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24 June 2022
Two Men Charged with Plan to Commit Home Invasion Robbery for Tens of Millions of Dollars in BitcoinRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an Indictment charging DOMINIC PINEDA and SHON MORGAN with conspiracy to commit Hobbs Act robbery in May 2020 in Irvington, New York. PINEDA and MORGAN were arrested yesterday in Virginia and will be presented this afternoon in the Eastern District of Virginia.
U.S. Attorney Damian Williams said: “As alleged in the indictment, the defendants participated in a violent plan to break into a family’s home in the middle of the night and force its residents to provide the code to what the defendants believed was tens of millions of dollars in Bitcoin currency. Thanks to the work of the FBI, the defendants will now be held responsible for the alleged acts.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From May 18, 20200 to May 24, 2020, DOMINIC PINEDA and SHON MORGAN participated in a plan to break into a home in Irvington, New York and rob its residents of cash and cryptocurrency.
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PINEDA, 21, of Manassas, Virginia, and MORGAN, 21, of Centreville, Virginia, are each charged with conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 1951, which carries a maximum term of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, U.S. Probation, New York State Police, New York State Department of Corrections and Community Supervision, Putnam County Sheriff's Office, Westchester County DAs Office, Rockland County DAs Office, NYPD, Westchester County PD, and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments and thanked the Irvington Police Department and the Greenburgh Drug and Alcohol Task Force for their assistance in the investigation and prosecution of PINEDA and MORGAN.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Courtney L. Heavey is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Two Attorneys Formerly with Philadelphia Law Firm Charged with Legal Fee Fraud SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Scott E. Diamond, 62, of Philadelphia, PA, and Jesse M. Cohen, 42, of Los Angeles, CA, were charged together by Information with one count of mail fraud and one count of wire fraud. Diamond was an attorney who was a partner in a Philadelphia law firm, and Cohen was an associate in the same law firm. The firm specialized in complex commercial litigation, representing plaintiffs in personal injury matters, and representing insurance companies in insurance subrogation matters.
According to the Information, for approximately two years from 2018 through 2020, Diamond and Cohen engaged in a scheme to divert the fees from numerous personal injury and subrogation matters from the firm to themselves by secretly resolving the cases without the other firm partners knowing about the resolutions. Diamond and Cohen then caused insurance companies and other payors on those cases to send legal fees to themselves instead of to their employer, the law firm. When that was not possible, Diamond went through the firm’s mail and removed checks covering legal fees on the stolen cases made payable to the firm. Diamond then deposited checks from the cases they diverted into bank accounts that he controlled and shared the proceeds with Cohen. Diamond concealed the illegal conduct from his employer by closing the files for those matters and making it appear in the computer records of the firm that there were no settlements or resolutions and that the cases were not viable.
The personal injury and subrogation matters that Diamond and Cohen diverted from the law firm generated approximately $750,000 in initial payments to the defendants, from which they distributed funds to clients and covered other costs in the litigation, maintaining the balance of the fraud proceeds (approximately $320,000) for themselves.
If convicted, the defendants each face maximum possible sentences of 40 years in prison.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tonawanda Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that David Rubel, 40, of Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that in August 2020, a parent filed a report with the Town of Tonawanda Police Department, alleging that Rubel had been texting his daughter, who recently turned 16 years-old (Victim), and that some of the texts he observed were sexual in nature. The parent observed inappropriate images on his daughter’s cell phone within a text thread between the Victim and Rubel. With the consent of the Victim’s father, an investigator searched the cell phone and observed the text messages, some of which included sexual images. Investigators also searched Rubel’s cell phone and recovered sexual images, including two videos, that were also found on the Victim’s cell phone, within the string of text messages between Ruble and the Victim.
The plea is the result of an investigation by the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for November 1, 2022, at 10:00 a.m. before Judge Sinatra.
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Storm Lake Man Sentenced to 8 years in Federal Prison for Illegal Firearm and Ammunition PossessionRead the Press Release
A man who illegally possessed a stolen firearm and ammunition was sentenced on June 23, 2022, in federal court in Sioux City.
Leonard Weimer, 46, from Storm Lake, Iowa, pled guilty on January 6, 2022, to illegal possession of a firearm and ammunition. Weimer was previously convicted of multiple felony offenses including Terrorism, where Weimer shot at two police vehicles occupied by deputies. Weimer’s prior felony convictions prohibited him from possessing firearms or ammunition.
At the sentencing hearing, evidence showed that defendant possessed a total of seven guns, four of which were stolen during a felony burglary. On April 2, 2021, Storm Lake law enforcement stopped a vehicle driven by Leonard Weimer for a traffic violation. Law enforcement ultimately found a small amount of methamphetamine in Weimer’s pocket, ammunition, and a .22 rifle that was stolen from Weimer’s ex-wife. Additionally, on May 19, 2021, as part of a theft investigation, law enforcement located a stolen 12-gauge shotgun in a separate vehicle owned by Weimer. Law enforcement then searched the residence belonging to Weimer’s ex-girlfriend, where Weimer would stay at times. There, a .380 handgun was recovered that was previously given by Weimer to his then nine-year-old son. Weimer’s ex-girlfriend later located four guns and over 2,000 rounds of ammunition hidden behind a false wall in a room where Weimer kept his belongings. Those firearms and ammunition had been reported stolen from the home of another person associated with Weimer.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Weimer was sentenced to 8 years’ imprisonment and must serve a term of 3 years of supervised release following imprisonment. There is no parole in the federal system. Weimer remains in custody of the United States Marshal until he can be transported to a federal prison.
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 is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Buena Vista County Sheriff’s Office, Storm Lake Police Department, Sac 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 21-4058. Follow us on Twitter @USAO_NDIA.
Statement from United States Attorney Alexander M.M. Uballez on Supreme Court Ruling in Dobbs v. Jackson Women’s Health OrganizationRead the Press Release
I share the Attorney General’s sentiments set out in a press release issued today regarding the Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization:
“The Justice Department strongly disagrees with the Court’s decision” which “deals a devastating blow to reproductive freedom in the United States,” with “immediate and irreversible impact on the lives of people . . . with the greatest burdens felt by people of color and those of limited financial means.”
The Freedom of Access to Clinic Entrances Act “prohibits anyone from obstructing access to reproductive health services through violence, threats of violence, or property damage.” The United States Attorney’s Office will “continue to protect healthcare providers and individuals seeking reproductive health services,” in the District of New Mexico, where those services remain legal.
“The ability to decide one’s own future is a fundamental American value, and few decisions are more significant and personal than the choice of whether and when to have children.
“Few rights are more central to individual freedom than the right to control one’s own body.
“The Justice Department will use every tool at our disposal to protect reproductive freedom. And we will not waver from this Department’s founding responsibility to protect the civil rights of all Americans.”
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Springfield Woman Sentenced for Pandemic Unemployment Fraud SchemeRead the Press Release
BOSTON – A Springfield woman was sentenced yesterday for her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Audri Ford-Victory, 61, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years of probation, with six months to be served in home confinement. On Jan. 31, 2022, Ford-Victory pleaded guilty to one count of wire fraud conspiracy.
In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance (DUA). This program provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
Ford-Victory submitted 25 PUA claims in Massachusetts on behalf of individuals living outside of Massachusetts. As a result, Massachusetts DUA issued $215,246 in payments to individuals not entitled to PUA benefits. Ford-Victory received kickback payments in exchange for submitting the fraudulent claims.
United States Attorney Rachael S. Rollins; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Regional Office made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorneys Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit and Neil L. Desroches of Rollins’ Springfield Branch Office prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Spa Owner Pleads Guilty to Payroll Tax CrimesRead the Press Release
A Brookville, New York, man pleaded guilty today to willfully failing to collect and pay over employment taxes to the IRS on behalf of the spa companies he owned and managed.
According to court documents and statements made in court, Sung Soo Chon, 63, aka Steve Chon, was the CEO, president and majority owner of Spa Castle Queens in College Point, New York, and Spa Castle Texas, in Carrolton, Texas. Chon oversaw daily operations at the two spas and related businesses, and directed subordinates to pay cash wages to some employees, many of whom were not legally permitted to work in the United States.
From the first quarter of 2014 through the first quarter of 2017, Chon did not withhold all of the legally required federal payroll taxes from the wages of some of the spa employees and filed false employment tax returns with the IRS. During this period, Chon caused the businesses to conceal more than $1.3 million in cash wages. In total, the spa companies did not pay $199,238 in payroll taxes due to the IRS.
Chon is scheduled to be sentenced on Dec. 6. He faces a maximum penalty of five years prison, as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Jorge Almonte and Trial Attorney Ann M. Cherry of the Tax Division are prosecuting the case.
South Florida Resident Sentenced to 30 Months for Bank Fraud and Identity Theft After a String of USPS Collection Box BurglariesRead the Press Release
Miami, Florida – A Palm Beach resident who altered and cashed personal checks, which victims reported as stolen from U.S. Postal Service (“USPS”) drop boxes, was sentenced to 30 months in federal prison on bank fraud and aggravated identity theft charges.
On December 30, 2021, Danny Seruto Perez pled guilty to the fraud and identity theft offenses. According to court documents, starting in or around July 2018, the United States Postal Inspection Service (“USPIS”) was alerted to a string of mail thefts from mail collection boxes after receiving complaints from multiple victims who stated that checks they had mailed out (including to pay their bills) never reached their intended recipients.
Through its investigation, USPIS learned that many of the victims’ stolen checks had been visibly altered (or “washed”) and re-written with Seruto Perez’s name as the payment recipient, and for larger payments than the original amounts written by the victims. Further investigation revealed that Seruto Perez fraudulently deposited these “washed” and stolen checks into his own bank account and into accounts held by his friends. Seruto Perez’s bank fraud scheme involved stolen checks from approximately 15 victims, totaling approximately $36,700 in stolen funds—all of which the court has now ordered him to pay back as restitution to the victims.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Joseph W. Cronin, U.S. Postal Inspection Service (USPIS), Inspector in Charge, Miami Division, made the announcement.
