title: Former Energy Trader for Vitol Inc. Pleads Guilty to International Bribery Scheme

body_text: A former energy trader pleaded guilty yesterday for his role in a scheme to bribe Mexican government officials to secure contracts for his then-employer, Vitol Inc. (Vitol), the U.S. affiliate of the largest independent energy trading firm in the world. According to court documents, Javier Aguilar, 50, of Houston, and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PEMEX Procurement International, Inc. (PPI), a wholly owned affiliate of the Mexican state-owned oil company, Petróleos Mexicanos (PEMEX), in exchange for assistance in winning business for Vitol. “Javier Aguilar has now admitted that he bribed foreign officials to win business when he worked as an oil and gas trader at Vitol Inc., using shell companies, fake contracts, sham invoices, and alias email accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Aguilar’s guilty plea yesterday follows his conviction at trial on related charges earlier this year. His illegal conduct netted Vitol hundreds of millions of dollars in contracts, and now he will pay the price.” “With yesterday's guilty plea, the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The actions of the defendant and his co-conspirators, and of those who act similarly, destroy people’s faith in their governments, disadvantage those who play by the rules, undermine confidence in American businesses worldwide, and will not be tolerated by this Office or our law enforcement partners.” “The Southern District of Texas is ground zero in the fight against foreign bribery and corruption in Latin America,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “My office’s prosecutors — experts on the Foreign Corrupt Practices Act — will continue to bring to justice those who damage the integrity of Texas’s vital energy sector with illegal advantages fueled by greed. This guilty plea begins the process of repairing the damage caused by Aguilar as well as putting on notice those who might seek to emulate him and his cohorts.” “The Foreign Corrupt Practices Act has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the Criminal Division’s Fraud Section, Money Laundering and Asset Recovery Section, and Office of International Affairs; the U.S. Attorney’s Office for the Eastern District of New York; and the U.S. Attorney’s Office for the Southern District of Texas for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.” Between 2017 and 2020, Aguilar, who was a trader in Vitol’s Houston office, and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane to PEMEX. To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico. The defendant and his co-conspirators also used alias email accounts to communicate about the scheme and code words, including “shoes,” “medicine,” “invitations,” and “coffee,” to describe the bribes. Aguilar pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to a violation of the Travel Act. The FCPA conspiracy charge, which was brought by a grand jury in the Southern District of Texas, related to conduct that was initially charged in the Eastern District of New York. As part of his guilty plea, Aguilar consented to transfer the Texas case to New York, to consolidate the cases, and to forfeit $7,129,938. The plea follows Aguilar’s related conviction at trial in February 2024 for conspiracy to violate the FCPA, violating the FCPA, and conspiracy to commit money laundering in connection with schemes to bribe Ecuadorian and Mexican officials. He faces a maximum sentence of 20 years’ imprisonment on the money laundering offense and five years’ imprisonment on each of the other offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico, and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, the Commodity Futures Trading Commission, and authorities in Brazil. Seven of the defendant’s co-conspirators have pleaded guilty for their role in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million in connection with this and related schemes. FBI Miami’s International Corruption Squad investigated the case. Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorneys Jonathan P. Lax, Matthew R. Galeotti, and Nick M. Axelrod for the Eastern District of New York, and Assistant U.S. Attorney Sherin Daniel and Deputy Chief Suzanne Elmilady for the Southern District of Texas are prosecuting the case. The MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa . The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/ .


title: Fraudster Sentenced to 50 Months’ Imprisonment After Defrauding Farmers Out of $1.2M

component: Federal Bureau of Investigation (FBI)

body_text: Saint George, Utah – Ryan Palmer, 56, of Sanpete County, was sentenced today to over four years’ imprisonment, a term of five years’ supervised release, and ordered by the court to pay $1,216,884.49 in restitution after he admitted to bank fraud, wire fraud, and money laundering. Palmer took over $1.2 million from trusting farmers who were deceived into thinking he would help them buy and sell farm equipment. According to court documents and statements made at Palmer’s change of plea hearing, beginning in 2017 and continuing until December 2021, Palmer devised a scheme to defraud 25 victims by telling them he could sell or obtain farm equipment on their behalf. Palmer operated a farm equipment company called Palmer Equipment, LLC. Palmer falsely represented to clients that he would sell their agriculture equipment on consignment at specific minimum prices, with the understanding that the clients would receive the sale proceeds and Palmer would receive a portion of those proceeds for his services. Instead, Palmer kept all proceeds and lied to the victims about the sale of their equipment. Other times, he promised to purchase seller victims’ equipment, took possession of the equipment, and made partial payments or failed to make any payments. On another occasion, Palmer, pledged a victim’s Allis-Chalmers tractor as collateral to obtain a loan without the victim’s authorization. Palmer lied to Utah Independent Bank about who owned the equipment and used a $51,000 loan for his own personal benefit. He then sold and kept the money for himself without delivering the sale proceeds to the tractor’s rightful owner. United States Attorney Trina A. Higgins made the announcement. The case was investigated jointly by the FBI Salt Lake City Field Office, IRS Criminal Investigation (IRS-CI), the Sevier County Sheriff’s Office, and the Salina City Police Department. Assistant United States Attorney Stephen P. Dent from the U.S. Attorney’s Office for the District of Utah prosecuted the case.


title: Geneva County Man Sentenced to 12 Years in Prison Following Federal Drug Conviction

component: USAO - Alabama, Middle

body_text: MONTGOMERY, ALABAMA – Today, United States Attorney Jonathan S. Ross announced the sentencing of a Geneva County, Alabama man for possession of methamphetamine with intent to distribute the illegal drug. On August 22, 2024, a federal judge sentenced 35-year-old Nicholas Leon Hobbs to 144 months in prison. In addition, the judge ordered that Hobbs serve four years of supervised release following his prison term. Federal inmates are not eligible for parole. According to the plea agreement and other court records, on December 2, 2021, law enforcement officers in Geneva County stopped Hobbs for a traffic violation. In the vehicle, Hobbs had two bags. One bag contained syringes and methamphetamine. The other had multi-colored pills containing methamphetamine. Agents also found a handgun and digital scales. During his May 20, 2024, plea hearing, Hobbs admitted that he possessed the illegal drugs with the intent to distribute them. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Alabama Law Enforcement Agency, and the Drug Enforcement Administration investigated this case, which Assistant United States Attorney Justin L. Jones prosecuted.


title: Career Offender Who Distributed Purported Heroin Containing Fentanyl Resulting in an Overdose Sentenced to Over 13 Years in Federal Prison

component: USAO - Iowa, Northern

body_text: A man who sold purported heroin that contained fentanyl in Cedar Rapids, Iowa, was sentenced today to 163 months in federal prison. Rodney Eugene Lewis, age 49, from Chicago Heights, Illinois, received the prison term after a February 6, 2024 guilty plea to one count of distribution of a controlled substance. Between February 2020 and June 2020, Lewis distributed purported heroin in Cedar Rapids. When Lewis was unavailable provide drugs to his customers, he provided his drug-trafficking cellphone to his sister and co-defendant, Marsha Celes Dismukes, so that Dismukes could supply his customers with controlled substances. During this time, Lewis provided an individual with purported heroin that also contained fentanyl. After using the controlled substance provided by Lewis, the individual overdosed. Lewis was previously convicted of two different drug trafficking offenses in Illinois. Lewis was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Lewis was sentenced to 163 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Lewis is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the United States Drug Enforcement Administration and the Cedar Rapids Police Department, at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 21-CR- 00068. Follow us on Twitter @USAO_NDIA.


