg, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Keegan McChesney, 24, pleaded guilty to a lesser included offense at Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, McChesney did conspire to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for December 1, 2022. The law provides for a minimum sentence of 5 years in prison and maximum sentence of 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of McChesney. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
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.
Pee Dee Woman and Horry County Man Sentenced to Multiple Years in Federal Prison for Distributing Controlled SubstancesRead the Press Release
FLORENCE, SOUTH CAROLINA — Dan Howard Spivey, Jr., 42, of Conway, was sentenced to 10 years in federal prison, and Jasmine McKenith, 32, of Nichols, was sentenced to 4 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute controlled substances.
Evidence presented to the Court showed that Spivey and McKenith were involved in a multi-year conspiracy to distribute drugs in and around Horry County. Spivey and McKenith both served as distributors for their co-defendant in the case, Darryl Lamont McKenith. During the course of the conspiracy, Spivey was held accountable for more than one kilogram of heroin and a quantity of fentanyl. Jasmine McKenith was attributable to more than six kilograms of heroin during the conspiracy.
Chief United States District Judge R. Bryan Harwell sentenced Spivey to 120 months imprisonment, to be followed by a 5-year term of court-ordered supervision. Judge Harwell sentenced Jasmine McKenith to 48 months imprisonment, to be followed by a 5-year term of court-ordered supervision. Judge Harwell previously sentenced McKenith and Spivey’s co-conspirators. Darryl Lamont McKenith, 33, of Aynor, received a sentence of 132 months in federal prison, Scorpio Teriell Tisdale, 28, of Gallivants Ferry, received a sentence of 120 months in federal prison, Michael Keith McKenith, 32, of Aynor, received a sentence of 84 months in federal prison and Donna McKenith, 77, of Aynor, received a sentence of time served. There is no parole in the federal system.
This case was investigated by Conway Police Department, Horry County Police Department, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Osceola County Sex Offender Sentenced to 25 Years in Federal Prison for Production and Possession of Child Sex Abuse MaterialsRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Michael Belmares (63, St. Cloud) to 25 years in federal prison for production and possession of child sex abuse materials. Belmares was also ordered to serve a 10-year term of supervised release and register as a sex offender following his release from prison. Belmares had pleaded guilty on March 15, 2022.
According to evidence presented in open court, Belmares took photos of a six-year-old child that depicted the child naked from the waist down and focused on the child’s genitalia. In addition, a subsequent search revealed that Belmares had other photos that he had taken of various children in shopping center parking lots in Osceola County. These children were fully clothed and could not be identified. Finally, Belmares had a collection of thousands of images depicting children being sexually abused. Among these were binders of photos that Belmares had saved, with date stamps, from as early as 1996, and hundreds of images of child sex abuse saved on various electronic devices. The court also found that Belmares had a 1996 sex offense conviction in North Carolina that enhanced his sentence.
This case was investigated by the Federal Bureau of Investigation and the St. Cloud Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This is another case 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.
Orange County Man Pleads Guilty to Stalking Charge for Harassment Campaign Against Professional Online GamerRead the Press Release
LOS ANGELES – An Orange County man pleaded guilty today to a federal criminal charge for stalking a professional online gamer during a long-running harassment campaign.
Evan Baltierra, 29, of Trabuco Canyon, pleaded guilty to one count of stalking, a crime that carries a statutory maximum sentence of five years in federal prison.
According to his plea agreement, Baltierra met the victim, a prominent professional gamer, at a gaming convention in Anaheim in November 2019. After this meeting, Baltierra asked to meet the victim in her hometown in Canada, which made her feel uncomfortable. After the victim blocked Baltierra on various social media accounts, beginning in June 2020, Baltierra created hundreds of social media accounts to send the victim threatening messages. One message sent to the victim via Twitter in January 2021 read in part, “[t]imes ticking…waiting for the right opportunity.”
In October 2020, Baltierra hired an unknown third party through an instant messaging mobile application to create multiple photoshopped nude images of the victim that placed her face onto pornographic images. From November 2020 to March 2022, Baltierra posted the photoshopped nude images to multiple pornographic websites and internet forums. He also sent the images to the victim’s friends and family. Baltierra also posted links to the images on various social media websites and told others online to search for the victim’s name to see naked pictures of her.
The victim obtained a temporary restraining order against Baltierra in January 2021. After the protective order was served on him, Baltierra began posting the victim’s personal information – including her real name and city of residence, which were listed on the protective order – to social media websites and during her live video game streams. Baltierra also posted the victim’s Twitter handle to pornographic websites along with the photoshopped nude images he had created.
During the victim’s live streams of video games, Baltierra used multiple accounts to continually post harassing messages. Baltierra’s spamming of the victim made it impossible for her to stream herself playing video games and forced her to stop streaming in February 2021.
In June 2021, two months after Baltierra and the victim reached a settlement in which he agreed to not contact her or her family and friends in exchange for the victim dissolving the temporary restraining order, Baltierra called the victim’s local police department. In that phone call, Baltierra requested the police conduct a welfare check of the victim by lying to the police that the victim had made threats online that she was going to commit suicide. Baltierra also attempted to obtain the victim’s home address during that phone call. The police later visited the victim’s home for a welfare check.
From January 2022 to March 2022, Baltierra sent threatening messages to the victim via various social media accounts, including one messages that read, “get a casket ready.” In March 2022, Baltierra wrote a letter to the parents of the victim’s boyfriend, which stated, in part, that the situation was going to end badly for her.
Baltierra also admitted to sending the victim an unsolicited suspicious package in March 2022 that later was determined to contain a box of condoms.
United States District Judge Fernando M. Olguin scheduled an October 20 sentencing hearing in this case.
The FBI investigated this matter.
Assistant United States Attorney Jake D. Nare of the Santa Ana Branch Office is prosecuting this case.
Oklahoma Man Pleads Guilty to Coercing an Ohio Minor to Travel to PA for ProstitutionRead the Press Release
PITTSBURGH - A former resident of Tulsa, Oklahoma, waived prosecution by Indictment and pleaded guilty to an Information in federal court to violations of Coercion and Enticement of Any Individual to Travel to Engage in Illegal Sexual Activity and Conspiracy to Commit the Offense of Coercion and Enticement of an Individual to Travel to Engage in Illegal Sexual Activity, United States Attorney Cindy K. Chung announced today.
Oscar Carter, age 38, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on or about March 6, 2018, to on or about March 14, 2018, Carter conspired and agreed with another individual, Shelby Summer Brown, to commit an offense against the United States, that is, to knowingly persuade, induce, entice, and coerce an individual, Minor A (an individual who had not yet attained the age of 18 years) to travel in interstate commerce, from Ohio to Pennsylvania, to engage in prostitution and any sexual activity for which any person can be charged with a criminal offense, and did so, from March 6, 2018 through March 14, 2018.
Judge Bissoon scheduled sentencing for November 1, 2022, at 10 a.m. The law provides for a total sentence of not more than 25 years in prison, a fine of $500,000.00, 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.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation—Pittsburgh, the Cranberry Township Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Oscar Carter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Muskegon Man Sentenced to 20 Years in Prison for Drug Trafficking & Illegal Firearms PossessionRead the Press Release
Latest of Multiple Drug Traffickers Sentenced as Part of a Targeted Investigation
GRAND RAPIDS, MICHIGAN – U.S. Attorney Mark Totten announced today that U.S. District Judge Paul L. Maloney sentenced Delando Johnson, a/k/a “Fox,” of Muskegon, Michigan to 20 years’ imprisonment – 15 years for drug trafficking to be followed by five years for possessing a firearm in furtherance of his drug trafficking.