United States Postal Inspection Service, Orlando Domicile, investigated the case, in collaboration with the Brevard County Sheriff’s Office, the Vero Beach Police Department and the Indian River County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Lacee Monk and Eduardo Gardea Jr. Assistant United States Attorney Emily Stone is handling forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60181.
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Somerville Attorney Indicted for Attempting to Bribe Medford Police ChiefRead the Press Release
BOSTON – A Somerville attorney was arrested today on charges that he engaged in a scheme to bribe the Medford Chief of Police.
Sean O’Donovan, 54, was indicted on two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds. O’Donovan will make an initial appearance in federal court in Boston this afternoon.
“This case is about attempted corruption of government officials. I commend the Chief of Police in Medford for reporting this illegal behavior to the FBI immediately,” said United States Attorney Rachael S. Rollins. “We must ensure that greed and unethical conduct do not undermine the proper functioning of city governments across our Commonwealth. This prosecution does just that.”
“Today, the FBI arrested attorney Sean O’Donovan for allegedly engaging in a pay-to-play scheme in which he tried to capitalize on his insider access, in attempting to bribe the Medford Police Chief, for his own financial benefit,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is vitally important that host community agreements be awarded through a fair and transparent process, not through back-door deals funded by bribes to those in positions of power. We believe what we have uncovered in this case is not only an affront to all the hard-working businesses that play by the rules, but a betrayal of Mr. O’Donovan’s client and the community’s trust.”
According to the indictment, in late 2018, a company involved in the cultivation and retail sale of medical and recreational marijuana (the Client) retained O’Donovan as a consultant to assist in obtaining a Host Community Agreement (HCA) with the City of Medford. Under Massachusetts law, recreational marijuana retail establishments are required to sign an HCA with cities to obtain an operational license. In 2020, Medford established a local Cannabis Advisory Committee (CAC), composed of five Medford officials, including the Medford Chief of Police (Chief). The Medford CAC is tasked with reviewing, interviewing and ranking marijuana retail applicants on behalf of the Mayor of Medford, who has final authority to decide which applicants are selected.
It is alleged that in February 2021, O’Donovan approached Individual 1 and offered to pay Individual 1 $25,000 to speak with the Chief about the Client’s anticipated application for an HCA with Medford. Individual 1 is a close relative of the Chief and subsequently informed the Chief of O’Donovan’s offer. The Chief immediately alerted federal authorities of the alleged bribe.
Over the course of the investigation, O’Donovan, believing he had an agreement with Individual 1 and the Chief, offered to pay Individual 1 approximately $25,000 in exchange for the Chief’s favorable action on the Client’s application. Specifically, O’Donovan sought to have the Chief favorably rank the Client HCA application in his role on the Medford CAC and have the Chief advising and pressuring the Mayor to enter into an HCA with the Client.
According to the indictment, O’Donovan took steps to conceal the true purpose of the planned bribe payment. For example, O’Donovan allegedly proposed falsely characterizing a payment as a loan to Individual 1 and offered to pay the bribe money in cash, stating, “If I give you cash, there will be no trace.” It is further alleged that O’Donovan rejected the idea of a contract with Individual 1, explaining that he did not “think that’s a good paper trail.” On or about October 11, 2021, O’Donovan met with Individual 1 and allegedly provided Individual 1 with $2,000 in cash as a down payment on the bribe. It is further alleged that O’Donovan was slated to receive a stream of income of at least $100,000 annually from the Client’s marijuana business if its Medford application were successful.
According to the indictment, O’Donovan never informed the Client of his bribery scheme with Individual 1. In October 2021, when O’Donovan proposed that the Client hire Individual 1 as a consultant, the Client rejected the proposal and told O’Donovan that the Client was an “above board company.”
The charge of honest services wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and FBI SAC Bonavolonta made the announcement today. The Department of Justice commends the Medford Chief of Police for immediately bringing this matter to the attention of federal law enforcement. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption & Special Prosecutions Unit and Trial Attorney Jonathan E. Jacobson of the Department of Justice’s Public Integrity Section are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Defendants Charged in Animal Fighting Venture and Illegal Gambling OperationRead the Press Release
CHARLESTON, SOUTH CAROLINA — A joint team of federal, state, and local law enforcement officers arrested 7 individuals on June 22, 2022, who have all been charged in federal court for their roles in a gamecock fighting venture and illegal gambling operation that operated in and around Ridgeville.
These defendants have been charged by indictment with animal fighting venture, illegal gambling operation, conspiracy to violate animal fighting venture, and false statement to a federal law enforcement officer. The following defendants have been arrested:
- ROY MICHAEL LIMEHOUSE, 65, of Ridgeville, was charged with animal fighting venture, illegal gambling operation, and conspiracy to violate animal fighting venture.
- ROOSEVELT CURRY, 67, of North Augusta, South Carolina, was charged with animal fighting venture, illegal gambling operation, and conspiracy to violate animal fighting venture.
- JOEY LEVERANE BROWN, JR, a/k/a “Junior,” 41, of Warrenville, was charged with animal fighting venture, illegal gambling operation, and conspiracy to violate animal fighting venture.
- SHANNON HUBERT BAXLEY, 49, of Barnwell, was charged with animal fighting venture, illegal gambling operation, and false statement to a federal law enforcement officer.
- JAMES FRANKLIN ROUNDTREE, 51, of Barnwell, was charged with animal fighting venture, illegal gambling operation, and conspiracy to violate animal fighting venture.
- JEREMEY ALLEN BESSINGER, 40, of Fairfax, was charged with animal fighting venture, illegal gambling operation, and conspiracy to violate animal fighting venture.
- BRANDON ISAIAH MCLAUGHLIN, 24, of Gloverville, was charged with animal fighting venture and illegal gambling operation.
If they are convicted, the defendants face up to five years in prison for each count in the indictment.
Following the indictment, federal law enforcement officers placed a legal hold on the property where the illegal activity occurred. Federal law enforcement officers also seized cash and three vehicles used in relation to the animal fighting venture and illegal gambling operation.
The United States Department of Agriculture (USDA) Office of Inspector General, South Carolina Law Enforcement Division (SLED), and Dorchester County Sheriff’s Office investigated this case.
USDA Office of Inspector General Special Agent Dustin McPhillips led the federal investigation. Assistant United States Attorney Chris Lietzow is prosecuting the case.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Serial Fraudster Previously Extradited from Mexico Pleads Guilty to Multiple Investment Fraud SchemesRead the Press Release
A California man was extradited from Mexico on March 8 and pleaded guilty today to conspiracy to commit mail fraud and wire fraud, mail fraud, and money laundering charges for two high-yield investment fraud schemes.
According to court documents, Daniel Thomas Broyles Sr., aka Dan Thomas, aka Daniel Cruz Torrez, 64, of Malibu, participated in a high-yield investment fraud scheme involving a sham company named Niyato Industries Inc. Broyles admitted to conspiring with Niyato’s CEO, Robert Leslie Stencil, 65, of Charlotte, North Carolina, and others to defraud Niyato investors. Broyles admitted that, together with Stencil and others, he falsely portrayed Niyato as a business engaged in electric vehicle manufacturing and converting vehicles to run on compressed natural gas. In reality, Broyles knew, or intentionally avoided learning, that Niyato was merely a sham company that lacked any operational facilities or proprietary technology, and virtually all investor funds were being disbursed among the co-conspirators and not used to promote Niyato’s business. In June 2016, after Broyles learned that federal law enforcement agents were investigating Niyato, he relocated to Mexico. Broyles admitted that, when he learned in August 2016 that he had been indicted, he moved to a new address in Mexico and began using the alias “Daniel Cruz Torrez” to hide from federal law enforcement agents and to obstruct the federal government’s prosecution.
In addition, according to court documents, Broyles separately pleaded guilty for his role in a second high-yield investment fraud involving EarthWater Limited. Broyles admitted to conspiring with EarthWater’s CEO, Cengiz Jan Comu, 61, of Dallas, Texas, and others to sell EarthWater stock. Broyles also admitted that he and others made numerous false and misleading representations, including that EarthWater used the money raised from victim investors to develop and operate the company’s business. In truth, Broyles, Comu, and their co-conspirators had agreed to use the invested victim funds largely for their personal benefit.
Broyles pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, and one count of money laundering in connection with the Niyato scam. Broyles also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in connection with the EarthWater scheme. He is scheduled to be sentenced at a later date. Broyles faces up to 10 years in prison for the money laundering count, up to 20 years in prison for the mail fraud count, and up to 30 years in prison for each of the conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Seven other defendants have previously been convicted in connection with the Niyato scam, including Stencil, who was convicted following a three-week jury trial and sentenced to 135 months in prison.
Eight other defendants have pleaded guilty in connection with the EarthWater fraud, including Comu, who is scheduled to be sentenced on Sept. 7. Three other defendants are awaiting trial in the EarthWater case on charges set forth in a superseding indictment filed on Nov. 6, 2019, in the Northern District of Texas. The trial is scheduled to begin on Oct. 3.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; U.S. Attorney Chad E. Meacham for the Northern District of Texas; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s Atlanta Division; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The Government of Mexico, including the Fiscalia General de la Republica (FGR), provided significant assistance in the extradition of Broyles to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Broyles.
The U.S. Postal Inspection Service is investigating this case. The U.S. Marshals Service transported Broyles from Mexico to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting both cases. Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Walters of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case involving EarthWater.
Schenectady Man Indicted for Attempted Coercion and Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael E. Robbins II, age 26, of Schenectady, New York, was indicted for attempting to coerce and entice a minor into sexual activity.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
On June 23, 2022, Robbins waived an appearance for arraignment on the indictment. On March 18, 2021, Robbins was charged by complaint with attempted coercion and enticement of a minor. He was detained on that charge and has remained in custody since that time.
The complaint and indictment allege that Robbins arranged over the internet and through text messages to meet with what he believed to be a 12-year-old girl in Latham, New York, in order to engage in sexual activity with her.