title: Linneus Man Pleads Guilty to Role in Penobscot and Aroostook County Drug Trafficking

component: Drug Enforcement Administration (DEA)

body_text: BANGOR, Maine: A Linneus man pleaded guilty today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl. According to court records, between January 2018 and December 2021, James Valiante , 42, and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Valiante, a drug dealer in Aroostook County, participated in the conspiracy by regularly obtaining quantities of drugs from his source of supply in the Bangor area. Valiante faces 10 years to life in prison and a maximum fine of $10 million to be followed by up to five years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Twenty-one defendants have been charged in this and related cases for their part in the northern Maine drug trafficking conspiracy. To date, 10 of the defendants have been sentenced and nine have pleaded guilty: Sentenced: Andrew Adams (32, Aroostook County) – 10 years Wayne Smith (33, Bangor) – 85 months Danielle McBreairty (34, Glenburn) – 20 years Blaine Footman (38, Bangor) – 5 years Nicole Footman (41, Holden) – 3 years Dwight Gary, Jr. (54, Medway) – Time served Matthew Catalano (38, Penobscot County) – 165 months Thomas Hammond (26, Charleston) – 84 months Christopher Coty (44, Bangor) – 4 years James King (55, Caribou) – 165 months Pleaded Guilty: Sarah McBreairty (36, Dixmont) John Miller (23, Caribou) Shelby Loring (29, Bangor) Joshua Young (48, Presque Isle) Joshua Jerrell (30, Orrington) Carol Gordon (53, Bangor) Jason Cunrod (42, Caribou) Aaron Rodgers (43, Bangor) James Valiante, 42 (Linneus) The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office. Organized Crime Drug Enforcement Task Forces: 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. ###


title: Illegal Alien Found Guilty of Federal Meth and Gun Charges

body_text: Oscar Navarro-Zepeda, 42, from Spencer, Iowa, was convicted by a jury on August 22, 2024, after a 3 ½ day trial in federal court in Sioux City. Navarro-Zepeda was convicted of conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of firearm by prohibited person; and possession of a firearm in furtherance of a drug trafficking crime. Evidence at the trial showed that between April 2021 and April 2023, in the Northern District of Iowa and elsewhere Navarro-Zepeda was involved in a conspiracy that distributed more than 500 grams of methamphetamine, including more than 50 grams of actual (pure) methamphetamine. Evidence also showed that on April 18, 2023, during a search warrant at Navarro-Zepeda’s residence in Spencer, Iowa, law enforcement seized approximately 33 pounds of methamphetamine, which he intended to distribute to others in the Spencer, Iowa, area. Officers also seized $17,932; an AR-15 style .223 caliber rifle, with two loaded magazines in a rifle case and a partial box of .223 ammunition, as well as various items of drug distribution and use paraphernalia. Navarro-Zepeda was prohibited from possessing firearms and possessed either or both firearms in furtherance of his drug trafficking, to protect himself, his drugs and drug proceeds from others. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Navarro-Zepeda remains in custody of the United States Marshal pending sentencing. On all of the convictions, Navarro-Zepeda faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any term of imprisonment. The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-4029. Follow us on Twitter @USAO_NDIA.


title: Man Who Distributed Fentanyl Powder Resulting in an Overdose Sentenced to Over 9 Years in Federal Prison

body_text: A man who sold fentanyl powder, pills containing fentanyl, and “ice” methamphetamine in Dubuque, Iowa, was sentenced today to 118 months in federal prison for his involvement in a conspiracy to distribute controlled substances. Alexander John Chapman, age 31, from Dubuque, Iowa, received the prison term after a March 20, 2024 guilty plea to one count of conspiracy to distribute a controlled substance. From March 2023 through December 2023, Chapman obtained controlled substances through the mail from three sources of supply in Arizona. While some of the packages with controlled substances were shipped directly to Chapman’s residence in Dubuque, Chapman also had packages mailed to other addresses. In May 2023, Chapman received a package from one of his suppliers containing fentanyl pills and fentanyl powder and re-distributed the substances to others. An individual who used the fentanyl powder distributed by Chapman and overdosed. From March 2023 through December 2023, Chapman received at least 28 packages containing controlled substances from his sources of supply in Arizona. Chapman was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Chapman was sentenced to 118 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Chapman is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Dubuque Drug Task Force and the United States Postal Inspection Service, at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-01003. Follow us on Twitter @USAO_NDIA.


title: Conspiracy Hatched over Instagram Leads to Massachusetts Man’s Guilty Plea for Firearms Theft

body_text: BANGOR, Maine: A West Springfield, Massachusetts man pleaded guilty today in U.S. District Court in Bangor to conspiring to steal firearms from a federally licensed firearms dealer and stealing firearms from that dealer. According to court records, in April 2022, Ryan Ansart , 22, and coconspirator Damiean Marcial-Alexander, 21, of Waterville broke into a Waterville firearms dealer and stole multiple firearms, including a Glock, Model 17 Gen5 9mm pistol and a Smith & Wesson .38 special revolver. According to an ATF Theft/Loss Report submitted by the store owner, 15 firearms in all were reported stolen, six revolvers and nine semi-automatic pistols. Evidence collected included Instagram and text messages planning the theft, including a map to the location from Marcial-Alexander’s apartment, as well as photos of the two men holding some of the stolen firearms. Ansart faces up to 10 years in prison and a $250,000 fine followed by up to three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Marcial-Alexander pleaded guilty on May 30, 2024, and also faces up to 10 years in prison and a $250,000 fine followed by up to three years of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case with assistance from the Waterville Police Department. ###


title: Former energy trader for Vitol Inc. guilty in international bribery and money laundering scheme