Johnson sold heroin and fentanyl on three occasions in May 2020. When investigators went to arrest Johnson for the deals, they found him in possession of more heroin and fentanyl, as well as crack cocaine, $700, and a digital scale. At Johnson’s home, investigators also found all of the hallmarks of large-scale drug trafficking – more than 280 grams of methamphetamine, nearly 100 grams of fentanyl, and crack cocaine, as well as extended rifle magazines, loose ammunition, digital scales, and baggies used to package drugs for sale. Inside a safe, Johnson had also secreted drugs as well as more than $6,000 in cash, and a stolen, loaded .45 caliber handgun. Johnson later admitted as part of his guilty plea that he intended to sell the drugs for profit and that he had the gun in furtherance of his drug dealing activities.
Crack cocaine, fentanyl, a loaded, stolen .45 caliber pistol, and over $6,000 seized from a safe in Johnson’s home
At sentencing, Judge Maloney remarked that Johnson’s crimes were “grave indeed,” particularly in light of the deadly nature of fentanyl, the large amount of methamphetamine, and Johnson’s possession of a gun. Judge Maloney characterized Johnson as “a threat to the public” who committed a serious crime and needed to be deterred from future criminal conduct.
“Delando Johnson’s actions endangered his community and put innocent citizens at risk. Today, he has been held accountable for his actions,” said U.S. Attorney Mark Totten. He continued: “This sentence sends a strong message that large-scale drug trafficking and illegal gun possession will not be tolerated in this district and that drug traffickers who peddle these poisons in our community will face stiff prison sentences.”
“I would like to thank our law enforcement partners that contributed to removing Mr. Johnson from our streets,” said Orville Greene, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Division. “Fentanyl is a dangerous drug that contributes to a significant number of the overdoses we see in this country each day. Today, Mr. Johnson was held accountable for his actions.”
“This sentence is a significant step in disrupting drug trafficking in and around the Muskegon area,” declared Detective Lieutenant Andrew Ambrose, commander of the West Michigan Enforcement Team (WEMET), a division of the Michigan State Police and one of the lead investigative agencies on the case. “This prosecution and the prosecution of Johnson’s associates would not have been possible without the longstanding cooperation between law enforcement agencies. Criminals do not adhere to imaginary jurisdictional boundaries and because of cooperative efforts like the one here, neither do we.”
Johnson’s sentence is the most recent in a series of sentences handed down for drug traffickers prosecuted as part of Operation Interstate Zeus targeting drug trafficking in the Muskegon area. Others prosecuted as part of Operation Interstate Zeus received the following sentences:
- Zachary Kennedy, a/k/a “Zeus” – 210 months in prison for conspiracy to distribute methamphetamine, heroin, fentanyl, and crack cocaine;
- Brent Wilkerson, a/k/a “Pay”– 144 months in prison for distribution of 50 grams or more of methamphetamine;
- Daris Jefferson, a/k/a “Smoove” – 90 months in prison for possession of heroin and cocaine base (“crack”) with the intent to distribute it and possession of a firearm in furtherance of drug trafficking;
- Alezay Coleman, a/k/a “Zay” – 87 months in prison for possession of methamphetamine, fentanyl, and heroin with the intent to distribute it;
- Malik Jones-Smith, a/k/a “9” – 60 months in prison for distribution of five grams or more of methamphetamine; and
- Carl Johnson, a/k/a “Orangebone,” a/k/a “Bones”– 12 months and 1 day in prison for distribution of cocaine base (“crack”).
Operation Interstate Zeus is an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019, led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). Johnson is the latest in nearly a dozen defendants sentenced in the investigation, which led to the overall seizure of approximately 339 grams of methamphetamine, 113 grams of fentanyl, 93 grams of heroin, and quantities of cocaine and crack cocaine. Investigators also seized six handguns, jewelry worth approximately $20,000 and more than $20,000 in cash.
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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant U.S. Attorneys Stephanie M. Carowan and Vito S. Solitro.
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Minneapolis, Minnesota, Man Sentenced to 36 Months in Prison for Possession of a Firearm as a FelonRead the Press Release
ROCK ISLAND, Ill. – A Minneapolis, Minnesota, man, Hasan Raqueed Grayson, 39, of the 1900 block of North Penn Avenue, was sentenced on July 8, 2022, to 36 months’ imprisonment, to be followed by a three-year term of supervised release for possessing a firearm as a felon.
Grayson, who had been previously convicted of a crime punishable by imprisonment for a term exceeding one year, sold a .38 caliber Smith and Wesson handgun, a holster, two magazines, and six rounds of ammunition to an undercover detective with the Moline Police Department.
Grayson entered a plea of guilty to the charge in January 2022 and agreed to forfeit the handgun, magazines, and ammunition to the government. Grayson faced a statutory maximum term of imprisonment of 10 years.
“This case is another example of the concerted efforts of the Moline Police Department to remove an illegally possessed firearm from the streets of our community,” said Assistant U.S. Attorney Jennifer L. Mathew. “Individuals who illegally possess firearms will be held accountable for their conduct.”
The investigation was conducted by the Moline, Illinois, Police Department. Assistant U.S. Attorney Jennifer L. Mathew represented the federal government in the prosecution.
The case against Grayson was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Michigan Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on October 17, 2021, a woman at a Huntington bar called 911 to report that Terrell Jerome Greenlee, also known as Julian Johnson, 34, of Detroit, had brandished a firearm and pointed it at her. Responding law enforcement officers encountered Greenlee outside the bar and found a loaded Springfield XD 10mm handgun in his waistband. Greenlee admitted to possessing the firearm, and that it had been previously been reported as stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Greenlee knew he was prohibited from possessing a firearm because he had been convicted of first-degree robbery in Cabell County Circuit Court on May 6, 2014.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-224.
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Mesquite, Texas, Man Sentenced to 30 Months in Prison for Possessing a Firearm in Central IllinoisRead the Press Release
SPRINGFIELD, Ill. – A Mesquite, Texas, man, Anthony Davis, 32, of the 2000 block of Aloha Drive, was sentenced on July 7, 2022, to 30 months in the Federal Bureau of Prisons, to be followed by 36 months of supervised release for possessing a firearm after having previously been convicted of a felony.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government presented evidence that Davis was stopped by the Illinois State Police (ISP) while traveling on Interstate 55 for having an obstructed license plate. The ISP trooper learned that Davis’s driver’s license was suspended and a lit marijuana “blunt” was found in the car. A subsequent search of the vehicle uncovered a Hi Point Model CF 380 pistol with a defaced serial number and multiple magazines. Davis has multiple prior felony convictions from Macon County, Illinois, including failure to register as a sex offender, theft, and identity theft.
The statutory penalties for possession of a firearm by a felon are not more than 10 years in prison, not more than three years of supervised release, and not more than a $250,000 fine. The sentence imposed was within the advisory range calculated using the United States Sentencing Commission Sentencing Guidelines.
The Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorney Sarah E. Seberger represented the government in the prosecution.
Media Advisory - Press Conference AnnouncementRead the Press Release
WHEN: Tuesday, July 12, 2022 at 1:00 PM
WHERE: Terry Sanford Federal Courthouse
Room 158
310 New Bern Avenue
Raleigh, NC 27601
Re: 27 Indictments Announced as Part of Raleigh Area Violent Crime Strategy
RALEIGH – The United States Attorney’s Office announces a press conference concerning a number of cases indicted through our Violent Crime Action Plan (VCAP) partnership in Raleigh. In the last several weeks, 27 individuals have been indicted by grand juries for federal and state charges. Significant quantities of cocaine, heroin, fentanyl and crack have been seized. More than two dozen firearms including one ghost gun have also been seized.
