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2 June 2022
Georgia Meth Supplier Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Gainesville, Georgia, man was sentenced on May 27, 2022, to 15 years in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Isaiah Daniel Lambert was identified during an investigation in which investigators used a confidential informant to make a controlled purchase of methamphetamine ice from him. The investigation began in 2016 in Baldwin County, Alabama, and 13 defendants were arrested and prosecuted in federal court who implicated Lambert as their source of supply for methamphetamine ice. Some of the drugs were brought to Mobile County for distribution, and some were brought to Baldwin County for distribution. Court documents also reflect that Lambert himself traveled to Baldwin County and to Pensacola, Florida, to transport drugs and pick up drug money. Lambert pled guilty to the conspiracy charge in federal court in Mobile in July of 2021. He admitted he was responsible for the distribution of approximately 152 kilograms of methamphetamine ice.
United States District Court Judge Kristi K. Dubose imposed the 15-year sentence. The judge further ordered that Lambert would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Lambert will also undergo mental health counseling, testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Lambert pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the Mobile County Sheriff’s Office, the Department of Homeland Security, and the Federal Bureau of Investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.Georgia Man Arranging Methamphetamine Transactions from Within Federal Prison Sentenced to 300 Additional MonthsRead the Press Release
TALLAHASSEE, FLORIDA – Brian Stanton, 38, of Athens, Georgia, was sentenced to 300 months in federal prison following his trial conviction on charges of conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.
“Cooperative and concerted efforts like Operation Arrowhead enable our local, state, and federal law enforcement partners to identify and investigate those distributing addictive and deadly controlled substances in both our urban and rural communities,” said U.S. Attorney Coody. “We remain vigilant to support their investigative efforts and will aggressively prosecute those engaged in drug trafficking throughout North Florida.”
Stanton was already serving federal sentences for possession of a firearm and conspiracy to distribute methamphetamine when he was arrested on the new charge. While incarcerated at a federal prison in Atlanta, Stanton used a contraband cellular telephone to arrange for the distribution of at least 24 pounds of methamphetamine through various sources of supply outside the prison between June 2019 and November 2020. His new sentence will run consecutive, meaning Stanton will not begin serving the 300 months, until after his current period of incarceration is complete. Upon release, Stanton will be on supervised release for ten years.
“This sentence demonstrates the commitment of the DEA to work with our local, state, and federal partners to ensure that those who continue to engage in criminal activities and bring this poison into our Florida communities will be held accountable for their actions,” said Miami Field Division Special Agent in Charge Deanne L. Reuter. “I commend the men and women who worked tirelessly on this investigation to dismantle this criminal drug network in order to keep their communities safe and healthy.”
“It is a constant battle to keep drug dealers off the street, and protect our families from their poisonous grip,” said Taylor County Sheriff Wayne Padgett. “It takes federal, state, and local agencies working together as one team to make it happen. All law enforcement officers who came together for the success of Operation Arrowhead are to be commended. However, our mission would have been unsuccessful without the assistance of public citizens who take the initiative to say something when they see something.”
“When it comes to those who endeavor to commit serious crimes, jurisdictional boundaries are of no concern or consequence,” said Perry Police Chief Cruse. “The only way to disrupt the abilities and markets of those dedicated to distributing illicit substances in our rural communities is through strong cooperative enforcement efforts. The investigation and prosecution of all those convicted in Operation Arrowhead was made possible by means of collaborative efforts. To have state, local, and federal partners dedicate competent professionals to this investigation are a positive example of an effective alliance with substantive results. The Perry Police Department and the City of Perry are appreciative of all who participated in this investigation.”
In addition to Stanton, the operation resulted in the conviction of 23 other individuals, including:
- Erica Keeler, 22, of Perry, Florida; Sentenced to time served
- Kristin Walker , 32 of Perry, Florida; Sentenced to time served
- Audrey Newmeyer, 56, of Perry, Florida; Sentenced to 18 months in federal prison
- Jeffrey Thomley, Jr., 32, of Perry, Florida; Sentenced to 18 months in federal prison
- Russell Walker, Jr., 34, of Perry, Florida; Sentenced to 24 months in federal prison
- Carlton Hull, 50, of Perry, Florida; Sentenced to 30 months in federal prison
- Kammra Witt, 53, of Silver Springs, Florida; Sentenced to 36 months in federal prison
- Heather Vann, 40, of Perry, Florida; Sentenced to 48 months in federal prison
- Connie Sullivan, 52, of Trenton, Florida; Sentenced to 48 months in federal prison
- Roger Slaughter, 36, of Perry, Florida; Sentenced to 60 months in federal prison
- Kathryn Comolli, 41, of Edgewater, Florida; Sentenced to 72 months in federal prison
- Mark Johns, 50, of Lake City, Florida; Sentenced to 72 months in federal prison
- James Watkins, 37, of Fort White, Florida; Sentenced to 108 months in federal prison
- Abel Guerra, 60, of Perry, Florida; Sentenced to 114 months in federal prison
- Cedrick Gaddy, 44, of Perry, Florida, Sentenced to 120 months in federal prison
- Paul Pridgeon, 73, of Mayo, Florida; Sentenced to 144 months in federal prison
- Robert Murphy, 53 of Tallahassee, Florida; Sentencing set for June 15, 2022
- Kevin Lambert, 48, of Brooksville, Florida; Sentencing set for June 16, 2022
- Brian Morgan, 43 of Brooksville, Florida; Sentencing set for July 13, 2022
- Fawn Hurley, 37, of Mayo, Florida; Sentencing set for July 14, 2022
- Beyah Besha,44, of Perry, Florida; Sentencing set for July 27, 2022
- Robert Segrest , 40, of Perry, Florida; Sentencing set for August 4, 2022
- Stephen Gamble, 49, of Perry, Florida, Sentencing set for August 22, 2022
This conviction was the result of a collaborative investigation by the Drug Enforcement Administration, Taylor County Sheriff’s Office, Perry Police Department, Jefferson County Sheriff’s Office, Madison County Sheriff’s Office, Lafayette County Sheriff’s Office, the Florida Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Operation Arrowhead was a joint investigation targeting methamphetamine traffickers in several rural North Florida counties.
Operation Arrowhead was prosecuted by Assistant United States Attorneys Gary Milligan, Eric Mountin, James A. McCain, Kaitlin Weiss, and Christopher Elsey.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Gary Man Sentenced to 210 Months in PrisonRead the Press Release
HAMMOND- Jaron Johnson, 23, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to kidnapping, announced United States Attorney Clifford D. Johnson.
Johnson was sentenced to 210 months in prison followed by 2 years of supervised release.
According to documents in the case, on the night of April 14, 2019, Johnson participated in the kidnapping of a woman hoping to elicit information as to the whereabouts of a witness in his brother’s upcoming criminal case. Johnson participated in forcing the victim into a car at gunpoint, blindfolding and duct-taping her, and driving her around. The victim was beaten and threatened when she would not provide the information. At one point, the vehicle stopped, and another individual entered the back seat and continued beating the victim. A short time later the victim was dragged from the car to an area behind a house where one of the perpetrators shot her in the face and arm, and left her for dead, but she survived the attack.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary Police Department, Indiana State Police, and Lake County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorney Michael Toth and former Assistant United States Attorney Thomas Mahoney.
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.
Former insurance agent arrested for defrauding customers, COVID fraudRead the Press Release
CINCINNATI – A former insurance agent was arrested this morning on federal charges alleging he defrauded dozens of victims in the Cincinnati and Dayton area and fraudulently obtained two COVID Paycheck Protection Program loans.
Seneca Birchmore, 44, of Cincinnati, lost his license as an insurance agent in 2019 because he was writing insurance policies for people who did not want them so that he could collect the commissions.
According to court documents, after losing his license, Birchmore then stole the identities of two other insurance agents and used those identities to write more life insurance policies for customers who did not want them. It is alleged Birchmore had the commissions from dozens of local customer victims deposited into his own bank accounts.
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
The commissions for Birchmore’s original fraudulent insurance policies under his own name as an agent totaled more than $8,000. The commissions for policies created under the stolen identities of other agents totaled more than $80,000.
It is also alleged that, in a separate scheme, Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000. Birchmore allegedly claimed on both loan applications that he owned a business in his name and stated his gross income for 2019 was more than $13 million. It is alleged that no such business exists.
Fraud in connection with emergency benefits is a federal crime punishable by up to 30 years in prison. Social security fraud carries a potential maximum penalty of five years in prison and aggravated identity theft includes a mandatory two years of imprisonment.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, was joined by the Social Security Office of Inspector General, U.S. Secret Service, Ohio Department of Insurance, Ohio Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the charges. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Tennessee Securities Broker-Dealer Sentenced to 78 Months’ Imprisonment for Embezzling $5.7 Million from Employee Pension Benefit PlanRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former securities broker based in Memphis, Tennessee, John Sherman Jumper, age 56, of Eads, Tennessee, was sentenced to 78 months’ imprisonment to be followed by three years on supervised release by Chief District Court Judge Matthew W. Brann, for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania. Chief Judge Brann also ordered Jumper to pay restitution to the pension plan in the amount of $2,426,550, reflecting partial financial recoveries obtained by Snowshoe Refractories on behalf of the plan.
According to United States Attorney John C. Gurganus, on April 9, 2021, Jumper forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016. Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees. In addition, Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.
The indictment stated that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees. At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million.
As a result of his fraudulent misappropriation of pension funds, Jumper has been the subject of civil and regulatory sanctions obtained by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), a private corporation that acts as a self-regulatory organization for member brokerage firms and exchange markets. On November 1, 2018, a federal district judge in the Western District of Tennessee granted the SEC’s motion for default judgment against Jumper, and the court there entered a final judgment as to Jumper and his companies and businesses. The final judgment permanently enjoined Jumper from violating securities laws and ordered that he disgorge $5,700,000, representing profits gained as a result of the fraudulent conduct, together with prejudgment interest in the amount of $726,758.79. On February 3, 2017, FINRA permanently barred him, with his consent, based on allegations that he misappropriated funds from the Snowshoe pension plan for his personal use and to infuse capital into his member firm, Alluvion Securities.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Employee Benefits Services Administration of the United States Department of Labor, the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel prosecuted the case.
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Former State Highway Patrol Officer Sentenced for Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - Timothy Jay Norman, of Browns Summit, North Carolina, was sentenced today to 37 months in prison for unlawfully transporting and dealing in firearms, announced United States Attorney Sandra J. Hairston.
Norman, age 47, pleaded guilty on March 10, 2022, to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Norman was ordered to pay a $15,000 fine and will face three years of supervised release in addition to his 37-month prison sentence.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case was prosecuted by Assistant U.S. Attorney JoAnna G. McFadden.
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Former Ohio Police Chief Sentenced for Illegally Trafficking 200 Fully Automatic Machine GunsRead the Press Release
INDIANAPOLIS – Dorian LaCourse, 66, of Milford, Ohio, was sentenced today to 3 years’ probation, including 6 months home detention for conspiracy and making false statements. LaCourse is the former Chief of Police in the Village of Addyston, Ohio. Two federally licensed firearms dealers in Indiana were his coconspirators, Johnathan Marcum, 34, of Laurel, Indiana, and Christopher Petty, 58, of Lawrenceburg, Indiana, previously pleaded guilty in separate cases to participating in the same conspiracy and will be sentenced later this year.
According to court documents, LaCourse, Marcum, and Petty, illegally exploited a law enforcement exception to the federal ban on the possession or transfer of fully automatic machine guns. As Chief of Police, LaCourse signed multiple “demonstration letters” falsely stating that the Village of Addyston Police Department was interested in purchasing various types of machine guns, including military-grade weapons, and asking that Marcum and or Petty give the demonstration. Marcum and Petty then sent the letters to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to obtain the weapons. Addyston is a village in southwestern Ohio of approximately 1,000 residents. LaCourse was the village’s only full-time police officer.
LaCourse also placed direct orders for German-made machine guns that were purported to be paid for by the Police Department. In fact, the purchases were fully funded by Marcum and Petty and intended to bypass restrictions on the importation of such weapons by anyone other than the police or the military.
The Addyston Police Department was never authorized to purchase any of the machine guns, and the Indiana gun dealers never provided any demonstrations of machine guns to the police department. Instead, the gun dealers resold the machine guns at a significant profit. In some instances, a gun dealer resold illegally acquired machine guns for five or six times the purchase price. The conspirators purchased or caused the importation of approximately 200 fully automatic machine guns. LaCourse received over $11,500 from the gun dealers for his role in the scheme.
“Law enforcement officers are sworn to protect our communities and uphold the law, and the public has a right to expect police powers are used for the public good,” stated Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Instead, the defendant sold his badge to facilitate a criminal machine gun trafficking conspiracy. With heartbreaking regularity, we see the carnage that criminals can inflict on our communities with weapons of war. Today’s sentence demonstrates that officers who violate the public’s trust with utter disregard for the public’s safety will be held accountable.”