component: USAO - Texas, Southern

body_text: HOUSTON – A 50-year-old former energy trader from Houston has pleaded guilty for his role in a scheme to bribe Mexican government officials to secure contracts for his then-employer Vitol Inc., the U.S. affiliate of the largest independent energy trading firm in the world. According to court documents, Javier Aguilar and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PEMEX Procurement International Inc. (PPI), a wholly owned affiliate of the Mexican state-owned oil company Petróleos Mexicanos (PEMEX), in exchange for assistance in winning business for Vitol. “The Southern District of Texas (SDTX) is ground zero in the fight against foreign bribery and corruption in Latin America,” said U.S. Attorney Alamdar S. Hamdani. “My office’s prosecutors - experts on the Foreign Corrupt Practices Act (FCPA) - will continue to bring justice against those who damage the integrity of Texas’s vital energy sector with illegal advantages fueled by greed. This guilty plea begins the process of repairing the damage caused by Aguilar as well as put on notice those who might seek to emulate him and his cohorts.” Aguilar was a trader in Vitol’s Houston office. Between 2017 and 2020, he and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane to PEMEX. To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico. Aguilar and others also used alias email accounts to communicate about the scheme and code words including “shoes,” “medicine,” “invitations” and “coffee,” to describe the bribes. “Javier Aguilar has now admitted that he bribed foreign officials to win business when he worked as an oil and gas trader at Vitol Inc., using shell companies, fake contracts, sham invoices and alias email accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Aguilar’s guilty plea yesterday follows his conviction at trial on related charges earlier this year. His illegal conduct netted Vitol hundreds of millions of dollars in contracts, and now he will pay the price.” “With this guilty plea, the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” stated U.S. Attorney Breon Peace of the Eastern District of New York (EDNY). “The actions of the defendant and his co-conspirators and of those who act similarly, destroys people’s faith in their governments, disadvantages those who play by the rules, undermines confidence in American businesses worldwide and will not be tolerated by this office or our law enforcement partners.” “The FCPA has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Special Agent in Charge Jeffrey B. Veltri for the FBI’s Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the U.S Attorney’s Offices for EDNY and SDTX and the Department of Justice’s Office of International Affairs for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.” Aguilar pleaded guilty to conspiracy to violate the FCPA and to a violation of the Travel Act. The FCPA conspiracy charge, which an SDTX grand jury brought, related to conduct that was initially charged in the EDNY. As part of his guilty plea, Aguilar consented to transfer the Texas case to New York, to consolidate the cases and to forfeit $7,129,938. The plea follows Aguilar’s related conviction at trial in February for conspiracy to violate the FCPA, violating the FCPA and conspiracy to commit money laundering in connection with schemes to bribe Ecuadorian and Mexican officials. At sentencing, he faces a maximum of 20 years in federal prison on the money laundering conviction and five years on each of the other offenses. In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office in the EDNY. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, Commodity Futures Trading Commission and authorities in Brazil. Seven of Aguilar’s co-conspirators have pleaded guilty for their role in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million in connection with this and related schemes. FBI Miami’s International Corruption Squad conducted the investigation. Assistant U.S. Attorney Sherin Daniel and Deputy Chief Suzanne Elmilady for the SDTX are prosecuting the case along with Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Money Laundering and Asset Recovery Section (MLARS) and EDNY Assistant U.S. Attorneys Matthew R. Galeotti, Nick M. Axelrod and Jonathan P. Lax. MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa . The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/ .


title: Tennessee Man and Company Plead Guilty to Violating the Clean Water Act

component: Energy and Natural Resources Division

body_text: On Aug. 20, Christopher Domermuth, 49, and Domermuth Environmental Services LLC (DES), based in Knoxville, Tennessee, both pleaded guilty today to violating the Clean Water Act by knowingly discharging pollutants into a navigable waterway without a permit. Sentencing has been set for Dec. 12 in the U.S. District Court for the Eastern District of Tennessee at Knoxville. Domermuth faces a maximum penalty of three years in prison, followed by a term of supervised release of up to one year. The parties have recommended to the Court that DES pay a $50,000 fine and be placed on probation for three years. According to court documents, Domermuth operated DES, which was engaged in the business of processing petroleum-contaminated soil and water in Knoxville. On July 26, 2018, DES workers rolled over a previously exhumed underground storage tank, which spilled a mixture of petroleum and water onto a concrete pad at the facility. DES employees and Domermuth threw absorbent pads into the spilled mixture and then used a portable pump to pump the petroleum-contaminated mixture over a retaining wall at DES. The oily mixture flowed over a neighboring property and into a culvert leading to the Holston River. “Domermuth Environmental Services and Christopher Domermuth were supposed to be cleaning up contaminated water and soil to protect the environment, but instead caused the discharge of pollutants. These felony guilty pleas demonstrate our commitment to enforcing the Clean Water Act,” said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division. “Our office is committed to protecting our natural resources in East Tennessee,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “I applaud the collaborative efforts of the federal and state law enforcement agencies that brought these violators to justice.” The U.S. Environmental Protection Agency Criminal Investigation Division, EPA Office of Inspector General (OIG), Tennessee Valley Authority-OIG, FBI and Tennessee Department of Environment and Conservation investigated the case. Senior Trial Attorney Matthew T. Morris of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Jeremy S. Dykes for the Eastern District of Tennessee are prosecuting the case.


title: U.S. Attorney Dena J. King Meets With Faith Leaders In Asheville

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – U.S. Attorney Dena J. King and U.S. Attorney’s Office personnel met with faith leaders in Asheville today, to discuss community matters, address local challenges, and collaborate on joint priorities, including public safety, youth violence prevention and intervention, civil rights, and the protection of houses of worship. The meeting was part of an ongoing effort to further collaboration between law enforcement and faith-based organizations to promote the safety of Asheville communities. During the meeting, U.S. Attorney King emphasized the importance of a united approach to identifying and addressing the challenges that impact communities. “Faith leaders play a vital role in assisting and uplifting the communities they serve. Their partnership is essential in addressing the root causes of criminal activity that threatens the safety of our citizens, ensuring the protection of civil rights, and fostering trust between law enforcement and the communities we are sworn to protect,” said U.S. Attorney King. The discussion focused on the unique perspective that faith leaders add to conversations centered on community safety, and how their knowledge, influence, and collaboration can assist federal prosecutors and law enforcement in preventing and combating criminal activity and promoting community safety. Topics covered during the meeting included strategies for reducing violence, intercepting drug trafficking, and removing illegal firearms from the streets. The group also discussed the protection of civil rights and explored ways to enhance collaboration between law enforcement and faith communities to reduce youth violence and foster trust through shared efforts and open dialogue. “Community safety is not just the responsibility of law enforcement,” U.S. Attorney King noted. “It requires the collective effort of all stakeholders, including our faith-based partners. Together, we can create safer neighborhoods and thriving communities through stronger alliances.” The U.S. Attorney’s Office remains committed to partnering with faith leaders and other community partners to address issues pressing to local communities. Following today’s discussion, U.S. Attorney King and her team will continue to engage with faith leaders, listen to their concerns, and work collaboratively on proposed solutions. Additional information about the U.S. Attorney’s Office can be found here .


title: Wexford Resident Charged with Attempting to Transmit Obscene Material to Minor and Coerce Minor to Engage in Sexual Activity

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. – A resident of Wexford, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of attempting to transmit obscene material to a minor and attempting to induce a minor to engage in sexual activity, United States Attorney Eric G. Olshan announced today. The four-count Indictment named Albert Maximillian Jeremias, 79, as the sole defendant. According to the Indictment, on multiple occasions between January 2023 and May 2023, Jeremias made contact via internet chats with undercover agents in the Pittsburgh, Pennsylvania; Santa Fe, New Mexico; and Coral Gables, Florida, areas who he believed were young girls between the ages of 12 and 15. During those conversations, Jeremias sent pornographic photographs and livestream images of himself to the undercover agents and requested that the agents send sexually explicit pictures of themselves to him, even sending one of them a $50 gift card as enticement. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Assistant United States Attorney Jacqueline C. Brown is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and Northern Regional Police Department conducted the investigation leading to the Indictment. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Billings man admits trafficking fentanyl, assaulting federal law enforcement officer