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Robbins faces at least 10 years and up to life in prison. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ .
Rosebud Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Floyd Black Spotted Horse, Jr., age 35, was indicted on June 14, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 21, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 16, 2022, and April 29, 2022, in the District of South Dakota, Black Spotted Horse, a person required to register as a sex offender by reason of conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Robeson County Violent Drug Dealer Convicted in Federal CourtRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Red Springs man yesterday on multiple charges of cocaine and crack distribution, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
According to court records and evidence presented at trial, Jamie Christopher Henderson, 47, was under investigation by the Robeson County Sheriff’s Office after they received a report of a shooting at the Thunder Valley Racetrack in Robeson County. Henderson had shot two people at the racetrack. Henderson then traveled to a nearby gas station and asked for a ride from a local citizen. The citizen obliged but refused to turn down a dirt road. Henderson pulled out a handgun, shot the driver’s radio, and fled.
Detectives determined where Henderson was living at the time and obtained a search warrant for the house. As detectives arrived to execute the warrant, three detectives observed Henderson in the front yard as he threw a black handgun underneath a parked car. Baggies of cocaine and crack were also recovered next to the handgun. Detectives continued to execute the search warrant and recovered two more handguns (both stolen) in the house, an AR-15 style rifle, and more crack and cocaine along with drug distribution materials. All of the weapons seized were loaded.
Additional evidence revealed videos of Henderson at the house in the days leading up to execution of the search warrant. In these videos, Henderson conducted drug deals at the house on seven different occasions, most often while armed with a handgun. The videos also showed Henderson possessing multiple handguns, sometimes two at one time, and pointing a loaded AR-15 style rifle at vehicles in the roadway that were approaching the house at night.
In 2005, Henderson was convicted of being a felon in possession of a firearm in the Eastern District of North Carolina.
Henderson faces a mandatory sentence of 10 years up to life imprisonment. If he is determined to be an Armed Career Criminal, then he faces a mandatory sentence of 25 years up to life imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sherriff’s Office are investigating the case and Special Assistant U.S. Attorney Tyler Lemons and Assistant U.S. Attorney Katherine Schuh are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:20-cr-00088-FL-1.
Registered Sex Offender from Chicago Suburb Charged with Possessing and Transporting Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man who allegedly possessed and transported sexually explicit images of children has been indicted on federal child pornography charges.
BRANDON J. BERGTHOLD, 35, of Frankfort, Ill., is charged with possession and transportation of child pornography, according to an indictment returned Thursday in U.S. District Court in Chicago. The federal charges carry enhanced sentencing penalties, including a mandatory minimum sentence of 15 years in federal prison and a maximum of 40 years, due to a prior qualifying conviction involving a minor, for which Bergthold has had to register as a sex offender.
From July to September of last year, using the screenname “freakybrando86,” Bergthold communicated with and sent images of child pornography to an individual on the Kik online messaging platform, according to a criminal complaint previously filed in the case. Unbeknownst to Bergthold, the individual with whom he was communicating was an undercover law enforcement officer, the complaint states. The indictment alleges that on Aug. 7, 2021, Bergthold possessed on his cell phone an image of child pornography involving a prepubescent minor, and that on Oct. 17, 2021, he transported a file containing an image of child pornography.
Bergthold is currently detained without bond in federal custody. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Cook County Sheriff’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorney Alejandro G. Ortega.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Pawtucket Man Sentenced in Stolen ID, Credit Card Fraud SchemeRead the Press Release
PROVIDENCE – A Pawtucket man has been sentenced to thirty months in federal prison for his participation in a conspiracy to use stolen identities to create fraudulent drivers’ licenses and credit cards he and others used to rent cars and hotel rooms and to make multiple purchases throughout New England, announced United States Attorney Zachary A. Cunha.
Hugh A. Martin, 33, and two other men were arrested by Warwick Police in the early morning hours of July 3, 2020, when they were found sleeping in a vehicle with a stolen license plate. A bundle of eleven counterfeit credit cards were found tucked inside Martin’s sock.
According to court documents, among the items recovered from the vehicle were eighteen mobile phones, a notebook containing handwritten entries of numerous identities and related personal identifying information, computers, a printer, SD cards, a laminating machine, a magnetic strip reader capable of reading and transferring data to the back of credit cards, and approximately $13,000 in crisp, clean U.S. currency in large denominations.
Martin pleaded guilty on March 9, 2022, to conspiracy to possess fifteen or more counterfeit or unauthorized access devices; possession of fifteen or more counterfeit or unauthorized access devices; and aggravated identity theft. He was sentenced by U.S. District Court Judge William E. Smith on Thursday to 30 months in federal prison to be followed by three years of federal supervised release.
In November 2021, while on bail on state charges brought as a result of his initial arrest by Warwick Police in July 2021, Martin was found by a New York City Police Officer seated in a parked vehicle that displayed no registration plates. Martin was charged with criminal possession of a handgun, after the officer located a fully loaded semiautomatic handgun under the driver’s seat. A detainer has been lodged with the U.S. Marshals service, seeking Martin’s return to New York for prosecution on the firearm charge.
Courtney Hilaire, 29, of Providence, convicted for his role in the credit card fraud conspiracy and for fraudulently seeking more than $3.3 million dollars in small business loans earmarked for businesses impacted by the pandemic, was sentenced on May 5, 2022, to 60 months in federal prison.
A third defendant remains a fugitive.
The cases are being prosecuted by Assistant United States Attorney William J. Ferland. Martin’s criminal conduct was investigated by the Warwick Police Department and Homeland Security Investigations, with the assistance of the Pawtucket Police Department.
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Orleans Parish Man Pleads Guilty to Federal Gun ChargeRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that ERNEST DUNN, age 32 of New Orleans, Louisiana, pleaded guilty as charged to violating the Federal Gun Control Act. The single count indictment charged DUNN with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, DUNN was previously convicted of armed robbery and purse snatching. The current conviction relates to a November 6, 2020 incident during which DUNN was found sitting in the driver’s seat of a car by federal agents. A search of the car revealed five firearms. Additionally, two Glock semi-automatic handguns were found on the floorboard at his feet. He faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
DUNN’s sentencing hearing is currently scheduled for September 29, 2022.
Project Safe Neighborhoods (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.
U.S. Attorney Evans praised the New Orleans Police Department and the Federal Bureau of Investigation in investigating this matter. The prosecution is being handled by Assistant U.S. Attorney Charles D. Strauss.
Ohio Man Indicted for Gambling and Tax OffensesRead the Press Release
In a second superseding indictment unsealed today, a federal grand jury in Cleveland, Ohio, charged Christos Karasarides Jr., of Canton, with tax evasion, filing false tax returns, witness tampering, falsifying records and five separate conspiracies to operate illegal gambling businesses, defraud the IRS and commit money laundering.
In May 2021, the government charged spouses Jason Kachner and Rebecca Kachner, CPA Ronald DiPietro and Thomas Helmick with conspiring to operate illegal gambling businesses and to defraud the IRS, among other criminal offenses. The superseding indictment unsealed today adds Karasarides to the indictment and includes new tax charges against DiPietro.
According to the second superseding indictment, from 2010 through 2018 Karasarides, Jason Kachner, Rebecca Kachner and DiPietro conspired to operate Skilled Shamrock, an illegal gambling business in Canton, and conspired to defraud the IRS by concealing income generated by Skilled Shamrock. From 2012 through 2017, patrons at Skilled Shamrock allegedly wagered a total of more than $34 million, which resulted in more than $4 million in net income for the owners of the gambling business.
The second superseding indictment also charges that from 2009 through 2013, Karasarides accrued a total of more than $1.4 million in taxes owed to the IRS. Karasarides and DiPietro sought to evade this tax debt by allegedly submitting false information to the IRS concealing Karasarides’ ownership of the illegal gambling businesses and the income derived from those businesses. Instead of paying his overdue tax debt, Karasarides allegedly spent millions of dollars in cash on personal items such as cars, country club dues, real estate and credit card payments for the benefit of family members.
With DiPietro’s help, Karasarides also allegedly filed false tax returns with the IRS for 2013 through 2016. The returns allegedly did not include all the income Karasarides earned from Skilled Shamrock and other gambling businesses. Additionally, DiPietro is charged with helping the Kachners file their own false tax returns for the years 2013 through 2017. The Kachners and Helmick were previously charged with conspiracy and filing false tax returns that allegedly underreported gross receipts received from Redemption Skill Games 777, one of the other gambling businesses.
During the investigation, Karasarides allegedly sought to tamper with a witness appearing before the grand jury. He also allegedly had false promissory notes created to authenticate purported loans, then directed business associates and his son to sign the false promissory notes. When Karasarides learned one of the business associates had been subpoenaed to testify before the grand jury, he allegedly directed that witness to falsely testify that his loan was legitimate.
Karasarides is also charged with conspiring to launder money because he allegedly disguised the final payment on his personal residence, funded with cash proceeds from his illegal gambling businesses, by providing the cash to his associate who agreed to form a company to make the payment so that, on paper, Karasarides would never pay down the principal and purchase the residence outright.
Karasarides made his initial court appearance today. If convicted, he faces a maximum penalty of five years in prison for each count of conspiracy to operate an illegal gambling business and conspiracy to defraud the IRS, five years in prison for tax evasion, three years in prison for filing a false tax return, and 20 years in prison for each count of conspiracy to launder money, witness tampering and falsification of records. DiPietro faces a maximum penalty of five years in prison for helping Karasarides evade taxes and three years in prison for helping Karasarides file a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the U.S. Department of Treasury Office of Inspector General, and the Ohio Casino Control Commission are investigating the case. Homeland Security Investigations provided substantial assistance.
Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Park Man Charged with Kidnapping 16-year-old Oklahoma GirlRead the Press Release
Assistant U. S. Attorney Amanda L. Griffith (619) 546-8970
NEWS RELEASE SUMMARY – June 24, 2022
SAN DIEGO – Ramsey Manuel Cervantes faces federal kidnapping charges in connection with the abduction and sexual assault of a 16-year-old Oklahoma girl who had been reported as a missing runaway by her father on June 15.