“LaCourse committed an egregious betrayal of the public’s trust by engaging in this machine gun trafficking scheme,” stated Travis S. Riddle, Acting Special Agent in Charge of ATF’s Columbus Field Division. “I hope that this sentence serves as an example to anyone else out there who might be tempted to betray their oath of office and their responsibility to their community.”
The ATF investigated the case. The sentence was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that the defendant pay a $11,800 fine. Over 100 illegally obtained machine guns, 52,500 rounds of ammunition, and over $6,000 in proceeds of the crime seized from LaCourse’s office desk will be forfeited to the United States.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden, William L. McCoskey, and Nicholas J. Linder who prosecuted this case.
The U.S. Attorney’s Office for the Southern District of Indiana is part of the U.S. Department of Justice’s Chicago Gun Trafficking Strike Force and has prioritized investigation and prosecution of gun trafficking crimes. On July 22, 2021, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. These gun trafficking strike forces are designed to ensure coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Former Nixa School Official Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former assistant principal at Nixa Junior High School in Nixa, Mo., was sentenced in federal court today for soliciting sexually explicit photos from a 13-year-old victim by posing online as a teen girl.
Colby Fronterhouse, 42, of Springfield, Mo., was sentenced by U.S. Chief District Judge Beth Phillips to 12 years in federal prison without parole.
On Aug. 19, 2021, Fronterhouse pleaded guilty to one count of receiving and distributing child pornography. Fronterhouse was employed as an assistant principal at the junior high school at the time of the offense; he was terminated on Feb. 8, 2021.
A Christian County sheriff’s deputy was contacted by a 13-year-old child victim and his father in September 2020. The child victim, identified in court documents as “John Doe,” had been engaging in a series of text messages for approximately a week with Fronterhouse, who posed as a 14-year-old girl. Fronterhouse, posing as a 14-year-old, encouraged John Doe to transmit sexually explicit images of himself to Fronterhouse, made specific requests for poses or types of images, and had sexually explicit conversations with John Doe.
Investigators learned that the phone used by Fronterhouse was a burner phone number with a Voice Over Internet Protocol (VoIP) account, but they were able to trace the account to Fronterhouse. Officers executed a search warrant at Fronterhouse’s residence on Jan. 26, 2021, and he was arrested. Investigators seized Fronterhouse’s cell phone and found evidence linking his cell phone to the burner account. Investigators confirmed that Fronterhouse had access to the child victim’s cell phone number through school records.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department, and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Navy Depot Supervisor Sentenced for Assaulting EmployeeRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jared B. Heisey, age 32, of Etters, Pennsylvania, was sentenced to two months’ imprisonment to be followed by five months of home confinement by United States District Court Judge Christopher C. Conner for assaulting a employee at the Naval Support Activity (NSA) in Mechanicsburg, Pennsylvania. Judge Conner also ordered Heisey to undergo counseling and have no contact with the victim.
According to United States Attorney John C. Gurganus, Heisey, a former Defense Logistics Agency (DLA) supervisor, assaulted an employee during work hours on August 9, 2019, at the NSA. Heisey directed the victim to accompany him to conduct an inventory count in a remote building at the NSA and when they entered the building, Heisey pinned the victim up against the wall by grabbing her neck with his hand while making sexual comments about what he would like to do to her. Heisey is no longer employed by DLA.
The case was investigated by the Naval Criminal Investigative Service (NCIS). Assistant U.S. Attorney Jaime M. Keating prosecuted the case.
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Former Muscogee Co. Deputy Clerk of Court Sentenced to 145 Months Imprisonment in Historic Multi-Million Dollar Fraud CaseRead the Press Release
COLUMBUS, Ga. – The ring-leader of a massive and lengthy scheme to drain the Muscogee County Clerk of Courts’ coffers of millions of dollars was sentenced to prison for his crime today, along with five co-defendants.
Willie Demps, 64, of Phenix City, Alabama, and the former Deputy Clerk of Court for Muscogee County, Georgia, was sentenced to serve the guideline maximum of 121 months imprisonment for conspiracy to commit bank fraud. On each of the two counts of tax evasion, he was given 60 months imprisonment with 12 months to be served consecutively to the bank fraud sentence. The total amount of imprisonment is 145 months to be followed by five years of supervised release. U.S. District Judge Clay Land handed down the sentence and ordered Demps to pay $1,323,045.21 in restitution to the Muscogee County Clerk of Court’s Office and $359,604 to the IRS, joint and severable with the other defendants, and advised that Demps’s retirement benefits be garnished to pay the restitution. In addition, the Government has requested a money judgement for $1,095,991, which will be ruled upon at a later date. There is no parole in the federal system.
“Willie Demps was the mastermind of an extraordinary, years-long theft of the Muscogee County taxpayers, stealing millions of dollars from its citizens under the guise of a trusted county employee,” said U.S. Attorney Peter D. Leary. “Demps has been brought to justice for his crimes thanks to the unwavering persistence of FBI and IRS investigators, who teamed up with federal prosecutors to map out the complex fraud and bring those involved in this scheme accountable.”
“The FBI was proud to work alongside our federal and local partners in this multimillion-dollar bank fraud investigation that uncovered a decade of illegal conduct by Demps and his codefendants,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This lengthy sentence will hold Demps accountable for cheating U.S. taxpayers and hopefully bring closure to all who were affected by his crimes.”
“Demps abused his position as Deputy Clerk of Courts while engaging in a series of fraudulent financial transactions devised to siphon funds from the community. IRS Criminal Investigation is proud to have assisted our federal partners in unraveling the criminal activity undertaken by Demps for his personal benefit,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”
The following co-defendants were sentenced for conspiracy to commit bank fraud:
Terry McBride, 45, of Smiths Station, Alabama, was sentenced to serve 24 months in prison to be followed by five years of supervised release and pay $299,285 in restitution.
Samuel Cole, 73, of Columbus, was sentenced to serve 18 months in prison to be followed by five years of supervised release and pay $387,020 in restitution.
George Cook, 33, of Columbus, was sentenced to time served, five years of supervised release and pay $215,196 in restitution.
The following co-defendant was sentenced for misprision of a felony:
Lamarcus Palmer, 35, of Smiths Station, Alabama, was sentenced to serve one year probation and pay $12,606 in restitution.
The following co-defendant was sentenced for interstate transportation of stolen property:
Rosalie Bassi, 66, of Phenix City, Alabama, was sentenced to serve five years of probation and pay $61,896.46 in restitution.
The following co-defendants will be sentenced on June 14 after pleading guilty to conspiracy to commit bank fraud:
Curtis Porch, 48, and Dereen Porch, 43, both of Columbus.
According to court documents, Demps worked for the Muscogee County Clerk for approximately 30 years and supervised money deposits received by the Clerk’s Office. The Clerk’s Office received money from fines and condemnations, and payments were frequently made in cash. From at least 2010 to 2019, Demps maintained a safe in his office to store sums of cash that were collected by the Clerk’s Office. During the business day, this safe was rarely locked, even when Demps was away from his office. Demps (or his designee) was responsible for depositing cash received by the Clerk’s Office into an appropriate Clerk of Superior Court bank account. Records indicate that the Clerk’s Office received over $5.5 million in cash during the period of 2010-2019, yet only a single cash deposit of approximately $210 was made into official Columbus accounts in 2019. No cash deposits were made in other years.
From Oct. 19, 2010, to approximately Nov. 27, 2019, Demps issued at least 330 Clerk of Superior Court checks payable to the named co-defendants, and to some individuals not named, with a face value of at least $1.3 million. Bank records prior to Oct. 19, 2010, are not available, and the Muscogee County Clerk’s Office records prior to that date cannot be obtained. Demps would meet various co-defendants in locations away from his place of business at the Clerk’s Office to give the illicit checks to them to be cashed at banks in Columbus and in nearby Alabama. The co-defendants cashed the checks and returned the money to Demps, who would give the participating co-defendant a portion of the money. Demps admits he used the money for personal expenses, to send money to foreign countries and to spend at casinos.
Demps received cash deposits to his bank during the tax years 2018-2019, which he now admits were not the result of direct deposits from his lawful salary but rather proceeds from the money he stole from the Muscogee County Clerk’s Office. This money was not reported to the IRS and resulted in tax liability. Demps deposited $147,455 in cash in 2018 and $327,787 in cash in 2019 and fraudulently failed to account for these amounts as income on his tax returns. The IRS calculated Demps’s total amount of tax due from years 2015 to 2019 as $359,604.
FBI and IRS investigated the case, with assistance from the Columbus Police Department.
Assistant U.S. Attorney Amy Helmick prosecuted the case for the Government. Retired Assistant U.S. Attorney Mel Hyde initiated the prosecution of this case.
Former Congressional Candidate Pleads Guilty to Covid-19 Relief Fraud and Falsification of RecordsRead the Press Release
Boise – A Boise man pleaded guilty for using COVID-19 relief funds for personal expenditures and for falsifying records to conceal thousands of dollars of in-kind contributions by employees in a report to the Federal Elections Commission (FEC).
According to court documents, in 2020, Nicholas Jones, 36, of Boise, Idaho, a small business owner, applied for and received COVID-19 relief funds, including through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), totaling $753,600. Despite certifying that these funds would only be used for business-related expenditures, Jones used a significant portion of the funds for personal expenses, including car payments, life insurance policies, and political advertisements.
In 2020, Jones ran as a candidate for the U.S. House of Representatives. Jones told employees of his small business that they could continue to be paid their normal wages if they worked on his congressional campaign. Employees reported to work on behalf of Jones’s congressional campaign and were paid thousands of dollars in wages through Jones’s small business including, in part, with funds Jones had received as part of a PPP loan. After losing the primary election, Jones caused his campaign committee to file a campaign finance report with the FEC, which omitted any in-kind contributions from any entity or individual other than Jones, including the thousands of dollars of in-kind contributions to his campaign in the form of employee time and work.
Jones pleaded guilty in the U.S. District Court of Idaho to wire fraud and falsification of records. Jones will be sentenced at a later date. Jones faces a maximum total 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the investigation by the Federal Bureau of Investigation, which led to the charges.
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Former Chicago Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – Kevin Lorenzo Perry, age 33, was sentenced today to 20 years in prison for Distribution of Fentanyl Resulting in Death. Perry was ordered to serve three years of supervised release following his prison term and immediately pay a $100 Special Assessment to the Crime Victims’ Fund.
According to court documents, the case involved Perry’s distribution of fentanyl to two individuals, in Iowa City, on May 12, 2020. Both individuals overdosed as a result of their ingestion of the fentanyl. One of the individuals died and the other was able to be resuscitated. The surviving individual identified Perry as the source of the fentanyl, which was corroborated by text messages with Perry. On January 11, 2022, Perry pleaded guilty to the charge.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Iowa Department of Public Safety and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Bank Employee Admits $8 Million Fraud and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted conspiring to commit bank fraud and accepting bribes, U.S. Attorney Philip R. Sellinger announced.
Kurt Phelps, 53, of Flanders, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to commit bank fraud and one count of bank bribery. Three of Phelps’ conspirators previously pleaded guilty in connection with the fraud scheme.
According to documents filed in this case and statements made in court:
From 2013 through 2019, Phelps and his conspirators carried out a scheme to defraud Phelps’ employer, a bank. They obtained millions of dollars of credit from the bank for Starnet Business Solutions Inc. a now defunct New Jersey-based printing company where Phelps’ conspirators worked. Phelps’ conspirators paid him large cash bribes in connection with the fraud scheme
In 2013, Starnet received a line of credit from the bank after providing materially false financial information. The bank not only allowed Starnet to maintain the line of credit, at various times it increased the line of credit. By 2018, the line of credit was worth approximately $8 million, and Starnet has not repaid it
Phelps was aware that financial information Starnet provided to the bank for the line of credit was materially false, and coached Starnet on how to defraud the bank. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submission. Phelps also worked to ensure that the bank did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by the bank.
Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Phelps’ conspirators pooled cash to pay Phelps bribe payments. Over the course of the conspiracy, Phelps accepted hundreds of thousands of dollars in cash bribes.
The conspiracy to commit bank fraud and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 3, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Ferndale, Washington, woman indicted for trafficking in counterfeit goodsRead the Press Release
Seattle – A 42-year-old Ferndale, Washington woman was indicted this week by a federal grand jury for multiple counts of trafficking in counterfeit goods, announced U.S. Attorney Nick Brown. Kara Suneva Allen, aka Kara Suneva Mitchell is scheduled to appear for arraignment on the indictment on June 9, 2022.
According to records filed in the case, Allen operated a business named ‘Keepin Up With Kara’ LLC. The business was located in a warehouse space in Ferndale, Washington. As of March 2022, a website associated with the business advertised 467 different items for sale that appeared to be products made by Adidas, Burberry, Cartier, Chanel, Christian Dior, Fendi, Gucci, Hermès, Louis Vuitton, MCM, Nike, Prada, Saint Laurent, Tiffany & Co., Tory Burch, and UGG. All the products were priced substantially below the suggested retail price for the genuine items.