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: BILLINGS — A Billings man accused of trafficking fentanyl pills in the community and ramming an occupied U.S. Marshals Service vehicle during his arrest admitted to charges today, U.S. Attorney Jesse Laslovich said. The defendant, Luke Michael Dovel, 29, pleaded guilty to possession with intent to distribute controlled substances and to assault on a federal officer. Dovel faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the assault charge. U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Dovel was detained pending further proceedings. The government alleged in court documents that in August and September of 2023, law enforcement learned that Dovel was selling large quantities of fentanyl and that there was a warrant for his arrest because he had absconded while on state probation. On Sept. 18, 2023, multiple law enforcement agencies surveilled Dovel’s suspected location, and when Dovel arrived, law enforcement used their vehicles to block Dovel’s vehicle. Dovel then rammed the law enforcement vehicles several times, attempting to flee. Dovel hit a U.S. Marshals Service’s vehicle that was occupied by a deputy multiple times. The deputy and other officers were not injured but their vehicles were damaged. Dovel was instructed to exit his vehicle and did so without incident. In a search of Dovel, officers found him to be in possession of fentanyl pills, more than $8,000 in U.S. currency, a knife and metal knuckles. In a search of his vehicle, law enforcement found approximately 1,500 fentanyl pills, methamphetamine, fentanyl powder, cocaine, crack cocaine, heroin and a loaded handgun magazine and ammunition. The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . XXX


title: Virginia Beach bookkeeper sentenced for wire fraud stemming from embezzlement and COVID-19 program schemes

body_text: NORFOLK, Va. – A Virginia Beach woman was sentenced today to four years in prison for two counts of wire fraud after perpetrating embezzlement and COVID-19 program schemes resulting in over a million dollars in losses. According to court documents, Maria Gene Reich, 45, was President of ASOC. Inc. d/b/a On Call Accountants (OCA), a Virginia Beach-based business which offered bookkeeping, accounting, and payroll services to small business clients. Beginning in February 2012, Reich and On Call Accountants performed bookkeeping for a family-owned company, identified in court records as Company A, that manufactures condiments. Reich would prepare checks and schedule electronic payments on behalf of Company A to pay the company’s bills. For most of the period during which she performed services for Company A, Reich did not have signature authority over any of the company’s financial accounts, but possessed a stamp bearing the signature of the owner of Company A, which she used to draft checks for Company A’s business expenses. Reich also had online access to Company A’s financial accounts, which enabled her to view account balances, transfer funds, and initiate electronic payments as needed. Based on the agreement between Reich and Company A, the maximum total compensation she should have received for services rendered to the company between January 2015 and December 2018 was $98,400. A financial analysis of activity during that time period revealed that Reich’s OCA business account received 270 payments totaling $596,418 from Company A accounts, including 138 checks and 132 electronic payments. Reich also used Company A’s money to pay off her credit cards, which she used for numerous personal expenses. The financial analysis showed that Reich made 366 payments totaling approximately $629,265 to her Capital One personal and business credit card accounts using funds from Company A’s business bank accounts. Reich used Company A’s money to pay for personal expenses such as dining, travel, entertainment, and retail purchases. In total, Reich stole approximately $1,132,693 from Company A. In March 2020, Reich applied to the Small Business Administration (SBA) for a $150,000 Economic Injury Disaster Loan (EIDL) on behalf of OCA and requested a $150,000 loan. The purpose of the EIDL program was to enable small businesses to meet financial obligations and operating expenses in light of the coronavirus pandemic. In the EIDL application, Reich certified that none of the EIDL funds would be used for non-business expenses. In May 2020, the SBA funded the loan. In April 2021, Reich applied for a modification of the EIDL loan to increase the amount to $500,000. In July 2021, the SBA approved the modification and funded the loan for an additional $350,000. On Aug. 3, 2021, a wire deposit from the SBA for $350,000 was made to OCA’s bank account, and Reich immediately transferred $150,000 to her personal banking accounts. On Sept. 27, 2021, Reich withdrew approximately $93,416 from her savings account and used the money for a downpayment on the purchase of a home in Virginia Beach, where Reich and her family continue to reside. In addition to the downpayment for the residence, Reich used the EIDL funds from that transfer to put money into her minor children’s bank accounts and to make payments for her mortgages, credit cards, personal loan, and life insurance policy. Of the remaining EIDL funds from the $350,000 EIDL loan, Reich used them to pay for: personal, household, and family expenses; payments to her credit card and PayPal accounts; home improvement costs and automobile expenses; and dining, grocery, and entertainment expenses. In total, Reich illegally spent $249,102 of the EIDL funds she received. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes. Assistant U.S. Attorney Elizabeth Yusi prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-135.


title: Bergen County Man Charged in COVID-19 Fraud Scheme

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Bergen County, New Jersey, man was indicted on charges that he fraudulently obtained hundreds of thousands of dollars of Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds, U.S. Attorney Philip R. Sellinger announced today. Malak Faltawws, aka “Mark Andrews,” 47, of Rutherford, New Jersey, is charged with three counts of wire fraud and two counts of money laundering. He made his initial appearance today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond. According to documents filed in this case and statements made in court: From March 2020 through November 2021, Faltawws fraudulently obtained hundreds of thousands of dollars in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, by submitting false and fraudulent applications, inflating his businesses’ revenue, payroll expenses, and number of employees. After receiving the fraudulent funds, he diverted the proceeds for his personal gain. Each wire fraud charge carries a maximum penalty of 20 years in prison, and each money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigations, under the direction of Special Agent in Charge Jenifer L. Piovesan, and investigators of Port Authority of New York and New Jersey, Office of the Inspector General, under the direction of Inspector General John Gay, with the investigation. The government is represented by Assistant U.S. Attorney Aja Espinosa of the Economic Crimes Unit in Newark. The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 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 Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. faltawws.indictment.pdf


title: Lawsuit Filed Against Upland Company for Allegedly Starting Fire that Burned Hundreds of Acres in San Bernardino National Forest

component: USAO - California, Central

body_text: LOS ANGELES – The United States today filed a lawsuit alleging that the South Fire – which burned hundreds of acres in the San Bernardino National Forest in the summer of 2021 – was caused by an Upland-based grading, concrete, and pipeline contracting company’s negligent operation of an excavator in a rocky area. The lawsuit filed in United States District Court alleges that Garrett J. Gentry General Engineering Inc. and its owner, Garrett J. Gentry, were negligent by starting the fire and failing to prevent it from spreading. As a result, they are liable for damages sustained by the United States during the fire, the lawsuit alleges. The United States Forest Service sustained fire suppression costs more than $2.2 million, according to the complaint. “Investigators determined that the fire started when the steel treads of the excavator, operated by Gentry Engineering and Gentry, contacted rocks, causing ignition of fuel, such as dry vegetation,” the lawsuit states. “Gentry Engineering and Gentry were aware of the danger of a rock strike by the excavator and failed to take action to prevent a fire.” The wildfire started on August 25, 2021, and ultimately destroyed residences and structures and resulted in evacuation of residences. The fire burned more than 680 acres, including 450 acres in the San Bernardino National Forest. This matter is being handled by Assistant United States Attorney Sarah Quist of the Civil Division’s Complex and Defensive Litigation Section.