The victim was rescued from her alleged captor’s North Park home by San Diego police after she was able to use his cell phone to call for help. Cervantes was subsequently arrested. He made his initial appearance in federal court today before U.S. Magistrate Judge Daniel Butcher. A detention hearing is set for June 30 at 1:30 p.m. before U.S. Magistrate Judge Bernard Skomal.
According to the complaint, the victim met 22-year-old Cervantes on a social media application several months ago. The victim believed Cervantes was 17 years old, and they eventually met when Cervantes drove from San Diego to Oklahoma to meet her in person. Cervantes visited her approximately four times over the following six months. The victim eventually broke up with Cervantes after he became abusive. They were separated for two months. About a week ago, they reconnected and started talking again, including using social media apps to exchange messages.
According to the complaint, Cervantes drove to Oklahoma on June 15 to talk to the minor victim in person to discuss their relationship. They planned for him to pick her up at her residence in Oklahoma. When the girl got in Cervantes’ vehicle, he told her she was coming with him back to San Diego. When she tried to leave the vehicle, Cervantes put a knife to her side and told her he would kill her if she tried to leave.
Cervantes used duct tape to restrain the girl and transported her from Oklahoma to California. While traveling from Oklahoma to California, Cervantes assaulted the victim many times. The victim reported that Cervantes repeatedly forced her to consume vodka while en route to San Diego, keeping her in a constant state of heavy intoxication.
When they arrived in San Diego on June 19, Cervantes locked the victim in his bedroom for four days. The victim saw her captor place the black knife with a silver blade in a desk drawer.
On June 22, Cervantes left the residence to go to the store. Cervantes accidentally left his cell phone in the residence, which the victim used to call her father and law enforcement. Officers responded to Cervantes’ residence and rescued the victim and Cervantes was arrested.
The San Diego Police Department Domestic Violence detectives responded to the scene. FBI agents were called in to assist because Cervantes traveled to Oklahoma and kidnapped the victim, transporting her in interstate commerce from Oklahoma to California. During the commission of the crime, Cervantes also used his cellular phone which is an instrumentality of interstate commerce.
“The allegations against this defendant highlight the digital and physical vulnerability of our nation’s children,” said U.S. Attorney Randy Grossman. “We will do everything we can to prevent children from becoming victims, and to seek justice if they do. It is important that all of us remain vigilant regarding online activity. Not everyone is who they claim to be in cyberspace.” Grossman thanked the prosecution team, the San Diego Police Department, the FBI, the San Diego County District Attorney’s Office and the Norman, Oklahoma Police Department for their efforts to save this victim and to bring her attacker to justice.
“The defendant is faced with allegations that he committed heinous crimes stemming from an online encounter,” said FBI Special Agent in Charge Stacey Moy. “There is no higher priority than protecting children in both physical and virtual worlds. I want to thank the San Diego Police Department, the San Diego County District Attorney’s Office, and the United States Attorney’s Office for the Southern District of California for their commitment, partnership, and swift action in rescuing the victim, taking the defendant into custody, and filing charges.”
“We are grateful that this case had a positive ending with the young victim back with her loved ones,” said Chief of Police David Nisleit. “This is a sad reminder to all of us to be careful who you trust online.”
For more information and resources for kids, teens and parents on internet crimes against children, pleas see https://www.sandiego.gov/sdicac.
DEFENDANTS Case Number 22mj2288
Ramsey Manuel Cervantes Age: 22 San Diego, CA
SUMMARY OF CHARGES
Kidnapping – Title 18, U.S.C. § 1201(a) and (g)
Maximum penalty: Twenty years to life in prison
AGENCY
FBI
San Diego Police Department
San Diego County District Attorney’s Office
Norman, Oklahoma Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
New York Man Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
BOSTON – A New York Man was sentenced today on charges arising from a scheme to fraudulently obtain business loans and unemployment pandemic relief funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Ronald Buie, 35, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. Buie was also ordered to pay restitution in the amount of $304,237. On March 15, 2022, Buie pleaded guilty to one count of wire fraud.
Buie engaged in a scheme to defraud the U.S. Small Business Administration (SBA) by submitting fraudulent applications for loans offered in connection with the CARES Act. Specifically, Buie used stolen or fabricated identities – including counterfeit driver’s licenses, Social Security cards and W-2s, among other forged documents – to open fraudulent bank and credit accounts and to apply for various SBA loans and Massachusetts and Ohio Pandemic Unemployment Assistance (PUA) benefits. Buie also submitted fraudulent documentation to apply for and obtain a fraudulent SBA loan for $60,000 for his company, Platinum Car Service LLC. Specifically, in support of his loan application, Buie provided what he purported to be a monthly bank statement for his business checking account showing an ending balance of more than $198,000, whereas bank records for that particular month show that the actual balance was less than $3,000.
As a result of the scheme, Buie fraudulently obtained over $274,000 in SBA loans and over $70,000 in PUA benefits. Of this, one SBA loan of approximately $65,000 was successfully reversed and $5,000 in cash was seized from Buie’s residence.
United States Attorney Rachael S. Rollins; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations; and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service made the announcement today. Valuable assistance was provided by the U.S. Secret Service, New York Field Office; Massachusetts Department of Unemployment Assistance; and the New York City Police Department. Assistant U.S. Attorney William F. Abely, Chief of Rollins’ Criminal Division, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Mexico duo indicted for kidnapping and murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gilbert John, Jr., 33, of Brimhall, New Mexico, and an enrolled member of the Navajo Nation, and Kendra K. Panteah, 34, of Zuni, New Mexico, and an enrolled member of the Zuni Pueblo, have been arraigned in federal court. John was arraigned on March 30, charged with second degree murder in Indian Country. Panteah was arraigned on July 23, charged with kidnapping in Indian Country resulting in death. Pending trial, John will remain in custody and Panteah was conditionally released to a halfway house. A trial date has not been scheduled.
According to the indictment and other court records, in July 2019, the victim, identified in court records as John Doe, traveled with Panteah and two other people to Witch Wells, Arizona, and back to New Mexico. At some point, passengers in the car allegedly beat John Doe and put him in the trunk of the car. The group then travelled to Pinehill and then Gallup, New Mexico, when Panteah allegedly called John because she didn’t know what to do.
Panteah allegedly travelled to Gilbert John’s apartment and told him what happened. The two then allegedly drove from Gallup into the Navajo Nation and drove around for a day with John Doe still in the trunk. Eventually, they stopped the car near Bass Lake where John Doe regained consciousness. John Doe was able to open the trunk and got out, and Gilbert John then allegedly stabbed John Doe with a machete and knife. Gilbert John and Panteah then allegedly put John Doe back in the trunk and sat on it to prevent John Doe from getting out until John Doe stopped moving.
John drove the car to a residence in Standing Rock, New Mexico. While allegedly attempting to remove the car’s tracker, John disabled the car and could not repair it. The car was left at the residence for about 10 days before John allegedly returned and towed the car down Pipeline Road where he drove it into a canyon. He then allegedly went to Gallup for gasoline, returned to the car, doused it, and set it alight.
The alleged offenses took place on the Navajo Nation and John Doe is an enrolled member of the Navajo Nation.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, John and Panteah face life in prison.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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New Haven Gang Member Pleads Guilty to Firearm and Narcotics OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAVARIUS SMITH, 22, of New Haven, pleaded guilty today via videoconference before U.S. Magistrate Judge Robert M. Spector in New Haven to firearm and drug offenses.
According to court documents and statements made in court, on October 8, 2021, at approximately 11:15 p.m., New Haven Police recovered a 9-millimeter “ghost gun” equipped with a 31-round high-capacity magazine, and distribution quantities of heroin and crack cocaine, from a parked stolen vehicle that Smith had been driving. Smith, a known Bloods gang member, was released from prison on September 2, 2021, was serving a term of probation, and was wearing a GPS ankle monitor as a condition of his probation. Officers located and arrested Smith a short time later.
Smith’s criminal history includes state felony convictions for larceny and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Smith pleaded guilty to one count of possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years, and one count of possession with intent to distribute heroin and cocaine base (“crack cocaine”), which carries a maximum term of imprisonment of 20 years. Smith is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on October 3, 2022.
Smith has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis through the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
New Bedford Man Arrested for Fentanyl DistributionRead the Press Release
BOSTON – A New Bedford man was arrested on June 22, 2022 on drug distribution charges involving fentanyl.
Hector Diaz, 44, was indicted on two counts of distribution of and possession with intent to distribute fentanyl. Diaz was released on conditions following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein.
According to the indictment, on two occasions between December 2020 and January 2021, Diaz distributed and possessed with intent to distribute fentanyl in New Bedford.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
More Than Two Years Imposed on Modesto Woman Who Conspired with Incarcerated Son to Submit 121 Fraudulent Stimulus Check ApplicationsRead the Press Release
SAN FRANCISCO – Sheila Denise Dunlap was sentenced today to 27 months in federal prison for engaging in a conspiracy to commit wire fraud and for aggravated identity theft, announced United States Attorney Stephanie M. Hinds, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson, and U.S. Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge Rod Ammari. United States District Judge Susan Illston handed down the sentence.
Dunlap, 52, of Modesto, pleaded guilty on March 4, 2022, to engaging in a wire fraud conspiracy and in aggravated identity theft by filing scores of fraudulent applications for Economic Impact Payment (EIP) payments, commonly known as stimulus checks. The EIP program was part of the federal CARES Act signed into law on March 27, 2020, to relieve the adverse economic impact of the COVID-19 pandemic upon individuals. Under the EIP provision of the CARES Act, individuals who made less than $99,000 on their 2019 tax returns and those whose income was sufficiently low that a tax return filing was not required (non-filers) were eligible to receive EIP funds. EIP payments amounted to as much as $1,200 per adult and $500 for a qualifying child.
