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10 May 2022
Rochester Man Sentenced to 72 Months for Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD - Zachary Poisson, 27, of Rochester, was sentenced on Friday to 72 months in federal prison for drug and firearm charges, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on September 27, 2020, Somersworth police officers were dispatched to a local store for a report of an attempted theft. One of the suspects, Poisson, who was on probation at the time, was placed under arrest. A satchel strapped across his body was searched incident to arrest and revealed $4,304 and a bag containing over 67 grams of fentanyl.
Officers later searched Poisson’s vehicle, where they found a 9mm handgun and a quantity of crack cocaine. As a convicted felon, Poisson was prohibited from possessing a firearm.
“Armed drug traffickers present a significant threat to public safety in New Hampshire,” said U.S. Attorney Young. “By dealing fentanyl, this defendant was profiting from the sale of a deadly substance. This danger was further enhanced by his unlawful possession of a firearm. As this case demonstrates, we are working closely with our law enforcement partners to hold armed drug dealers accountable for their unlawful conduct.”
“Removing armed drug dealers from our streets has an immediate impact on the safety of our communities,” said Special Agent in Charge James M. Ferguson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF is absolutely committed to working with our law enforcement partners to ensure that those who bring dangerous drugs and firearms into our neighborhoods are held accountable for their actions.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Somersworth Police Department. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
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Repeat offender sentenced to six years in prison for dealing drugs, while armed with a pistol, in Seattle’s International DistrictRead the Press Release
Seattle – A 53-year-old Seattle man who has a history of drug dealing in Seattle’s Pioneer Square neighborhood, was sentenced today in U.S. District Court in Seattle to six years in prison, announced U.S. Attorney Nick Brown. Marvin Traylor was arrested in February 2021, for dealing drugs while armed with a gun. Traylor was on supervised release at the time for prior drug dealing convictions.
U.S. District Judge John C. Coughenour imposed a 5-year sentence for use of a firearm in connection with a drug trafficking crime, and an additional year in prison for violating the conditions of his supervised release.
According to records filed in the case, Traylor was released from prison and began his term of supervised release in February 2019. The U.S. Probation Office worked diligently to assist Traylor with reentry to the community. Despite that hard work, Traylor committed new offenses: domestic violence assault, and later was arrested for dealing drugs again in Pioneer Square. During the new term of supervised release, Traylor was assisted by the Veteran’s Administration and King County’s Law Enforcement Assisted Diversion (LEAD) program. However, his drug dealing continued.
In February 2021, undercover Seattle Police Officers observed Traylor making drug sales in the 12th and Jackson area of the International District. When an elderly Asian man came to the street corner to panhandle, Traylor punched the elderly man and held something in his pocket to the man’s head. He struck the man again with what was in his pocket and kicked the man. Bystanders separated the two. A short time later officers arrested Traylor and found a loaded handgun in the same pocket that Traylor had used to threaten and then strike the man. The gun had been reported stolen. Traylor had small bags of crack cocaine, heroin and methamphetamine on him at the time of the arrest.
In asking for the significant sentence, Assistant United States Attorney Vince Lombardi noted that Traylor’s lawbreaking had been “escalating” – not diminishing as it should with the involvement of Federal Probation.
The case was investigated by the Seattle Police Department, the Drug Enforcement Administration(DEA), and U.S. Probation.
The case was prosecuted by Assistant United States Attorney Vince Lombardi.
Registered Sex Offender Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JACOB WIEBELT (“WIEBELT”), age 39, of Ponchatoula, Louisiana, pled guilty today to a one-count bill of information for Possession of Materials Involving the Sexual Exploitation of Children, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (B)(2).
According to documents filed in federal court, the case against WIEBELT developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a user uploaded child sexual abuse material (“CSAM”) to the “Discord” messenger service. Specifically, the lead reflected that the user uploaded sexually explicit videos of prepubescent children . On November 1, 2021, Homeland Security Investigations (“HSI”) special agents along with the LBI executed a federal search warrant at WIEBELT’s home in Ponchatoula during which time WIEBELT confessed to possessing, sharing, and uploading CSAM. WIEBELT further admitted he created a Discord account and stated that other Discord users would share CSAM on the website and that he would save the CSAM to his cellular telephone. WIEBELT would then upload the saved CSAM from his phone to other Discord users.
WIEBELT faces a mandatory minimum sentence of ten (10) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, WIEBELT faces a term of supervised release of no less than five (5) years and up to life after his release from prison and a $100 mandatory special assessment fee. WIEBELT was previously convicted in 2011 for Receipt of Child Pornography and sentenced to five (5) years in federal prison. WIEBELT was on supervised release when he committed this new offense.
Sentencing in this matter is scheduled for August 9, 2022 before United States District Judge Jay C. Zainey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Chad Whitney, age 37, was indicted on April 21, 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on May 9, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Whitney, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a 30-30 Winchester single-shot break action rifle, a Smith & Wesson .22 long rifle caliber semi-automatic pistol, and a Sturm, Ruger & Company .22 long rifle caliber semi-automatic pistol in Rapid City in February 2022, which were found after Whitney came into contact with law enforcement.
The charge is merely an accusation and Whitney is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Whitney was detained pending trial. A trial date has not been set.
RV Salesman Sentenced to Prison for Tax EvasionRead the Press Release
A former Arkansas resident was sentenced today to 14 months in prison for evading his federal income taxes.
According to court documents and statements made in court, Joshua Wood, formerly of Alma, instructed his employer not to withhold income taxes from his paycheck and then did not file tax returns with the IRS from 2014 through 2016. During those years, Wood earned more than $378,000 selling recreational vehicles and automobiles. When questioned by IRS investigators, Wood falsely claimed to have been shot down and wounded on a Navy mission, causing him to suffer from post-traumatic stress disorder. He also falsely stated that a CPA had prepared tax returns on his behalf.
In addition to the term of imprisonment, U.S. District Judge P.K. Holmes III ordered Wood to serve three years of supervised release and to pay approximately $99,000 in restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Robert Kemins and Nicholas Schilling of the Justice Department’s Tax Division prosecuted the case.
Prolific turtle trapper sentenced to prisonRead the Press Release
ATLANTA - Nathan Horton has been sentenced for illegally trapping and exporting thousands of freshwater turtles in Georgia in violation of the Lacey Act.
“Horton robbed public lands by using illegal traps that can cause significant harm to aquatic animals and birds,” said U.S. Attorney Ryan K. Buchanan. “This tough but fair sentence should be a warning to anyone who would consider violating our nation’s wildlife protection statutes.”
“Wildlife trafficking negatively impacts our native natural resources and could possibly lead to a species’ extinction,” said the U.S. Fish and Wildlife’s Office of Law Enforcement Assistant Director Edward Grace. “Our agents worked closely with Georgia’s Department of Natural Resources and the U.S. Attorney’s Office to ensure this trafficker faced prosecution for his serious crime. This work is important so future generations of Americans may enjoy our nation’s wildlife treasures.”
“Our Law Enforcement Division is tasked with protecting Georgia’s wildlife population, and they certainly did that in this case. I am proud of the hard work and long hours our investigators, working alongside our partners at U.S. Fish and Wildlife Service, invested in bringing this criminal to justice.” Commissioner Mark Williams. Georgia Department of Natural Resources.
According to U.S. Attorney Buchanan, the charges and other information presented in court: The Lacey Act regulates the trafficking and labeling of wildlife, fish, and plants and makes it unlawful for individuals to, among other things, knowingly export and sell wildlife that has been illegally taken in violation of state law. In Georgia, the Department of Natural Resources (“GA-DNR”) regulates the collecting, trapping, exporting, trading, and selling of freshwater turtles from land belonging to the State of Georgia. Like it does with other wildlife, GA-DNR regulates both the number of freshwater turtles that may be collected and the manner in which they may be trapped.
From at least July 2015 and continuing until at least October 2017, Horton shipped thousands of freshwater turtles from Georgia to California that had been trapped using turtle nets that were illegal under Georgia law. The turtles trapped by Horton were ultimately destined for Asia, where they could be sold for substantial profits. Through his illegal trapping activities, Horton earned more than $150,000. Unlike other animals that are hunted or trapped, such as deer, rabbits, and squirrels, freshwater turtles tend to have longer life spans and produce few offspring that survive to adulthood. Due to these biological characteristics, overharvesting of turtles can cause substantial, lasting damage to overall turtle populations.
Nathan Horton, 37, of Orangeburg, S.C., has been sentenced to one year and a day in prison to be followed by three years of supervised release, and ordered to pay a fine in the amount of $10,000. Horton was also ordered to complete 200 hours of community service and he was banned from trapping turtles and other wildlife for the entirety of his term of supervised release. Horton was convicted on these charges on December 8, 2021, after he pleaded guilty.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Georgia Department of Natural Resources, South Carolina Department of Natural Resources, and California Department of Fish and Wildlife.
Assistant U.S. Attorneys Alex Sistla and Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Portland Man Sentenced to Federal Prison for Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for using a residential property he did not own as collateral for obtaining a bank loan worth more than $316,000.
Alireza Zamanizadeh, aka Ali Zamani, 63, was sentenced to 18 months in federal prison and five years’ supervised release. The court also ordered Zamanizadeh to pay $400,000 in restitution to the owner of the property.
According to court documents, on or about February 17, 2017, Zamanizadeh filed a quitclaim deed in Deschutes County, transferring a residential property in Bend, Oregon to his business for one dollar without the property owner’s consent. A quitclaim deed is a document used to quickly transfer the ownership of real property from one party to another.