title: Knoxville Man Sentenced To 15 Years For Enticement Of A Child

body_text: KNOXVILLE, Tenn. – On August 22, 2024, Dominique J. Starr, 29, currently of Knoxville, Tennessee, was sentenced to 180 months imprisonment by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following his incarceration, Starr will be on supervised release for twenty years and will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release. As part of the plea agreement filed with the court, Starr agreed to plead guilty to an information charging him with one count of enticement of a child in violation of 18 U.S.C. § 2422(b). According to documents filed with the court, in October 2022, Starr began communicating online with a Federal Bureau of Investigation (FBI) undercover agent in Portland, Oregon, whom Starr believed to be a 13-year-old female. Starr solicited nude photos and sex from the purported minor on several occasions over a period of many months. Starr also threatened to stalk, kidnap, and rape the purported minor. During the investigation, undercover agents from two other FBI offices reported contact with Starr after he solicited nude photos and discussed meeting them for sex. The FBI obtained search warrants for social media accounts associated with Starr which showed Starr was in contact with approximately 47 other purported minors ranging in age from 9 years old to 17 years old. U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and FBI Special Agent in Charge Joseph E. Carrico made the announcement. The criminal information was the result of an investigation by the FBI. This investigation was led by FBI Special Agent Jason Stewart. Assistant United States Attorney Jennifer Kolman represented the United States. This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.” ###


title: New Orleans Man Sentenced  For Drug Trafficking

body_text: NEW ORLEANS, LOUISIANA –HORACE WASHINGTON (“ WASHINGTON”) , age 55, a resident of New Orleans, was sentenced on August 21, 2024 by United States District Judge Ivan L. R. Lemelle for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans. According to court records, the Drug Enforcement Administration (“DEA”) received information from a confidential source that WASHINGTON , who had previously been convicted of a federal drug trafficking offense, was again dealing drugs. Through investigation, DEA agents learned that WASHINGTON was getting the drugs from sources near the Texas/Mexico border. These sources would fly to New Orleans, while another co-conspirator drove a car with the drugs to New Orleans. The agents eventually seized ten kilograms of cocaine that WASHINGTON’s coconspirator left in a car in a Westbank parking lot. Judge Lemelle sentenced WASHINGTON to 121 months imprisonment, to be followed by five years of supervised release. He was also ordered to pay a mandatory special assessment fee of $100. The case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel and Project Safe Neighborhoods.


title: Chautauqua County pleads guilty to meth charges

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Darin L. Butts, Jr., 31, of Celeron, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to possession with intent to distribute 50 grams or more of methamphetamine, which carries a mandatory minimum penalty of 10 years, a maximum of life and a 10,000,000 fine. Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that in July and August 2023, investigators conducted seven controlled purchases of methamphetamine and fentanyl from Butts. On August 23, 2023, search warrants were executed at Butts’ residence and his two vehicles. Law enforcement seized approximately 610 grams of methamphetamine, some of it packaged in smaller, individual-sized quantities, drug paraphernalia, and approximately $14,829.00 in cash, which represented proceeds of his methamphetamine trafficking. On May 3, 2024, law enforcement executed another search warrant at Butts’ residence, seizing multiple quantities of suspected methamphetamine and fentanyl, and drug paraphernalia. The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr., and the Dunkirk Police Department, under the direction of Chief David C. Ortolano. Sentencing will be scheduled at a later date. # # # #


title: Former State Employee Sentenced to 20 Months for Pandemic Unemployment Insurance Fraud Scheme

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Carl J. DiVeglia III, age 36, of Albany, was sentenced today to 20 months in prison for engaging in a fraudulent scheme to obtain more than $1.6 million in unemployment insurance benefits by abusing his position with the New York State Department of Labor (NYSDOL). The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG). As part of his previously entered guilty plea to conspiracy to commit mail fraud, DiVeglia admitted that he and another former NYSDOL employee, Wendell Giles, abused their state computer access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program. DiVeglia admitted responsibility for over $1.6 million in losses to NYSDOL and to personally receiving approximately $225,000 in fraud proceeds. United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after DiVeglia is released from prison. Judge Suddaby also ordered DiVeglia to pay $1,662,819 in restitution to the State of New York and to forfeit a $225,000 money judgment to the United States. Giles was previously sentenced to 36 months’ imprisonment for his role in the scheme. Four related defendants— Todd Ward , a/k/a “Fats,” age 45, of Troy, New York; Christopher Ward , a/k/a “Reek,” age 46, of Troy; Rocco Resciniti a/k/a “Rock,” age 50, of Albany; and Jamaine Myers , age 46, of Troy—have also pled guilty to fraud charges for their involvement in DiVeglia’s scheme. Resciniti was sentenced to three years of probation on July 31, 2024, and the remaining defendants are scheduled to be sentenced in the fall. The FBI and USDOL-OIG investigated these cases, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian are prosecuting the cases. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Former Corrections Officer Admits Providing Firearm to Felon

body_text: ALBANY, NEW YORK – Brian Mills, age 39, a resident of Dannemora, New York, pled guilty yesterday to knowingly providing a firearm to a felon. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office; and Plattsburgh Police Chief Peter Mitchell made the announcement. Mills admitted that at various times during summer 2022, he traded a New England Firearms Company Model Pardner-SP1 .410-gauge shotgun, an Armalite rifle, ammunition, an ammunition magazine and two body armor vests to Dustin J. Manor at Manor’s apartment in Plattsburgh, New York, knowing that Manor was a felon. On October 20, 2022, the Plattsburgh Police Department seized the shotgun, one (1) .44 magnum round of ammunition, shotgun rounds, and a set of RTS Tactical Level IV ceramic body armor from Manor’s Plattsburgh apartment after responding to a domestic incident there. Manor was federally prohibited from possessing the firearms and ammunition due to 2014 drug felony convictions for which he was sentenced to five years in state prison. Mills had been employed as a corrections officer with the New York State Department of Corrections and Community Supervision at Clinton Correctional Facility, but resigned his position following his arrest. Sentencing is scheduled for December 19, 2024. Mills faces up to 15 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Yesterday, Senior United States District Judge Lawrence E. Kahn sentenced Manor to 57 months in prison and 3 years supervised release for possessing the .410-gauge shotgun and ammunition as a felon. HSI and the Plattsburgh Police Department investigated this case. Assistant U.S. Attorney Douglas G. Collyer is prosecuting the case.


title: Border Patrol Agent Charged with Civil Rights Violations

body_text: SYRACUSE, NEW YORK – Shane Millan, age 53, of Jefferson County, New York, was arrested today on four counts of deprivation of rights under color of law. United States Attorney Carla B. Freedman and Vance Kuhner, Special Agent in Charge for U.S. Customs and Border Protection, Office of Professional Responsibility, New York, NY, made the announcement. The misdemeanor information alleges that Millan, while acting under color of law as a Border Patrol Agent, willfully deprived four different victims of their constitutional right to be free from unreasonable searches when, during virtual processing concerning their admission to the United States, he commanded three women to expose their bare chests to him over webcam and a fourth woman to expose her breasts to him while her bra remained on. The information further alleges that Millan told the women that these were legitimate searches incident to admission into the United States, though Millan’s demands to see the victims’ breasts were for his own gratification. Millan was arraigned today in Syracuse, before United States Magistrate Judge Thérèse Wiley Dancks and released pending a trial. The charges in the information are merely accusations. The defendant is presumed innocent unless and until proven guilty. U.S. Customs and Border Protection Office of Professional Responsibility Investigative Operations Directorate is investigating the case. Assistant U.S. Attorneys Michael F. Perry and Michael D. Gadarian are prosecuting the case.