In her plea agreement, Dunlap admitted that she conspired from March 2020 through July 2020 with her son to obtain the personal identifiable information (PII) of others and to use that PII to apply for EIP funds. In 2016, Dunlap’s son began serving a capital sentence on Death Row in San Quentin State Prison.
Dunlap described in her plea agreement how her son, identified only by his initials D.W., sent her the PII of his fellow prisoners along with the PII of other individuals whom they suspected might qualify as non-filers of 2018 or 2019 income tax returns and thus were eligible for EIP funds. Dunlap admitted she used the PII to file multiple fraudulent claims for EIP funds through the Internal Revenue Service’s online EIP Portal. In each of the applications, Dunlap listed her own Bank of America account to receive the EIP payments.
Dunlap specifically admitted that in or about April 2020, her son arranged the delivery to her of an email containing a spreadsheet with the PII of 9,043 individuals. She and her son agreed on a strategy to begin filing fraudulent EIP claims first by using the PII of the youngest adults listed on the spreadsheet. According to Dunlap, both she and her son believed that the younger, college-aged individuals on the list likely lacked income sufficient to trigger their filing of a 2018 or 2019 tax return. These individuals were thus more likely to be non-filers and thereby eligible for EIP payments.
Using the PII of these real individuals – including their names and social security numbers and other personal details – Dunlap admitted that in May and June 2020 she electronically filed 121 fraudulent EIP claims. Each EIP application, regardless of the applicant’s name, listed Dunlap’s bank account number for payment of the stimulus check. In total, Dunlap filed claims for $145,200 in EIP payments.
In addition to the 27 month prison sentence, United States District Judge Susan Illston imposed a three year term of supervision following release from prison and ordered Dunlap pay full restitution. Dunlap remains out of custody and will surrender to begin her sentence on September 30.
The case has been prosecuted by Assistant U.S. Attorneys Christa Hall and Annie Hsieh, with the assistance of Llessica Chan Fierro, Ralph Banchstubbs, and Maribel Gallegos. The prosecution is the result of an investigation by IRS-CI and TIGTA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mitchell Man Charged with Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mitchell, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography.
Justin Douglas Brende, age 42, was indicted on June 14, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 16, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 1, 2020, and October 3, 2021, Brende knowingly received and distributed, and attempted to receive and distribute, child pornography that has been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charge is merely an accusation and Brende is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, and the Mitchell Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Brende was remanded to the custody of the U.S. Marshals Service pending trial which has been set for August 23, 2022.
Mission Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on June 21, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Jaret Wooden Knife, age 24, was sentenced to 18 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wooden Knife was indicted by a federal grand jury on February 8, 2022. He pled guilty on March 28, 2022.
The conviction stemmed from an incident that occurred on January 10, 2020, in Mission, when Wooden Knife knowingly engaged in a sexual act with a minor female.
This case was investigated by the FBI. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Wooden Knife was immediately turned over to the custody of the U.S. Marshals Service.
Miami Man Sentenced for Assaulting and Paralyzing a Vo-Tech ClassmateRead the Press Release
A man was sentenced Friday in federal court for a 2017 attack in which he picked up a fellow student and slammed the student’s head onto the ground, leaving him paralyzed, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Jace Christian Williams, 23, of Miami, Oklahoma, to 51 months in federal prison followed by three years of supervised release. Judge Frizzell will determine restitution at an Aug. 26 hearing.
Prosecutors had argued for a ten year federal prison sentence, which is an upward departure from the federal sentencing guidelines. Prosecutors stated that both the extreme nature of Williams’ criminal conduct and the victim’s resulting physical and mental suffering warranted the departure.
“Jace Williams’ intentional, violent attack has forever changed the life of the victim in this case,” said U.S. Attorney Clint Johnson. “His egregious actions are inexcusable. This type of criminal conduct cannot and will not be tolerated.”
"In a cowardly attack, Mr. Williams blindsided and paralyzed a fellow student, then remorselessly bragged about his crime," said FBI Oklahoma City Special Agent in Charge Edward J. Gray. "We hope that today's sentence serves as a warning for other individuals who think they can harm their fellow citizens without facing any repercussions."
In February, a federal jury found Williams guilty of maiming in Indian Country and assault resulting in serious bodily injury in Indian Country.
The victim and defendant attended the same technical school in Afton and knew one another prior to the incident. In the days leading up to the crime, Williams repeatedly expressed anger toward the victim because he felt the victim had interfered and ruined Williams’ chances of having a sexual encounter with two women. Williams went as far as to tell one student that he would to make sure the victim couldn’t “use his arms or legs for five months.”
On Nov. 3, 2017, a classmate drove Williams and two friends to E. 200 Rd in Afton, in order to watch an unrelated fight between two different men. After arriving, the driver remained in his truck, scrolling through his phone. Other students, including the victim, also drove to the location in order to watch the fight.
While the victim and other students assembled in a circle waiting for the fight to begin, multiple witnesses from different vantage points saw Williams suddenly attack the victim from behind.
In a maneuver similar to what is commonly referred to as a “suplex”, Williams wrapped his arms around the victim’s body, lifted him backward and slammed him head-first onto the ground. While the victim was on his stomach on the ground, Williams proceeded to spat on the victim and repeatedly punch him in the back.
Williams’ two friends then returned to the truck and told the driver Williams had jumped the victim and that it was bad. Soon after, Williams returned to the truck, breathing heavily, and demanded the driver take him home. The driver testified that Williams ripped off his own shirt and bragged that what he had done to the victim was “fun” and that he wanted to do it again. The driver said he feared the defendant at that point and complied.
A witness to the crime called 911 and waited for paramedics to arrive. The victim was transported to a hospital in Joplin, Missouri. The victim sustained a C6-7 fracture-subluxation with bilateral locked facets and paralysis. As a result of the injuries inflicted by Williams, the victim is a quadriplegic.
The crime occurred within the boundaries of the Cherokee Nation reservation. The FBI and Ottawa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Richard M. Cella and Brandon A. Skates prosecuted the case.
Memphis Man Sentenced to 17 Years in Federal PrisonRead the Press Release
Memphis, TN – Demario Davis, 35, of Memphis has been sentenced to 204 months in federal prison for distribution of heroin, cocaine, and fentanyl. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on February 12, 2018, members of the Memphis
Police Department’s - Organized Crime Unit responded to an overdose that occurred at a hotel room on Madison Avenue. Davis was identified as the source of these narcotics.In December 2019, a federal grand jury returned a six-count indictment against Davis, charging violations including possession with intent to distribute heroin, cocaine, and fentanyl.
The defendant pled guilty on February 24, 2022, to three counts of the six-count indictment.
On June 23, 2022, United States District Judge John T. Fowlkes, Jr. sentenced Davis to 204 months imprisonment to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department Heroin Opioid Response Team.
Assistant United States Attorney Michelle Kimbril-Parks prosecuted this case on behalf of the government.
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Madison Man Sentenced to 3 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Gillaum, 33, Madison, Wisconsin was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 3 years in prison for being a felon in possession of a firearm. Gillaum pleaded guilty to this charge on March 24, 2022.
Gillaum is a felon having convictions for aggravated battery in 2008, burglary in 2011, and possession of heroin with the intent to deliver in 2013. The drug conviction resulted in a prison sentence.
On May 21, 2021, Gillaum pleaded guilty to an unrelated state charge of being a felon in possession of a firearm. He was scheduled for sentencing on July 22, 2021 but failed to appear and a warrant was issued for his arrest.
On August 22, 2021, Madison police officers arrested Gillaum in the area of State Street. When contacted by officers, Gillaum briefly fled before being apprehended. Officers found a loaded 9mm handgun in his underwear.
At sentencing, Judge Peterson said that the court’s primary obligation was to protect the community. Judge Peterson remarked that Gillaum committed a persistent pattern of criminal offenses despite interventions of the criminal justice system and noted that it was particularly aggravating that he armed himself with a gun while pending sentencing on a gun conviction in state court. Judge Peterson ordered the federal sentence to run consecutive to that state gun case, as well as another case where Gillaum is charged with recklessly endangering safety and discharge of a firearm. Gillaum was also ordered to serve 3 years of supervised release after his release.
The charge against Gillaum was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Madison Felon Sentenced to 2 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James McGowan, Jr., 23, Madison, Wisconsin was sentenced yesterday by Chief U.S. District Judge James Peterson to 2 years in prison for being a felon in possession of a firearm. McGowan pleaded guilty to this charge on March 30, 2022.
On September 20, 2021, McGowan was a convicted felon and had been released on bail in four state cases with charges including felon in possession of a firearm, felony bail jumping, armed robbery, drug possession, and third-degree sexual assault. Madison police officers were looking for McGowan because he had multiple warrants for his arrest and located him in an apartment parking garage. McGowan attempted to flee from the officers, resisted arrest, and had a loaded 9mm handgun in his waistband.
At sentencing Judge Peterson said that keeping McGowan in the community has not been effective, and that protection of the public was the main sentencing goal. The court observed that by illegally carrying a gun, McGowan was contributing to the risk of petty disputes turning into shootings that can injure or kill those involved as well as bystanders. Judge Peterson said that the person described in the presentence report hurts people, and sentenced McGowan to 2 years in prison consecutive to the sentences in his state cases. After his prison term, McGowan was also ordered to serve 3 years of supervised release.
The charge against McGowan was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Lincoln Man Sentenced to 25 Years for Fentanyl Resulting in OverdosesRead the Press Release
Acting United States Attorney Steven Russell announced that Brandon Terrell Davis, 39, of Lincoln, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 25 years in federal prison for two counts of distribution of cocaine and fentanyl resulting in serious bodily injury. Davis was sentenced to 300 months on both counts, and those sentences were ordered to be served concurrently (at the same time). Following his release from prison, Davis will serve five years on supervised release. There is no parole in the federal system.