In addition to United States Attorney Michael Easley, Raleigh Police Chief Estella Patterson, FBI Special Agent in Charge Robert Wells, ATF Assistant Special Agent in Charge Anthony Spotswood, and United States Marshal Michael East will be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at usance.PublicInfoOfficer@usdoj.gov. Please RSVP your intentions to attend the event.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Michael Bowers, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Bowers, 53, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Bowers admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Bowers 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. Attorneys Lara Omps-Botteicher and Timothy D. Helman are prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Sentenced to 115 Months for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On July 7, 2022, United States District Judge Susie Morgan sentenced ALTON COOKS to 115 months in the Bureau of Prisons for being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
COOKS was charged on October 23, 2020 in a one-count indictment with possessing a Taurus Model PT111 Pro, nine-millimeter pistol while being a convicted felon. COOKS will serve 115 months in prison to be followed by three years of supervised release and a $100 mandatory special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Assistant United States Attorney Melissa Bücher.
La jueza del Tribunal Supremo de EE.UU. Sotomayor se dirige a los jueces latinoamericanos en el Instituto de Estudios Judiciales del Departamento de JusticiaRead the Press Release
Hoy, en el Instituto de Estudios Judiciales (JSI) en San Juan, Puerto Rico, la Honorable Sonia Sotomayor, Jueza Asociada de la Corte Suprema de los Estados Unidos, se dirigió virtualmente a 24 jueces de Colombia, República Dominicana, El Salvador, México y Panamá como parte de un programa de capacitación del Departamento de Justicia (DOJ) para los jueces del hemisferio occidental. La jueza Sotomayor destacó la importancia de sus contribuciones al estado de derecho en el hemisferio occidental y los elogió por su papel en la transformación de la justicia latinoamericana.
Con el apoyo de la jueza Sotomayor, y en colaboración con la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley del Departamento de Estado, la Oficina de Desarrollo, Asistencia y Capacitación Fiscal (OPDAT) del Departamento de Justicia lanzó la JSI en 2012 como respuesta a la ola de reformas del sector de la justicia en América Latina, durante la cual muchos países hicieron la transición de sistemas de justicia inquisitoriales a acusatorios. A través de la instrucción en español, los ejercicios prácticos y la observación de los procesos judiciales, los jueces participantes aprendieron sobre las directrices probatorias, el papel de los jueces, la gestión de la sala de audiencias en un sistema de justicia acusatorio, contrabando humano y el juicio sin perspectiva de género, entre otros temas importantes.
Este desarrollo de competencias es fundamental para la región, ya que existen diferencias significativas entre los dos sistemas. Por ejemplo, en un sistema inquisitivo, los jueces investigan los cargos y determinan la culpabilidad mediante deliberaciones escritas a puerta cerrada. En un sistema acusatorio, el juez actúa como un árbitro imparcial responsable de sopesar las pruebas y garantizar los derechos de la víctima y del acusado en una sala abierta. El JSI ofrece a los homólogos judiciales la oportunidad de aprender habilidades prácticas, animando a los ex alumnos del JSI a convertirse en agentes de cambio dentro de sus judicaturas. Muchos ex alumnos de la JSI formados por el Departamento de Justicia han podido actuar como multiplicadores de fuerza en la región, impartiendo su formación en su propio poder judicial y en futuros programas de la OPDAT.
Desde el establecimiento de la JSI en 2012, el OPDAT y sus socios de las facultades de derecho de la Universidad de Puerto Rico y la Universidad Interamericana, el Poder Judicial del Estado de Puerto Rico y el Poder Judicial Federal de Estados Unidos han capacitado a más de 1.000 jueces latinoamericanos. Este año se cumple el décimo aniversario de este importante y sostenible proyecto.
Por favor, visite https://www.justice.gov/criminal-opdat para obtener más información sobre los esfuerzos de creación de competencias del OPDAT en todo el mundo.
Kingsley Man Sentenced for Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed firearms was sentenced on July 7, 2022, in federal court in Sioux City.
Levi Dimmitt, 35, from Kingsley, Iowa, pled guilty on December 2, 2021, to being a prohibited person in possession of multiple firearms.
Evidence at the plea and sentencing hearings showed that Dimmitt was a user of marijuana and methamphetamine, as well as a distributor, while possessing the guns. As a user of controlled substances, Dimmitt was prohibited from possessing guns. Law enforcement executed a search warrant on April 24, 2021, at a residence of Dimmitt’s in Sibley, Iowa. Inside, law enforcement located drug paraphernalia, marijuana, methamphetamine, and guns at various locations throughout the home and garage. Upon being arrested for the federal charges, Dimmitt ran a short distance from law enforcement before being apprehended.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Dimmitt was sentenced to 27 months’ imprisonment and must serve a 2-year term of supervised release following imprisonment. There is no parole in the federal system. Dimmitt remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Sibley Police Department, Osceola County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4062. Follow us on Twitter @USAO_NDIA.
Kings County Norteno Gang Member Sentenced to 15 Years in Prison for Methamphetamine SalesRead the Press Release
FRESNO, Calif. — Manuel Garcia, 35, of Armona, was sentenced today by U.S. District Judge Dale A. Drozd to 15 years in prison for conspiring to sell over 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
Garcia was arrested as part of Operation Red Reaper, a federal, state, and local law enforcement operation targeted at dismantling the criminal activities of the Norteno Street Gang and Nuestra Familia Prison Gang in the counties of Kings and Tulare. The operation resulted in the arrests of over 50 individuals. Federal charges were brought against 23 defendants, including Garcia.
According to court documents, Garcia had previously sustained a federal conviction for trafficking methamphetamine and was sentenced to nine years in prison. Just months after his release in 2019, he conspired with other Norteno street gang members to possess and distribute pounds of methamphetamine. Gang members supplied him with methamphetamine, and he agreed to sell the drugs and pay a portion of the proceeds back to the gang. In May 2019, investigators obtained information that Garcia had picked up over a pound of methamphetamine from a co‑conspirator. Officers performed a traffic stop on a car that Garcia was driving, searched the car, and found the methamphetamine. He was arrested, charged, and pleaded guilty to the conspiracy charge in April 2022.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kings County Gang Task Force, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Jessica A. Massey are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Kansas Man Sentenced in International Drug Smuggling RingRead the Press Release
KANSAS CITY, KAN.– A Kansas man was sentenced to 144 months in prison for his role in an international drug trafficking ring.
Back in April 2022, Jovanny Medina, 24, of Kansas City, Kansas, pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. According to court documents, Medina took part in a conspiracy to traffic illegal narcotics sourced from his family in Mexico in the Kansas City metro area. His primary role in the operation was to import and distribute multi-kilogram quantities of methamphetamine, collect drug debts, and transport bulk United States currency from Kansas City to Mexico.
“As long as drug smugglers infiltrate our borders and peddle poison into our communities, the Department of Justice will remain vigilant in arresting and prosecuting offenders with the deliberate intention of dismantling these criminal enterprises,” said U.S. Attorney Duston Slinkard.
U.S. Attorney Slinkard commends the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) for their collaborative investigation and Assistant U.S. Attorney Sheri Catania who prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The Kansas City Metro Strike Force’s mission also includes targeting violent street gangs and cartel members operating in and around the metropolitan area that are engaged in violent offenses and firearms offenses.