Zamanizadeh then used the property as collateral for obtaining a loan worth $316,092 from a mortgage lender and forged the property owner’s signature on a statement verifying the property transfer. Based on his false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account. After Zamanizadeh defaulted on the loan, the true owner of the property purchased the property out of foreclosure for $400,000.
On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft. On September 14, 2021, he pleaded guilty to bank fraud.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation with assistance from the FBI. It was prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.
Phoenix Man Charged After Seizure of 178,000 Suspected Fentanyl Pills, Guns, and Other DrugsRead the Press Release
PHOENIX, Ariz. – Marco Antonio Medina, 29, of Phoenix, Arizona, was charged last week via criminal complaint with three counts of possession of controlled substances for distribution and one count of possession of a firearm by a felon. Medina was arrested on May 2, 2022 and had his initial appearance in federal court last Wednesday.
The complaint alleges three violations of United States law related to Medina’s intended distribution of fentanyl, methamphetamine, and heroin, and one violation of United States law related to Medina’s possession of a handgun. It further alleges that, on May 2, 2022, Medina was observed participating in a suspected drug transaction in Phoenix, Arizona. United States Drug Enforcement Administration (DEA) agents and Task Force Officers later determined that a car Medina had been driving contained 1.4 kilograms of methamphetamine and approximately 16,000 pills that are suspected to contain fentanyl. Medina was also in possession of a handgun on his person, and three other firearms were found in the vehicle. A subsequent search of Medina’s apartment led to the seizure of approximately 16.2 kilograms of pills suspected to contain fentanyl (approximately 162,000 pills), over 3.4 kilograms of methamphetamine, over one kilogram of powdered fentanyl, and nearly half a kilogram of heroin. Medina is a convicted felon and, at the time of his arrest, had three outstanding felony warrants for his arrest.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The DEA is conducting the investigation in this case, with assistance from the Goodyear Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives also assisted by investigating the seized firearms. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: 22-8138MJ
RELEASE NUMBER: 2022-065_Medina# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Omaha Man Sentenced to Federal Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, IA – Jeremy Joel Binns, age 44, of Omaha, was sentenced yesterday in federal court to 144 months in prison for Conspiracy to Distribute a Controlled Substance. His prison term will be followed by five years of supervised release. According to court documents, Binns pleaded guilty to the charge on November 18, 2021.
In March of 2021, Binns was arrested for selling methamphetamine at a gas station in Council Bluffs. The following month, Binns was again arrested with methamphetamine in Omaha following a high-speed chase. He was indicted by a federal grand jury in May 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Southwest Iowa Narcotics Enforcement Task Force, Iowa Division of Narcotics Enforcement, Nebraska State Patrol, and the Drug Enforcement Administration investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Oakland Resident Faces Fentanyl Distribution Charge Following Tenderloin ArrestRead the Press Release
SAN FRANCISCO – Mainor Escoto Escoto appeared in United States District Court today and was ordered detained in custody on a charge of possession with the intent to distribute fentanyl, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon.
The indictment against Escoto, 20, who is last known to reside in Oakland, arose following his arrest in San Francisco’s Tenderloin District on February 16, 2022. In a memo seeking his detention, the government described that Escoto was arrested based on a warrant when he was located on February 16 on the corner of Eddy and Larkin Streets. Police searched Escoto following his arrest and found numerous sandwich baggies of fentanyl in the pouch pocket of the sweatshirt he wore and in a backpack he had on. The fentanyl in both the sweatshirt’s pouch pocket and the backpack varied in color – including white, green, purple, and pink – and weighed 345 grams in total. According to the government’s memo, fentanyl sells on the street for approximately $30 per gram.
The indictment charges Escoto with one count of possession with the intent to distribute fentanyl in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C). The maximum statutory penalty for the charge is 20 years of imprisonment, with a minimum of three years of supervision following release from 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.
The charges contained in the indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Escoto made his federal court appearance today in United States District Court in San Francisco before United States Magistrate Judge Joseph C. Spero. His next court appearance is a status hearing scheduled for May 23, 2022, at 2 p.m. before United States District Judge Vince Chhabria.
Assistant U.S. Attorney Christa Hall is prosecuting the case, with the assistance of Veronica Hernandez. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
Norris Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Norris, South Dakota, man convicted of Abusive Sexual Contact was sentenced on May 9, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Harold White Hat, age 38, was sentenced to 30 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Hat was indicted by a federal grand jury on August 10, 2021. He pled guilty on January 31, 2022.
The conviction stemmed from an incident that occurred in the early morning hours of November 3, 2020, at a residence in Norris. The minor victim had gone to sleep in her bed the previous evening and subsequently awoke to find White Hat was groping her.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Hat was immediately turned over to the custody of the U.S. Marshals Service.
Native of Dominican Republic Convicted for Making Materially False Statements to Government Agents at the Cyril E. King AirportRead the Press Release
St. Thomas, USVI – United States Attorney Delia L. Smith announced today that after a two-day jury trial, Luis Miguel Lopez, a 28-year-old citizen of the Dominican Republic, was convicted of making a materially false, fictitious, or fraudulent statement in a matter within the jurisdiction of the executive branch of the Government of the United States. Following Lopez’s conviction, District Court Chief Judge Robert A. Molloy ordered that Lopez be taken into the custody of the U.S. Marshals Service.
According to the evidence presented at trial, on February 11, 2022, Lopez presented himself to Customs and Border Protection ("CBP") officers at the Cyril E. King Airport on St. Thomas. There, he handed the CBP officers what purported to be a Puerto Rico driver’s license bearing the name of another individual. Lopez told officers he was a United States citizen born in Puerto Rico. Lopez filled out a Customs form using the same false name seen on the Puerto Rico driver’s license. An inspection of Lopez’s baggage revealed that he also possessed a Social Security card and birth certificate bearing the false name. Record checks conducted by CBP Officers revealed that the driver’s license and Social Security numbers Lopez was using were issued to other individuals. Further, expert testimony presented at trial confirmed that all the documents Lopez used and possessed were counterfeit.
Making a materially false, fictitious, or fraudulent statement carries a maximum sentence of 5 years in prison. Chief Judge Molloy set Lopez’s sentencing hearing for September 2, 2022.
This case was investigated by Homeland Security Investigations and CBP. It is being prosecuted by Criminal Chief Jill Koster.
Montgomery County “Goody Bag” Pill Mill Doctor Sentenced to 20 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Andrew Berkowitz, 62, of Huntington Valley, PA was sentenced to 20 years in prison, five years supervised release, and was ordered to pay a $40,000 fine and almost $4 million in restitution by United States District Judge Paul Diamond for running a prescription “pill mill” from his medical practice which he operated in Philadelphia under the name ‘A+ Pain Management.’ Judge Diamond also ordered that the defendant shall forfeit fraud proceeds of approximately $3.4 million and four real properties.
In January 2020, Berkowitz pleaded guilty to 19 counts of health care fraud, and 23 counts of distributing oxycodone outside the course of professional practice and without a legitimate medical purpose, charges for which he was indicted in June 2019. The defendant fraudulently billed insurers for medically unnecessary physical therapy, acupuncture, chiropractic adjustments, and prescription drugs, and for treatments not provided at all. Regardless of their complaint, at every visit patients received a “goodie bag” which was a tote bag filled with prescription drugs for which Berkowitz submitted pharmacy claims through his company, Bucks Philadelphia Medical Care Group. The “goodie bags” typically included a combination of drugs including topical analgesics such as Relyyt and/or Lidocaine; muscle relaxers such as Chloroxazon and/or Cyclobenzaprine; anti-inflammatories such as Celecoxib and/or Nalfon; and Schedule IV controlled substances such as Tramadol for pain; and/or Eszopiclone and Quazepam for insomnia and anxiety. The defendant obtained payments from insurers of more than $4,000 for each bag by falsely asserting that the drugs were for the benefit of the patient when, in reality, Berkowitz was the real beneficiary.
As part of the fraud scheme, Berkowitz also prescribed oxycodone to “pill-seeking” patients in exchange for their tacit approval that he would submit excessive claims to the patient’s insurer for the “goodie bag” and other medically unnecessary services. From 2015 through 2018, Berkowitz obtained more than an estimated $4 million in fraudulent proceeds from his scheme.
The defendant is also subject to a civil judgement in which he is obligated to pay approximately $1.8 million as a result of civil False Claims Act liability for false claims submitted to Medicare, and subject to a permanent prohibition on Berkowitz ever prescribing, distributing or dispensing controlled substances ever again.
“Doctors who dare engage in healthcare fraud and drug diversion, two drivers of the opioid epidemic ravaging our communities, should heed this sentence as a warning that they will be held responsible, criminally and financially,” said U.S. Attorney Williams. “Our office will continue to root out healthcare fraud and drug diversion in the Eastern District of Pennsylvania in all its forms.”
“Doctors are supposed to treat illness, not feed it,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Andrew Berkowitz prescribed patients unnecessary pills and handed out opioids to addicts. He then made millions by billing Medicare and other insurance programs for these drugs and for treatments that never happened. Health care fraud is costly on many levels, whether it’s the unlawful diversion of Medicare funds, medication, or both. That’s why these cases are a priority for the FBI and our partners on the Health Care Fraud Task Force.”
The case was investigated by the Federal Bureau of Investigation; the Philadelphia Police Department; the U.S. Department of Health and Human Services – Office of Inspector General; the U.S. Office of Personnel Management – Office of Inspector General; and the U.S. Department of Labor – Office of Inspector General. The criminal charges are being prosecuted by Assistant United States Attorney M. Beth Leahy. The related civil investigation, litigation, and resolution are being handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah Grieb.