On August 13, 2021, Lincoln Police Department (LPD) officers were dispatched to the parking lot of a Lincoln bar on a report of two individuals suffering suspected drug overdoses. LPD officers performed cardio-pulmonary respiration (CPR) on both victims until Lincoln Fire & Rescue (LFR) arrived. One of the two victims revived after being given Narcan and said he had used cocaine with the other victim in the other victim’s truck in the parking lot. The second victim was intubated and placed on a heart and lung machine for a time at a Lincoln hospital. The second victim told investigators he purchased what he believed to be one gram of cocaine from Davis. Drug paraphernalia and residue found in the victim’s truck were tested and found to contain cocaine and fentanyl.
On August 16, 2021, LPD responded to a Lincoln residence on a report of multiple possible drug overdoses. When they arrived, officers found two individuals who were not breathing and required CPR. A third victim left the residence prior to officers arriving but was found unconscious on a bench in the area shortly thereafter. The fourth victim began to show signs of an overdose after officers arrived. Narcan was administered to the victims, and they were taken to Lincoln hospitals. During a search of the residence, officers found drug paraphernalia with residue which was later tested and found to contain cocaine and fentanyl. Two of the victims told investigators they had purchased what they believed to be one gram of cocaine from Davis prior to these overdoses.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Daniel William Zeiger, 47, of Lincoln, Nebraska, was sentenced on June 22, 2022, to 10 years’ imprisonment for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine after a prior conviction for a serious felony drug offense, by Senior United States District Judge Joseph F. Bataillon. Following his release from prison, Zeiger will serve eight years on supervised release. There is no parole in the federal system.
On October 25, 2020, Zeiger was stopped for driving with a suspended license in Lincoln. He told officers he had “dope and weed” in the car and on his person. Small amounts of methamphetamine and marijuana were found on Zeiger’s person. A search of the car resulted in the finding of 144 grams of methamphetamine mixture, a baggie containing marijuana and a scale. Zeiger admitted ownership of the drugs and the drug-related items. Text messages found in Zeiger’s phone indicated he was involved in the distribution of methamphetamine.
In 2007, Zeiger was convicted of conspiracy to distribute methamphetamine, a serious drug felony offense, in the District of Nebraska.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln County Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
Jackson, Miss. – A Brookhaven man pled guilty today to possessing with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Richard Butler, 42, pled guilty in U.S. District Court in Jackson. According to court documents, on September 25, 2019, following an investigation into sources of methamphetamine, ATF special agents and Mississippi Bureau of Narcotics agents conducted a controlled purchase of 54 grams of methamphetamine from Butler in Brookhaven. Following this purchase, agents, using a cooperating person, purchased additional methamphetamine from Butler. Butler, a convicted felon, possessed a firearm when he was arrested.
Butler is scheduled to be sentenced on September 28, 2022, and faces a maximum penalty of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mississippi Bureau of Narcotics.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
Laplace Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LENDELL WALLACE, age 38, a resident of Laplace, Louisiana, was charged June 23, 2022, in a two-count indictment by a federal grand jury with conspiracy to possess with intent to distribute tramadol and possession with intent to distribute tramadol in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(E), announced U.S. Attorney Duane A. Evans.
The maximum punishment WALLACE faces for each offense is five (5) years imprisonment, a fine of up to $250,000, at least one (1) year of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by St. John the Baptist Parish Sheriff’s Office, Homeland Security Investigations, United States Postal Inspection Service, and United States Customs and Border Protection. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.
Kiln Man Sentenced to 30 Months in Prison for COVID-Related Wire FraudRead the Press Release
Gulfport, Miss. – A Kiln man was sentenced to 30 months in prison for Covid-related wire fraud, announced U.S. Attorney Darren J. LaMarca and Homeland Security Investigations Special Agent in Charge David Denton.
According to court documents, on August 3, 2020, Trevon Evans, 25, was arrested by the Hancock County Sheriff’s Office in relation to two stolen vehicles. At the time of his arrest, Evans was in possession of multiple identification cards with different names. Further investigation found that Evans had taken advantage of elderly neighbors by convincing them to give him their personal identifying information so that he could help them to receive benefits related to the COVID pandemic. Evans then used that information to apply for unemployment insurance under the Economic Security (CARES) Act benefits in the victims’ names and had the benefits sent to him at his residence. These benefits totaled over $7,000 and were used by Evans at casinos along the Gulf Coast.
Evans pled guilty to wire fraud on February 16, 2022, in U.S. District Court in Gulfport.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Erica Rose.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted 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.
Jury Finds District Man Guilty of Firearm Offenses Following Discovery of Ghost Gun in Southeast Washington ApartmentRead the Press Release
WASHINGTON - Michael Smallwood, 37, of Washington, D.C., has been found guilty of firearms and related charges after police discovered a ghost gun and ammunition in an apartment where he was staying in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Smallwood was found guilty by a jury on June 22, 2022, of unlawful possession of a firearm and related charges following a trial in the Superior Court of the District of Columbia. The Honorable Jason Park scheduled sentencing for Sept. 9, 2022.
According to the government’s evidence, in the early morning hours of Dec. 21, 2019, police responded to a domestic violence call at an apartment in Southeast Washington where Smallwood was residing. There, the police were notified that Smallwood kept a firearm in his dresser. In addition to the firearm, police discovered ammunition and two magazines, including an extended magazine with the capacity to hold 29 rounds of ammunition. The firearm was a ghost gun with an obliterated serial number. Smallwood was prohibited from possessing a firearm because he had been convicted in 2009 in the District of Columbia of a firearm-related felony offense. Three young children also resided in the apartment.
Smallwood was arrested that day.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kristian Hinson; Paralegal Specialist Tiffany Jones; Victim/Witness Advocates Tracey Hawkins and Maria Sanchez-Garcia; former Victim/Witness Advocate Elsa Maltese; Supervisory Witness Security Specialist Lesley Slade; Victim/Witness Service Coordinators LaJune Thames and Maenylie Watson, and Forensic Child Interview Specialists Tracy Owusu and Karen Giannakoulias.
Finally, they commended the work of Assistant U.S. Attorneys Lauren Galloway and Ryan Sellinger, who investigated and prosecuted the case.
Jury Convicts Seven MS-13 Members and Associates of Sex Trafficking a MinorRead the Press Release
ALEXANDRIA, Va. – A jury convicted seven MS-13 gang members and associates on charges of sex trafficking a minor under the age of 14 and other child sexual exploitation offenses.
According to court records and evidence presented at trial, in August 2018, the 13-year-old victim ran away from a youth home in northern Virginia. Shortly after running away, the victim was introduced to members of MS-13. Members of the gang told her they would be her family and protect her if she joined the gang. Gang members then beat the victim 26 times with a baseball bat as part of a gang initiation. Gang members then sex trafficked her in Virginia and Maryland using the currency of cash and drugs. In one instance while in Virginia, men lined up to have sex with the victim in a wooded area behind two of the defendants’ apartment complex. She was also harbored in various apartments in Northern Virginia where men paid her and her handlers cash for sex.
The victim was later beaten again with a bat 26 times as a form of gang punishment. Shortly after the second bat beating, the victim was transported to Maryland, where she was sold to numerous gang members and other customers in exchange for cash and drugs, including cocaine. Law enforcement recovered photographs and videos of the victim being sexually exploited, along with numerous social media messages regarding the trafficking and sexual exploitation of her.
Below is a list of individuals convicted and their charges:
Name, Age
Hometown
Charges of Conviction
Moises Zeyala-Veliz, 26
Woodbridge, VA
Sex trafficking a minor under the age of 14; Conspiracy to sex traffic a minor under the age of 14; Conspiracy to transport a minor across state lines for purposes of illegal sexual activity
Jose Eliezar Molina-Veliz, 22
Woodbridge, VA
Sex trafficking a minor under the age of 14; Conspiracy to sex traffic a minor under the age of 14; Conspiracy to transport a minor across state lines for purposes of illegal sexual activity
Santos Ernesto Gutierrez Castro, 22
Woodbridge, VA
Sex trafficking a minor under the age of 14; Conspiracy to sex traffic a minor under the age of 14; Conspiracy to transport a minor across state lines for purposes of illegal sexual activity
Luis Alberto Gonzales, 33
Greenbelt, MD
Sex trafficking a minor under the age of 14 and via force, fraud, and coercion; Conspiracy to sex traffic a minor under the age of 14; Conspiracy to transport a minor across state lines for purposes of illegal sexual activity
Reina Elizabeth Hernandez, 50
Hyattsville, MD
Sex trafficking a minor under the age of 14
Gilberto Morales, 34
Hyattsville, MD
Sex trafficking a minor under the age of 14; Conspiracy to sex traffic a minor under the age of 14
Jonathan Rafael Zeyala-Veliz,
26
Hyattsville, MD
Sex trafficking a minor under the age of 14; Conspiracy to sex traffic a minor under the age of 14; Conspiracy to transport a minor across state lines for purposes of illegal sexual activity
Each defendant faces a mandatory minimum sentence of 15 years’ incarceration with a maximum penalty of life in prison. Their sentencing dates are currently set for November 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Kevin Davis, Fairfax County Chief of Police; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorneys Maureen Cain, Seth Schlessinger, and Zoe Bedell are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Significant assistance was provided by the FBI Baltimore Field Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-196.
Jury Convicts Jefferson City Tax Preparer of Filing False Tax ReturnsRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City tax preparer has been convicted by a federal trial jury of filing false federal income tax returns for himself and others.
Josiah Mator Jr., 40, was found guilty on Thursday, June 23, of two counts of filing false federal income tax returns.
Mator, a citizen of the United States who moved to this country from Liberia in 2001, prepared and electronically filed tax returns for individuals in the Liberian community and other friends and acquaintances for tax years 2010 through 2015. Mator did not have a registered tax preparation business, but used Express 1040 software to prepare his clients’ tax returns from his home.
Mator was found guilty of filing a false federal income tax return for his own 2015 income. Mator claimed that his adjusted gross income in 2015 was $16,552, and his taxable income was $0, knowing that he did not include the business income from his tax preparation service.