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Justice Department Celebrates the One-Year Anniversary of the Executive Order on CompetitionRead the Press Release
Today, the Justice Department recognized the first anniversary of the President’s Executive Order on Promoting Competition in the American Economy, and celebrated the Antitrust Division’s most productive year of interagency competition policy engagement in recent history. The Executive Order underscored that competition is a cornerstone of the American economy, and called for a whole-of-government response to “excessive market concentration threaten[ing] basic economic liberties [and] democratic accountability.”
“The Executive Order has created unprecedented opportunities for the Division to work with partner agencies to promote competition policy,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Through public advances in our partnerships and numerous enforcement collaborations, the Executive Order has driven meaningful and widespread benefits to competition in the American economy.”
In the last year, the department has established and expanded relationships with close to a dozen federal agencies. department staff attorneys and economists have provided technical assistance, helped to draft key reports on competition and entered into memoranda of understanding to improve the exchange of information and cooperation on enforcement efforts. The department has publicly announced expanded partnerships with the Department of Agriculture, the Federal Maritime Commission and the Department of Labor. The department has also submitted formal comments to several agencies, including the National Labor Relations Board and the Surface Transportation Board to ensure they consider the effects on competition of certain rulemaking efforts.
The department is undertaking efforts to review and revise a variety of competition policy documents to ensure its approaches protect competition with the vigor the law demands. Following a robust public outreach campaign during which the agencies received over 5,000 comments and heard from hundreds of other Americans affected by consolidation in industries ranging from hospitals to grocery stores, work is well underway to revise the merger guidelines. Last month, the department, along with the U.S. Patent and Trademark Office and the National Institute of Standards and Technology, announced the withdrawal of a widely-criticized 2019 policy statement on remedies related to standards-essential patents, in order to better serve innovation and competition. The withdrawal statement underscored that the division would apply a case-by-case approach to scrutinizing conduct that threatens to stifle competition.
As the Executive Order shifts into its second year, the department is focused on institutionalizing and routinizing its newly expanded interagency partnerships. The division remains committed to continued cooperation with its partner agencies in the ongoing implementation of the Executive Order and related interagency efforts to promote competitive markets.
Intertech Trading Corp. Pleads Guilty to 14 Felonies for Failure to File Export Information on Shipments of Lab Equipment to Russia and UkraineRead the Press Release
CONCORD – Intertech Trading Corporation, an Atkinson, New Hampshire-based laboratory equipment distributor, pleaded guilty in federal court to 14 felony counts of failure to file export information on shipments to Russia and Ukraine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, between 2015 and 2019, Intertech exported laboratory equipment to Russia, Ukraine, and elsewhere, falsely describing the nature and value of the exported items on the commercial invoices and shipping forms. In its plea agreement, Intertech admitted that it used false, innocuous descriptions such as “lamp for aquarium” or “spares for welding system,” rather than accurately identifying the sophisticated scientific equipment actually contained in the shipments. Intertech admitted that it drastically undervalued the shipments, thereby evading the requirement to file Electronic Export Information, which would have been reported to the Departments of Commerce and Homeland Security.
Intertech is scheduled to be sentenced on October 17, 2022. If the court accepts the terms of the binding plea agreement, Intertech will pay the maximum allowable fine of $10,000 per count and be subject to a two-year term of corporate probation and monitoring.
This matter was investigated by the Federal Bureau of Investigation, Boston Division, and the Department of Commerce, Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section.
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Inmate admits to murder, sentenced to 25 yearsRead the Press Release
CLARKSBURG, WEST VIRGINIA – An inmate previously housed at United States Penitentiary Hazleton was sentenced today to 25 years after admitting to second degree murder in a 2012 death of another inmate, United States Attorney William Ihlenfeld announced.
Ruben Laurel, 43, was sentenced today to 300 months of incarceration after pleading guilty to aiding and abetting second degree murder and assault with a deadly weapon in the death of inmate Anthony M. Dallas. Laurel, along with another inmate, repeatedly stabbed and cut Dallas, killing him on August 29, 2012, at USP Hazleton in Preston County. Dallas suffered nearly 50 stab wounds, wounding him in the heart, lungs, and liver. Another inmate also suffered injuries during the attack but survived.
Laurel is now housed at United States Penitentiary Terre Haute in Indiana.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The FBI investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Illinois Man Pleads Guilty in Federal Court to Gun and Drug ChargesRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm pled guilty July 8, 2022, in federal court in Sioux City.
Shawn Gaston, 32, from Peru, Illinois, was convicted of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of a drug trafficking crime.
At the plea hearing, Gaston admitted from February 2020 through October 2021, he and others distributed methamphetamine across Northern Iowa and elsewhere. In October 2021, law enforcement in Clay County, Iowa attempted to effectuate a traffic stop on a vehicle Gaston was operating. Gaston led law enforcement on a lengthy high-speed pursuit with Gaston’s vehicle ultimately crashing into a creek in Dickinson County, Iowa. Gaston exited the vehicle after the crash and disposed of a firearm and methamphetamine about 20 yards from the vehicle before being apprehended. Gaston was previously convicted of at least four felony convictions, including possession of stolen property and possession of drugs. These convictions prohibit Gaston from possessing any firearm.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Gaston remains in custody of the United States Marshal pending sentencing. Gaston faces a mandatory minimum sentence of 15 years’ with 10 years’ imprisonment on the drug convictions plus a consecutive term of 5 years’ imprisonment on the gun conviction and a possible maximum sentence of life imprisonment, a $20,500,000 fine, and life of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, Iowa Division of Narcotics Enforcement, Spencer Police Department, H.E.A.T., Minnesota River Valley Drug Task Force, Minnesota BCA, Worthington Police Department, Wisconsin DCI, Sauk County Wisconsin Sheriff’s Office, Iowa-Grant Wisconsin Drug Task Force, Crawford County Wisconsin Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Iowa DCI Laboratory. The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4094. Follow us on Twitter @USAO_NDIA.
Hunterdon County Man Sentenced to 33 Months in Prison for Producing Phony Massage Therapy Training Certificates for Prostitution BusinessesRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man was sentenced today to 33 months in prison for producing and selling fraudulent massage therapy training certificates for use in various New Jersey massage parlors that engaged in prostitution, U.S. Attorney Philip R. Sellinger announced.
Naresh Rane, 68, of Tewksbury, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count 1 of an indictment charging him with knowingly and intentionally using and causing the use of facilities in interstate commerce to promote, manage, establish, carry on, and facilitate the business of prostitution in violation of New Jersey law. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Rane owned and operated Axiom Healthcare Academy, which purported to provide classes in massage therapy training. Rane held himself out as a businessman who, for a fee that ranged from $1,000 to $2,600, could provide massage therapy training certificates to anyone who wished to obtain a massage license without the required training. Rane was also willing to provide phony transcripts listing classes and grades.
Between November 2013 and March 2014, Rane provided 10 fraudulent massage therapy training certificates and transcripts to a former Westwood, New Jersey, councilman who then gave them to prostitutes working in different massage parlors located in Union, Passaic, Hudson and Middlesex counties. Rane admitted today that he knew the documents he was producing and selling were used to disguise prostitution activities as legitimate massage services.
In addition to the prison term, Judge Quraishi sentenced Rane to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Horse Doping Drug Supplier Sentenced to 11 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendant SETH FISHMAN, DVM, received a sentence of 11 years in prison today for his role at the helm of an approximately twenty-year scheme to manufacture, market, and sell to racehorse trainers and others in the racehorse industry “untestable” performance enhancing drugs for use in professional horseracing. FISHMAN was one of over thirty defendants charged in four separate cases in March 2020, each arising from this Office’s multi-year investigation of the abuse of racehorses through the use of performance enhancing drugs.