Missoula woman admits drug trafficking, firearms crimes after officers seize more than seven pounds of meth, fentanyl and gunsRead the Press Release
MISSOULA — A Missoula woman today admitted to trafficking methamphetamine and fentanyl after law enforcement seized more than seven pounds of meth, fentanyl and firearms during the investigation, U.S. Attorney Leif M. Johnson said.
Savannah Shoshana Smith, 37, pleaded guilty to possession with intent to distribute meth and fentanyl and to drug user and addict in possession of firearms and ammunition. Smith faces a mandatory minimum of five years to life in prison, a $5 million fine and at least four years of supervised release on the drug charge and a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on the firearms charge.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Aug. 24 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Smith was released pending further proceedings.
In court documents, the government alleged that law enforcement served a search warrant on the residence of Smith and co-defendant Carlos Aguirre on Oct. 6, 2021. Officers also conducted a traffic stop of Aguirre to execute a search warrant on the car and found a quarter pound of meth packaged for sale and a 9mm handgun that Aguirre had removed from his body when he was stopped. Inside the residence, officers found approximately 6.9 pounds of meth and fentanyl pills. Seven pounds of meth is the equivalent of about 25,368 doses. Law enforcement also found 20 firearms throughout the residence. Records showed that Smith purchased 22 firearms between February 2020 and August 2021. Smith told officers that Aguirre would give her meth and she would trade the meth for opiate pills. Smith admitted she was addicted to opioids. Aguirre previously pleaded guilty to possession with intent to distribute meth and fentanyl and to possession of a firearm in furtherance of a drug trafficking crime and is pending sentencing.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mission Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 9, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Sherman Peneaux, age 51, was sentenced to 12 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Peneaux was indicted by a federal grand jury on September 1, 2020. He pled guilty on January 31, 2022.
Peneaux was convicted of Aggravated Sexual Abuse of a Child in December 2004. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On June 5, 2019, Peneaux updated his registration to reflect he was residing in Pierre, South Dakota. On or about August 30, 2019, Peneaux moved out of his residence and moved to Mission, but he did not update his registration until September 13, 2019.
This case was investigated by the Pierre Police Department and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Peneaux was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Felon Charged with Illegal Possession of a Firearm and Ammunition, Possession with Intent to Distribute Fentanyl and MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been indicted for firearms violations and possession with intent to distribute fentanyl and methamphetamine, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 16, 2022, Jyron Mendale Young, 37, was in possession of a Taurus model PT738 .380 caliber semiautomatic pistol, as well as separate rounds of Blazer 9mm Luger ammunition, and Winchester .380 caliber ammunition. Young was also found in possession of controlled substances, namely fentanyl and methamphetamine. Because Young has multiple prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Young is charged with possession of a firearm as a felon, possession of ammunition as a felon, possession with intent to distribute controlled substances, and carrying a firearm during and in relation to a drug trafficking crime. Young was previously charged by complaint and remains in detention pending further court proceedings.
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.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bloomington Police Department, the Richfield Police Department, the Minneapolis Police Department, and the Bureau of Criminal Apprehension.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Michigan man admits to role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darius D. Robertson, of Warren, Michigan, has admitted to a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Robertson, 23, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Robertson admitted to working with another to distribute 50 grams or more of methamphetamine, also known as “crystal” and “ice.”
Robertson faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, ATF, and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Members of U.S. Attorney’s Office Recognized for ExcellenceRead the Press Release
Members of the U.S. Attorney’s Office were recently recognized by the Federal Executive Board with 2022 Excellence in Government Awards, announced U.S. Attorney Clint Johnson.
“The Federal Executive Board’s recognition of paralegal specialist Liz Dick and my administrative division led by Destiny Mozingo is well deserved and hard earned,” said U.S. Attorney Clint Johnson. “When the U.S. Attorney’s Office went through unprecedented growth following court decisions that increased our Indian Country responsibilities, my team faced the challenge head on. I witnessed their talent, innovation and tenacity as this office overcame numerous challenges in the last year. I am proud of their work and dedication to mission.”
During the Board’s 60th Anniversary awards ceremony, paralegal specialist Elizabeth Dick was recognized in the Government Innovation individual category, and the office’s administrative division was recognized in the Administrative/Clerical team category.
Dick was recognized for her exemplary work as a paralegal specialist but also for her insight and innovation that led to increased productivity within the U.S. Attorney’s Office. Dick specifically designed and programmed a document automation system that saves countless manhours when creating and editing legal documents. Combined duties that used to take three to four hours to complete have been reduced to a 30 to 45-minute exercise. Dick also created a new process for how the U.S. Attorney’s Office manages search warrants. Dick collected and classified warrants that were previously approved and created uniformed templates for each type. She currently manages the data, helps disseminate the documents, and updates the warrant templates to conform with changes in the law. By developing a document automation system for grand jury materials and plea agreements and creating templates for a variety of search warrants, she helped create much-needed consistency when office staffing nearly doubled in 2021, increased efficiency, and saved the government manpower hours.
The administrative division was recognized for their exemplary work in developing action plans and garnering resources in response to the office’s increased jurisdictional responsibilities following federal and state court decisions affirming the Muscogee, Cherokee and Quapaw Nations’ traditional reservations remained intact within the Northern District of Oklahoma. The team showed ingenuity in working with additional allocation of funds, expansion of space, addition of mission essential equipment, and the onboarding of new employees and contractors to help with the influx of Indian Country cases. The team further streamlined the grand jury and discovery processes to meet the increased workload and managed expert witness contracts needed for the prosecution of complex victim centered cases. The administrative division is led by Destiny Mozingo, and team members include Hank Hampton, Kristi Batterson, Aaron White, Emma Werlein, Mary Robinson Hall, Leopoldo Martinez, Angelia Asberry and Patience Shepley.
Martinsburg man sentenced to 15 years for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Shavar Payton of Martinsburg was sentenced today to 188 months in prison for cocaine trafficking, United States Attorney William Ihlenfeld announced.
Payton was the subject of an investigation by the Eastern Panhandle Drug & Violent Crimes Task Force that led to his Martinsburg home being searched by the West Virginia State Police Special Response Team. Officers discovered powder cocaine, crack cocaine, and other drug paraphernalia in his residence, along with 9mm ammunition.
Payton, age 37, had earlier pleaded guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base” because of the contraband found in his home.
“I applaud the collaboration of our law enforcement partners and their commitment to keeping our region safe,” said U.S. Attorney Ihlenfeld. “Their efforts to disrupt drug trafficking operations like the one Mr. Payton was involved with are to be commended.”
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also of the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case. The Federal Bureau of Investigation, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department aided the inquiry.
The case was funded in part by the Organized Crime Drug Enforcement Task Force Program (OCDETF), which provides federal funding and coordination for the investigation of interstate and international drug trafficking organizations.
U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for role in drug trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sanford Fayton Venable, of Martinsburg, West Virginia, was sentenced today to 60 months of incarceration for his involvement in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.
Venable, 51, pleaded guilty in July 2021 to one count of “Distribution of Forty Grams or More of a Heroin and Fentanyl Mixture.” Venable admitted to selling more than 40 grams of a heroin and fentanyl mixture in November 2019 in Berkeley County. In a separate case, Venable pleaded guilty to one count of “Distribution of 28 grams or More of Cocaine Base.” Venable admitted to selling more than 28 grams of cocaine base, also known as “crack,” in August 2019 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the cases on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Manchester Convenience Store Owner, Worker, Admit Defrauding Federal Food Stamp ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAVED SAEED, 52, and DASTGIR SAEED, 68, both of South Windsor, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to food stamp fraud offenses.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase made with SNAP benefits is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, Javed Saeed is the owner of Manchester Quick Mart, a convenience store and Mobil gas station located at 262 Oakland Street in Manchester. His father, Dastgir Saeed, and others, including Siddiq Chaudhary and Mohammed Khan, helped operate the store. Between January 2017 and January 2020, Javeed Saeed, Dastgir Saeed, Chaudhary, Khan and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including gasoline and male enhancement pills, and charged the customers’ food stamp cards a premium of nearly 50 percent for these transactions.
Javed and Dastgir Saeed have agreed to pay restitution in the total amount of $211,208.
Javed and Dastgir Saeed each pleaded guilty to one count of conspiracy to commit food stamp fraud, an offense that carries maximum term of imprisonment of five years. Judge Hall scheduled sentencing for August 2.
Chaudhary and Khan, both of South Windsor, previously pleaded guilty to one count of conspiracy to commit food stamp fraud and one count of engaging in food stamp fraud, and they are scheduled to be sentenced on September 8 and 9, respectively.
This investigation is being conducted by the U.S. Department of Agriculture, Office of Inspector General, with the assistance of Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Managers of Arizona Telemedicine Company Admit Roles in $64 Million Nationwide Kickback, Health Care Fraud SchemesRead the Press Release
NEWARK, N.J. – Two owners of a nationwide telemedicine company today admitted their roles in conspiracies to bribe doctors and to commit health care fraud, Attorney for the United States Vikas Khanna announced.
Stephen Luke, 54, of Phoenix, Arizona, and David Laughlin, 48, of Buckeye, Arizona, each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with one count of conspiracy to violate the federal Anti-Kickback statute and one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Medicare is a federal program that provides free or below-cost health care benefits to certain individuals, primarily the elderly, blind, and disabled. TRICARE is a federal health care benefit program for the U.S. Department of Defense (DoD) Military Health System that provided health insurance coverage for beneficiaries worldwide, including active-duty military service members, National Guard and Reserve members, retirees, their families, and survivors.