An investigation by Homeland Security Investigations, U.S. Customs and Border Protection, and the Whatcom County Sheriff’s Office revealed that in August and September 2021, three shipments destined for Allen and her company were seized from the mail in Oakland, California. The shipments, which originated in China and Hong Kong, contained a wide variety of counterfeit goods, including handbags, wallets, and jewelry. Allen was notified of these seizures, but never petitioned to have the goods in the shipments released. An analysis of shipping records revealed that between September 2021 and March 2022, approximately 46 shipments from China and Hong Kong had been sent to the Ferndale warehouse where ‘Keepin Up With Kara’ operated.
To document Allen’s sale of counterfeit goods, an undercover agent made online purchases from the company’s website. In one instance, the agent made an undercover purchase of a Louis Vuitton-branded handbag for $110. The suggested retail price for that specific authentic Louis Vuitton handbag is $1,690.00. A Louis Vuitton representative confirmed the handbag purchased from the website was counterfeit.
Fake designer bagOn May 2, 2022, law enforcement executed search and seizure warrants at Allen’s place of business, home, and vehicle. Large quantities of counterfeit merchandise were seized.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Trafficking in counterfeit goods is punishable by up to 10 years in prison and a $2,000,000 fine.
The case is being investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection, the Whatcom County Sheriff’s Office, U.S. Postal Inspection Service, the Ferndale Police Department, and the National Intellectual Property Rights Center.
The case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly.
allen_kara_indictment.pdf Warehouse goods Table of fake designer bagsFederal Law Enforcement Initiative Leads to Charges Against Nine Men for Firearm and Drug Trafficking OffensesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. has announced that an investigation into a drug trafficking organization based out of Ascension Parish has resulted in a federal grand jury superseding indictment leading to the arrest of nine men on various firearm and drug trafficking offenses.
According to the Indictment, the defendants engaged in an extensive drug trafficking venture where they distributed large quantities of methamphetamine in the Middle District of Louisiana. Agents seized over nine kilograms of methamphetamine and several firearms during the investigation.
Charged and arrested as part of this initiative were the following individuals:
Reshide Wooden, age 25, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm by a convicted felon.
Rokedrick Tyrell Williby, age 31, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of 50 grams or more of methamphetamine.
Denzel Dionte Gray, age 29, of Donaldsonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Malcolm Oliver, Jr., age 32, of Napoleonville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
Kelly Derrell Jones, age 40, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
David Burnell Lewis, age 37, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute 50 grams or more of a substance containing a detectable amount of methamphetamine.
Christopher Dee Harrod, age 41, of Prairieville, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Blain Joseph Slayton, age 29, of Gonzales, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
Robert Jason Slayton, age 51, of Plaquemine, Louisiana, for conspiracy to distribute and to possess with intent to distribute methamphetamine.
This investigation was led by the Drug Enforcement Administration and task force officers from Iberville Parish Sheriff's Office and Baton Rouge Police Department with critical assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service, the United States Marshals Service, East Baton Rouge Sheriff’s Office, Gonzales Police Department, West Baton Rouge Sheriff’s Office, and Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jessica Jarreau, who also serves as Deputy Chief, overseeing the newly formed Organized and Violent Crime Unit of the U.S. Attorney’s Office.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Eight Charged with Trafficking More Than 1,300 Pounds of Cocaine in Northeast OhioRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that a federal grand jury returned a 22-count superseding indictment charging eight individuals for their roles in a drug trafficking conspiracy that distributed approximately 611 kilograms, or more than 1,300 pounds, of cocaine throughout Northeast Ohio.
Named in the superseding indictment are Marc Mahoney, 43, of North Royalton, Hosea Lock, 53, of Cleveland, Jesse Bojorquez, 38, of Chula Vista, California, Jerome McGinns, 47, of Cleveland, Ohio, Marquis Glenn, 36, of South Euclid, Ohio, Desmond Smith, 31, of Westlake, Ohio, Deshon Knowles, 38, of Ashtabula, Ohio, and Sammy Abraham, 60, of Cleveland, Ohio.
Law enforcement authorities with the United States Marshals Service arrested defendants McGinnis, Glenn, Knowles, and Abraham in connection with the unsealing of the superseding indictment. Defendants Mahoney, Lock and Bojorquez were previously arrested in January of 2022 pursuant to charges alleged in a criminal complaint. Smith was arrested on May 18, 2022, pursuant to charges alleged in a separate criminal complaint.
Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances and use of a communications facility to facilitate a drug trafficking offense. In addition, defendant Mahoney is charged with additional counts of conspiracy to launder monetary instruments and possession with intent to distribute cocaine.
Defendant Bojorquez is charged with an additional count of interstate travel in aid of racketeering. Defendant Smith is charged with additional counts of possession with intent to distribute controlled substances, possession with intent to distribute cocaine, possession with intent to distribute cocaine base, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to court documents, from January 2019 to May 2022, defendant Mahoney allegedly obtained large quantities of cocaine from Mexico, which he then redistributed to the named defendants to be further distributed throughout Northeast Ohio.
It is alleged that Mahoney distributed approximately 611 kilograms of cocaine to defendants Lock, McGinnis, Glenn and Smith to be redistributed in Northeast Ohio. Smith further distributed cocaine and cocaine base to defendants Knowles and Abraham to be redistributed. In return, the defendants allegedly provided Mahoney with a combined approximate total of nearly $20 million in proceeds, which Mahoney then sent back to Mexico. On January 20, 2022, the indictment states that Mahoney delivered $2,399,585.00 of cocaine sales proceeds to Bojorquez, in Cleveland, Ohio, for transportation back to Mexico.
The conspirators are also accused of using cell phones and coded language to obscure and disguise their drug trafficking activity.
On January 20, 2022, investigators executed a search warrant at Mahoney’s residence and at a storage unit associated with Bojorquez. During the execution of the warrants, investigators obtained more than $2.4 million in U.S. currency, a drug ledger and approximately 22 kilograms of cocaine. Mahoney allegedly used the ledger to record his drug transactions.
The indictment also alleges that to conceal the proceeds of his cocaine sales, Mahoney conspired with Rueben Schwartz, 49, of Conneaut, Ohio, to purchase properties in Conneaut with cash derived from Mahoney’s drug trafficking activities. Mahoney allegedly paid Schwartz cash for the properties and the two worked together to conceal the true amount paid.
Schwartz was chargedin a separate indictment with money laundering on May 25, 2022, for his role in the scheme.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses, and the characteristics of the violations.
In all cases, sentences will not exceed the statutory maximums, and in most cases, will be less than the maximums.
The investigation was conducted by the Drug Enforcement Administration, with assistance from the Westshore Enforcement Bureau, the Westlake Police Department, the Conneaut Police Department, the Federal Bureau of Investigation, the Rocky River Police Department, the North Olmstead Police Department and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Robert J. Kolansky.
Coraopolis Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A resident of Coraopolis Pennsylvania, pleaded guilty in federal court to possessing material depicting the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
Christopher A. Sennett pleaded guilty to one count of Possession of Material Depicting the Sexual Exploitation of a Minor before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on September 26, 2018, law enforcement executed a search warrant at Sennett’s residence in Coraopolis, PA, during which the officers seized a computer and Apple iPhone, both of which were found to contain videos and still images of child sexual abuse material. Forensic analysis of the electronic equipment revealed 120 videos and 9 still photographs depicting the sexual exploitation of minor females.
Judge Bissoon scheduled sentencing for October 3, 2022, at 1:45 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Sennett remain on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation that led to the prosecution of Christopher A. Sennett.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Connecticut Contractor Sentenced for Bribery Conspiracy to Procure Consultation Contracts at Colleges and UniversitiesRead the Press Release
BOSTON – The principal of a Connecticut environmental consulting firm was sentenced yesterday in federal court in Springfield for paying bribes to procure consulting contracts at higher educational institutions in Massachusetts and New York.
Stephen Dinapoli, 42, of Wilton, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation. Dinapoli was also ordered to pay forfeiture of $66,718. The government recommended a sentence of two years in prison. On Dec. 21, 2021, Dinapoli pleaded guilty to one count of conspiracy and two counts of bribery concerning programs receiving federal funds.
Dinapoli is the principal of Big East Environmental, an environmental project management and consulting firm based in Connecticut. From 2015 to 2019, Dinapoli paid cash bribes to co-conspirator Floyd Young, who held positions involving facility maintenance at three collegiate institutions including American International College (AIC) in Springfield, Mass. Specifically, Dinapoli paid Young in cash during face-to-face meetings in order to obtain contracts for environmental consulting work at AIC, Cornell Tech and Cooper Union. These bribes were typically 15% of the value for each contract with the collegiate institutions. In total, Dinapoli paid Young $66,718 in bribes to procure contracts with a total value of approximately $444,786.
Young was charged in a separate case and, in August 2020, pleaded guilty to steering contracts for construction, repair, maintenance and other work for the collegiate institutions to favored contractors, including Dinapoli, in exchange for bribe payments typically in the amount of 15% of the contract. A sentencing hearing for Young has not yet been scheduled by the Court.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Steve Breslow of Rollins’ Springfield Branch Office prosecuted the case.
Connecticut Companies Pay $5.2 Million to Resolve Allegations of False Claims Act Violations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Numet Machining Techniques, LLC (“Numet”), Numet Industries, Inc., KCO Numet, Inc., and Kidd & Company, LLC (collectively the “Numet Entities”), have entered into a civil settlement agreement with the United States and have paid $5,227,355.28 to resolve allegations that they violated the False Claims Act when Numet improperly obtained set-aside contracts reserved for small businesses that it was ineligible to receive.
Numet is limited liability company located in Orange, Connecticut that manufactures and provides aerospace engine machined components for commercial and U.S. military purchases. On August 30, 2011, Numet was acquired by Numet Industries, Inc., which was owned by KCO Numet, Inc., which was ultimately owned by individuals associated with Kidd & Company, LLC, a family office investment company located in Greenwich, Connecticut.
The government contends that, after Numet’s acquisition in August 2011, it ceased to qualify as a “small business concern” within the meaning of the Small Business Administration (“SBA”) regulations relating to government contracts due to Numet’s affiliation through stock ownership with other businesses. Nevertheless, between August 2011 and February 2016, Numet falsely certified that it was a “small business concern” and, as a result, it was awarded 22 small business set-aside contracts that it was ineligible to receive. In addition, between September 2013 and February 2016, Numet falsely certified that it was a “women-owned small business concern.”
Government contractors are required to timely disclose to the government, in writing, whenever they have credible evidence that they have committed a violation of the False Claims Act. On November 4, 2019, in connection with due diligence performed relating to Numet’s sale to another entity, Numet voluntarily disclosed to the government facts concerning its potential affiliation with other businesses that the government contends made it ineligible to be awarded contracts set aside for small businesses. The Numet Entities received credit in the settlement for Numet’s voluntary disclosure and cooperation with the government during its investigation.
“Government contractors that make false representations to receive contracts for which they are not eligible will be held to account,” said U.S. Attorney Avery. “We thank our investigative partners for their efforts on this case and their ongoing work to protect government programs that exist to assist small or disadvantaged companies.”
“Protecting Department of Defense contracts set aside for small businesses is a priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement reflects our commitment to working with our law enforcement partners and the U.S. Attorney’s Office for the District of Connecticut to investigate allegations of false representations made during the DoD procurement process.”
“SBA procurement programs must be preserved for contractors that are truly small businesses” said Therese Meers, Acting General Counsel of SBA. “The settlement in this matter demonstrates the excellent results achieved in the government’s forceful response to procurement fraud. SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs.”
“Contractor abuse of government set-aside programs not only undermines the federal acquisition process, but also harms the legitimate small businesses these programs are intended to support,” said Special Agent in Charge William W. Richards, Air Force Office of Special Investigations. “AFOSI, our joint investigative partners, and the DOJ will continue to combat fraud threatening the Department of Defense’s procurement process and ensure wrongdoers are held accountable for their actions.”
This investigation was conducted by the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency Operations Investigative Support Division, and the SBA Office of General Counsel. This matter was handled by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel.
Child Sex Trafficker Sentenced to 21 Years in PrisonRead the Press Release
A Delaware man was sentenced today to 21 years in prison for trafficking minor and young adult victims throughout the mid-Atlantic region.
Anthony Jones, 38, of Wilmington, Delaware, was convicted by a federal jury in April 2019 following a 14-day trial. Jones was found guilty of conspiracy to engage in sex trafficking of minors by force, fraud or coercion, and of sex trafficking three minors by force, fraud or coercion. According to evidence presented at trial and court documents, Jones and his codefendants – Dkyle Bridges and Kristian Jones – ran a prostitution enterprise in which girls and young women were sex trafficked throughout southeastern Pennsylvania, Delaware, and elsewhere. Bridges was the violent ringleader who used force and threats to cause the victims to engage in commercial sex acts. Kristian and Anthony Jones helped Bridges run the ring, including by providing security and reserving hotel rooms. The investigation began in November 2016 when local police rescued minors who had been advertised for prostitution on Backpage.com, and subsequent investigation uncovered additional victims.