U.S. Attorney Damian Williams said: “The sentence today sends a strong message that those looking to profit from the sale of illegal drugs intended to corruptly dope racehorses stand to face serious consequences for their crimes. The defendant earned his livelihood in service of greed and animal abuse, and will face a steep price for his crimes.”
According to the allegations contained in the Superseding Indictment, prior charging instruments, other filings in this case, and as established by the evidence at trial:[1]
FISHMAN was charged in United States v. Navarro, 20 Cr. 160 (MKV), a case arising from an investigation of widespread schemes by racehorse trainers, veterinarians, performance enhancing drug (“PED”) distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates (“UAE”), all to the detriment and risk of the health and well-being of the racehorses. Trainers who participated in the schemes stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings, and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control. Indicted veterinarians profited from the sale and administration of these medically unnecessary, misbranded, and adulterated substances. FISHMAN, acting as the manufacturer and distributor of customized PEDs designed specifically to evade anti-doping controls, reaped millions of dollars from the sale of his drugs to trainers around the United States and across the globe.
FISHMAN specifically targeted clients in the racehorse industry, peddling dozens of unsafe and untested drugs that purported to have performance-enhancing effects on racehorses. FISHMAN created and marketed these drugs as “untestable” under typical anti-doping drug screens and extolled the virtues of these illegal drugs by describing his method of creating customized products for individual customers in order to silo product lines to reduce the likelihood that detection of doping by trainer would undermine the remainder of FISHMAN’s corrupt clientele.
In the course of nearly twenty years during which he operated his doping company, Equestology, FISHMAN took additional efforts to mislead and lie to regulatory authorities in an effort to shield his illegal activity. FISHMAN incorporated a sham business in Panama designed to appear as if his drug operation was outside the jurisdiction of U.S. authorities; he pressured employees to sign non-disclosure agreements intended to gag them if questioned by regulators; he designed labels that would provide no hint as to the provenance of the unsafe drugs shipped across the country; and he lied to state investigators regarding the nature of his business when asked directly about his role in Equestology during a Delaware state investigation in 2011, while also bragging to others that he had called in a “personal political favor” to quash that investigation.
While claiming to practice as a legitimate veterinarian, FISHMAN used his veterinary license as another form of cover for his illegal drug manufacturing business. In fact, FISHMAN sold illicit drugs, including prescription drugs, under sham prescriptions for animals that he never saw or discussed. Those drugs included intravenous and intramuscular injectables that FISHMAN sold to laypeople for injection into the horses under their purported “care,” many of which were seized at premises throughout the country at the time of the original indictments in this case, including barns located in New York. Those included “blood building” drugs (for example, “BB3” and other Epogen-mimetic substances), vasodilators (for example, “VO2Max”), and bags filled with scores of “bleeder pills,” each designed to covertly increase performance in affected horses.
FISHMAN, 51, of Florida, was convicted at trial of two counts of participation in drug adulteration and misbranding conspiracies, the first in connection with the doping operation of convicted co-defendant Jorge Navarro, and the second in connection with the operation of Equestology, which included FISHMAN’s continuation of that offense even following his release on bail after his initial arrest in October 2019.
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Mr. Williams praised the outstanding investigative work of the FBI New York Office’s Eurasian Organized Crime Task Force and its support of the Bureau’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the Food and Drug Administration and Customs and Border Protection for their assistance and expertise. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sarah Mortazavi and Anden Chow are in charge of the prosecution.
[1] As to Fishman’s co-defendants, these facts, including the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Heroin and Cocaine Dealer Sentenced to Five Years in Federal Prison for Drug Conspiracy and Distribution ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Darick Knighton, age 44, of Alexandria, Virginia, to five years in federal prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute a controlled substance and distribution of a controlled substance. The sentence was imposed on July 7, 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.
According to his guilty plea, from December 2018 to January 2020, Knighton, and others participated in a conspiracy to distribute and possess with intent to distribute heroin. From the spring of 2018 to December 2018, Knighton sold more than 100 grams of heroin to a confidential informant in Maryland. For example, on December 13, 2018, Knighton sold 97.32 grams of heroin with trace amounts of caffeine and fentanyl to a confidential informant in exchange for $7,000. Knighton also sold cocaine. Beginning on April 4, 2019, law enforcement officers intercepted Knighton’s phone calls and were able to identify several of Knighton’s narcotics customers, including a customer to whom Knighton sold between 50 and 100 grams of cocaine.
As detailed in his plea agreement, Knighton had a longstanding relationship with his primary source of supply for heroin. As a result, the source of supply provided Knighton with heroin on consignment, which Knighton then resold in smaller quantities to his own customer base. Knighton also had other suppliers, including an individual based in Baltimore, Maryland. Knighton admitted that he knew the drug trafficking organization was extensive and that his drug supplier obtained narcotics from at least one source located outside of the Washington, D.C. area. On May 1, 2019, following a conversation between co-defendant Dwight Andrew Douse and the source of supply, the source of supply called Knighton to let him know that he could obtain 100 grams of heroin from his source of supply and that the drugs could be cut such that Knighton would have 125 grams of product to sell to his customers. Knighton never directly dealt with Douse or with co-defendant Ana Avalos. Knighton was also aware that his source of supply had additional narcotics customers in addition to Knighton.
Four co-defendants have pleaded guilty in this case, including Dwight Andrew Douse, age 45, of Newburgh, New York; and Ana Avalos, age 35, of Phelan, California. Ana Avalos was sentenced to 57 months in federal prison in July 2021. Douse and two other co-defendants who pleaded guilty are scheduled to be sentenced in the coming months. One co-defendant is scheduled for trial in April 2023, and the final co-defendant is a fugitive.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, USPIS, the Prince George’s County Police Department, and the Montgomery County Police Department for their work in the investigation and thanked the Metropolitan Police Department, the Naval Criminal Investigative Service, the Virginia State Police, and the Fairfax County Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Timothy F. Hagan and Joel Crespo, 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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Georgia Woman Sentenced to More Than Three Years in Federal Prison for over $1.5 Million Wire Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Theresea Walker (30, Fairburn, GA) to three years and six months in federal prison for wire fraud. She was also ordered to pay $1,757,082.73 in restitution and forfeited $934,885.65 that was seized by the FBI from various accounts held by her or in her control. Walker had pleaded guilty on March 29, 2022.
According to court documents, from at least October 2019 through May 21, 2021, Walker was employed as an accounts payable processor with a technology company, defense contractor, and information technology services provider headquartered in Melbourne, Florida. In this role, Walker’s responsibilities included accessing her employer’s payment software systems for the purpose of entering vendor and supplier invoices and scheduling those invoices for payment. Walker’s employer conducted an audit of accounts serviced by Walker and the audit revealed that Walker had made false entries into the employer’s accounts payable system to conduct nine wire transactions through which Walker caused the transfer of funds from the employer’s bank account to accounts controlled by Walker.
As part of her scheme, Walker also edited the payment terms and accounts of actual existing vendors with the employer, so that new invoices entered under that vendor name would be paid directly to the accounts designated by Walker. During the course of the scheme, in an attempt to hide her fraudulent activity, Walker created multiple fictitious invoices and fraudulent credit memos. In total, as a result of her scheme, Walker caused a total loss of $1,757,082.73 to the employer, which also represents the proceeds received by her from her scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Terry B. Livanos. The forfeiture was handled by Assistant United States Attorney Nicole Andrejko.