title: DOMINICAN REPUBLIC MAN SENTENCED IN COCAINE TRAFFICKING CASE

component: USAO - Virgin Islands

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Rafael Martinez, 31, of the Dominican Republic, was sentenced by Chief District Judge Robert A. Molloy to 70 months incarceration following his conviction on conspiracy to possess with intent to distribute cocaine on a vessel subject to the jurisdiction of the United States charges. According to court documents, on August 30, 2021, a United States Coast Guard Cutter intercepted two go-fast vessels traveling in international waters off the coast of the Dominican Republic. Onboard the vessels were Martinez, Carlos De La Rosa, Elvis Manuel Rodriguez, and Alexis Sanchez-Garcia. As the Coast Guard Cutter approached the vessels, the occupants were observed throwing bales of cocaine into the ocean. From one vessel, the Coast Guard seized 444 kilograms of cocaine wrapped in white burlap sacks but attempts to recover the bales that were thrown overboard from the second vessel were unsuccessful. On July 2, 2024, Chief Judge Molloy sentenced De La Rosa, Rodriguez, and Sanchez-Garcia to 70 months incarceration on their cocaine conspiracy convictions. The case was investigated by the United States Coast Guard and Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Everard E. Potter. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: BVI MAN SENTENCED IN ALIEN SMUGGLING CASE

body_text: St. Thomas, VI - United States Attorney Delia L. Smith announced today that Lorenzo Ortis Charles, 36, a resident of the British Virgin Islands, was sentenced by Chief Judge Robert Molloy to over 5 months incarceration on his conviction on bringing aliens to the United States at a place other than a designated port of entry. According to court documents, on February 23, 2024, Customs and Border Protection agents intercepted a vessel traveling from Tortola, BVI, and entering United States waters. The vessel was operating without navigational lights when it entered Leinster Bay, St, John. On board the vessel were six occupants, including Charles who was determined to be the captain. Neither Charles nor his five occupants received legal authorization to enter the United States. Charles now awaits deportations proceedings as he remained in custody from his February 26, 2024, arrest. This was investigated by Customs and Border Protection and Homeland Security Investigations and was prosecuted by Assistant United States Attorney Kimberly M. Riley.


title: Hot Springs Woman Sentenced to 10 Years in Federal Prison for Drug Trafficking

component: USAO - Arkansas, Western

body_text: HOT SPRINGS – A Hot Springs woman was sentenced on August 20th to 120 months in prison followed by five years of supervised release on one count of Possession with Intent to Distribute More Than Fifty (50) Grams of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs. According to court documents, Crystal Megan Huckaby, age 39, was identified by law enforcement to be distributing methamphetamine in Hot Springs, Arkansas area. In March of 2022, while conducting a narcotics investigation on Huckaby, detectives with the Hot Springs, Police Department (HSPD) and agents with the Drug Enforcement Administration (DEA), were able to complete a controlled purchase of 54.68 grams of pure methamphetamine from Huckaby. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Drug Enforcement Administration and Hot Springs Police Department investigated the case. Assistant U.S. Attorney Trent Daniels prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov .


title: Norfolk Man Sentenced to 120 Months for Conspiring to Distribute Methamphetamine

component: USAO - Nebraska

body_text: United States Attorney Susan T. Lehr announced that John E. Kohler, age 53, of Norfolk, Nebraska was sentenced on August 22, 2024, in federal court in Lincoln for conspiracy to distribute and possess with intent to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced Kohler to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Kohler will be required to complete a 5-year term of supervised release. Kohler sold methamphetamine to an undercover investigator in Nebraska on three occasions in 2022. The first sale occurred on April 18, 2022, and yielded approximately one ounce of meth. The second sale occurred on April 26, 2022, and yielded 1¾ ounces of meth. The third sale occurred on August 24, 2022, and yielded 2 ounces of meth. On March 2, 2023, the undercover investigator arranged another deal to purchase 8 ounces of meth from Kohler. Kohler was pulled over in Lincoln, Nebraska before completing the sale. During a search of Kohler’s vehicle, over 8 ounces of meth was found in his possession. Evidence from Kohler’s phone dating back to February 13, 2022, corroborated Kohler’s involvement in meth trafficking with other parties. This case was investigated by the Nebraska State Patrol as part of the Lincoln/Lancaster County Narcotics Task Force.


title: Omaha Man Sentenced to 14 Years in Prison for Methamphetamine Charges

body_text: United States Attorney Susan Lehr announced that Cory A. Goforth, age 42, of Colorado Springs, Colorado, was sentenced August 22, 2024, in federal court in Omaha, Nebraska, after having pled guilty to conspiracy to distribute methamphetamine, and delivery of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Goforth to 168 months’ imprisonment. There is no parole in the federal system. After Goforth’s release he will begin a 5-year term of supervised release. On July 5, 2023, a cooperating witness purchased 27 grams of actual meth from Goforth at an Omaha location. On July 26, 2023, a search warrant was conducted at Goforth’s Omaha residence. Officers found 115 grams of meth along with evidence of drug dealing. Goforth was home at the time and during a post arrest interview, admitted to purchasing 2-3 pounds per week for the past 4-5 months from his supplier. This case was investigated by the Douglas County Sheriff’s Office


title: Danville Man Sentenced to More Than 12 Years for Federal Robbery, Firearm Charges

component: USAO - Virginia, Western

body_text: ROANOKE, Virginia – A Danville man, who robbed a gas station in December 2022 during which he fired a handgun, was sentenced yesterday to 150 months in prison on federal robbery and firearm charges. Isaac Graham, 42, pleaded guilty earlier this year to Hobbs Act robbery and discharging a firearm during a crime of violence. According to court documents, in December 2022, Graham entered a Danville convenience store with a handgun, fired a round into the floor, and demanded money from the store clerk. Graham fled with approximately $1,400 but was arrested a short time later by the Danville Police Department. United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Danville Police Department investigated the case. Assistant U.S. Attorney Lee S. Brett prosecuted the case for the United States. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Fort Myers Drug Trafficker Convicted Following Bench Trial

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Nicholas P. Smith (45, Fort Myers) has been found guilty of possession with intent to distribute a controlled substance following a bench trial before United States District Judge Sheri Polster Chappell. Smith faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for November 18, 2024. According to evidence presented at trial, on September 5, 2023, officers with the Fort Myers Police Department stopped Smith for multiple traffic infractions near Winkler Avenue and Fowler Street in Fort Myers. During a subsequent search of Smith, officers retrieved a large plastic bag containing 11 smaller bags of a pink powdery substance that later tested positive for Para-fluorofentanyl and fentanyl. This case was investigated by Homeland Security Investigations and the Fort Myers Police Department. It is being prosecuted by Assistant United States Attorney Patrick L. Darcey.


title: Former Luxury Homebuilder Sentenced for Fraud Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – The former owner of a now-defunct luxury home building business in West Springfield was sentenced yesterday for conspiring to defraud the United States and creating false documents to help one of his clients obtain a mortgage. Kent Pecoy, 66, of San Marco, Fla., previously of Wilbraham, Mass. was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (one day) and two years of supervised release. He was also ordered to pay a $24,000 fine and $35,982 in restitution. In May 2024, Pecoy pleaded guilty to two counts of conspiracy to defraud the United States and one count of making a false statement to a federally insured financial institution. Kent Pecoy was previously indicted in December 2019 along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020 . Kent Pecoy owned and operated Kent Pecoy & Sons, Construction Inc. (KPSC) – a West Springfield-based commercial and luxury home construction company – as well as Sturbridge Development, LLC (Sturbridge) and Legacy General Contractors, LLC (Legacy). KPSCI constructed two homes for Kennedy in East Longmeadow and West Dennis – for which Kennedy paid Kent Pecoy in cash. From 2009 through 2016, Pecoy conspired with others to conceal income from the IRS by dealing in cash. Specifically, Pecoy received $1,116,900 in cash payments from Kennedy for the purchase and construction of custom-built homes in East Longmeadow and on Cape Cod. Kent Pecoy failed to deposit most of the cash into business bank accounts, and instead distributed the cash directly to vendors and subcontractors. For the payments Kent Pecoy did deposit, he deposited the cash in amounts less than $10,000 to avoid the filing of currency transaction reports. Kent Pecoy also created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in KPSC’s accounting system to conceal the cash payments. Additionally, in January 2010, Kent Pecoy and Kennedy made false statements to Charles Schwab Bank on a loan to Kennedy and his wife for the construction of a residence in East Longmeadow in an attempt to conceal $160,000 cash down payment. These false statements included understating the sale price of the residence lot, the price of the construction and the deposit and earnest money paid by Kennedy. On April 24, 2024 , Kennedy was sentenced to 13 months in prison after being convicted by a federal jury for conspiracy to defraud the United States and making a false statement to a federally insured financial institution. Jason Pecoy was convicted in June 2024 of two counts of conspiracy to defraud the United States and is scheduled to be sentenced on Sept. 12, 2024. Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office are prosecuting the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.