Jones was also sentenced to 10 years of supervised release and ordered to pay $15,160 in restitution to the victims.
Bridges was sentenced in March 2021 to 35 years in prison, followed by 10 years of supervised release, and ordered to pay $53,000 in restitution to the victims. Kristian Jones was sentenced in June 2021 to 20 years in prison, followed by 10 years of supervised release, and ordered to pay $15,160 in restitution to the victims.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.
The FBI’s Philadelphia Field Office investigated the case with substantial assistance from the Tinicum Township Police Department; Newark Police Department; Delaware State Police; Philadelphia Police Department; Delaware River & Bay Authority and Wilmington Police Department.
Trial Attorney Jessica L. Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Priya T. De Souza of the U.S. Attorney’s Office for the Eastern District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Carbon County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Roberto Magobet, age 44, of Jim Thorpe, Pennsylvania, was indicted on May 31, 2022, by a federal grand jury and charged with drug trafficking.
According to United States Attorney John C. Gurganus, the indictment alleges that Magobet possessed with the intent to distribute over 50 grams of methamphetamine and a quantity of fentanyl on August 31, 2021, in Jim Thorpe, Pennsylvania.
The case was investigated by Homeland Security Investigations (HSI), Jim Thorpe Police Department and the Pennsylvania State Probation and Parole Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Canton Man Sentenced to 10 Years in Prison for Illegal Possession of Firearm and Intent to Distribute Fentanyl, MarijuanaRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced that Chance R. Young, 26, of Canton, Ohio, was sentenced on Wednesday, May 25, 2022, to ten years in prison by U.S. District Judge Patricia A. Gaughan after Young pleaded guilty to possession with intent to distribute fentanyl and marijuana and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on December 4, 2020, Young was arrested by law enforcement officers with the FBI and FBI Safe Streets Task Force on multiple outstanding warrants for kidnapping, aggravated robbery and felonious assault issued by the Canton Municipal Court. Following the arrest, authorities executed a search warrant at the known residence of Young. During the search, authorities obtained a handgun with a loaded magazine and an attached weapon light, a rifle with a loaded magazine, several bags of marijuana and quantities of fentanyl.
This case was investigated by the FBI, Canton Police Department and FBI Safe Streets Task Force. This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LAMAIN HEARD, 31, of Bridgeport, pleaded guilty today in Hartford federal court to unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, June 15, 2021, law enforcement attempted to stop a car in which Heard was a passenger. The car drove at police officers, crashed into multiple vehicles, and then crashed into a pole. When the car stopped, Heard dropped a semiautomatic pistol in the car and then attempted to flee the scene before he was apprehended. Subsequent forensic analysis of the firearm revealed that it contained Heard’s DNA.
Heard has previously been convicted of a felony offense and he attended a Project Safe Neighborhoods presentation at which he was informed that a felon caught with a firearm could be prosecuted in federal court.
Heard has been detained since his federal arrest on January 21, 2022. Judge Underhill scheduled sentencing for August 24, at which time Heard faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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.
Bogus Online Auto Auction Participant Indicted for Bank FraudRead the Press Release
SAN JOSE – A federal grand jury indicted Ionut Ganea with three counts of bank fraud in a scheme to defraud consumers with fake online automobile auction advertisements, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the indictment, Ionut Ganea, 28, a Romanian national last known to be in Romania, conspired to defraud consumers by posting fraudulent automobile auction advertisements on multiple automobile websites. The automobile auction advertisements contained information typical of legitimate auctions, including photographs of the automobiles for sale. The indictment alleges, however, that the automobiles advertised for sale were not owned by the purported sellers. The purported sellers thereafter communicated with interested buyers through online messaging platforms and induced them to place bids on the auctions. After a victim-buyer “won” an auction and wired payment to the seller’s bank account as instructed, the vehicle was never delivered.
The indictment alleges Ganea acted as a “money mule” in the scheme, collecting the illegally obtained money and sending it to the other participants in the fraud. Ganea used fake identities to set up bank accounts in the United States with legitimate banking institutions. The bank accounts were used to receive the wire transfers of funds from the victim-buyers in the fraudulent auctions. Ganea then allegedly withdrew the funds from the accounts.
Between December 2019 and September 2020, the indictment alleges Ganea opened at least 74 bank accounts in eight banks across the country while using 28 fake names and fraudulent passports from the Czech Republic, Slovakia, and Latvia. According to the indictment, 117 individual victim-buyers wired nearly $2 million dollars to these accounts, and Ganea withdrew more than $1.8 million of those funds.
The federal indictment charges Ganea with three counts of bank fraud in violation of 18 U.S.C. § 1344(2). The maximum statutory sentence for each violation of 18 U.S.C. § 1344(2) is 30 years in prison, a fine up to $1,000,000 or twice the gross gain or loss amount, and five years of supervised release following prison. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ganea remains at large. The investigation continues.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Anne Hsieh is prosecuting the case with the assistance of Laurie Worthen. The prosecution was the result of an investigation by the Federal Bureau of Investigation.
Bergen County Woman Sentenced to 21 Months in Prison for Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 21 months in prison for her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, U.S. Attorney Philip R. Sellinger announced.
Ruby Baroni, 55, of Lyndhurst, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on Sept. 20, 2021, and was sentenced on April 25, 2022, to 27 months in prison.
In addition to the prison term, Judge Neals sentenced Baroni to two years of supervised release and ordered her to pay $295,297 in restitution.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Baldwinsville Man Sentenced to 60 Months for Receiving Child Pornography from an 11-Year-Old ChildRead the Press Release
SYRACUSE, NEW YORK – Richard Curtis, age 22, of Baldwinsville, New York, was sentenced today to serve 5 years in federal prison for receiving child pornography, announced 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), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his guilty plea, Curtis admitted that in September of 2017 he asked an 11-year-old child to send him sexually explicit videos of herself over the internet application Instagram. In his exchanges with the child, the defendant pretended that he was a female fashion designer looking for models. At his direction, the child produced and sent to Curtis five sexually explicit video files.
Chief United States District Judge Glenn T. Suddaby also imposed a 35-year term of supervised release, which will start after Curtis is released from prison, and ordered Curtis to pay a $100 special assessment. Curtis will also be required to register as a sex offender.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU). The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
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 www.projectsafechildhood.gov
Athens, Vermont Man Charged with Unlawful Possession of Short-barrel ShotgunRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ryan Goodrich, 37, of Athens, Vermont was arraigned yesterday on an indictment that alleges on March 3, 2022, Goodrich unlawfully possessed an unregistered short-barrel shotgun, unlawfully possessed multiple shotguns and an AR-style rifle due to Goodrich’s prior felony convictions, and unlawfully possessed heroin.
According to court records, Vermont Game Wardens began an investigation of Goodrich in late winter of 2022 for violations of fish and wildlife regulations. During their investigation, the wardens obtained a search warrant for Goodrich’s Facebook account, which revealed a photograph of a short-barrel shotgun. The messages within the account revealed Goodrich had discharged the weapon and likely possessed it at his residence. The wardens coordinated with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to execute a search warrant at Goodrich’s residence on March 3, 2022. During the search, agents located the short-barrel shotgun (which was loaded), multiple additional shotguns, multiple rifles (including an AR-style rifle), 2,978 rounds of ammunition, $6,000 in U.S. Currency, and 880 bags of heroin.
After the warrant was executed, the federal grand jury returned an indictment on March 10, 2022. Agents attempted to locate Goodrich in and around Athens, and in doing so, encouraged people who knew him to have Goodrich turn himself in to law enforcement. Goodrich did not do so. On April 9, 2022, Keene, New Hampshire Police located Goodrich at a hotel in Keene. Officers obtained a search warrant for the hotel room, but Goodrich was not inside when it was executed. Agents found evidence of Goodrich’s prior presence, including personal paperwork in a backpack. On April 19, 2022, law enforcement learned that Goodrich was attempting to obtain transportation to Texas. Goodrich was subsequently located and apprehended at a hotel in Deerfield, Massachusetts.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Goodrich remains presumed innocent until and unless he is convicted of a crime. Goodrich faces a maximum sentence of 10 years of imprisonment on each firearm violation. The actual sentence would be determined with reference the Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Vermont Department of Fish and Wildlife, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. He also thanked the Keene Police Department, the Massachusetts State Police, the Deerfield Police Department, and the Greenfield Police Department for their assistance in locating and apprehending Goodrich.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Goodrich is represented by Assistant Federal Public Defender Mary Nerino.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. See https://www.justice.gov/psn for more information.
23 Defendants Charged with Participating in $26 Million Life Insurance Fraud SchemeRead the Press Release
CHICAGO — A federal grand jury in Chicago has charged 23 defendants with participating in a fraud scheme through which they allegedly swindled ten life insurance carriers out of at least $26 million in fraudulent benefits.
The defendants submitted fraudulent applications to obtain life insurance policies in the names of various individuals and then induced the carriers to pay death benefits by knowingly misrepresenting the identity of a different deceased person as the insured, according to an indictment unsealed today in U.S. District Court in Chicago. The fraud scheme charged in the indictment began in 2013 and continued until last month. Among the defendants are sets of spouses and, in some cases, their children, as well as an insurance agent who owned a side business that performed medical examinations on applicants for term life insurance policies. The indictment seeks forfeiture from the defendants of at least $26 million in alleged ill-gotten gains, as well as nine luxury automobiles, eight Rolex watches, and properties in the Chicago suburbs of Orland Park, Bridgeview, and Burbank.
The indictment charges the 23 defendants with multiple counts of wire and mail fraud. Most of the defendants were arrested Thursday in Illinois and Florida and will be making initial appearances in federal courts in Chicago, Orlando, Tampa, and Miami.
The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Nicholas A. Pecora, Jr., Chief of the Arlington Heights, Ill., Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office, U.S. Marshals Service, and United States Attorney’s Offices for the Middle and Southern Districts of Florida. The government is represented by Assistant U.S. Attorneys Philip N. Fluhr and Andréa L. Campbell.
“The fraud scheme charged in the indictment involved an elaborate deception perpetrated against multiple insurance companies for the purpose of financial gain,” said U.S. Attorney Lausch. “I commend the FBI Chicago Field Office and the Arlington Heights Police Department for their diligent work in uncovering this complex scheme and seeking to hold the defendants accountable for their personal and economic harms.”
“We will not allow deceitfulness to prevail for selfish financial gain,” said FBI SAC Buie. “The FBI is proud to work with our local law enforcement and prosecutorial partners to fight these extravagant fraud schemes and ensure justice is served.”
“The Arlington Heights Police Department is proud of the results achieved by detectives and agents who investigated this multistate fraud scheme involving a structured plan designed to defraud numerous insurance companies,” said AHPD Chief Pecora. “This investigation is a clear example of local and federal partners working in collaboration to defeat the criminal element and halt their unlawful activity.”
Charged in the indictment are JAMES MILLS, also known as “Jamie Montes,” 47, of Oak Lawn, Ill., JOSEPH BROWN, 50, of Chandler, Ariz., JULEY ELY, 47, of Oak Lawn, Ill., GINGER ELY, 26, of Oak Lawn, Ill., SYLVIA EVANS, 48, of Kissimmee, Fla., HOLLY STERGO, also known as “Holly Stego,” 29, of Missouri City, Texas, JESSICA VACA, 51, of Deerfield Beach, Fla., ANGELA BECHO, 30, of Fort Lauderdale, Fla., FRANK COSTELLO, 44, of Hoffman Estates, Ill., JOE ROUGA, 29, of Oak Lawn, Ill., MARY BACCO, 53, of Bridgeview, Ill., STEVE MONTEGA, also known as “Fonzie Cerano,” 44, of Orland Park, Ill., NIKO RISTICK, 23, of Orland Park, Ill., TONY RISTICK, also known as “Anthony Walker,” 52, of Orlando, Fla., RACHEL MONTEGA, also known as “Samantha Walker,” 48, of Orlando, Fla., ROBERT CRAIG, also known as “Jake,” 37, of Lakeland, Fla., STEVE VEGA, also known as “Cabby,” 45, of Fort Lauderdale, Fla., SOPHIE BECHO, 46, of Fort Lauderdale, Fla., MARK BLANCA, 30, of Burbank Ill., DIANA LUMAS, 30, of Burbank, Ill., RICKY BLANCA, also known as “Fonz Ristick,” 48, of Orland Park, Ill., DAVID JENSEN, also known as “Tony,” 52, of Lakeland, Fla., and JOE JOHN, 66, of Arlington Heights, Ill.