Mator also was found guilty of filing a false federal income tax return for individuals identified as “I.A.” and L.A.” The fraudulent return reported $16,000 in unreimbursed employee business expenses in 2015, although Mator knew I.A. and L.A. did not have any expenses related to their employment. As a result, I.A. and L.A. received a refund they were not legally eligible to receive.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for approximately 30 minutes before returning guilty verdicts on both counts to U.S. District Judge Roseann Ketchmark, ending a trial that began Tuesday, June 21.
Under federal statutes, Mator is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Jim Lynn. It was investigated by IRS-Criminal Investigation.
Iraqi National Sentenced to 37 Months in Prison for Conspiracy to Defraud U.S. Refugee ProgramRead the Press Release
WASHINGTON – An Iraqi national, Aws Muwafaq Abduljabbar, was sentenced today to 37 months in prison on a charge of conspiracy to defraud the United States related to his role in a scheme to defraud U.S. refugee programs.
The announcement was made by U.S. Attorney Matthew M. Graves, U.S. Department of Homeland Security Inspector General Dr. Joseph V. Cuffari, and U.S. Department of State’s Diplomatic Security Service (DSS) Deputy Assistant Secretary and Assistant Director for Domestic Operations Mark A. Sullo.
Abduljabbar, 44, pleaded guilty in January 2022, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Judge Rudolph Contreras.
Abduljabbar is one of three defendants who were charged in an indictment that was unsealed on January 22, 2021. The indictment charged Abduljabbar and two other foreign nationals, Haitham Isa Saado Sad, 44, and Olesya Leonidovna Krasilova, 44, in connection with a scheme to defraud the U.S. Refugee Admissions Program (USRAP) and, in particular, the Iraq P-2 program, which allows certain Iraqis to apply directly for refugee resettlement in the United States. Sad previously pleaded guilty and was sentenced. Krasilova remains at large.
According to the indictment and statement of facts agreed to by Abduljabbar as part of his guilty plea, from approximately February 2016 until at least April 2019, the three defendants, led by Abduljabbar, conspired to steal U.S. government records related to hundreds of USRAP applications. Sad was employed in Amman, Jordan from 2007 to 2016 by U.S. Citizenship and Immigration Services, and Krasilova held a similar position at the U.S. Embassy in Moscow, Russia. As part of their duties, both defendants had access to the State Department’s Worldwide Refugee Admissions Processing System (WRAPS), a database containing sensitive, non-public information about refugee applicants and their family members.
Abduljabbar organized and led the conspiracy, and he relied on and paid Sad and Krasilova to steal WRAPS records and information so that Abduljabbar could assist applicants in gaining admission to the United States through fraudulent means. As outlined in the indictment and statement of facts, the theft of USRAP records creates a number of risks to public safety and national security while imposing significant costs on the U.S. government, its taxpayers, and otherwise legitimate refugee applicants negatively impacted by the scheme.
This case was investigated jointly by the DHS Office of Inspector General and the U.S. Department of State’s Diplomatic Security Service. It was prosecuted by Assistant U.S. Attorney Erik M. Kenerson and Special Assistant U.S. Attorney Luke M. Jones of the National Security Section of the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs assisted.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 23 was:
Trevor John Glumbik, 34, of Billings, on charges of possession with intent to distribute fentanyl and prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Glumbik faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Glumbik was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Division of Criminal Investigation investigated the crime. PACER case reference. 22-68.
Appearing before U.S. Magistrate Judge Timothy J. Cavan on June 22 was:
Raymond Lee Toulouse, 37, of Great Falls, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Tuolouse faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Toulouse was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-71.
David Lawrence Bernach, 59, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Bernach faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Bernach was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-66.
Michael Romie Cervantes, 48, of Fresno, California, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Cervantes faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Cervantes was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-02.
Appearing on June 21 was:
Mark Jay Albrecht, 65, of Gillette, Wyoming, on charges of false statement. If convicted of the most serious crime, Albrecht faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Albrecht was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 21 was:
Jorge Allejandro Orellana-Banegas, 23, and Jose Eugenio Banegas-Torres, 38, both of Honduras, on charges of conspiracy to transport illegal aliens and transportation of illegal aliens. If convicted of the most serious crime, the defendants face a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. The defendants were detained pending further proceedings. The U.S. Border Patrol investigated the case. PACER case reference. 22-47.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Convicted of Money LaunderingRead the Press Release
LEXINGTON, Ky. - A Stickney, Illinois, man was convicted on Thursday, by a federal jury sitting in Lexington, of one count of money laundering.
After 3.5 hours of deliberations, following a two-day trial, the jury convicted 37-year old Rudy Guerrero of the charge.
The indictment alleged a promotional money laundering scheme, amongst eight defendants, and included criminal activities in Lexington and Chicago, during the conspiracy. According to testimony at trial, Guerrero delivered bulk cash drug proceeds on three separate occasions within a week. The proceeds totaled approximately $450,000 and were intended to further the drug trafficking activities of the larger criminal organization. The money laundering scheme involved the conversion of bulk cash to cryptocurrency, for transfer to other conspirators based in Mexico.
Guerrero was indicted in December 2021.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the conviction.
The investigation was conducted by the DEA. The United States was represented in the case by Assistant U.S. Attorney Todd Bradbury.
Guerrero will appear for sentencing on October 3, 2022. He faces up to up to 20 years of incarceration and a fine of up to $500,000. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Hopewell, PA Felon Sentenced to Seven Years for Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA -- A Beaver County resident has pleaded guilty and been sentenced in federal court to seven years’ imprisonment to be followed by four years of supervised release on his convictions of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Cameron Cannon, age 31, formerly of Hopewell, PA 15001.
According to information presented to the court, law enforcement executed a search warrant at the defendant’s residence after purchasing controlled substances from him at the residence. From the defendant’s bedroom, law enforcement recovered about 110 net grams of methamphetamine. On the kitchen counter, officers recovered about 9.5 net grams of a mixture containing heroin and fentanyl from within a cereal box. The drawer directly beneath the cereal box contained a loaded handgun with an obliterated serial number. The defendant is prohibited from the possession of firearms and ammunition due to multiple prior felony convictions.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
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.
United States Attorney Chung commended the Beaver County Anti-Drug Task Force and Federal Bureau of Investigation for the investigation leading to the successful prosecution of Cannon.
Hastings Woman Sentenced for Possessing Methamphetamine with Intent to DistributeRead the Press Release
Acting United States Attorney Steven Russell announced that Vallen Bateman, 36, of Hastings, Nebraska, was sentenced on June 24, 2022, in federal court in Omaha, Nebraska, for possession with intent to distribute 50 grams or more of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Bateman to 66 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a five-year term of supervised release.
On September 28, 2020, law enforcement was serving a federal arrest warrant for John Wizinsky at a residence in Grand Island, following his indictment for distributing methamphetamine. Wizinsky was arrested and Bateman was also present. Bateman had an active warrant out of Howard County and was arrested. She admitted to having marijuana in her nearby backpack. A search of her backpack revealed 80 grams of methamphetamine, a scale, and 13 grams of marijuana.
Wizinsky was sentenced on July 23, 2021, to 262 months’ imprisonment.
This case was investigated by the Federal Bureau of Investigation and the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force.
Hartsville Man Indicted for Firearm PossessionRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a single-count indictment against Frederick De’Angello Bennett, Jr., 21, of Hartsville, for possessing a firearm which was not registered to him in the National Firearms Registration and Transfer Record.
The indictment alleges that on or about May 10, 2021, Bennett possessed a shotgun with an overall length of less than 26 inches and a barrel length of less than 16 inches, which was not registered to him in the National Firearms Registration and Transfer Record.
Bennett faces a maximum penalty of 10 years and is currently detained pending trial.
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 case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Darlington County Sheriff’s Office. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
U.S. Attorney Corey F. Ellis stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Hartford Man Sentenced to 44 Months in Prison for Trafficking NarcoticsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that HENRY DEJESUS-MORALES, also known as “Red,” 33, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 44 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force identified a Hartford man as a distributor of heroin and cocaine in Connecticut, New York and elsewhere. The narcotics distributor was arrested on federal charges on January 13, 2021. A cellphone seized during the investigation revealed that DeJesus-Morales supplied narcotics to the Hartford man, and further investigation revealed that the narcotics trafficker, while detained in federal custody, was working with his wife and her son to distribute drugs. DeJesus-Morales was subsequently intercepted on a court-authorized wiretap coordinating the sale of narcotics and, on May 27, 2021, he was observed distributing approximately 20 grams of fentanyl to the son of the detained individual’s wife.
DeJesus has been detained since his arrest on June 28, 2021. On March 21, 2022, he pleaded guilty to one count of distribution of, and possession with intent to distribute, controlled substances.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Four Defendants Sentenced to More Than 60 Years Collectively in Federal Prison for Crimes Related to Child Sex Trafficking and ExploitationRead the Press Release
FLORENCE, SOUTH CAROLINA — Four Defendants have been sentenced to federal prison for conduct related to a multi-state child sex trafficking and exploitation scheme.
Specifically, the following Defendants have been sentenced:
- Hart William Grow, 26, of Surprise, Arizona, has been sentenced to 27 years in federal prison for child sex trafficking and the sexual exploitation of a separate minor.
- Theodore Woolings Bye, III, 37, of Myrtle Beach, has been sentenced to 24 years in federal prison for the sexual exploitation of a minor.
- Sanadin Mohamed Elrayes, 28, of Surfside Beach, has been sentenced to five years in federal prison for transferring obscene material – video of him having sexual intercourse with a minor.
- Charles Joseph Spillane, 44, of Myrtle Beach, has been sentenced to five years in federal prison for transferring obscene material – video of him having sexual intercourse with a minor.