title: Convicted Felon Found with Gun in Vehicle at Caddo Parish Juvenile Courthouse Sentenced

body_text: SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that William S. Watts, Jr. , of Shreveport, has been sentenced by United States District Judge Elizabeth E. Foote to 40 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. According to information presented in court, on June 8, 2022, officers with the Shreveport Police Department responded to a call from an individual who saw Watts with a gun on his person. Watts was prohibited from possessing a firearm due to his 2007 felony conviction for possession with intent to distribute a controlled substance. Officers proceeded to Watts’ residence where they were told by his girlfriend at the time that her gun was missing, and Watts was on his way to the Caddo Parish Juvenile Court. Other officers were dispatched to assist and intercepted Watts at the juvenile courthouse and secured the Ruger 9mm pistol which was found on the passenger floorboard of his car. He admitted to officers that he knew he was not supposed to have any firearm in his possession. The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and Shreveport Police Department and prosecuted by First Assistant United States Attorney Alexander C. Van Hook. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn . # # #


title: Maxton Man Sentenced to 20 Years on Firearms and Drug Convictions

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – A Robeson County man was sentenced to 240 months in prison for distributing cocaine, possessing with the intent to distribute five grams or more of methamphetamine, and possession of a firearm by a felon. On April 9, 2024, Lloyd Kinston Locklear, age 34, pled guilty to the charges. According to court documents and other information presented in court, Locklear sold 3.7 grams of cocaine to a confidential informant on January 26, 2022. Robeson County Sheriff’s Deputies were able to obtain a search warrant for Locklear’s residence after that controlled sale and executed the search warrant on January 27, 2022. Locklear fled from the scene in a vehicle when police arrived, and unsuccessfully attempted to jump a ditch. He exited the vehicle and was apprehended near a bookbag that contained five grams of cocaine, 19.75 grams of Ice (99% pure methamphetamine), <1 gram of methamphetamine, 42.62 grams of heroin, eight hydrocodone pills, 50 oxycodone pills, nine amphetamine pills, 16 diazepam pills, 18 alprazolam pills, 45 grams of marijuana, and digital scales. Locklear also had $241 dollars on his person. A search of a car at his residence found a .22 caliber handgun and a .32 caliber revolver in the trunk of a car. Locklear admitted the firearms were his and admitted to selling narcotics. Locklear was charged by the state and was released on bond. On November 2, 2022, Maxton Police Department Officers arrested Locklear on an outstanding state warrant for possession of a firearm by a felon and found him with 29.94 grams of Ice (98% pure methamphetamine) and $664. Locklear admitted the methamphetamine was his and stated that he used to sell cocaine. He was again charged by the state and released on bond. On December 21, 2022, a federal grand jury returned an indictment against Locklear charging him with distribution of cocaine (January 26, 2022), possession with the intent to distribute methamphetamine (January 27, 2022), possession of a firearm by a convicted felon (January 27, 2022), and possession with the intent to distribute methamphetamine (November 2, 2022). On January 20, 2023, Robeson County Sheriff’s Deputies observed a vehicle traveling on I-95 failing to maintain its lane. Officers stopped the vehicle on suspicion of DUI and encountered Locklear, a rear passenger in the vehicle. Deputies requested Locklear step out of the vehicle which he did, but he quickly began to resist the deputy’s attempt to arrest him on the federal warrant. Locklear was handcuffed with his hands in front of him and failed to comply with commands. The deputy pulled out his taser and Locklear lunged towards him striking the deputy in the chest and arms knocking the taser out of the deputy’s hands and his body worn camera off his chest. The deputy recovered his taser and then tried unsuccessfully to taser Locklear, who was aggressively walking toward the deputy stating, “come on bruh.” The deputy grabbed Locklear by the handcuffs, but Locklear pulled away walking to the front of the vehicle. Locklear then thrust his arms forward stating, “get back, get back” and the deputy saw what he believed to be a firearm in Locklear’s handcuffed hands. The deputy drew his weapon and fired at Locklear but did not strike him. Locklear then walked to the rear of the deputy’s patrol vehicle and laid down in surrender. Deputies searched the area and located a stolen .45 caliber handgun in the grassy shoulder of I-95 approximately 50 feet behind the stopped vehicle. Between January 2022 and his federal arrest in January 2023, Locklear was out on bond for state charges of burglary, conspiracy to commit robbery with a dangerous weapon, robbery with a dangerous weapon, and first-degree murder stemming from an incident that occurred on June 3, 2020. Locklear was also on bond for state charges of breaking and entering, larceny after breaking and entering, and conspiracy to breaking and entering or larceny stemming from an incident that occurred on April 26, 2021. All state charges Locklear faces are from Robeson County, and all are still pending. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. Robeson County Sheriff’s Office, Maxton Police Department and ATF investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-141-BO-BM. ###


title: Washington D.C. Man Sentenced to Eight Months in Prison for Stealing $32,000 in High-End Goods

body_text: BOSTON – A Washington D.C. man was sentenced yesterday in federal court in Boston for stealing thousands of items from a high-end outlet store in Wrentham, Mass. Linworth Hayes Crawford, III, 30, was sentenced by U.S. District Court Judge Indira Talwani to eight months in federal prison, to be followed by two years of supervised release. Crawford must also pay $32,000 in restitution to the Gucci store at the Wrentham Outlets. In February 2024, Crawford pleaded guilty to one count of conspiracy to transport stolen goods in interstate commerce and one count of interstate transportation of stolen goods. On the evening of Sept. 16, 2021, Crawford, along with his co-defendants Nathaniel Owens, and others traveled from the Washington D.C. area to the Wrentham Village Premium Outlets in Massachusetts. In the early morning hours of Sept. 17, 2021, Crawford and his co-defendants entered the Gucci store by smashing the store’s glass front door and stole $32,000 in high-end merchandise including handbags, duffle bags, backpacks and sunglasses. The day after the theft, a co-defendant allegedly posted on his Instagram account that he had Gucci bags available for sale. Images of the bags appeared to be identical to the Gucci bags stolen during the burglary earlier that day. Crawford also took responsibility for a second similar burglary at a Prada store in Dawsonville, Georgia, where $37,000 in merchandise was stolen. Owens pleaded guilty in April 2024 and is awaiting sentencing. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Wrentham Police Department. Assistant U.S. Attorney Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.