The charges allege that the defendants paid premiums on the fraudulently obtained policies for two years, at which time the period for contestability expired, making it more difficult for insurance companies to decline death benefit claims. Fraudulent claims for death benefits would then be submitted, using records that falsely identified a different deceased person as the insured, the indictment states. To support the fraudulent claims, the schemers obtained false death certificates in the names of the insureds and made false representations about the deceased person to law enforcement, first responders, medical personnel, funeral home staff, and cemetery employees, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to 20 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
1 June 2022
Violent member of Chester “3rd Bone” Drug Gang Sentenced to Nearly a Decade in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Tyleel Scott-Harper, 25, of Chester, PA, was sentenced to nine years in prison and three years of supervised release by United States District Court Chief Judge Juan R. Sanchez for narcotics and firearms offenses in furtherance of the activities of the violent street gang, Third Bone, that sold large amounts of crack, cocaine, and heroin in downtown Chester, PA.
In October 2019, 22 individuals including the defendant were arrested and charged in parallel indictments with drug trafficking and firearms offenses. These 22 defendants were members of rival drug trafficking groups operating next to each other in territories occupying the west side of Chester. The two rival groups were the “3rd Bone” (or “3BM”) and the “William Penn” (“the Pen” or “Ject Boyz”).
Scott-Harper and 12 of his “3rd Bone” co-conspirators were charged in a 70-count Indictment alleging conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. As a member of 3rd Bone, Scott-Harper infused a dangerous drug into the community of Chester, and used violence and threats of violence to control the group’s territory and enforce drug debts. For his part, in August 2021, the defendant pleaded guilty to charges including conspiracy to distribute crack cocaine, possession with intent to distribute and distribution of crack cocaine, use of a communication facility in furtherance of a drug trafficking crime, possession of a firearm in furtherance of a drug trafficking crime.
“The defendant and his co-conspirators in 3rd Bone, together with the defendants in the William Penn gang, terrorized the Chester community for years with their drug dealing and associated violence,” said U.S. Attorney Williams. “Scott-Harper dealt dangerous narcotics and illegally possessed weapons to further his drug-dealing business, and for that he will now spend nearly a decade in prison. Thanks to the efforts of investigators at the FBI and DEA, the 3rd Bone and William Penn drug operations have been permanently shut down, making the streets safer and improving the quality of life for the Chester community.”
“Tyleel Scott-Harper and his 3rd Bone crew used threats and violence to maintain control of their territory, as they steadily poisoned the city of Chester by dealing dangerous drugs,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are committed to freeing our communities from the clutches of violent drug gangs, which have zero regard for the incredible damage they do to people’s lives and quality of life.”
"Chester is a community that has been disproportionately affected by the drug trade," said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. "That Scott-Harper was in a gang that engaged in the sale of multiple dangerous street drugs and used firearms to protect and further their drug-trafficking activities adversely impacted the overall quality of life for the citizens of Chester."
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. It is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Chester Police Department Narcotics Unit, with assistance from the Delaware County District Attorney’s Office, the Delaware County Drug Task Force, the U.S. Marshals Task Force, the Pennsylvania State Police, the Delaware County Sheriff’s Office, the Chester Township Police Department, the Ridley Township Police Department, and the Sharon Hill Police Department. It is being prosecuted by Assistant United States Attorneys Meaghan Flannery and Matthew Newcomer.
Varnville Man Pleads Guilty to Stealing More Than $300,000 from Military VeteransRead the Press Release
CHARLESTON, SOUTH CAROLINA —Raymond Huffman, 61, of Varnville, has pleaded guilty to stealing funds from 10 military veterans.
According to information presented to the Court, the U.S. Department of Veterans Affairs (“VA”) provides and cares for United States military veterans. Among its many programs, the VA administers a fiduciary program designed to protect veterans. Huffman was appointed to be a fiduciary to receive payments on behalf of veterans who, as a result of wars, injury, disease, or infirmities of advanced age, could not manage their VA benefits. Instead, Huffman stole money from these veterans.
“Stealing funds meant for a veteran is a despicable crime,” said U.S. Attorney Corey F. Ellis. “We owe it to our veterans, who have sacrificed so much for this country, to ensure they are not victimized when they most need assistance. I am grateful for the hard work from our federal and local partners.”
"Today's plea should send a clear message that the VA Office of Inspector General will vigorously investigate those who steal from our nation's veterans," said VA Office of Inspector General Special Agent in Charge Kim Lampkins. “The VA OIG will continue to ensure that veterans and other beneficiaries who rely on the critical financial services of VA-appointed fiduciaries are not exploited by greed for financial gain."
“This case is an example of what happens when we all work together - the Sheriff’s office, members of our community and other law enforcement agencies in our area,” said Dorchester County Sheriff L.C. Knight. “No veteran should ever have to worry about having benefits being stolen from them. When something like this happens, we want to make sure the crime is investigated and prosecuted to the fullest extent.”
Evidence obtained in the investigation revealed that Huffman misused funds intended for at least 10 of his VA clients through his company, Huffman Fiduciary Services. The victims included the estate of a veteran who had passed away in 2018. Huffman admitted to misusing and stealing money from some of his VA clients. In all Huffman stole at least $304,413.75, and also received fees in excess of $10,000.
Williams faces a maximum penalty of 50 years in federal prison. He also faces a fine of up to $250,000, restitution, and 30 years of supervision to follow the term of imprisonment. United States District Judge Bruce Howe Hendricks accepted the guilty plea and will sentence Huffman after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the VA Office of Inspector General, specifically Special Agent Robert Breunig, with assistance from Dorchester County Sheriff’s Office, specifically, Sgt. Chaz Easterlin Easterlin, and the Office of the Solicitor for the First Judicial Circuit. Assistant U.S. Attorney Sean Kittrell is prosecuting the case in federal court and Assistant Solicitor Shannon N. Elliott of the First Circuit Solicitor's Office prosecuted the case in state court.
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United States Army National Guardsman and Former Rockville, Maryland Police Officer Admits to Possessing over 12,000 Depictions of Child PornographyRead the Press Release
Baltimore, Maryland - Daniel Morozewicz, age 38, of Frederick, Maryland, pleaded guilty yesterday to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Frederick County State’s Attorney J. Charles Smith; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his guilty plea, from September 2020 to January 2021, while employed as a Rockville Police Officer and an Army National Guardsman, Morozewicz received, possessed, and distributed child pornography on the BitTorrent file sharing network. Morozewicz also used multiple electronic devices to download and distribute child pornography involving prepubescent minors.
During that time, Morozewicz repeatedly distributed child pornography to undercover law enforcement officers. On at least four instances in 2020, investigators determined that the devices associated with Morozewicz’s IP address downloaded and shared child pornographic files on the BitTorrent; including eight packages of child pornography.
As stated in his guilty plea, on March 4, 2021, Morozewicz received a tip that federal law enforcement wished to conduct an in-person interview with him. The next day, on March 5, 2021, law enforcement executed a series of search and seizure warrants on Morozewicz’s residence, vehicle, and his person. As a result of the search of Morozewicz’s person, law enforcement seized a smartphone which had been recently factory reset and erased in light of the impending visit from federal law enforcement. He also admitted that he discarded his computer in anticipation of a visit from law enforcement. Morozewicz’s actions were viewed as an attempt to impede the investigation and prosecution of his child pornography offenses.
Multiple electronic devices were seized in connection the warrants executed at Morozewicz’s residence and in his vehicle. A forensic examination of Morozewicz’s devices revealed that he possessed over 12,300 depictions of child pornography and erotica, including over 200 depicts involving the sexual abuse of infants and toddlers, and over 90 child pornographic images involving sado-masochistic conduct.
Morozewicz faces a maximum sentence of 20 years in prison followed by up to lifetime of supervised release for possession of child pornography. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for September 8, 2022, at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Frederick County State’s Attorney’s Office, and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley and Special Assistant U.S. Attorney Joyce King, Chief Counsel with the Frederick County State’s Attorney’s Office, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney’s Office and the FBI Raise Awareness of Elder AbuseRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr. are committed to protecting older adults by raising awareness of elder abuse, neglect, and exploitation in the Northern District of Alabama.
“Unfortunately, some of the most vulnerable among us, our senior citizens, are a prime target of elder abuse, in all its forms. It is important that we inform and educate our older population about the scams that target them,” U.S. Attorney Escalona said. “The U.S. Attorney’s Office will continue to work closely with our federal, state, and local law enforcement partners to prosecute those who prey on senior citizens in the Northern District of Alabama.”
“Seniors are often targeted because they tend to be trusting and polite,” SAC Sharp said. “They also usually have financial savings, own a home, and have good credit—all of which make them attractive to scammers. I want to encourage all seniors and their caregivers to remain vigilant and educate yourself on the most prolific scams. Finally, if any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should immediately report it to the FBI.”
Each year, June 15th is recognized as World Elder Abuse Awareness Day. This day provides an opportunity to raise awareness of the abuse, neglect, and fraud schemes committed against older Americans.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. The effects of financial crimes can be physically and emotionally devastating. Just in Alabama, in 2021, over 1100 Alabama seniors reported being victims of elder fraud with losses of over $17 million.
Some of the most common scams targeting older Americans include:
- Romance scam: Criminals pose as interested romantic partners on social media or dating websites in order to obtain money from the victim.
- Tech support scam: Criminals pose as technology support representatives and offer to fix non-existent computer issues, such as computer viruses or hacked accounts.
- Grandparent Scam: Criminals pose as a relative, usually a child or grandchild, claiming to be in immediate financial need.
- Governmental impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute victims unless they agree to pay.
These tips could help you or someone you know from becoming a victim:
- Resist the pressure to act quickly. Criminals create a sense of urgency to instill fear and the need for immediate action.
- Be cautious of unsolicited phone calls, mailings, and door-to-door service offers
- Never provide any personally identifiable information.
- Never wire money to persons or businesses you have only met online. Verify any email request for money
- Do not open emails or click on attachments or links you do not recognize or were not expecting.
- Research online and social media advertisements before purchase to determine if a product or company is legitimate.
- Stop communication with the perpetrator, but expect that the criminal will continue to attempt contact.
The U.S. Attorney’s Office has prosecuted and continues to prosecute elder abuse cases in the Northern District of Alabama. Assistant U.S. Attorney Catherine Crosby is the district’s Elder Justice Coordinator. She is responsible for prosecuting elder abuse cases, conducting public outreach and awareness activities related to elder abuse, serving as legal counsel for the district on matters relating to elder abuse, and ensuring collection of data required by the Elder Abuse Prevention and Prosecution Act.
For elder abuse resources in the State of Alabama visit – https://go.usa.gov/xJTQG. To learn more about the ways you can assist in our efforts to prevent fraud, neglect, and abuse of elders visit www.elderjustice.gov.
If you believe you or someone you know may have been a victim of elder fraud, contact the FBI Birmingham Field Office at 205.326.6166. You can also contact the National Elder Fraud Hotline at 1-833-372-8311 or file a complaint FBI’s Internet Crime Complaint Center – www.ic3.gov.
U.S. Attorney Dena J. King Appoints Environmental Justice Coordinator for the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has selected Assistant U.S. Attorney (AUSA) Caroline McLean of the U.S. Attorney’s Office in Asheville to serve as the Western District’s Environmental Justice Coordinator.
On May 5, 2022, the U.S. Department of Justice announced a series of actions aimed at enhancing the Department’s efforts to secure environmental justice for all Americans. In making the announcement, U.S. Attorney General Merrick B. Garland highlighted specific actions to strengthen the Department’s commitment to ensuring equal justice under the law by advancing the cause of environmental justice. Specifically, Attorney General Garland announced the creation of a new Office of Environmental Justice within the Department’s Environmental and Natural Resources Division (ENRD); the launching of a comprehensive environmental justice enforcement strategy to advance the cause of environmental justice through the enforcement of federal laws; and the issuance of an Interim Final Rule to restore the use of supplemental environmental projects when deemed appropriate.
“Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change,” said Attorney General Garland. “For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy. We will prioritize the cases that will have the greatest impact on the communities most overburdened by environmental harm.”
Attorney General Garland also directed U.S. Attorney’s Offices across the nation to designate an Environmental Justice Coordinator (EJC). As the Western District’s EJC, AUSA McLean will be responsible for developing and overseeing the Office’s environmental justice enforcement strategy; serve as legal counsel on matters related to environmental justice; prosecute criminal and civil environmental justice cases; and conduct public outreach and awareness activities related to environmental justice. AUSA McLean will also serve as the point of contact for environmental justice matters and will create and participate in environmental enforcement task forces. She will also be in charge of establishing a procedure for members of the public to report environmental justice concerns within the Western District of North Carolina.
AUSA McLean joined the U.S. Attorney’s Office in August 2018 and serves in the Office’s Civil Division in Asheville. AUSA McLean is responsible for handling civil defensive litigation in federal and state court, and affirmative civil enforcement cases on behalf of the United States. She is also a member of the Office’s recently-formed Civil Rights Team. In June 2020, AUSA McLean was selected as Buncombe County Bar Distinguished Young Lawyer for her contributions to the legal profession and the community as a member of the Bar.