Galesburg Father and Son Sentenced to Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, father and son, Gilbert Dean Bicknell, 53, and Michael Gilbert Dean Bicknell, 28, were sentenced to federal prison on July 7, 2022, for possession with intent to distribute methamphetamine.
Michael Bicknell was sentenced to 168 months’ imprisonment and his father, Gilbert Bicknell, was sentenced to 156 months’ imprisonment, both to be followed by a five-year term of supervised release.
At the sentencing hearing in front of Chief U.S. District Judge Sara L. Darrow, the government presented evidence that demonstrated that Michael Bicknell and Gilbert Bicknell were working together in early 2020 to procure kilograms of methamphetamine for distribution in the Galesburg, Illinois, area.
Also at the hearing, Chief Judge Darrow commented on the devastating impact that methamphetamine has had on communities within the Central District of Illinois.
Michael Bicknell entered a plea of guilty to the offense on February 2, 2022. Gilbert Bicknell entered a plea of guilty to the offense on August 10, 2021. The statutory penalties for possession with intent to distribute methamphetamine are 10 years to life imprisonment and a maximum lifetime term of supervised release.
The Federal Bureau of Investigation, Springfield Office; Galesburg, Illinois, Police Department; and Knox County, Illinois, Sheriff’s Office investigated the case. Assistant U.S. Attorney Jennifer Mathew represented the government in the prosecution.
Former Postal Service Mail Carrier Pleads Guilty to Federal Charges for Stealing Mail and Fraudulently Obtaining COVID-19 Jobless BenefitsRead the Press Release
LOS ANGELES – A former United States Postal Service (USPS) mail carrier pleaded guilty today to federal criminal charges for scheming to steal more than $250,000 in unemployment insurance (UI) funds by making false claims of COVID-related job losses and for stealing UI debit cards intended for other people on his mail route.
Stephen Glover, 32, of Palmdale, pleaded guilty to a two-count information charging him with mail fraud and theft of mail matter by an officer or employee.
According to his plea agreement, from August 2020 to June 2021, while he was employed at the United States Post Office in Valencia, Glover schemed to defraud the California Employment Development Department (EDD) out of hundreds of thousands of dollars in COVID-19 pandemic-related unemployment benefits. Glover’s co-schemers applied for unemployment benefits from EDD using false statements and sometimes using stolen identities. Based upon the fraudulent claims, EDD mailed out debit cards to addresses listed on the applications.
The fraudulent UI claims were federally funded through programs authorized by Congress in response to the pandemic, including the Pandemic Unemployment Assistance (PUA) and Lost Wage Assistance (LWAP) programs.
Glover admitted to abusing his position as a USPS mail carrier by providing co-schemers addresses on his mail route, which his co-schemers then used as mailing addresses on the fraudulent EDD applications. After EDD mailed debit cards to those addresses, Glover intercepted and stole that mail.
Glover further admitted to stealing legitimate EDD debit cards intended for recipients on his mail route. Glover used the EDD debit cards in other people’s names to withdraw thousands of dollars in cash from ATMs. He also activated the debit cards in other people’s names by calling EDD and using PINs he had discovered from stolen EDD mail. During a search of his girlfriend’s residence in June 2021, law enforcement found 37 pieces of mail from EDD address to 15 different individuals.
The total intended loss related to Glover’s mail fraud scheme is $270,698.
Glover also admitted to stealing more than 10 personal and business checks payable to others and unrelated to the COVID-19 pandemic, which totaled to approximately $23,266. In relation to these checks, Glover admitted to stealing approximately 40 pieces of mail.
United States District Judge Percy Anderson scheduled a September 19 sentencing hearing, at which time Glover will face a statutory maximum sentence of 20 years in federal prison on the mail fraud count and five years in federal prison on the mail theft count.
In a related case, Travis McKenzie, 26, of Valencia, a co-schemer who lived on Glover’s mail route, is scheduled to plead guilty on July 13 to a three-count information charging him with mail fraud, mail theft, and identity theft.
McKenzie admitted in his plea agreement that law enforcement found more than 150 pieces of mail from EDD addressed to more than 50 different names, as well as mail from the Virginia Employment Commission, at his residence. McKenzie further admitted to using cash withdrawn from ATMs using EDD debit cards to purchase items from luxury retailers including Louis Vuitton and Prada handbags from luxury retailers Nieman Marcus and Saks Fifth Avenue.
The intended loss applicable to McKenzie’s participation in the mail fraud scheme is approximately $577,522. McKenzie further admitted to possessing 317 pieces of stolen mail.
Upon entering his guilty plea, McKenzie will face a statutory maximum sentence of 40 years in federal prison.
The United States Department of Labor Office of Inspector General, the United States Postal Service Office of Inspector General, the California Employment Development Department Investigations, and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting these cases.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Battle Ground, Washington, bank branch manager charged with stealing over $1 million from elderly customersRead the Press Release
Seattle – A 43-year-old former bank manager from Battle Ground, Washington, was arrested Friday in Yakima, Washington, on charges of Bank Fraud and Aggravated Identify Theft, announced U.S. Attorney Nick Brown. Brian Davie, a former branch manager at Wells Fargo, allegedly used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million. Davie allegedly targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $546,000 stolen from her retirement accounts. Davie will appear in U.S. District Court in Yakima at 1:30 today.
Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to the criminal complaint, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances, as well as examples of customer signatures. Davie allegedly used this knowledge to forge signatures on cashier’s checks, withdrawal slips and other bank forms. Davie allegedly hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements.
The complaint alleges that Davie continued undetected because he stole from elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia, or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts. That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions.
Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash.
Wells Fargo reimbursed victims for their losses.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Wells Fargo investigation team.
This case is being prosecuted by Assistant United States Attorney Zachary Dillon.
davie_complaint_-pacer.pdfFlorissant woman admits $828,000 pandemic loan and grant fraudRead the Press Release
ST. LOUIS – A woman from Florissant pleaded guilty to federal charges Monday and admitted submitting fraudulent applications that triggered $828,813 in loans and grants that were supposed to go to businesses struggling with the coronavirus pandemic.
Dionneshae Forland, 51, pleaded guilty to bank fraud, theft of government property and four counts of wire fraud and admitted a scheme to fraudulently obtain money from the Paycheck Protection Program and the Missouri Small Business Grant Program.
From January 2021 through May 2021, Forland lied on PPP loan applications about the number of employees and monthly payroll expenses of the companies that she claimed needed help. She also submitted fraudulent tax forms, bank statements, payroll records and employee lists to back up the scheme.
She obtained four loans totaling $592,235 for herself. She did not spend the money for PPP-approved purposes, instead spending it on her personal expenses, her plea agreement says. She also fraudulently obtained a $150,000 loan for a company linked to her son, Dwayne Times, and two loans totaling $36,600 on behalf of two people referred to her by Times.
Forland also submitted four fraudulent grant applications to the Missouri Small Business Grant Program in July 2020, but no grants were disbursed. She was successful in fraudulently obtaining a grant for one company by falsely claiming it had been in operation since February 2017 and by submitting false documents and information about the number of employees and the payroll, her plea agreement says. A grant of $49,988 was disbursed into a bank account controlled by Times. Times took out $8,000 in cash before the money was “clawed back” due to officials’ fraud suspicions.
As part of her plea, Forland agreed to forfeit any profits from her scheme. Nearly $600,000 has been seized from various accounts linked to Forland or Times.