“Using the internet, these Defendants engineered and executed crimes that involved sexual acts against a child. This was vile behavior, and the children of South Carolina are safer with these predators off the streets,” said U.S. Attorney Corey F. Ellis. “I hope the victims can move forward with their lives, and this Office’s Victim Witness Coordinator remains available to aid in this healing. I commend the excellent work of our federal, state, and local partners. However, our work is one small part of what it takes to combat sexual exploitation of children. Parents and guardians need to be vigilant and monitor their children’s online activity. This case highlights that through technology, any child, anywhere, can become a victim.”
“This case underscores the importance of online safety; these predators used the internet to help them victimize innocent children. Thankfully, they are facing justice for their despicable actions,” said Homeland Security Investigations (HSI) Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “Protecting our most vulnerable populations from exploitation is one of HSI’s most important missions and we are fortunate to have great working relationships with our law enforcement partners that provide us invaluable assistance in these cases.”
“The success of this case was the result of many local, state, and federal law enforcement agencies working together,” said South Carolina Law Enforcement Division (SLED) Capt. Connie Sonnefeld, “These law enforcement officers are dedicated to fighting human trafficking in South Carolina and throughout the country. SLED is proud to work with our law enforcement partners and prosecutors to support survivors and ensure criminals who prey on our most vulnerable are brought to justice.”
"We as a community have no greater responsibility than to protect our children and law enforcement will always stand up for those that need help,” said Myrtle Beach Police Chief Amy Prock. “This case was a partnership built on that mission and we couldn't be more proud of the team that brought those charged and those sentenced to justice."
Evidence presented to the Court showed that Grow, from his home in Arizona and through the internet, misrepresented to various minors across the country that he was also a minor and was interested in a relationship. A search of Grow’s electronic devices revealed images of, or sexual conversations with, at least 23 individuals confirmed to be minors, and hundreds of other images, videos, and contacts with individuals who appeared to be minors. Further, at least one of the social media accounts from which Grow engineered his sexual exploitation of children was registered in 2016 from an address associated with Grow, and the account has been active since that time.
In this case, Grow allegedly claimed to the first minor victim that he was a 17-year-old female named “Hannah” living in Columbia, South Carolina. After gaining her trust and collecting sexually explicit videos, Grow forced the minor victim into sex trafficking. In sexually trafficking the minor victim and aware of her, Grow initially posted images on message boards offering the minor victim up to adult males for sex in exchange for the adult males actively engaging in the production of videos of the sexual acts, and ensuring those videos were sent to Grow.
Among the first customers was Bye, who became infatuated with the minor victim and began acting as the middleman for Grow. Although Bye knew the minor victim’s age, he would make sexually explicit videos of the minor victim. He would also arrange for men to have sex with her in exchange for the men agreeing to engage in the production of sexually explicit videos to be sent to Grow. The minor victim lived with her parents in Myrtle Beach, and Grow and Bye would traffic her while her parents were away or were asleep down the hall.
Both Elrayes and Spillane responded to Bye’s internet postings and, after communicating with Bye via social media and text messages, engaged in sexually explicit conduct with the minor victim, which was filmed and sent to Grow.
Additionally, in early 2021, after Grow had trafficked the first minor victim, he began communicating with a second minor victim in the Midlands area of South Carolina. Again, Grow used a false persona to build a relationship with the second minor victim, and ultimately forced her to produce sexually explicit videos for him until shortly before his arrest in Arizona. At Grow’s direction, the videos of the second minor victim were often unknowingly and covertly filmed near her parents or other family members.
According to Court records, the Defendants used social media applications, including Snapchat, Wattpad, and Kik to communicate with the victims and with each other.
United States District Judge Sherri A. Lydon sentenced Grow to 327 months imprisonment, to be followed by a lifetime of court-ordered supervision; Bye to 293 months imprisonment, to be followed by a lifetime of court-ordered supervision; Elrayes to 60 months imprisonment, to be followed by a three-year term of court-ordered supervision; and Spillane to 60 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Grow and Bye will be required to register as sex offenders for life and were also ordered to pay restitution to the victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by Homeland Security Investigations (HSI), SLED, the Horry County Sheriff’s Office, and the Myrtle Beach Police Department. Assistant United States Attorneys Derek A. Shoemake and Amy Bower prosecuted the case.
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Four Charged in Crime Spree that Stole Vehicles, U.S. Mail and Robbed Postal Service CarriersRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a nine-count indictment charging Jaylen Harris, 19, of Beachwood, Ohio, Lavelle Jones, 18, of Warrenville Heights, Ohio, Devin Rice, 20, of Cleveland, Ohio, and Hakim Benjamin, 20, of Cleveland Heights, Ohio, with organizing and engaging in a conspiracy to steal and sell high-end vehicles, rob Postal Service carriers and steal from the U.S. mail.
Defendants Harris, Jones, Rice and Benjamin are each charged with conspiracy to commit sale or receipt of stolen vehicles and sale or receipt of stolen vehicles. Defendants Rice, Jones and Harris are charged with additional counts of possession of stolen mail. Defendant Rice is also charged with aiding and abetting the robbery of a postal carrier and stealing keys adopted by the Post Office. Defendant Harris is charged with an additional count of illegal possession of a machine gun.
According to court documents, from December 2021 to February 2022, the defendants are accused of stealing high-end vehicles from car dealerships in Michigan and transporting the vehicles to be sold in the Northern District of Ohio. The indictment states that the defendants targeted specific vehicles to steal and purchase, including the Dodge Durango, Dodge Ram TRX, Dodge Hellcat, Audi 8 and others.
In addition to the car theft conspiracy, Defendants Rice, Jones and Harris are charged with organizing and engaging in a conspiracy to rob Postal Service carriers, steal Postal Service mail keys and illegally obtain mail from Postal Service collection boxes.
Court documents state that the defendants sought to obtain Postal Service collection box keys from mail carriers in order to steal checks and other items of value from the U.S. mail. It is alleged that the defendants would often rob mail carriers of their collection box keys while on duty and then pull checks and other items of value from the mail.
On January 31, 2022, Defendant Rice was arrested by law enforcement authorities after committing robbery and assault of a Postal Service carrier. During the arrest, it is alleged that Rice was found to be in possession of various pieces of stolen mail.
On February 10, 2022, a search warrant was executed at a hotel where Defendants Harris and Jones were residing. During the search, authorities obtained multiple pieces of stolen mail and a firearm belonging to Harris that was modified to fire as a machinegun.
Court records state that as a result of the various schemes, the defendants caused an estimated potential loss of $2,700,000.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentence will be determined by the court after a review of factors unique to this case, including prior criminal record, if any, role in the offenses, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the FBI, United States Postal Inspection Service (USPIS), Ohio State Highway Patrol, Ohio Bureau of Motor Vehicles, Cuyahoga County Criminal Investigators, Beachwood Police Department and Shaker Heights Police Department. This case is being prosecuted by Assistant U.S. Attorneys Kathryn G. Andrachik and Jason W. White.
Fort Stockton Man Found Guilty of Child EndangermentRead the Press Release
PECOS – A federal jury convicted a Fort Stockton man this week of one count of endangerment of a child.
According to court documents and evidence presented at trial, on February 5, 2022, Big Bend National Park Rangers found an abandoned vehicle belonging to Hector Flores Jr., 48, located in a very remote part of Big Bend National Park about 20 miles from the Mexican border. Birth certificates for Flores and a nine-year-old child were found in the vehicle. Evidence in the area suggested the nine-year-old was with Flores. Park Rangers and U.S. Customs and Border Protection personnel initiated a search.
Further investigation revealed Flores withdrew the child from school on January 4 and did not enroll the child in a new school. Around January 28, 2022, a camera recorded Flores’ vehicle entering Big Bend National Park. Flores’ vehicle was found in an area that offers no food, water or shelter. On February 14, 2022, Mexican authorities located Flores and the child in Mexico and detained Flores but returned the child to the U.S. The child reported to authorities that they ran out of food and had not eaten for four days. In addition, the weather from January 28 to February 13 included subfreezing temperatures and heavy rains.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office, made the announcement.
The FBI and the Big Bend National Park Service, with valuable assistance from the U.S. Customs and Border Protection, are investigating the case.
Assistant U.S. Attorneys Scott V. Greenbaum and William Calve are prosecuting the case.
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Fort Pierre Man Sentenced for Sexual Exploitation of a ChildRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Fort Pierre, South Dakota, man convicted of Sexual Exploitation of a Child was sentenced on June 21, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
James Cadwell, age 40, was sentenced to 28 years in federal prison, followed by seven years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cadwell was indicted by a federal grand jury on November 10, 2020. He pled guilty on March 3, 2022.
The conviction stemmed from an incident that occurred on October 26, 2020, in Pierre, South Dakota, when the minor victim was in Cadwell’s care. Cadwell knowingly persuaded, induced, enticed, and coerced his minor victim to engage in sexually explicit conduct for the purpose of recording such conduct, and said recordings were produced by mobile phone and shared by computer.
This case was investigated by the FBI, the Pierre Police Department, the South Dakota Division of Criminal Investigation, and the South Dakota Internet Crimes Against Children Task Force. Supervisory Assistant U.S. Attorney Tim Maher prosecuted the case.
Cadwell was immediately turned over to the custody of the U.S. Marshals Service.
Former Paramedic Charged with Fentanyl TamperingRead the Press Release
BOSTON – A former Massachusetts emergency medical technician (EMT) paramedic has been charged in connection with tampering with liquid fentanyl vials at the ambulance company at which she worked.
Candice Mangan, 41, of Medford, was charged with tampering with a consumer product. She will appear in federal court in Boston at a later date.
According to the charging document, from approximately March 2020 to early October 2020, Mangan – a licensed EMT paramedic in Massachusetts – worked part-time as an EMT for an ambulance service company in Massachusetts. It is alleged that on or about Sept. 30, 2020, while working in Needham, Mangan tampered with three fentanyl citrate vials by removing fentanyl citrate and replacing it with saline. The liquid remaining in the three vials contained only approximately 4.4%, 6.8%, and 24.2% of the declared concentration of fentanyl citrate.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences in a criminal case are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Bradley E. Greenburg, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Howard Locker of Rollins’ Health Care Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.