In making today’s announcement, U.S. Attorney King said, “AUSA Caroline McLean is an experienced federal prosecutor dedicated to serving the people of the Western District of North Carolina. As my Office’s Environmental Justice Coordinator, AUSA McLean will work closely with Department of Justice components, local, state and federal agencies, and stakeholders within the community to address concerns related to environmental justice, using all available legal tools to promote justice for communities historically harmed by environmental violations.”
U.S. Attorney Charges Bronx Attorney with Attempted Sexual Exploitation of A Minor and Attempted Enticement of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the arrest of TONG HYON SUH, a/k/a “Jason Suh.” SUH is charged with communicating online with an individual he believed to be a 14-year-old girl and attempting to meet the girl to engage in sexual activities and record the activities. SUH was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court and detained.
U.S. Attorney Damian Williams said: “Suh’s behavior is the nightmare of every parent. He attempted to exploit the most vulnerable in our society. This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them.”
According to the allegations in the Complaint[1] filed yesterday in White Plains federal court:
Beginning on April 24, 2022, a detective with the Greenwich Police Department (“Detective-1”), who was posing as a 14-year-old girl named “Megan,” communicated via the social platform, Kik, with TONG HYON SUH, a/k/a “Jason Suh.” During the communications, SUH, who was using the Kik user name “suhjason,” identified himself as a 45-year-old Korean male living in New York City and indicated that he wanted to meet with “Megan” for the purpose of having sex. Detective-1 told SUH that she was a 14-year-old female from Connecticut. During the communications, SUH sent various photos of himself showing his face.
During their communications, which occurred from April 24, 2022 to May 27, 2022, among other things, SUH told Detective-1 that he “find[s] the age gap hot tbh” and “tbh on the down low I want a young submissive sl*t.” SUH requested pictures from “Megan.” For example, he told her, “So sneak in a bathroom break pic. I love a good sl*t.”
On April 26, 2022, SUH discussed meeting in person. He asked “Megan” for some “sl*tty pics” that she could “delete after taking.” During the communications, SUH referenced other teenage girls with whom he had engaged in sexual activity. On or about May 2, 2022, SUH told “Megan” that he wanted to film them engaging in sexual acts and he continued to request pictures.
On or about May 20, 2022, an FBI Special Agent acting in an undercover capacity as “Megan,” spoke to SUH by phone. During the call, SUH identified himself as “Daddy” and “Jason.” SUH stated that he was born in 1977, is a New York attorney with an office in the Bronx, and has been a lawyer since he was 26 years old.
SUH and “Megan” spoke again on May 24, 2022. SUH and “Megan” discussed meeting and SUH said he would rent a residence and take the train to Greenwich, Connecticut. He said that he would use a ride service to pick “Megan” up at her house, and then they would travel together to the rented residence, where they would engage in sexual activity and smoke marijuana. During the conversation, “Megan” requested that SUH bring condoms, lollipops and marijuana, and wear a suit. “Megan” gave SUH an address in Greenwich, Connecticut and told him that she lived in an apartment located at that address.
After the May 24, 2022 phone call, SUH told “Megan” that they should meet on Friday, May 27, 2022. SUH said that he and “Megan” would use a ride service to go to the residence he rented in Stamford, Connecticut.
A public database for New York attorney registration information indicates that a “TONG-HYON SUH” is registered as an active attorney in New York with a business address in the Bronx. Additionally, the database indicates that “TONG-HYON SUH” was admitted to the New York bar on or about November 19, 2003.
On May 27, 2022, at approximately 3:31 p.m., TONG HYON SUH, a/k/a “Jason Suh,” arrived at the Metro North train station in Greenwich, Connecticut on a northbound Metro North train after passing through Westchester County. SUH was wearing a suit and carrying a black briefcase and a red and white shopping bag. Law enforcement observed SUH enter the rear passenger seat of a black Toyota Highlander and depart the train station.
At approximately 3:50 p.m., TONG HYON SUH, a/k/a “Jason Suh,” the defendant, arrived at the address provided by “Megan.” When SUH entered the building located at that address, detectives with the Greenwich Police Department arrested him. After SUH’s arrest, the detectives retrieved a black briefcase and a red and white shopping bag from the vehicle in which SUH was riding. An inventory search of the briefcase and bag revealed that they contained, among other things, a laptop computer, a thumb drive, sneakers, matches, marijuana, toiletries, clothing, an unopened package of lollipops, and six condoms.
Following his arrest, TONG HYON SUH, a/k/a “Jason Suh,” was charged in Stamford Superior Court.
There may be other victims of this alleged conduct. If you have information to report, contact the Federal Bureau of Investigation through its toll-free Tip Line at 1-800-CALL-FBI
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SUH, 45 of Bronx, New York, is charged with one count of attempted sexual exploitation of a minor, which carries a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, and one count of attempted enticement of a minor, which carries a minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Following today’s presentment, Judge Krause ordered that SUH be detained.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, Connecticut State’s Attorneys Office, Greenwich Police Department, and the 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 Department. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer N. Ong and Marcia S. Cohen are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two men indicted for international conspiracy to ship Fentanyl, other drugs into United States through Dark Web connectionsRead the Press Release
BRUNSWICK, GA: Two men from Canada and the United Kingdom have been indicted in the Southern District of Georgia on federal charges alleging an international operation used the Dark Web to distribute illegal drugs in the United States, with some of those drugs resulting in the deaths of two U.S. Navy petty officers.
Thomas Michael Federuik, aka “Canada1,” 59, of Vancouver, British Columbia, Canada, and Paul Anthony Nicholls, aka “Nico Laeser,” 44, of Surrey, England, are charged with drug and money laundering offences, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges subject Federuik and Nicholls to possible statutory penalties of a minimum of 10 years in prison, up to life, along with fines of up to $10 million and a minimum of five years of supervised release after completion of any prison term.
“The number of deaths from drug overdoses, particularly Fentanyl and its analogues, has reached a record high in the United States and every citizen of this country should be alarmed. The prevalence of this drug is, in large part, fueled by an illicit pipeline of illegally imported drugs,” said U.S. Attorney Estes. “This investigation sought to trace that pipeline to its source to cut off its flow to our country in an effort to protect our citizens from harm.”
The investigation, dubbed Operation Canada1, began in October 2017 with the separate deaths of two U.S. Navy petty officers in Kingsland, Ga., that were attributed to Fentanyl-related drug overdoses. The source of the drugs was traced to a Dark Web vendor using Canadian-postmarked packaging labeled “East Van Eco Tours,” leading investigators from the Royal Canadian Mounted Police (RCMP) and the Calgary Police Service to target the Dark Web vendor Canada1.
The indictment alleges that Federuik and Nicholls conspired to import drugs from places including China and Hungary. Then, using business names including “East Van Eco Tours” and “Bridge City Consulting LLP,” the alleged conspirators distributed those drugs through the Dark Web in the Southern District of Georgia and elsewhere in the United States. The indictment further alleges that a shipment of those drugs packaged by the conspirators traveled from Canada to Kingsland, resulting in the deaths of B.J.T. and T.L.B. in October 2017.
Federuik and Nicholls have been taken into custody and are awaiting extradition proceedings to bring them to the Southern District of Georgia.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“The metrics of the opioid crisis are staggering,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to take decisive action to curtail the illegal distribution of opioids and other addictive prescription drugs, bringing to justice criminals who endanger the public’s health.”
“The importation and distribution of illicit narcotics within the United States pose a significant threat not only to our local communities but also our nation’s service members and ultimately our national security,” said Special Agent in Charge Thomas Cannizzo of the Naval Criminal Investigative Service Southeast Field Office. “Upon initiating this investigation, NCIS quickly recognized the incredible benefit of our valued collaboration with U.S. and international law enforcement partners. We are grateful for their extraordinary efforts to bring to justice those responsible for importing and distributing the illicit narcotics that led to the tragic overdose deaths of two U.S. Sailors.”
“This poison ultimately led to the deaths of two servicemembers and destroyed the lives of countless others,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Stopping drug traffickers takes a team, and I’m proud of the work done by HSI and its law enforcement partners working together to stop this destructive epidemic.”
“The opioid crisis is affecting countless families in our communities, even those who would not otherwise be deemed at risk,” said Superintendent Richard Bergevin, Officer in Charge of the BC RCMP Federal Serious and Organized Crime Major Projects teams. “This investigation showcases the great work that is being done by our teams, using traditional as well as innovative investigative techniques, to combat the sale and distribution of these deadly drugs.”
“Pills in the underground drug market and on the Dark Web are often diluted with dangerous and deadly substances like fentanyl, as was the case in this investigation,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “There is no quality control in the process, so there’s a high chance that users will receive a deadly dose of fentanyl. The success of this investigation was made possible because of the collaborative efforts between all law enforcement agencies involved.”
“The U.S. Postal Inspection Service’s objectives are to preserve the integrity of the nation’s mail system from criminal misuse, rid the mail of illicit drugs, and to keep our communities safe,” said Juan A. Vargas, Acting Inspector in Charge of the U.S. Postal Inspection Service Miami Division. “Postal Inspectors will work with our law enforcement partners to combine resources and expertise to achieve a common goal, which is to combat the perils of illegal and dangerous drug distribution and ensure perpetrators of such attempts are brought to justice.”
The case is being investigated in Canada by U.S. Homeland Security Investigations, Vancouver; the Royal Canadian Mounted Police and its Online Undercover Operations Unit and Federal Serious and Organized Crime Unit, Cybercrime Operations Group; Calgary Police Service; and the Canada Border Service Agency; in the United Kingdom assistance was provided by the National Extradition Unit with the Metropolitan Police and the Staffordshire Police; and in the United States by the U.S. Food and Drug Administration Office of Criminal Investigations; the U.S. Naval Criminal Investigative Service; Homeland Security Investigations Savannah; the U.S. Drug Enforcement Administration; and the U.S. Postal Inspection Service, with assistance from the U.S. Marshals Service. The U.S. Department of Justice’s Office of International Affairs is providing significant assistance. The case is being prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and E. Gregory Gilluly Jr.
Two Convicted Felons Arrested for Firearms OffensesRead the Press Release
BOSTON – Two previously convicted felons have been arrested in connection with illegally selling firearms, including ghost guns, and illegally possessing ammunition. A ghost gun is a firearm that has been manufactured by an individual and not by a firearms manufacturing company.
Zachary Zella, 29, of Dudley, and Mickie Simmons, 31, of Brookfield, were arrested on May 25, 2022, on one count each of being a felon in possession of ammunition and dealing firearms without a license. The defendants were detained following initial appearances in federal court in Worcester on May 26, 2022. A detention hearing for Zella is scheduled for June 8, 2022, before U.S. District Court Magistrate Judge David H. Hennessey.
“In recent weeks, we have all seen the critical threat posed by gun violence in the United States and the devastating impact it has on our communities,” said United States Attorney Rachael S. Rollins. “Preventing the illegal trafficking of firearms, and specifically ghost guns, helps protect the safety of Massachusetts residents by addressing this real and present danger at its source. These defendants, each barred from possessing firearms due to their criminal histories, are alleged to have manufactured unmarked firearms for sale in their homes, including assault-styled rifles. My office and our law enforcement partners remain committed to addressing the proliferation of illegal firearms and the threat they pose to our communities. Individuals who are manufacturing and dealing firearms, specifically ghost guns, will be identified and prosecuted.”
“In our fight against violent crime, every illegal gun taken off the street is a small victory, and every gun trafficker locked up is a big one, especially when they are convicted felons who are selling untraceable firearms,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The disturbing level of gun violence in Massachusetts is undeniably exacerbated by the abundance of illegal firearms on the street. Our North Shore Gang Task Force is working to battle that tide, whether it’s through takedowns of violent gun-toting gangs, or one by one, arresting felons like Zachary Zella and Mickie Simmons whose alleged, unabashed criminal behavior, has put the safety of our communities in jeopardy.”
“The Massachusetts Department of Correction is extremely proud of its partnerships with public safety agencies,” said the Department of Correction’s Commissioner Carol Mici. “These relationships play an important part of the Department’s mission to public safety and are crucial in protecting our communities.”
According to the charging documents, on three separate occasions between March and May 2022, the defendants sold a confidential source four 9mm ghost gun pistols – one of which contained a Gamo laser sight – six magazines and 55 rounds of 9mm ammunition. During a later search of Simmons’ residence, authorities seized at least five ghost guns, including an AR-15 short-barrel rifle, and 15 ghost gun kits, numerous rounds of ammunition, components of assault-style rifles, several other firearms and more than $25,000 in cash. Additional ammunition was seized from Zella’s residence.