Luke and Laughlin owned and operated RediDoc LLC, a purported telemedicine company based in Phoenix. From September 2017 through December 2019, Luke and Laughlin conspired together and with others to unlawfully enrich themselves by submitting and causing to be submitted false and fraudulent claims to federal health care benefit programs. They did so through a circular scheme of kickbacks and bribes paid to doctors and solicited from marketing companies, pharmacies, and providers of durable medical equipment (DME).
Pharmacies and DME providers agreed to pay bribes and kickbacks to marketing companies in exchange for drug prescriptions and doctor’s orders for DME. The marketing companies obtained the personal information of Medicare and TRICARE beneficiaries, which they sent to RediDoc, along with pre-filled prescriptions and DME orders. RediDoc then gave the beneficiary information and pre-marked prescriptions and DME orders to doctors to whom it paid bribes and kickbacks. The doctors often approved the prescriptions and DME orders without having had any contact with the beneficiary and without making a bona fide assessment that the medications or DME were medically necessary. Participants in the scheme selected particular drugs largely based on the reimbursement amounts that Medicare and TRICARE would pay, and not the medical needs of the beneficiaries.
Once RediDoc’s doctors had signed the prescriptions and orders regardless of medical necessity, RediDoc then transmitted them to pharmacies and DME providers around the country for fulfillment and billing. When the pharmacies filled the prescriptions and orders and were reimbursed by health care benefit programs, they sent a portion of the reimbursement amount to the marketing companies, who further shared those funds with Luke, Laughlin, and RediDoc to purchase additional prescriptions and DME orders.
Through RediDoc, Luke and Laughlin received approximately $32 million from marketing companies. RediDoc paid several million dollars in kickbacks to doctors who were located in dozens of states around the country, including New Jersey. As part of their guilty pleas, Luke and Laughlin admitted that they and their conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $64 million. Those claims were ineligible for federal health care benefit program reimbursement, in part, because they were procured through the payment of kickbacks and bribes.
The charges of kickback conspiracy are punishable by a maximum of five years in prison; the health care fraud conspiracy counts are punishable by a maximum of 10 years in prison, along with fines, restitution, and forfeiture penalties as to both counts. Sentencing for both defendants is scheduled for Oct. 11, 2022.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Hayden M. Brockett of the Health Care Fraud Unit in Newark and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
Man Sentenced to More Than a Year in Federal Prison for Inciting Rioting in Downtown ChicagoRead the Press Release
CHICAGO — A man was sentenced today to more than a year in federal prison for inciting rioting involving multiple incidents of property damage and looting in Chicago in the summer of 2020.
JAMES MASSEY, 23, of Chicago, pleaded guilty earlier this year to a federal charge of inciting and participating in a riot. U.S. District Judge Matthew F. Kennelly imposed the 15-month prison sentence and ordered Massey to pay $185,148 in restitution.
The sentence was 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 David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Aaron R. Bond.
“Anyone involved in destructive behavior in Chicago – such as rioting – should expect to be held accountable,” said U.S. Attorney Lausch. “Our office will continue to work with the FBI, CPD, and our other law enforcement partners to prosecute rioters and others engaged in violent crime.”
“Inciting riots and other unlawful activity are both irresponsible and reckless, and the FBI will continue to work tirelessly with police and prosecutorial partners to ensure public safety is not compromised,” said FBI SAC Buie.
Massey admitted in a plea agreement that on Aug. 9, 2020, he posted multiple videos and messages on Facebook calling for people to travel to downtown Chicago to engage in property damage and looting. In one of the videos, Massey stated, “Y’all ready? I sent everybody the location to link up at bro. I trying to get something. I need to hit a couple stores.” In another video, Massey stated, “Fitting to go [expletive] them up. I ain’t missing out. I am ready to steal.”
Massey admitted in the plea agreement that he and at least three other individuals damaged four stores in the downtown and Near North Side areas of Chicago.
Live Oak Father and Son Arrested and Charged with Unlawful Possession and Transfer of Firearm SilencersRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest of Dustin Eward (44, Live Oak) and Greg Eward (24, Live Oak) on a criminal complaint charging them with the possession and transfer of firearm silencers that are not registered to them in the National Firearms Registration and Transfer Record. The complaint also charges Dustin Eward with threatening to assault and murder a federal law enforcement officer. If convicted on all counts, Dustin Eward faces a maximum penalty of 20 years in federal prison and Greg Eward faces a maximum penalty of 10 years in federal prison.
According to the criminal complaint, the Ewards are father and son who live together in Live Oak. In filings with the State of Florida, they are identified as the corporate officers of Eward Research, Inc. Via their company website, the Ewards nominally market “solvent traps,” which, in actuality, are firearm silencers or suppressors. Under federal law, it is illegal for any person to receive or possess firearm silencers that are not registered to that person in the National Firearms Registration and Transfer Record. It is also illegal to transfer firearm silencers in violation of the National Firearms Act.
The complaint alleges that during two separate transactions in 2022, an undercover federal agent purchased a total of three firearm silencers from the Ewards. The agent communicated with Dustin Eward via an email address listed on the Ewards’s company website. Surveillance video captured Greg Eward mailing one of two packages containing silencers to the undercover agent.
It is further alleged in the complaint that Dustin Eward has a history of threatening law enforcement officers and public officials with violence, including in posts on YouTube, a personal website that he hosts, by phone, and by email. For example, on April 15, 2022, he emailed a federal agent and stated, among other things, “Your actions are an act of war against all Americans, and I will respond accordingly.” He also stated, “I have nothing left to lose. Arrest me? Kill me? .... Death is an upgrade. The only dream I have left is to take you with me.” He further stated, “You will call off your attack, or I will defend myself the only way I have left; with maximum violence.” He concluded the email, “I’m willing to die in this fight. Are you? I will not submit to satanic traitors.”
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Naval Criminal Investigative Service, the U.S. Postal Inspection Service, the Live Oak Police Department, the Suwannee County Sheriff’s Office, and the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Kirwinn Mike and Michael Coolican.
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.
Download Criminal ComplaintLeupp Man Sentenced to 15 Years for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX, Ariz. – Brian James Tsinnijinnie, 26, of Leupp, Arizona, was sentenced yesterday by U.S. District Judge Steven P. Logan to 180 months in prison. Tsinnijinnie previously pleaded guilty to Abusive Sexual Contact of a Child.
In 2019, Tsinnijinnie sexually abused the minor victim while on the Navajo Nation. Tsinnijinnie is an enrolled member of the Navajo Nation. After he finishes serving his term in federal prison, he will be placed on supervised release for the rest of his life.
The FBI and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Jason Crowley, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08078-PCT-SPL
RELEASE NUMBER: 2022- 066_Tsinnijinnie# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Leader of Nevada City-Based Mortgage Fraud Scheme Sentenced to 15 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — James Christopher Castle, 57, formerly of Petaluma, was sentenced today to 15 years in prison for a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.
On Aug. 2, 2021, a jury found Castle guilty of 35 counts of bank fraud. According to evidence at trial, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.
Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.
Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, 65, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations and was sentenced to six years in prison. On May 26, 2017, Michael Romano, 75, of Benicia, pleaded guilty to conspiracy and was sentenced to three years in prison. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations and was sentenced to time served.
In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges. Trites is scheduled to be sentenced on June 14, 2022, and Smith was sentenced to two years in prison.
Two other co-defendants, George B. Larsen, 60, of San Rafael, and Larry Todt, 70, of Malibu, were convicted of conspiracy and bank fraud following a jury trial in December 2017. Larsen was sentenced to 10 years in prison, and Todt was sentenced to 7 years and three months in prison.
Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.
Las Vegas Woman Sentenced to Prison for Using Stolen Identities to Fraudulently Collect over $175,000 in Unemployment Insurance BenefitsRead the Press Release
LAS VEGAS – A Las Vegas woman was sentenced today to 45 months in prison for using at least 40 stolen identities to fraudulently collect approximately $175,622 in unemployment insurance benefits from the California Employment Development Department (EDD).
Danielle Lacharis Buck, aka Danielle Lacharis Lakey, pleaded guilty in October 2021 to one count of mail fraud and one count of aggravated identity theft. In addition to imprisonment, U.S. District Judge Kent J. Dawson sentenced Buck to three years of supervised release.
According to court documents, from September 2010 to April 2019, Buck devised and executed a scheme to defraud the California EDD — the administrator of the federally funded unemployment insurance benefit program for California residents — into paying her approximately $175,622 in unemployment insurance benefits.
Buck had been employed in medical billings and collections. As part of the fraud scheme, Buck used her position to wrongfully obtain hospital patients’ names, social security numbers, and employment information. She then used these victims’ stolen identities to apply for and receive unemployment insurance benefits. Buck withdrew cash using unemployment insurance benefits debit cards at ATMs in the Las Vegas and Los Angeles metropolitan areas. In total, Buck submitted more than 50 false unemployment insurance claims using at least 40 different stolen identities.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
The case was investigated by the DOL-OIG. Assistant U.S. Attorney Eric Schmale prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Kissimmee Man Pleads Guilty to Possessing Ricin in Plot to Kill Former PartnerRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg announces that Kevin Deane Jones (50, Kissimmee) today pleaded guilty to unlawful possession of ricin, a biological toxin, and possessing two firearms as a convicted felon. Jones faces a maximum penalty of 10 years in federal prison on each count.
According to the plea agreement, on December 6, 2021, the FBI received a complaint that Jones had manufactured ricin intending to use it to kill his former partner. Law enforcement officers then learned that Jones had ordered numerous items online to produce ricin, had reportedly tested water guns to see which ones leaked, and had said that he would go on vacation immediately after spraying his former partner in the face with the ricin, so that he would have an alibi when she died.