Times, 31, pleaded guilty June 9 to one count each of wire fraud and theft of government property. He is scheduled to be sentenced Oct. 11.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Federal Jury Finds Truck Driver Guilty of Sex Trafficking a Minor and Production of Child Sex Abuse MaterialsRead the Press Release
PITTSBURGH - After deliberating for just over an hour on Friday, a federal jury of 12 men and women found Roderick King, who chose to represent himself, guilty of one count of sex trafficking a minor and two counts of production of material depicting the sexual exploitation of a minor, United States Attorney Cindy K. Chung announced today.
King, 32, formerly of the suburbs of Chicago, Illinois, was tried before United States District Judge Christy Criswell Wiegand in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Rebecca L. Silinski and Jeffrey R. Bengel, who tried the case, the evidence presented at trial established that over three-year period of time, beginning in 2017, King, a truck driver, paid the Minor Victim, who was 14 years-old when King first met her, hundreds of dollars in cash for sex on approximately 10 occasions, and produced two videos of his sexual exploitation of the Minor Victim.
King used social media accounts – namely, the Snapchat username “fuckabeatiwastr” and multiple Facebook accounts, including “Raphael Bloomberg” and “Raphael Huxtable” – to communicate with the Minor Victim. Messages between King and the Minor Victim were presented during trial, which prosecutors stated demonstrated that King used these accounts to maintain control over, manipulate and exploit his victim.
In the Fall of 2020, however, the Minor Victim walked into the Butler Township Police station and told law enforcement about the crimes committed against her by King. The Minor Victim bravely testified at trial and when questioned by King, resolutely stated that she was motivated to report these crimes to police because “30-year-old men shouldn’t be having sex with little kids.”
Judge Wiegand stated that sentencing will be scheduled by further order of court. The law provides for a sentence of not less than 15 years to life in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Court ordered King remain detained pending sentencing.
The Department of Homeland Security Investigations (HSI), Human Trafficking and Child Exploitation Group, and special agents with the Pennsylvania Office of the Attorney General Child Predator Section, with the assistance of Butler Township Police Department, and Butler County Children and Youth Services, conducted the investigation that led to the prosecution of King.
The charges for which King has been convicted concern a specific victim. Additional members of the public who may have information about King’s involvement in sex trafficking and child exploitation are encouraged to call HSI’s tip-line at 866-347-2423 and state the report is to HSI-Pittsburgh regarding Roderick King.
This prosecution is part of Operation T.E.N. (Trafficking Ends Now), an umbrella coalition for law enforcement, community and non-profit partners in the 25 counties in the Western District of Pennsylvania, formed and led by the United States Attorney’s Office for the Western District of Pennsylvania. AUSA Silinski serves as the Human Trafficking Prosecution’s Coordinator and oversees Operation T.E.N. and community outreach. This coordinated effort aims to end human trafficking through education and improved cooperation among law enforcement partners, victim service providers and community members, thereby enhancing the Office’s ability to empower victims of human trafficking to become thriving survivors.
El Paso Man Pleads Guilty to Production of Child PornographyRead the Press Release
EL PASO – Jorge Mario Manjarrez-Reyes, 30, of El Paso, pleaded guilty today to one count of production of a visual depiction involving the sexual exploitation of a minor.
According to court documents, law enforcement officers first encountered Manjarrez-Reyes on a peer-to-peer program where he was sharing images of child pornography. Following the execution of a search warrant at the defendant’s residence on March 19, 2020, Homeland Security Investigations (HSI) forensically discovered approximately 513 images and 619 videos depicting child pornography on Manjarrez-Reyes’ electronic devices. In coordination with the National Center for Missing and Exploited Children, HSI later learned that one of the pornographic videos had been created by Manjarrez-Reyes.
By pleading guilty, Manjarrez-Reyes admitted that he knowingly used and coerced a four-year-old victim to take part in sexually explicit conduct for the purpose of producing visual depictions of that abuse.
A sentencing date has not been set. Manjarrez-Reyes faces a mandatory minimum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff and HSI Special Agent in Charge Frank Burrola, El Paso Division, made the announcement.
HSI El Paso’s Cyber Crimes Group investigated the case.
Assistant U.S. Attorney Michelle Winters is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 www.justice.gov/psc.
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East Windsor Man Admits Role in Oxycodone Prescription Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that an East Windsor man has admitted his role in a scheme to acquire and distribute oxycodone obtained through fraudulent prescriptions. On July 5, 2022, JAYSON KEMP, 45, pleaded guilty before U.S. District Judge Victor A. Bolden in Bridgeport to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone.
According to court documents and statements made in court, Kemp obtained blank prescription paper from employees of various Connecticut medical practices. He kept some of the prescription paper for himself and also sold some of the prescription paper, for thousands of dollars, to other individuals, including Oral Welborn, who resided in Hartford. Kemp, Welborn and another co-conspirator then recruited “runners,” who typically were individuals who received Medicaid and Medicare benefits, to fill fraudulent prescriptions at various pharmacies. Kemp, Welborn and the other co-conspirator filled out each prescription with the runner’s identifying information and forged a doctor’s signature on the prescription. The runner then filled the fraudulent prescription at a pharmacy, generally using their Medicaid or Medicare benefits, and provided the pills to Kemp, Welborn and their co-conspirator in exchange for approximately $50 per prescription. Kemp, Welborn and their co-conspirator then sold the pills to individuals suffering from opioid addictions.
Kemp, Welborn and their co-conspirator were responsible for filling at least 150 fraudulent prescriptions for oxycodone, almost all of which were for 150 30-mg oxycodone pills.
Kemp was arrested on August 2, 2019. He is released on a $150,000 pending sentencing, which is not scheduled.
Welborn pleaded guilty to the same charge on March 10, 2020, and awaits sentencing. Kemp and Welborn’s co-conspirator was charged and convicted in state court.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the U.S. Department of Health and Human Services Office of the Inspector General, and the Vernon Police Department.
The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Cumberland County Man Sentenced to 151 Months in Prison for Drug ConspiracyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 151 months for conspiracy to distribute methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Joan Benitez, 41, of Millville, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over 50 grams of methamphetamine. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From Jan. 22, 2020, to Sept. 9, 2020, Benitez sold crystalized methamphetamine, also called “ice,” on behalf of a conspiracy to distribute those drugs. Benitez distributed 1.57 kilograms of methamphetamine.
In addition to the prison term, Judge Kugler sentenced Benitez to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to today’s sentencing. He also thanked the New Jersey State Police, the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Atlantic County Prosecutor’s Office, the Atlantic County Sheriff’s Office, the Pleasantville Police Department, and the Atlantic City Police Department, for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
Cottonwood County Farmer Charged with $46 Million Organic Grain Fraud SchemeRead the Press Release
MINNEAPOLIS – A Jeffers, Minnesota, man has been indicted for defrauding grain purchasers by selling non-GMO grains falsely labeled as organic, announced U.S. Attorney Andrew M. Luger.
According to court documents, between 2014 and 2020, James Clayton Wolf, 64, a certified organic farmer, engaged in a scheme to defraud grain purchasers by selling them non-GMO grains falsely represented as organic. Wolf, who did not hold a legally required grain buyer’s license, repeatedly purchased non-organic corn and soybeans from a grain seller and resold the grain as organic product. As part of his scheme, Wolf also grew conventionally farmed crops using chemical fertilizers and pesticides, in violation of organic farming standards. Wolf provided grain purchasers with copies of his National Organics Program certification but withheld the material fact that the grains were not organically farmed. As a result of his fraud scheme, Wolf received more than $46,000,000 in payments from grain buyers.
Wolf is charged with three counts of wire fraud. He will make his initial appearance in U.S. District Court before Magistrate Judge David T. Schultz on July 22, 2022.