In 2016 and 2017, Zella was convicted in Dudley and Worcester District Courts on drug charges for which he was sentenced to two years in prison. In 2014, Simmons was convicted in Dudley District Court of breaking and entering, larceny and conspiracy for which he was sentenced to 18 months in prison.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $250,000. The charge of dealing firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to a $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, FBI Boston SAC Bonavolonta and Massachusetts DOC Commissioner Mici made the announcement today. Assistant U.S. Attorneys Danial Bennett and Brendan O’Shea of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Defrauding Investor and Banks of MillionsRead the Press Release
A man who defrauded an investor and two banks out of at least $8.4 million was sentenced Wednesday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced William Brian Mulder, 64, of Tulsa to 84 months in federal prison followed by 3 years of supervised release. He was further ordered to pay to pay $4.5 million in restitution to the investor and $3.9 million in restitution to Firstar Bank and BancFirst.
“William Mulder portrayed himself as a successful investor, trusted mentor and friend, but it was a façade. Instead, he was a con artist who defrauded his friends and banks for years in an effort to sustain a lifestyle beyond his means,” said U.S. Attorney Clint Johnson. “This 7-year sentence reflects the egregious nature of the defendant’s longstanding criminal deceit. Our federal law enforcement partners are to be commended for exposing Mulder’s elaborate web of lies and ensuring justice for the victims in this case.”
“To support his extravagant lifestyle, Mr. Mulder meticulously deceived victims based in our community for years,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Mulder’s sprawling web of lies and fraud was only untangled through the tenacious effort of FBI agents working in partnership with investigators from the IRS, Treasury Department, and FDIC. Mr. Mulder’s sentence should give pause to other con-men seeking to defraud Oklahoma citizens and businesses.”
“William Mulder used deceit and trickery to defraud trusting friends and investors of their hard-earned money,” said Christopher J. Altemus, Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “IRS-CI special agents are committed to using their forensic accounting skills to help unravel complex fraud and money laundering schemes. Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their own financial gain.”
On Oct. 19, 2021, Mulder pleaded guilty to causing the interstate transmission of moneys taken by fraud and money laundering. He was set to begin trial at the time but opted to plead guilty instead.
According to court documents, Mulder misrepresented himself as worth millions to friends. Mulder told several individuals that a wealthy Missouri widow had left him over $100 million in a blind trust in appreciation for his services as an insurance salesman for the widow. In another story, he said he was the beneficiary of a different blind trust worth hundreds of millions of dollars from his father. Mulder convinced his friends that if they pooled their investments with his fortune, they could grow their money faster. The government asserted there were no investments made by Mulder on their behalf but instead, Mulder deposited checks into his personal bank accounts and used the funds to pay off credit card debts and to run a coffee shop chain.
To cover his tracks, Mulder created a web of convoluted rules and restrictions to keep the victims from seeing the progress of their investments. He also moved money between more than 60 bank accounts to make it difficult for the investors and law enforcement to follow the trail of money.
In his plea agreement, Mulder specifically admitted that beginning in 2000 and continuing through 2017, he received numerous checks totaling approximately $4.5 million from the investor, who was a local businessman and friend to Mulder. Mulder advised the victim to create a trust for his special needs son for which Mulder would be the trustee and have complete discretion and control. Mulder told the victim that he would prudently invest the funds on the son’s behalf. Instead, Mulder used the funds for his own personal expenses and to enrich himself.
Mulder also admitted that in December 2015, he fraudulently received a check from the victim in the amount of $142,500 and deposited funds from the check in the amount of $83,378.54 into his personal account, which he later used on a personal investment in generators in Missouri.
Further, Mulder admitted that he lied about his assets and submitted fabricated documents to obtain loans from Oklahoma banks in order to support a lifestyle he couldn’t afford on his own.
Prosecutors contended that Mulder applied for and received loans worth millions of dollars from five banks. From 2004 to 2014, Mulder obtained the loans by pledging phony collateral that included fictitious life insurance policies supposedly issued by Merrill Lynch that appeared to insure Mulder and his family members. Mulder used the same phony policy numbers with every new bank he swindled, adding new phony policies as he went. To secure each loan, he provided the banks with the same types of fabricated records and documents. On some of the documents, Mulder forged the signature of a former Merrill Lynch colleague. Mulder was able to pay off three of the banks by obtaining new loans from other banks. Ultimately, two banks— Firstbank and BancFirst— suffered about $3.9 million in losses.
Prosecutors asserted that Mulder further tried to impede the federal investigation into his criminal conduct by fabricating a story blaming one of his bankers for creating the fictitious life insurance policies in Mulder’s and his family members’ names. Agents debunked the claim based on the evidence that Mulder began his scheme long before he ever met the accused banker.
Mulder was remanded into the custody of the U.S. Marshals Service and will be transferred to a Federal Bureau of Prisons facility.
The FBI, IRS-Criminal Investigation, U.S. Department of Treasury Office of Inspector General; and the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Thomas E. Duncombe, Vani Singhal, and Kevin C. Leitch prosecuted the case.
Tickfaw Tax Preparer Pleads Guilty to Filing False IRS ReturnsRead the Press Release
NEW ORLEANS – CHERYL L. KINCHEN, age 40, a resident of Tickfaw, Louisiana, pleaded guilty on May 31, 2022 to two counts of filing false tax returns, in her personal capacity, before U.S. District Court Judge Greg G. Guidry announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
According to court records, KINCHEN, the owner/operator of Beyond Blessed Tax Services, prepared false tax returns in 2015 and 2017 for her own personal taxes, by significantly underreporting the gross income she earned as a tax preparer for those time periods.
Sentencing is set for August 30, 2022. KINCHEN faces a maximum sentence of three years, up to one year of supervised release, up to a $100,000 fine and a $100 mandatory special assessment fee for the filing of false tax returns.
U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
Three Charged with Conspiracy to Defraud Five People of $3.25 Million in Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – Three men were charged by indictment with conspiring to defraud five victims out of approximately $3.25 million through an investment fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Malcolm Dean Hampton II, 62, formerly of California and now of Quinlan, Texas, William Joseph Kuzma 60, of Billings, Montana, and Michael Russell Davis 56, formerly of New York and now overseas, are each charged by indictment with one count of conspiracy to commit wire fraud. Hampton and Kuzma appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and were released on $150,000 bond each. Davis remains at large.
According to documents filed in this case and statements made in court:
During 2017, the conspirators advertised an investment opportunity in Standby Letters of Credit (SBLC), which are essentially a guaranty of payment by a bank or financial institution. The investments were offered through Hampton’s company, 5 Star Investments LLC. Kuzma handled inquiries from potential investors, and forwarded investment contracts via email to potential investors. The contracts were deliberately vague and confusing, and contained false and fraudulent statements, including promising “guaranteed” returns which were unrealistic and which no investor had achieved, and promising to return the investor’s monies if the SBLC’s were not created. Davis was identified as the “asset manager,” and investors were instructed to wire their investment monies to a bank account in the name of Davis’ company, Jet Exclusive Aviation LLC.
From from March through May 2017, five investors entered into contracts with Hampton, Kuzma and Davis, and wired approximately $3.25 million to Davis’ account. The defendants did not invest the monies as promised, but rather converted them for their own use. Within days of the first victim’s “investment” money going into Davis’ account, Davis began transferring money to his other bank accounts, and also to an account held in Hampton’s relative’s name. Hampton thereafter transferred some of the proceeds to Kuzma. In response to complaints by the victims, the defendants continued to falsely assure the victims that the investments were moving forward, and later that the victims would get their monies back. That did not happen. Instead, Hampton, Kuzma and Davis spent the victims’ money on personal expenses, cars, and travel, and also transferred money to other bank accounts controlled by themselves or their family members.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael J. Messenger in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Third Defendant Pleads Guilty in Manhattan Federal Court to Large-Scale Trafficking of Rhinoceros Horns and Elephant Ivory ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MANSUR MOHAMED SURUR, a/k/a “Mansour,” a Kenyan citizen, pled guilty to conspiring to traffic in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants. SURUR also pled guilty to conspiring to distribute heroin to a buyer located in the United States.
Two of SURUR’s co-defendants, MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, and AMARA CHERIF, a/k/a “Bamba Issiaka,” a citizen of Guinea, previously pled guilty on March 30, 2022, and April 27, 2022, respectively to conspiring to traffic in rhinoceros horns and elephant ivory, as well as substantive charges of trafficking in rhinoceros horns. The remaining defendants, BADRU ABDUL AZIZ SALEH, a/k/a “Badro,” and ABDI HUSSEIN AHMED, a/k/a “Abu Khadi,” are both citizens of Kenya. SALEH is in custody in Kenya based on a U.S. extradition request, and AHMED remains a fugitive. The U.S. Department of State has offered a reward of up to $1,000,000 for information leading to his arrest and/or conviction, and any information may be provided to FWS_TIPS@fws.gov or by calling 1-844-FWS-TIPS.
U.S. Attorney Damian Williams said: “The protection of endangered wildlife and natural resources is a crucial and important priority for my Office. These defendants were responsible for furthering an industry that illegally slaughters species protected by international agreements around the world. One of these defendants also engaged in a narcotics conspiracy involving a large quantity of heroin. Thanks to the tireless efforts of the U.S. Fish and Wildlife Service and the Drug Enforcement Administration, these defendants have now pled guilty to the serious and destructive crimes they committed.”
According to the charging and other documents filed in the case, as well as statements made during the plea and other proceedings:
KROMAH, CHERIF, and SURUR were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species. Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.
From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, SURUR, and others conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants. In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.
Typically, the defendants exported and agreed to export rhinoceros horns and elephant ivory for delivery to foreign buyers, including certain rhinoceros horns to a buyer represented to be in Manhattan, in packaging that concealed the horns in, among other things, pieces of art such as African masks and statues. The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some of which were sent through U.S. financial institutions, and paid in cash.
On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants that was intended for a buyer represented to be in Manhattan. From in or about March 2018 through in or about May 2018, the defendants offered to sell additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms. On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns sold by the defendants that were intended for a buyer represented to be in Manhattan.
Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR conspired with others to distribute and possess with intent to distribute a large quantity of heroin to a buyer represented to be located in New York.
KROMAH previously was expelled to the United States from Uganda, while CHERIF and SURUR were extradited from Senegal and Kenya, respectively. The defendants have been detained since their arrest and arrival in this country.
* * *
KROMAH, 52; CHERIF, 57; and SURUR, 62, each pled guilty to one count of conspiracy to commit wildlife trafficking, which carries a maximum sentence of five years in prison. In addition, KROMAH and CHERIF both pled to two counts of wildlife trafficking, each of which carries a maximum sentence of five years in prison, and SURUR also pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, which carries a maximum sentence of life in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, and he thanked law enforcement authorities and conservation partners in Uganda and Kenya, including the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions, for their assistance in this investigation. Mr. Williams also thanked the U.S. Department of State and the U.S. Department of Justice’s Office of International Affairs for their assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Jarrod L. Schaeffer are in charge of the prosecution.
Texan who groped minor teenage girl on airplane into Bozeman sentenced to 20 months in prisonRead the Press Release
MISSOULA — A Texas man who admitted to repeatedly groping a minor teenage girl who was sitting in the seat in front of him on a flight into Bozeman was sentenced today to 20 months in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Vincent Harry Kopacek, 76, of Fredericksburg, Texas, pleaded guilty in February to an information charging him with abusive sexual contact.
U.S. District Judge Dana L. Christensen presided. Judge Christensen further ordered $363 restitution and a $5,000 special assessment under the Justice for Victims of Trafficking Act of 2015. Judge Christensen remanded Kopacek into custody.
In court documents, the government alleged that on July 8, 2021, Kopacek was on an evening flight from Austin, Texas, to Bozeman and had a window seat. The victim, identified as Jane Doe, who was 15, was seated in the row in front of Kopacek, and her seat was fully upright during the flight. While in flight, Kopacek reached his hand along the interior wall of the aircraft and around to the seat in front of him. The government further alleged that Kopacek started by touching Doe’s arm, them moved to her breasts, and even tried to touch her groin area. When the victim went to the airplane’s bathroom to try to stop the abusive sexual contact, Kopacek pretended to be sleeping. When Doe returned to her seat, Kopacek would start the harassment all over again.
Doe recorded the touching with her cellular phone, and, while on the aircraft, looked at Kopacek and took photos of him. Doe later described being scared and that the unwanted touching made her feel dirty, ashamed and disgusting. Investigators downloaded the images from Doe’s phone and confirmed Kopacek’s identity.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the FBI, Gallatin County Sheriff’s Office and the Bozeman Yellowstone International Airport Public Safety Office.
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Tazewell County Woman Pleads Guilty to Stealing More Than $255,000 in Black Lung and Social Security BenefitsRead the Press Release
ABINGDON, Va. – A North Tazewell, Virginia woman who stole more than $255,000 in Black Lung and Social Security benefits pled guilty last week in U.S. District Court.