On December 17, 2021, law enforcement officers learned that Jones intended to travel to out of state to where his former partner lived. Officers stopped Jones, who admitted to manufacturing ricin. Officers located a plastic water gun in Jones’s truck, as well as five tubes filled with liquids that later tested positive for ricin. A search of Jones’s residence revealed additional tubes containing ricin, along with castor beans, documents pertaining to ricin, and approximately 200 rounds of various types of ammunition.
Additional investigation revealed that on December 6, 2021, Jones was questioned by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regarding his possession of weapons. Following the ATF visit, Jones removed multiple firearms and ammunition and took them to a storage unit rented in his name. Law enforcement officers later searched the storage unit and found a rifle, handgun, silencer, and approximately 3,000 rounds of various types of ammunition. Jones is a previously convicted felon and is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Osceola County Sheriff’s Office, the Orange County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer M. Harrington.
Jamaican National Extradited in Connection with Fraudulent Lottery Scheme that Targeted Elderly Victims in United StatesRead the Press Release
A resident of Montego Bay, Jamaica, was extradited to the United States and made his initial appearance in Miami federal court on charges relating to his participation in a bogus lottery scheme that targeted elderly victims in the United States.
Greg Warren Clarke, 29, of Montego Bay, was charged in a six-count indictment with conspiracy, mail fraud, wire fraud and international money laundering. The indictment was filed in the U.S. District Court for the Southern District of Florida in April 2019 and was unsealed upon the defendant’s extradition to the United States.
According to the indictment, Clarke and his co-conspirators sought to unlawfully enrich themselves through a fraudulent lottery scheme targeting the elderly. Victims throughout the United States received mailings or phone calls in which they were falsely informed that they had won over $1 million dollars in a lottery and needed to pay fees to claim their winnings. The indictment alleges the victims were instructed on how, and to whom, to send their money, and that they were told to send their money through wire transfers, the U.S. Postal Service, and private commercial mail carriers to certain individuals, including Clarke’s cousin, Claude Anthony Shaw. The indictment further alleges that Clarke and Shaw discussed plans to receive victims’ money over the phone and via text messages, and that at Clarke’s direction, Shaw received money from victims and sent the funds to Clarke in Jamaica. The victims never received any lottery winnings. Shaw pleaded guilty in U.S. District Court for the Southern District of Florida in February 2017 for his role in the scheme and was sentenced to 36 months in prison.
“The Department of Justice’s Consumer Protection Branch is committed to pursuing criminals who defraud U.S. consumers from abroad and to vigorously prosecuting them in federal court after they are apprehended,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “In this case, the defendant targeted and exploited elderly Americans, and I thank the government of Jamaica for extraditing him to the United States to face charges.”
“The U.S. Postal Inspection Service stands ready to stop overseas criminals from illegally enriching themselves by using the mail to defraud consumers in the United States,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service Miami Division. “We will continue to work with foreign governments to track down these criminals and bring them to justice.”
The case is being prosecuted by Senior Trial Attorney Arturo DeCastro of the Civil Division's Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, and the Jamaica Constabulary Force’s Jamaica Fugitive Apprehension Team provided critical assistance.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indiana Man Convicted of Murder for Hire Plot, Witness Tampering Sentenced to 222 Months in PrisonRead the Press Release
NEWARK, N.J. – An Indiana man was sentenced today to 222 months in prison for plotting to pay a purported hitman to kill his ex-wife and for attempting to tamper with witnesses, U.S. Attorney Philip R. Sellinger announced.
Narsan Lingala, 58, of Noblesville, Indiana, was previously convicted of one count of conspiring to commit murder for hire, one count of traveling interstate or using interstate facilities with intent that a murder for hire be committed, and two counts of attempting to tamper with a witness. Lingala was convicted following an eight-day jury trial before Chief U.S. District Judge Freda L. Wolfson. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Lingala conspired and attempted to hire a purported hitman to kill his ex-wife. He also attempted to tamper with the testimony of a co-conspirator and an undercover law enforcement officer. The conduct for which he was convicted occurred between approximately May 2018 and March 2019.
In addition to the prison term, Judge Wolfson sentenced Lingala to three years of supervised release.
Lingala’s conspirator, Sandya Reddy, pleaded guilty in April 2019 to her role in the scheme and was sentenced on Aug. 10, 2020, to 63 months in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Matthew Feldman Nikic of the Cybercrime Unit and Thomas S. Kearney of the Special Prosecutions Division in Newark.
Huntington Man Sentenced for Possessing Unregistered Incendiary DeviceRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to time served for possessing an unregistered incendiary device, and placed on three years of supervised release to begin once he finishes a term of supervised release imposed for a prior conviction.
According to court documents and statements made in court, deputies with the Cabell County Sheriff’s Office and firefighters encountered Daniel Justin Watts, 36, while responding to a structure fire at his residence on Green Valley Road in Huntington on September 28, 2020. Watts admitted to them that he had constructed an incendiary device commonly known as a “Molotov cocktail,” which he ignited and threw onto the back porch of his residence, setting it on fire. Watts admitted to possessing the incendiary device and not registering it in the National Firearms Registration and Transfer Record.
In 2017, Watts was convicted of possession with intent to distribute heroin and was sentenced to two years and one month in prison followed by three years of supervised release. After the September 2020 incident, Watts’ supervised release was revoked and he was sentenced to one year and six months in prison followed by one year and six months of supervised release.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Cabell County Sheriff’s Office, and the West Virginia State Fire Marshal’s Office.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-119.
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Horry County Man Receives Eleven-Year Sentence for Distributing Heroin and FentanylRead the Press Release
Florence, South Carolina --- Darryl Lamont McKenith, 33, of Aynor, was sentenced to eleven years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl.
Evidence presented to the Court showed that McKenith was involved in a multi-year conspiracy to distribute heroin and fentanyl in Horry County. McKenith served as a source of supply for co-conspirators, who would then distribute the drugs to users. Over the course of the conspiracy, McKenith was accountable for more than 34 kilograms of heroin and 25 grams of fentanyl. McKenith also reportedly pressured his grandmother into aiding in his drug distribution activities while he was detained on charges in his federal case.
Chief United States District Judge R. Bryan Harwell sentenced McKenith to 132 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. Judge Harwell previously sentenced two of Mr. McKenith’s co-conspirators, both of whom served as distributors for Mr. McKenith. Michael Keith McKenith, 32, of Aynor, received a sentence of 84 months in federal prison, and Scorpio Teriell Tisdale, 28, of Gallivants Ferry, received a sentence of 120 months in federal prison. Two additional co-conspirators will be sentenced at a later date.
The case was investigated by the Horry County Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Katherine Flynn prosecuted the case.
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High-ranking member of violent drug trafficking ring sentenced to nine years in prisonRead the Press Release
Seattle – A significant drug distributor for the Jalisco New Generation Cartel (CJNG) was sentenced today in U.S. District Court in Seattle to nine years in prison, announced U.S. Attorney Nick Brown. Adrian Izazaga-Martinez, 32, of Kent, Washington, was ordering 8-pound loads of methamphetamine. At the sentencing hearing U.S. District Judge John C. Cougheour said, “the size of the drug trafficking organization, the quantity of drugs, and the violence involved,” justify the long prison term.
“Mr. Izazaga-Martinez was a high-level drug redistributor for a trafficking organization that was bringing upwards of 20-pound shipments of meth and heroin into our area,” said U.S. Attorney Brown. “And along with the drugs they brought the violence – the violence we see from cartels in Mexico was brought to the drug trade in our district.”
According to records filed in the case, between September 2019 and December 2020, a multi-agency law enforcement team began investigating drug trafficking tied to the CJNG cartel. During the investigation, agents conducted thousands of hours of physical and electronic surveillance, secured tracking warrants for more than 100 telephones and/or vehicles, obtained authorization to intercept more than 25 target telephones and executed search warrants at DTO members’ residences. The investigation revealed the trafficking organization was bringing in large amounts of meth and heroin as well as fentanyl-laced pills and cocaine. The distribution ring operated in King, Snohomish, Lewis, and Pierce Counties. The investigation also revealed members of the ring were plotting assaults, kidnappings and intimidation using firearms – law enforcement had to intervene multiple times in an effort to prevent violence.
Izazaga-Martinez was heard on the telephone wiretaps discussing guns and threats. When he was arrested in Kent, Washington, on July 28, 2020, he had nearly $2,500 in cash. Investigators found ammunition in the car he had been riding in.
On February 8, 2022, Izazaga-Martinez pleaded guilty to conspiracy to distribute controlled substances.
In recommending an 11-year sentence, prosecutors noted that Izazaga-Martinez was repeatedly heard on the wiretap discussing guns and threats of violence. They also noted the huge amount of narcotics linked to the drug trafficking organization. “The risks of synthetic opioids, like methamphetamine, are well documented – according to the University of Washington Addictions, Drug & Alcohol Institute, state drug poisonings went up by approximately 30% in 2020, with methamphetamine and other synthetic opioids (mostly fentanyl) comprising ‘a growing share of drug-caused deaths,’” prosecutors wrote in their sentencing memo.
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations (HSI), SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Harrison County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mark Aaron Reed, Jr., of Bridgeport, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Reed, 35, pleaded guilty today to one count of “Unlawful Possession of Firearms.” Reed, a person prohibited from having a firearm, admitted to having a 9mm pistol, a .380 caliber pistol, and a .22 caliber pistol in September 2021 in Harrison County.
Reed faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The ATF investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County contractor admits to fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bradley Glaspell, of Salem, West Virginia, admitted to defrauding over 70 customers out of more than a half a million dollars through his contracting businesses, United States Attorney William Ihlenfeld announced.