This case is the result of an investigation conducted by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and the FBI.
Assistant U.S. Attorney Robert M. Lewis is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Clarksville Man Sentenced to over Three Years in Federal Prison for Bilking Investors Out of over $1.4 MillionRead the Press Release
NEW ALBANY – Anthony Todd Leonard, 55, of Clarksville, Ind., was sentenced to 40 months in federal prison today for wire fraud and money laundering offenses related to an investment scheme.
According to court documents, from 2013 through 2019, Leonard sought out and obtained investors in his companies that purportedly focused on the development of educational software products, including nurseVersity LLC, Versity Edu, Versity Inc, VersityU, and Bridge-It Learning (collectively, the “Versity companies”). The products included nurseVersity software designed to assist nursing students in passing their board examinations; ptVersity, software designed to assist physical therapy students; and Bridge-It Learning, software designed to help students in the education system.
Leonard made material misrepresentations to induce investors to not only invest in his companies, but to also continue providing money once they were involved. These misrepresentations included providing inflated sales figures and other metrics; providing false bank statements and business financial documents to investors; and misrepresenting qualifications, medical history, and company personnel issues to secure additional funds.
As a result of these misrepresentations, investors paid, and continued to pay Leonard for purported ownership interests, loans, other rights to his companies, and for other business reasons, leading to losses of over $1.4 million. Leonard admitted to law enforcement that he misrepresented the amount of revenue his companies generated, and that his companies never actually made the money he represented to investors.
Most of the funds received from these investors were used by Leonard and his wife for their personal enrichment, such as the purchase of a large parcel of land in New Albany, Ind. with a lake house, the construction of a new residence on that parcel, expensive dinners, trips, and other expenses unrelated to the Versity companies and products. Property obtained by Leonard with stolen investor funds was seized by the government and will be forfeited.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Rodney Hopkins, Inspector-in-Charge of the United States Postal Inspection Service, Detroit Field Division made the announcement.
The United States Postal Inspection Service investigated the case and was assisted by the Indiana Secretary of State. The sentence was imposed by U.S. District Judge Sarah Evans Barker following the defendant’s guilty plea. As part of the sentence, Judge Barker also ordered that the defendant be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney MaryAnn T. Mindrum who prosecuted this case.
Charleston Man Sentenced to Prison for Role in Multi-State Drug RingRead the Press Release
CHARLESTON, W.Va. – Ricky Lee Taylor, also known as “RT,” 58, of Charleston, was sentenced today to two years in prison, to be followed by one year of supervised release, for his role in a drug trafficking organization (DTO) that distributed large amounts of methamphetamine, fentanyl and other illegal drugs in the Huntington area.
According to court documents and statements made in court, Taylor admitted that he arranged a transaction involving cocaine base, also known as “crack,” during a telephone call with an individual in Huntington on May 11, 2021. After the transaction was arranged, Taylor traveled from Charleston to Huntington, met with the individual, and received the drugs. Taylor was subsequently stopped by law enforcement officers on Interstate 64 while returning to Charleston. Officers seized the crack, which Taylor admitted he intended to distribute, and a loaded .40 caliber pistol that Taylor also possessed during the traffic stop.
Taylor previously pleaded guilty to using a telephone to facilitate a felony controlled substance offense. The case is the result of a long-term investigation that disrupted the DTO and its distribution of fentanyl, methamphetamine, oxycodone, heroin, cocaine and crack. All 18 defendants have pleaded guilty
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-109.
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Career Offender Sentenced to Four Years in Prison for Distributing CocaineRead the Press Release
BOSTON – A Cambridge man was sentenced on July 8, 2022 in federal court in Boston for cocaine distribution.
Dante Starks, a/k/a “Tay,” 40, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to four years in prison and three years of supervised release. In March 2021, Starks pleaded guilty to one count of distribution of cocaine.
This case was a part of Operation Landshark, a federal investigation targeting impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking.
The investigation identified Starks a career offender and target impact player due to his multiple felony convictions of controlled substance offenses. In July 2018, Starks sold approximately 14 grams of cocaine to a cooperating witness in a Brockton parking lot. At the time of the offense, Starks was on probation for a 2015 conviction out of Suffolk Superior Court for multiple drug distribution offenses, for which he served one year in prison.
Previously, in 2012, Starks was convicted in Plymouth Superior Court of drug distribution offenses, assault and battery of a police officer and resisting arrest, for which he served three years in prison. In 2011, Starks was convicted in Dorchester District Court of drug distribution offenses for which he served 30 months in prison. In 2004, Starks was charged and fined for drug distribution offenses.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Kevin Hayden; Boston Police Commissioner Gregory Long; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service. Assistant U.S. Attorney Timothy E. Moran, Chief of Rollins’ Organized Crime & Gang Unit, prosecuted the case.
Operation Landshark was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Camp Hill Attorney Sentenced for Obstructing A Department of Labor InvestigationRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles W. Johnston, age 75, of Fairfax County, VA, was sentenced on July 8, 2022, to 12 months’ probation and a $50,000 fine by United States District Court Judge Jennifer P. Wilson. Following a 4-day trial, Johnston was previously convicted in November 2021 of obstructing a United States Department of Labor (DOL) investigation regarding the administration of the Plumbers and Pipefitters Local 520 Pension Plan.
According to United States Attorney Gerard M. Karam, Johnston maintained a law practice in Camp Hill, PA for over 40 years and served as legal counsel to the Plumbers and Pipefitters Local 520 Health and Welfare, Pension, and Annuity Plans since 1972. In 2014, as the attorney for the Local 520 pension plan, Johnston handled the plan’s response to a federal subpoena for records in connection with the DOL’s investigation into the pension plan’s financial activities.
During trial, the government presented evidence that Johnson intentionally concealed and withheld from DOL investigators emails, documents, and an internal audit concerning miscalculations of the Local 520’s pension and health and welfare benefits. These incriminating documents, which the government established Johnston possessed and was aware of, revealed significant and material mismanagement of the pension fund, and their disclosure would have exposed the pension plan to further investigation. However, when asked by investigators whether all the requested documents had been produced, Johnson lied and stated he had done so.
“Like all attorneys, Charles Johnston began his career by swearing an oath to uphold the law. He ended that career decades later, by breaking it,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Interfering with a federal investigation is an attempt to subvert the course of justice. It’s a serious crime, and doubly so for an officer of the court. The FBI and our partners don’t allow people to work to undermine our cases. As this prosecution shows, doing so is an incredibly bad idea.”
“As the attorney for the Plumbers and Pipefitters Local 520 Health and Welfare, Pension and Annuity Plans, Charles W. Johnston Esq., unlawfully obstructed a U.S. Department of Labor, Employee Benefits Security Administration (EBSA) investigation by deliberately concealing subpoenaed documents. The U.S. Department of Labor, Office of Inspector General will continue to work with EBSA and our law enforcement partners to investigate those who attempt to obstruct the U.S. Department of Labor from protecting the integrity of labor unions and their affiliated benefit plans,” said Syreeta Scott, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
“The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and prosecuting those who fail to comply with its investigative authority by obstructing an investigation,” said Cristina O’Brien, Acting Regional Director of EBSA’s Philadelphia Regional Office.
The case was investigated by the U.S Department of Labor Office of Inspector General (DOL-OIG) and Employee Benefits Security Administration (DOL-EBSA), along with the Federal Bureau of Investigation (FBI). Assistant U.S. Attorneys Joseph Terz and Samuel Dalke prosecuted the case.
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