Martha Patrick Williams, 79, waived her right to be indicted and pled guilty last week to one count of receipt and conversion of public monies and one count of fraud in connection with Black Lung benefits and the receipt of Social Security benefits in the name of her long-deceased mother. The charges to which she pled guilty have a maximum statutory sentence of 10 years.
According to court documents, Williams is the daughter of Gracie Neel Winningham, who died in 2003. Winningham had been a lawful recipient of Federal Black Lung benefits which were designed to provide financial compensation to qualified disabled coal miners and managed by the Department of Labor’s Office of Workers Compensation Program - Division of Coal Mine Workers Compensation.
Following Winningham’s death in 2003 and continuing until 2021, Williams received, endorsed, and deposited monthly Black Lung benefit checks made payable to her mother. In order to continue to receive these checks, Williams forged her mother’s signature on DOL Form CM-929, the annual certification of personal information required by the DOL. On several occasions, Williams communicated with others posing as Winningham. Williams also received, endorsed, and deposited monthly Social Security payments made payable to her deceased mother.
In all, Williams received $255,823 in both Black Lung and Social Security benefits to which she was not entitled.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Department of Labor, the Social Security Administration, and the Russell County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
T&A Crips defendant sentenced to 40 years in prisonRead the Press Release
COLUMBUS, Ohio – The last of 19 defendants to be convicted in a Columbus gang-related racketeering conspiracy was sentenced in U.S. District Court today to 40 years in prison.
Shawn Nelms, 29, pleaded guilty in September 2021 to his part in furthering the violence of the local Crips gang known as T&A. The racketeering conspiracy first charged in 2018 includes five murders, at least 26 attempted murders, and other violent and drug-trafficking crimes.
Nelms participated in the 2013 murder of William Moore. Nelms and others spotted Moore, a rival Poindexter Thug Life Bloods gang member, walking on Mount Vernon Ave. and agreed to kill the man for the purpose of maintaining and increasing their positions within T&A.
Nelms also participated in the 2012 gang-related murder of Franky Tention on Ellison Street in Columbus.
According to his plea, in 2011, Nelms shot a separate victim in the chest, and the man survived. During a robbery in 2011, one of several rounds shot by Nelms went into a nearby house and struck a young girl, who also survived.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Travis S. Riddle, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; and United States Marshal Pete Tobin announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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St. Simons man admits bomb threat to IRS office in New YorkRead the Press Release
BRUNSWICK, GA: A Glynn County man awaits sentencing after admitting in U.S. District Court that he threatened to blow up an Internal Revenue Service office in New York.
Benjamin Stasko, 34, of St. Simons Island, pled guilty to Interstate Transmission of a Threat to Injure, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charge carries a possible sentence of up to five years in federal prison, along with substantial financial penalties and up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“We will not tolerate threats of violence against public institutions, and will vigorously pursue anyone who would perpetrate such crimes,” said U.S. Attorney Estes. “Benjamin Stasko’s admission of guilt will deliver justice for his dangerous and ill-advised threat.”
Stasko admitted that on July 6, 2020, he posted a comment on a federal agency’s website, alleging that a pipe bomb had been planted in the Ted Weiss Federal Building in New York, New York, as a threat directed toward the Internal Revenue Service. Federal Protective Service officers with bomb sniffing dogs and officers from the New York Police Department searched the facility and found no explosives. Investigators later located and arrested Stasko in St. Simons.
“One of the core tenets of the mission of the Treasury Inspector General for Tax Administration (TIGTA) is to protect IRS personnel and property,” said J. Russell George, the Treasury Inspector for Tax Administration. “We are grateful for the assistance of our law enforcement partners and the U.S. Attorney’s Office ensuring this individual is held to account.”
The case was investigated by the U.S. Department of Treasury, Treasury Inspector General for Tax Administration; the New York Police Department and the Brunswick Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Gregory Gilluly Jr. and Joshua S. Bearden.
Sex Offender Sentenced in South Florida to Five Years for Failure to RegisterRead the Press Release
Miami, Florida – Today, a federal district judge sitting in Fort Pierce sentenced John Francis Bolieau, 44, of Massachusetts, to 60 months in federal prison, followed by five years of supervised release, for failing to register as a sex offender.
Bolieau was convicted of aggravated rape and abuse of a child, indecent assault and battery of a child under 14, and indecent assault and battery on a person over 14 in Hampshire County, Massachusetts in 2013. For these offenses, Bolieau was sentenced to 10 to 12 years in prison and 10 years of probation to follow. In addition, he was required to register as a sex offender under the federal Sex Offender Registration and Notification Act. In July 2021, Bolieau was released from prison and placed on probation, with a requirement that he wear a GPS ankle monitor. After being on probation for only three months, Bolieau cut off his ankle monitor, left Massachusetts and came to the Miami-area, without notifying his probation officer or updating his sex offender registration. On December 15, 2021, law enforcement located and arrested Bolieau in a recreational vehicle park in Highlands County, Florida. On arrest, Bolieau admitted that he had not reported to any law enforcement officer that he was in Florida, nor did he register as a sex offender in the State of Florida, as required by law.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida announced the sentence imposed by U.S. District Aileen M. Cannon.
The United States Marshals Service investigated this case, with the assistance of the Highlands County Sheriff’s Office. Assistant United States Attorneys Luisa Berti and Stacey Bergstrom prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14002.
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Second "Boogaloo Bois" Member Sentenced to Prison for Conspiring to Provide Material Support to HamasRead the Press Release
MINNEAPOLIS – Benjamin Ryan Teeter, 24, of Hampstead, North Carolina, was sentenced today to 48 months in prison followed by five years of supervised release for conspiring to provide material support and resources to Hamas, a designated foreign terrorist organization, for use against Israeli and U.S. military personnel overseas, announced U.S. Attorney Andrew M. Luger.
According to court documents, in late May of 2020, the FBI initiated an investigation into Teeter and co-defendant Michael Robert Solomon, 32, two members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.” The Boogaloo Bois are a group of individuals who espouse violent anti-government sentiments.
According to court documents, on June 10, 2020, Teeter and Solomon met with a confidential human source (“CHS”), whom the defendants believed to be a member of Hamas. During this meeting, Teeter and Solomon proposed assisting Hamas as a means of furthering the goals of the Boogaloo Bois. Throughout the course of the conspiracy, Teeter used encrypted messaging applications to communicate with Solomon and the CHS about various aspects of the conspiracy.
On June 18, 2020, the defendant met with the CHS to discuss the goals of the Boogaloo Bois and identified a courthouse in northern Minnesota that he and Solomon believed was a suitable target for destruction.
On June 28, 2020, Teeter, Solomon, and the CHS, met an undercover employee of the FBI (“UCE”) that Teeter believed was a member of Hamas. During this meeting, Teeter and Solomon proposed manufacturing suppressors, untraceable firearms, and fully automatic firearms for Hamas.
On July 6, 2020, Teeter and Solomon purchased a drill press for the purpose of manufacturing suppressors for Hamas. Teeter admits that he and Solomon had planned to use the drill press to also manufacture suppressors for members of the Boogaloo Bois. Solomon and Teeter brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors.
On July 30, 2020, Teeter and Solomon delivered the five suppressors to the CHS and UCE believing those devices would be used by the militant wing of Hamas. During that meeting, Teeter and Solomon agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and U.S. military personnel overseas.
Teeter admitted that he and Solomon again met the UCE on August 29, 2020. During this meeting, the defendants gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time, Teeter and Solomon agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
Teeter was sentenced earlier today before Senior U.S. District Judge Michael J. Davis. In sentencing the defendant, the Court recognized the extensive assistance to multiple investigations that Teeter provided to the FBI following his arrest. On December 16, 2020, Teeter pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.
This case was the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Andrew R. Winter and Trial Attorney Jessica Fender of the National Security Division's Counterterrorism Section prosecuted the case.
Schuylkill County Man Charged with Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Guzman, age 50, of Pottsville, Pennsylvania, was indicted on May 17, 2022, by a federal grand jury for methamphetamine trafficking. The indictment was unsealed following Guzman’s arrest.
According to United States Attorney John C. Gurganus, the indictment charges Guzman with one count of distribution of methamphetamine and one count of possession with intent to distribute high-quality crystal methamphetamine on March 2 and 10, 2022, in Schuylkill County.
The charges against the defendant resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The charges carry a mandatory minimum sentence of five years in prison. The maximum sentence under federal law is up to forty years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Salem Man Found Guilty on All Counts in Decade-Long Mortgage Fraud SchemeRead the Press Release
BOSTON – A former self-proclaimed Salem real estate developer has been convicted by a federal jury in Boston in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions totaling $6.5 million and resulting in more than $3.8 million in losses to lenders.
George Kritopoulos, 50, of Salem, was convicted on May 27, 2022, of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 29, 2022. Kritopoulos was charged in September 2018 along with co-defendants Joseph Bates III and David Plunkett.
“Mr. Kritopoulos held himself out to be a prominent real estate developer and believed he was above the law. This guilty verdict makes it clear that he is not,” said United States Attorney Rachael S. Rollins. “Mr. Kritopoulos and his co-conspirators thought they could line their pockets by victimizing innocent lenders and borrowers. When the scheme began unraveling, Mr. Kritopoulos attempted to have his co-conspirators create phony documents, but they refused. In an interview, Mr. Kritopoulos lied to investigators. We are committed to holding those who engage in this type of behavior accountable.”
“This verdict proves that George Kritopoulos is a predator who repeatedly targeted young, financially vulnerable victims and exploited them to pad his own pockets while driving them deeper into debt. He lied to the banks on behalf of those victims and tried to obstruct our investigation,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mortgage fraud cases like this one are important to deter would-be fraudsters from acting, and to ensure those who commit fraud, like Kritopoulos, face justice. After all, this type of crime artificially influences home values and threatens the investments of lawful buyers.”
“Mortgage fraud, like many financial crimes, creates untold harm to individuals, communities, businesses and the integrity of the financial system,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office. “This guilty verdict is proof of IRS Criminal Investigation’s dedication to protecting the financial health of our communities when they are threatened.”
From 2006 through 2015, Kritopoulos, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units, which were also financed by mortgage loans obtained by fraud.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. As a result, the income asserted on the borrowers’ loan applications that Kritopoulos submitted to lenders grossly inflated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Kritopoulos brought newly recruited borrowers to Plunkett, who then prepared tax returns that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders of more than $3.8 million.
In addition, Kritopoulos sought to obstruct the federal criminal investigation into the mortgage fraud scheme by encouraging Bates and Plunkett to make false statements and create false documents he hoped would make the companies appear to have been legitimate.
In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. A sentencing hearing for Bates has not yet been scheduled by the Court. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns and is scheduled to be sentenced on Sept. 15, 2022.
The charges of bank fraud and wire fraud each provide for sentences of up to 30 years in prison and five years of supervised release. The charge of obstruction of justice provides for a sentence of up to 20 years in prison and five years of supervised release. The charge of conspiracy provides for a sentence of up to five years in prison and three years of supervised release. The charge of aiding the preparation of false tax returns provides for a sentence of up to three years in prison and one year of supervised release. Each charge also carries a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS CI SAC Simpson and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office, made the announcement today. Valuable assistance was provided by the Salem Police Department. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit, are prosecuting the case.
Rochester Man Pleads Guilty to Gun Charge for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Deshan Scott, 22, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between September and October 26, 2021, Scott conspired with others to sell cocaine. In the early morning of October 26, 2021, investigators executed search warrants at numerous locations associated with the narcotics conspiracy, including a residence on Bernard Street. At that location, Scott worked as a lookout for the organization, watching for threats to their operation such as law enforcement or armed robbers, while other co-conspirators sold street-level quantities of cocaine to customers. When Scott saw law enforcement approaching, he threw a loaded 9mm handgun out of a window, which was found on a roof ledge outside a window. During the search of the residence, law enforcement also recovered 200 plastic vials of cocaine and $2,310 United States currency.
Scott was arrested and charged along with eight other defendants. He is the fifth defendant to be convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; Immigration and Customs Enforcement, under the direction of Acting Field Office Director Thomas Brophy; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, the New York State Police, under the direction of Major Barry Chase; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff Philip Povero; the Rochester Police Department, under the direction of Interim Police Chief David M. Smith; the Greece Police Department, under the direction of Chief Michael Wood; the Brighton Police Department, under the direction of Chief David Catholdi; and the Greater Rochester Area Narcotics Enforcement Team.
Sentencing is scheduled for September 1, 2022, before Judge Geraci.
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Rochester Man Arrested After Selling Drugs to Undercover OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Colon, 30, of Rochester, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute and distribution of cocaine and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between January 18 and March 9, 2022, Colon sold cocaine and fentanyl to an undercover officer on five separate occasions.
Colon made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and is being held without bail.
The criminal complaint is the result of an investigation by the Monroe County Sherriff’s Office, under the direction of Sheriff Todd Baxter, the Rochester Police Department, under the direction of Interim Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team (GRANET), and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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