Glaspell, the owner and operator of Over the Top Roofing, LLC, and Helping Hands Home Improvement, pled guilty today in federal court to “Wire Fraud.” Glaspell falsely advertised his businesses on social media, claiming to be a licensed contractor when in fact he was not. He required down payments for materials but then failed to complete the work as promised and used the money he collected for his own personal expenses.
The fraud committed by Glaspell totaled $542,000.
Glaspell’s victims were from Doddridge, Gilmer, Harrison, Lewis, Marion, Monongalia, Ohio, Preston, Randolph, Ritchie, Taylor, Tucker, Upshur, and Wetzel counties in West Virginia, and Washington and Fayette counties in Pennsylvania.
Glaspell faces up to 20 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The investigation was led by the West Virginia State Police and the Internal Revenue Service and supported by the West Virginia Attorney General’s Office. Numerous county prosecutor’s offices, sheriff’s departments, and police departments assisted with investigating the matter and the gathering of evidence.
U.S. Magistrate Judge Michael John Aloi presided.
Hardy County man sentenced for drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jesse Michael Ferrell, of Moorefield, West Virginia, was sentenced today to 51 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Ferrell, 43, pleaded guilty in January 2022 to one count of “Conspiracy to Distribute Methamphetamine.” Ferrell admitted to working with others to distribute methamphetamine, also known as “crystal meth” and “ice,” in October 2020 in Hardy County.
Ferrell was ordered to forfeit the following:
- a Sporter (AK), 7.62x39 caliber, semi-automatic rifle;
- a Kel-Tec CNC, Inc., model P-11, 9mm caliber, semi-automatic Luger pistol;
- a magazine containing ten (10) rounds of 9mm caliber ammunition;
- a box containing forty (40) rounds of 9mm Tulamo ammunition;
- a box containing fifty (50) rounds of 9mm PPM ammunition;
- a box containing forty (40) rounds of 9mm Blazer ammunition;
- three (3) rounds of 9mm caliber ammunition; and
- $1,169.00 cash.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; ATF; the West Virginia State Police; the Grant County Sheriff’s Office; and the Moorefield Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Ham Lake Felon Sentenced to Prison for Cocaine Distribution, Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Ham Lake man has been sentenced to 114 months in prison for illegally possessing multiple firearms and possessing cocaine with intent to distribute it, announced United States Attorney Andrew M. Luger.
According to court documents, on September 13, 2019, officers with the St. Paul Police Department executed a traffic stop on a vehicle driven by Steven Michael Lincoln, age 35. After observing a large bag of marijuana on the front passenger seat, officers asked Lincoln to exit the vehicle. Officers searched the vehicle and recovered a small baggie containing cocaine, a loaded Ruger .380-caliber pistol, a loaded Kimber .45-caliber pistol, multiple sandwich bags of prepackaged marijuana, a digital scale, $986 in cash, 10 vials containing varying amounts of cocaine, and two additional baggies of cocaine each containing about 3.5 grams.
According to court documents, on January 4, 2020, officers with the St. Paul Police Department observed Lincoln asleep in the driver’s seat of a pickup truck parked in an alleyway. After asking Lincoln to exit the vehicle, officers located under the driver’s seat a loaded Brugger and Thomet, TP9 9mm firearm, with a sling, an attached vertical foregrip, a red-dot attached laser sight, an inserted 30-round magazine, and one round in the chamber. A further search of the vehicle revealed a bulletproof vest, three Glock 9mm magazines, two loaded TP9 high-capacity magazines, 18 rounds of loose 9mm ammunition, and a .40-caliber barrel for a Glock 23.
Because he has prior felony convictions in Ramsey County, Lincoln is prohibited from possessing firearms or ammunition at any time.
On November 9, 2021, Lincoln pleaded guilty to possessing a firearm as a felon, possession with intent to distribute cocaine, and possession of an unregistered firearm. Lincoln was sentenced earlier today by U.S. District Judge Wilhelmina M. Wright.
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.
This case was the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorneys Benjamin Bejar and Chelsea A. Walcker prosecuted the case.
Haitian Police Officer Charged with International Narcotics Conspiracy, Narcotics Distribution, and Firearms OffenseRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, Special Agent in Charge Robert J. Bell of the U.S. Drug Enforcement Administration (DEA) Chicago Field Division, and Special Agent in Charge Renita D. Foster of the DEA Caribbean Field Division announced the transfer of Haitian police officer Alex Mompremier from Haiti based on an indictment returned in the Eastern District of Wisconsin. On May 10, 2022, Mompremier had his initial appearance and arraignment before U.S. Magistrate Judge Nancy Joseph in Milwaukee, Wisconsin. Mompremier was ordered temporarily detained. His detention hearing is scheduled for May 13, 2022.
On September 28, 2021, a grand jury in the Eastern District of Wisconsin returned an indictment against Mompremier alleging one count of international drug trafficking, one substantive count of international drug trafficking, and one count of carrying firearms during and in relation to drug trafficking. According to the indictment, from approximately February 2019 through September 28, 2021, Mompremier conspired with Jean Eliobert Jasme (a/k/a “ED1,” “Eddy One,” and “Tio Loco”) and others to distribute five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States; on or about October 28, 2020, Mompremier distributed five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States; and on or about October 28, 2020, Mompremier carried firearms during and in relation to the aforementioned drug-trafficking offenses.
An indictment is merely an allegation and a defendant is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
The DEA Port-au-Prince Country Office and the DEA Milwaukee Field Office investigated this case. Haitian National Government, including the Haitian Ministry of Justice, the Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided substantial assistance in this matter. Assistant U.S. Attorneys Robert J. Brady, Jr. and Gail J. Hoffman of the Eastern District of Wisconsin are prosecuting the case.
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For further information contact:
Public Information Officer Kenneth.Gales@usdoj.gov
(414) 297-1700
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Haitian Gang Leader Charged with Conspiracy to Commit Hostage Taking for Kidnapping of 16 U.S. Missionaries in Fall 2021Read the Press Release
A Haitian national was indicted today by a federal grand jury in the District of Columbia for conspiracy to commit hostage taking for his role in the armed kidnapping of 16 U.S. citizens in Haiti in the fall of 2021. The victims were Christian missionaries serving in Haiti and most of them were held captive for 61 days before escaping.
The indictment charges Joly Germine, 29, aka Yonyon, who is described as a leader of the 400 Mawozo gang. He is the first defendant to be charged in connection with the missionaries’ kidnapping. Germine was previously charged with firearms trafficking in a separate case in the U.S. District Court for the District of Columbia. The Haitian government transferred Germine from a Haitian jail into U.S. custody on May 3, 2022, on the basis of an arrest warrant in that matter, and Germine has since been detained in the District of Columbia.
“This case shows that the Justice Department will be relentless in our efforts to track down anyone who kidnaps a U.S. citizen abroad,” said U.S. Attorney General Merrick B. Garland. “We will utilize the full reach of our law enforcement authorities to hold accountable anyone responsible for undermining the safety of Americans anywhere in the world.”
“Today’s indictment demonstrates that the United States will not tolerate crime against our citizens, here or abroad,” said FBI Director Christopher Wray. “The FBI will continue to work aggressively with our international partners to keep our citizens safe and bring perpetrators to justice.”
“This indictment is a step towards achieving justice for the victims who were volunteering their services in Haiti when they were kidnapped and held for weeks on end,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Along with our law enforcement partners, we are committed to holding accountable those who carry out acts of violence against Americans abroad to further their own aims.”
The charges brought today are related to the Oct. 16, 2021, kidnapping of 17 Christian missionaries near Port-au-Prince, Haiti. Sixteen of the kidnapping victims were U.S. citizens, including five children, one as young as eight months old.
According to the indictment, Germine, who was in a Haitian prison at the time of the kidnapping, directed and asserted control of 400 Mawozo gang members’ kidnapping operations, including ransom negotiation for the hostages’ release. One of the gang’s stated goals in holding the hostages was to secure from the Haitian government Germine’s release from prison. Germine is alleged to have been in regular contact with other 400 Mawozo leaders about the hostages’ kidnapping, captivity, and ransom. Two of the hostages were released on or about Nov. 20, 2021, and three more were released on or about Dec. 5, 2021. The remaining hostages escaped captivity on or about Dec. 16, 2021.
Germine will have his initial appearance in the case tomorrow in the U.S. District Court for the District of Columbia.
The charges in the indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Miami Field Office. Valuable assistance was provided by the Haitian National Police. The case is being prosecuted by Assistant U.S. Attorney Karen P. Seifert, with assistance from Paralegal Specialist Jorge Casillas and Special Assistant U.S. Attorney Hunter Deeley of the U.S. Attorney’s Office for the District of Columbia.
Haitian Gang Leader Charged with Conspiracy to Commit Hostage Taking for Kidnapping of 16 U.S. Missionaries in Fall 2021Read the Press Release
WASHINGTON – A Haitian national was indicted today by a federal grand jury in the District of Columbia for conspiracy to commit hostage taking for his role in the armed kidnapping of 16 U.S. citizens in Haiti in the fall of 2021. The victims were Christian missionaries serving in Haiti and most of them were held captive for 61 days before escaping.
The indictment charges Joly Germine, 29, also known as “Yonyon,” who is described as a leader of the 400 Mawozo gang. He is the first defendant to be charged in connection with the missionaries’ kidnapping. Germine was previously charged with firearms trafficking in a separate case in the U.S. District Court for the District of Columbia. The Haitian government transferred Germine from a Haitian jail into U.S. custody on May 3, 2022, on the basis of an arrest warrant in that matter, and Germine has since been detained in the District of Columbia.
“This case shows that the Justice Department will be relentless in our efforts to track down anyone who kidnaps a U.S. citizen abroad,” said U.S. Attorney General Merrick B. Garland. “We will utilize the full reach of our law enforcement authorities to hold accountable anyone responsible for undermining the safety of Americans anywhere in the world.”
“Today’s indictment demonstrates that the United States will not tolerate crime against our citizens, here or abroad,” said FBI Director Christopher Wray. “The FBI will continue to work aggressively with our international partners to keep our citizens safe and bring perpetrators to justice.”
“This indictment is a step towards achieving justice for the victims who were volunteering their services in Haiti when they were kidnapped and held for weeks on end,” said Matthew M. Graves, U.S. Attorney for the District of Columbia. “Along with our law enforcement partners, we are committed to holding accountable those who carry out acts of violence against Americans abroad to further their own aims.”
The charges brought today are related to the Oct. 16, 2021, kidnapping of 17 Christian missionaries near Port-au-Prince, Haiti. Sixteen of the kidnapping victims were U.S. citizens, including five children, one as young as eight months old.
According to the indictment, Germine, who was in a Haitian prison at the time of the kidnapping, directed and asserted control of 400 Mawozo gang members’ kidnapping operations, including ransom negotiation for the hostages’ release. One of the gang’s stated goals in holding the hostages was to secure from the Haitian government Germine’s release from prison. Germine is alleged to have been in regular contact with other 400 Mawozo leaders about the hostages’ kidnapping, captivity, and ransom. Two of the hostages were released on or about Nov. 20, 2021, and three more were released on or about Dec. 5, 2021. The remaining hostages escaped captivity on or about Dec. 16, 2021.
Germine will have his initial appearance in the case tomorrow in the U.S. District Court for the District of Columbia.
The charges in the indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Miami Field Office. Valuable assistance was provided by the Haitian National Police. The case is being prosecuted by Assistant U.S. Attorney Karen P. Seifert, with assistance from Paralegal Specialist Jorge Casillas and Special Assistant U.S. Attorney Hunter Deeley, of the U.S. Attorney’s Office for the District of Columbia.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Darwin Geovani Herrera Orellana, 31, was sentenced by U.S. District Court Judge Douglas P. Woodlock to six months in prison and one year of supervised release. Herrera Orellana will be subject to deportation proceedings upon completion of his sentence. On Jan. 4, 2022, Herrera Orellana pleaded guilty to one count of unlawful reentry of a deported alien.
Herrera Orellana was initially encountered in Arizona in 2009, determined to be illegally present in the United States and subsequently deported. Sometime after his removal, Herrera Orellana illegally reentered the United States and was arrested in Texas in 2012. Herrera Orellana was again placed into removal proceedings and deported.
In December 2020, Herrera Orellana was arrested in Waltham and charged with, among other things, assault and battery with a dangerous weapon. In June 2021, he was convicted of assault and battery with a dangerous weapon and sentenced to 14 months in prison. In July 2021, while serving this sentence in the Middlesex County House of Correction, agents determined that Herrera Orellana was illegally present in the United States after the fingerprints from his Waltham arrest and noncitizen records were determined to be a positive match. Upon completion of his state prison sentence, Herrera Orellana was subsequently transferred into federal custody.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Four Men Charged with Murder for Hire in Fatal Shooting of Queens ManRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging Qing Ming Yu, also known as “Allen Yu,” Antony Abreu, also known as “Anthony,” You You, also known as “Eddie,” and Zhe Zhang, also known as “Zack,” with the February 12, 2019 murder of Xin Gu, a 31-year-old Queens resident.
Qing Ming Yu and You You were arrested today in New York and Zhe Zhang was arrested in California. Antony Abreu is already in federal custody serving a sentence in an unrelated matter and will be transferred to the Eastern District of New York at a later date. Qing Ming Yu and You You are scheduled to be arraigned this afternoon before United States Magistrate Judge Peggy Kuo. Zhe Zhang’s initial appearance will take place in the United States District Court in Los Angeles.
Breon Peace, the United States Attorney for the Eastern District of New York, Michael J. Driscoll Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the arrests and charges.
“As alleged, the defendants callously used gun violence to resolve a business dispute, reducing the value of a man’s life to a dollar figure, and bringing trauma and mourning to the community,” stated United States Attorney Peace. “Prosecuting killers will always be a top priority for this office—whether the defendant pulls the trigger, or pays someone else to do his dirty work for him.”
Mr. Peace expressed his appreciation to the Queens County District Attorney’s Office for its assistance in the investigation.
“As alleged, Qing Ming Yu hired his nephew to murder his perceived business rival. His conduct went well beyond poor business practice demonstrating a callous disregard for human life. As a direct result of the action we have taken with our partners today, Qing Ming Yu and everyone involved in the plot won't have to worry about business anymore - as they face justice for their alleged crimes and the possibility of life in prison,” stated FBI Assistant Director-in-Charge Driscoll.“We have said it before: If anyone is involved in a murder in New York City, we will find them and ensure that justice is served,” stated NYPD Commissioner Sewell. “The tireless work of the detectives, agents, and prosecutors in this case helped hold the men allegedly responsible for this murder accountable for their actions. It is another example of our agencies’ collaborative commitment to public safety, and further proof that no one is beyond the reach of the law.”
As detailed in court documents, between 2015 and 2018, Xin Gu worked for Qing Ming Yu’s property development company at its Manhattan office. After several years, Xin Gu became concerned about the company’s financial viability. Thereafter, Xin Gu resigned and formed his own property development company.
After Xin Gu’s departure, several clients and employees also cut ties with Qing Ming Yu’s company, which then closed at the end of 2018. Enraged at Xin Gu’s perceived disloyalty, Qing Ming Yu allegedly hired his nephew You You to kill Xin Gu in exchange for payment. You You in turn allegedly hired Zhang and Antony Abreu to assist in carrying out the murder.
On the evening of February 11, 2019, into the following morning, Xin Gu’s new company hosted a celebration of the Lunar New Year at a karaoke bar in Queens, New York. The defendants learned of Xin Gu’s party and decided to kill him that night, with You You acting as a lookout, Zhe Zhang serving as the getaway driver and Abreu shooting Xin Gu multiple times, killing him.
If convicted, each defendant faces a mandatory sentence of life in prison, or the death penalty.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Nadia E. Moore and Gabriel Park are in charge of the prosecution.
The Defendants: QING MING YU (also known as “Allen”)
Age: 54
Oyster Bay, New York
ANTONY ABREU (also known as “Anthony”)
Age: 34
Queens, New YorkYOU YOU (also known as “Eddie”)
Age: 34
Plainview, New YorkZHE ZHANG (also known as “Zack”)
Age: 34
Arcadia, CaliforniaE.D.N.Y. Docket No. 22-CR-208 (CBA)
Former Valdosta Police and School Resource Officer Indicted for Producing and Possessing Child Sexual Assault MaterialRead the Press Release
VALDOSTA, Ga. – A former police and school resource officer was criminally indicted by a federal grand jury last month for producing and possessing child sexual assault material.
Jonathan Eric Hancock, 31, of Hahira, Georgia, was indicted by a federal grand jury seated in Macon, Georgia, on April 12, with one count of production of child pornography and one count of possession of child pornography. An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
The indictment alleges that Hancock enticed a minor child to engage in sexually explicit acts which were filmed or photographed. In addition, Hancock allegedly possessed child sexual assault material of a prepubescent child under the age of 12-years-old.
Hancock worked as an officer for the Valdosta Police Department (VPD) from June 29, 2015 – August 2, 2019, and during this time served as a school resource officer at JL Lomax Elementary School in Valdosta. Hancock was also previously employed with the Homerville, Georgia, Police Department between Dec. 12, 2020 – March 19, 2021. Parents and guardians of children who might have come into contact with Hancock and have concerns related to this investigation can contact the Lowndes County Sheriff’s Office at (229) 671-2950.
The case is being investigated by the Lowndes County Sheriff’s Office.
Assistant U.S. Attorney Katelyn Semales is prosecuting the case for the Government.
Former San Bernardino County Sheriff’s Deputy Pleads Guilty to Fraud and Tax Charges in Multimillion-Dollar Investment SwindleRead the Press Release
LOS ANGELES – A former San Bernardino County sheriff’s deputy has pleaded guilty to multiple felonies for deceiving victims into investing at least $5.6 million with him, then using their money on extravagant gambling, taking private jet airplane rides and buying luxury items for his girlfriends, the Justice Department announced today.
Christopher Lloyd Burnell, 51, of Highland, pleaded guilty on Monday afternoon to 11 counts of wire fraud and two counts of filing a false tax return.
According to court documents, Burnell falsely claimed to have accumulated tens of millions of dollars from lawsuits he purportedly won against the San Bernardino County Sheriff’s Department and Kaiser Permanente; from selling a patent for an air-cooled, bullet-resistant vest to Oakley Inc.; and through investments in small businesses and money-lending opportunities. The scheme began no later than November 2010 and continued until September 2017.
After deceiving victims into believing he was a wealthy businessman, Burnell then induced victims to invest up to hundreds of thousands of dollars at a time with him by offering exclusive investment opportunities that promised rates of returns as high as 100% to be repaid in a few weeks, according to prosecutors’ trial memorandum. In some instances, Burnell asked the victim for an initial trial investment with him, during which he would fulfill his promised returns – and gain the victim’s trust – only to ask for a larger amount from them.
But these investment opportunities did not exist. Rather, Burnell spent the money on maintaining a life of luxury. Burnell spent victims’ money on, among other things, gambling and luxury items, including losing more than $2 million in gambling at the San Manuel Casino in Highland, $500,000 in private jet trips, $70,000 on Louis Vuitton merchandise, and $175,000 on luxury cars and an apartment lease for his then-girlfriends, the trial memorandum states. Burnell continued this investment fraud scheme for years until he could not identify new victims to defraud and the money from his victims ran out.
Burnell caused victim-investors to distribute at least $5,672,380 to him, according to court documents.
As victims began to raise concerns to him about a lack of repayment and defaults, Burnell claimed that his money had been tied up in a trust fund and his remaining assets had been seized by federal authorities. He then cheated some of the victims out of additional funds by falsely claiming he needed loans to pay for his then-wife’s cancer treatment, a child custody dispute with his father-in-law, and other personal expenses.
To alleviate victims’ concerns, Burnell showed many victims a fabricated Wells Fargo bank statement that said he had more than $150 million in his account that he would use to pay back victims once his funds were no longer tied up. In truth, Burnell had less than $6,500 in that account.
Burnell did not report any of the money he received from victims in 2011 or 2012 on his personal income tax returns that he filed jointly with his then-wife. Instead, Burnell only reported income from gambling winnings in 2011 and 2012 – estimated to be more than $1 million – all of which was purportedly offset by gambling losses.
United States District Judge Michael W. Fitzgerald has scheduled an August 15 sentencing hearing, at which time Burnell will face up to 20 years in federal prison for each wire fraud count and a statutory maximum sentence of three years in federal prison for each tax count.
IRS Criminal Investigation and the United States Secret Service investigated this matter.
Assistant United States Attorney Jerry C. Yang, Chief of the Riverside Branch Office, and Assistant United States Attorney Robert S. Trisotto, also of the Riverside Branch Office, are prosecuting this case.
Former Chief Financial Officer of $21 Billion Biopharmaceutical Company Indicted for Insider TradingRead the Press Release
NEWARK, N.J. – The former chief financial officer for a biopharmaceutical company was indicted today for his role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.
Usama Malik, 47, of Washington, D.C., is charged in a three-count indictment with insider trading, securities fraud, and securities fraud conspiracy.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion.
Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Lauren S. Wood, 33, also of Washington, D.C. Wood lived with Malik at the time and was formerly employed by the same company as him. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618.
Wood is charged by complaint with securities fraud. The charges and allegations against both Malik and Wood are merely accusations, and they are presumed innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021 based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Michael Messenger in Newark, with the investigation leading to the charges. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit, and Osmar J. Benvenuto, Deputy Chief of the Criminal Division.
Foreign National Who Fled and Was Later Extradited from the United Kingdom Pleads Guilty to Conspiracy to Commit Bank and Wire Fraud in Relation to Theft of over 2,600 Checks from Religious InstitutionsRead the Press Release
Greenbelt, Maryland – Florin Vaduva, age 31, of Dania Beach, Florida pleaded guilty yesterday to conspiracy to commit bank fraud and wire fraud. As part of his plea agreement, Vaduva will be ordered to pay at least $1,085,151.42 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Quenton Sallows, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to his guilty plea, from June 2018 to January 2021, Vaduva, Mateus Vaduva, Nicole Gindac, Daniel Velcu, Marian Unguru, Vali Unguru, and others conspired to steal checks from the U.S. mail intended for religious institutions and deposit the illegally obtained funds into multiple fraudulent bank accounts at various victim financial institutions. Conspirators, including Vaduva, conducted the thefts by driving to roadside mailboxes of churches and other religious institutions and removing the mail, specifically targeting donation checks.
As part of the scheme to defraud, Vaduva and other co-conspirators fraudulently opened bank accounts at victim financial institutions under false identities. Conspiracy members often opened fictitious bank accounts with the aid of a conspiracy member that was an employee at one of the victim financial institutions.
Vaduva and his co-conspirators fraudulently negotiated the stolen checks at the victim financial institutions by depositing the stolen checks into bank accounts by means of ATM transactions. Subsequently, Vanduva and his co-conspirators withdrew money from the fraudulently opened bank accounts and spent the proceeds using debit cards.
For example, from January 2020 to May 2020, Vaduva deposited or participated in the deposit of at least 49 stolen checks totaling at least $27,508.84 from churches located in Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, North Carolina, South Carolina, and Virginia into five fraudulently opened bank accounts. The total of stolen checks deposited into those accounts totaled approximately $36,660.91. Over the course of the conspiracy, conspiracy members received approximately at least $1,085,151.42 from 2,657 stolen checks. After becoming aware of the investigation, Vaduva fled to the United Kingdom. He was later apprehended on September 5, 2021 and was extradited to the United States.
Vaduva faces a maximum of 30 years in prison followed by up to 5 years of supervised release for conspiracy to commit bank fraud and wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for August 8, 2022, at 2:00 p.m.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Florida man who led nationwide moving company scam conspiracy sentenced to 78 months in prisonRead the Press Release
CINCINNATI – A Miami, Fla. man was sentenced to 78 months in prison for conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States. Identified victims of the fraud lost more than $2.4 million total.
Andrey Shuklin, 33, was sentenced in U.S. District Court in Cincinnati today.
Shuklin was one of 12 defendants indicted in July 2018. According to court documents, the defendants operated and worked through several affiliated moving companies to enrich themselves by stealing from customers who hired them to move their household goods.
The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 1,000 customers have been identified as victims.
Shuklin admitted to participating in the scheme from April 2013 through July 2018. The defendant was the owner of affiliated moving companies and worked out of the enterprise’s main business offices in Florida.
One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.
As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.
Shuklin tracked the “actual” or “real” cubic footage for customers’ goods and charged customers based on the fraudulently inflated price.
Shuklin pleaded guilty in January 2021 to participating in the racketeering conspiracy.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Knopf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.
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Florida Man Sentenced to 400 Months for Aggravated Sexual Abuse of a ChildRead the Press Release
ASHLAND, Ky.— A Winterpark, Fla., man, Jimmy DeLeon, 56, was sentenced to 400 months in federal prison on Monday, by U.S. District Judge David Bunning, after pleading guilty to aggravated sexual abuse of a child.
According to DeLeon’s guilty plea, in August 2020, he travelled to pick up two minor victims, at their home in Boyd County. He then took both victims to various states throughout the country. During this interstate travel, he admitted to sexually abusing both victims and to producing videos and photos of that abuse.
DeLeon pleaded guilty in December 2021.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Filed Office; and Chief W. Todd Kelley, Ashland Police Department, jointly announced the sentence.
The investigation was conducted by the FBI and the Ashland Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Fleeing felon convicted for firearm and methRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted a 39-year-old local man for possessing with the intent to distribute narcotics, being a felon in possession of a firearm and possessing firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Jason Ramirez following a two-day trial.
The jury heard that on Feb. 29, 2020, law enforcement pursued Ramirez after he failed to yield at a stop sign. He soon crashed into a concrete fountain at a nearby park and fled on foot. Shortly after, they discovered Ramirez in a nearby neighborhood and arrested him.
At the time of arrest, authorities discovered a pistol and meth in Ramirez’s vehicle. A subsequent search of his phone revealed messages regarding the selling of drugs as well as pictures of Ramirez posing with the firearm.
The defense attempted to convince the jury that the gun and meth in the car did not belong to Ramirez. However, they saw video evidence of Ramirez fleeing from the vehicle and footage showing the discovery of the weapon and the narcotics. The jury did not believe defense claims and convicted him as charged.
U.S. District Judge Nelva G. Ramos presided over trial and set sentencing for Aug. 2. At that time, Rodriguez faces up to life in federal prison and a possible $10 million maximum fine.
Ramirez will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorneys Roland Swanson and Dennis Robinson are prosecuting the case.
Federal Inmate Pleads Guilty to Role in Stealing more than $2.2 Million in Pandemic Assistance BenefitsRead the Press Release
DETROIT - A current Bureau of Prisons (BOP) inmate (and former Michigan resident) pleaded guilty today to conspiracy to commit wire fraud, in connection with a scheme to defraud multiple state workforce agencies and the Small Business Administration out of more than $2,200,000 in Covid-19 pandemic assistance, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent-in-Charge James A. Tarasca, Federal Bureau of Investigation, Andre Martin Special Agent-in-Charge, U.S. Postal Service Office of Inspector General, and Rita Saenz Director of the California Employment Development Department.
Cortney Daquan Shields, 33, entered his guilty plea this morning, before United States District Judge George Caram Steeh, III.
According to court records, beginning at least as early as May 2020 and continuing through at least July 2021, Shields and others known and unknown to the government agreed to commit wire fraud. Specifically, Shields and his co-conspirators, with the intent to defraud, submitted more than 240 fraudulent unemployment insurance claims to more than 20 states and territories, fraudulently obtaining more than $2,200,000 in benefits. Shields also successfully obtained a fraudulent $20,833.00 Paycheck Protection Program (PPP) loan. Shields participated in the scheme from within the confines of the Federal Correctional Complex in Allenwood, Pennsylvania, where he was serving sentence on an unrelated fraud case. Members of the conspiracy transferred portions of the fraud proceeds to Shields via wire into his Bureau of Prisons commissary account. As part of his plea, Shields agreed to the forfeiture of $26,794.11 seized from that account.
Charged in a related complaint are Daeshawn Tamar Posey, 25, of Detroit; Chaz Duane Shields, 33, of Detroit; and Brittany Levett Witherspoon, 25, of Warren.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
This is case is being prosecuted by Assistant United States Attorneys Ryan A. Particka, Timothy J. Wyse, and Special Assistant United States Attorney Corinne M. Lambert. The investigation is being conducted jointly by agents from the Department of Labor Office of the Inspector General, the Federal Bureau of Investigation, and the United States Postal Service Office of the Inspector General.