title: Possession of Contraband Nets Inmate an Additional 18 Months

body_text: NEW BERN, N.C. – A federal inmate pled guilty to possessing Buprenorphine (also referred to as Suboxone) in the Federal Correctional Institution I in Butner, North Carolina “FCI Butner I,” and was sentenced to 18 months in prison for the charge. The 18-month term of imprisonment is in addition to, and consecutive to, his current term of imprisonment. According to court documents and other information presented in court, Juan Martir, 57, an inmate housed at FCI Butner I at the time of the offense, was found in possession of 45 individually wrapped strips of Buprenorphine, a schedule III-controlled substance, in his cell. On the date in question, a Unit Officer noticed that Martir’s cell door was covered, in violation of institution rules. When he went to investigate, he found Martir at the desk with the strips of Buprenorphine covered up with a hat. Possession of illicit substances in prison is strictly prohibited, and creates a dangerous security risk to inmates, staff, and the institution. Martir’s conviction for possession of contraband Buprenorphine also makes him ineligible to earn time credits under the First Step Act, which allows federal inmates to earn up to 365 days off of their sentence for participating in eligible programming while incarcerated. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Prisons investigated the case and Special Assistant U.S. Attorney Mallory Brooks Storus prosecuted the case. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00122-M-KS. ###


title: Osceola Man Arrested For Defrauding Federal Criminal Forfeiture

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Levelle Joseph Harris (38, Kissimmee) on an indictment charging him with four counts of wire fraud. If convicted, Harris faces up to 20 years in federal prison on each count. Harris is also facing a forfeiture order of $651,432, a sum which represents the total amount of proceeds obtained by Harris from the wire fraud scheme. A federal grand jury had indicted Harris on August 6, 2024. According to court documents, between February 7, 2022, and January 31, 2023, Harris devised a scheme to defraud by obtaining a mortgage through false representations. Harris then used the proceeds from the fraudulently obtained mortgage to purchase a residence that was subject to federal criminal forfeiture. Harris fraudulently obtained more than $650,000 as part of the scheme. An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty. This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk. Assistant United States Attorney Jennifer Harrington is handling the forfeiture.


title: Over 20 Defendants Sentenced to Prison in Multi-Million Dollar National COVID-19 Fraud Scheme

body_text: RALEIGH, N.C. – Two additional defendants were sentenced this week in a national COVID-19 fraud, including, Toni A. Smith, who was sentenced to 15 months in prison; and Dontae Antonio Murphy, who was sentenced to 12 months in prison. Collectively, these Defendants were also ordered to pay several hundred thousand dollars in restitution to the Small Business Administration, which included interest and processing fees, for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans. Murphy, 40, of Charlotte, and Smith, 46, of New Jersey, had both obtained a fraudulent PPPs loan on behalf of their purported janitorial and cleaning services companies. As of today, 22 defendants have now been sentenced to prison for their role in the scheme. To date, an additional nine defendants have pled guilty to this scheme in the Eastern District of North Carolina and are awaiting sentencing. “This is the latest in a series of defendants involved in a national conspiracy to steal taxpayer money meant to be a lifeline to our nation’s most vulnerable businesses during a global pandemic,” said U.S. Attorney Michael Easley. “Even though the pandemic is behind us, we are working closely with our partners at the IRS to identify, investigate and prosecute cases of fraud to put cheats behind bars and recover taxpayer money.” According to the filed charges and information summarized in court, Smith and Murphy had conspired with Edward Whitaker, Schunda Coleman, and others to obtain fraudulent PPP loans. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud from their home in Texas. Whitaker and Coleman created fraudulent supporting documents and applications for each PPP loan in exchange for 25% of the total loan proceeds. The fraudulent applications grossly inflated the number of employees and wages being paid prior to the COVID-19 pandemic by backdating fraudulent IRS forms. Following the disbursement of the PPP loans, Whitaker gave each defendant, via text messages subsequently obtained by law enforcement, detailed instructions as to how to make it appear that the PPP loans were being paid out to employees. In reality, most or all of the money was transferred back to the defendants. The fraudulent payroll records were then submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness. “The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.” Defendants that have been sentenced so far include: Albert Eugene Miller, Jr. [Case No. 5-22-CR-00290-D] Jonathan Fleming [Case No. 5-22-CR-00337-D] Nekita Hooks [Case No. 5-23-CR-00025-D] Shakeerah Kaneisha Yvette Vinson [Case No. 5-23-CR-00027-D] Denise Coit Alston [Case No. 5-23-CR-00077-D] Terron Cortez Parker [Case No. 5-23-CR-00081-D] Monica Faye Barnes [Case No. 5:23-CR-00094-D] Dontrell Barnes [Case No. 5-23-CR-00094-D] Kami D. Woodard [Case No. 5-23-CR-00095-D] Isaac Lamont Dawson [Case No. 5:23-CR-0097-D] Irene Edwards [Case No. 5-23-CR-00098-D] Jackson Ndoyo [Case No. 5-23-CR-00118-D] Lenille Woodard [Case No. 5-23-CR-00138-D] Natosia Jerome Jenkins [Case No. 5:23-CR-00167-D] Teresa Ann McRae [Case No. 5:23-CR-00313-D] Delvin Dashavone Felder [Case No. 5:23-CR-00198] Shun Lamont Gibbs [Case No. 5:23-CR-00346-D] Karim Aziz Razzak [Case No. 5:23-CR-00324] Anthony S. Whitaker [Case No. 5:23-CR-00311-D] Darian Casteele Tyler [Case No. 5:23-CR-00338-D] Defendants awaiting sentencing include: Quentin Jackson [Case No. 5-23-CR-180-D] Edward Whitaker [Case No. 5-22-CR-00257-D] Schunda Coleman [Case No. 5-22-CR-00257-D] Ayyub Abdur Rasheed [Case No. 5:23-CR-00314-D] Ronald L. Jones [Case No. 5:23-CR-00339-D] Everett M. McBride [Case No. 5:24-CR-00036-D] Hanif Abdul-Hakim [Case No. 5:24-CR-00109-D] James Elton Watson Case No. 5:23-CR-00323-D] Shara Monique Wells [Case No. 5:23-CR-00323-D] The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA. Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge James C. Dever III announced the sentences. Internal Revenue Service Criminal Investigation (IRS-CI) is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case numbers 5:24-CR-00072 and 5:23-CR-00312-D. ###


title: Key Leader in Texas Human Smuggling Organization Sentenced to 40 Years in Federal Prison

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Mexican national was sentenced in a federal court in Del Rio to 480 months in prison for illegal alien transportation resulting in death. According to court documents, Nicolas Mondragon-Gonzalez, aka “Chayo” and “Flaco,” 36, of Luvianos, Mexico, was a leader and orchestrator of a human smuggling organization (HSO). Mondragon-Gonzalez had hired Sebastian Tovar, a driver who was sentenced in August 2023 to 420 months in prison for his role in the operation. Tovar had been transporting nine undocumented noncitizens when he led a Texas Department of Public Safety trooper on a pursuit and collided with another vehicle in the oncoming traffic lane. Eight of the nine passengers in Tovar’s vehicle were killed, while the two occupants of the other vehicle were seriously injured. Following the crash, U.S. Border Patrol agents encountered a second smuggling vehicle carrying undocumented noncitizens. The driver stopped and the occupants fled on foot. USBP agents were able to locate them. Mondragon-Gonzalez was arrested Sept. 28, 2021. He pleaded guilty to four counts January 10, 2022: one count of conspiracy to transport illegal aliens, one count of illegal alien transportation resulting in death, and two counts of transportation of illegal aliens. “The result in this case is a testament to this office's commitment to seek justice for our community members,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It reflects the hard work and interagency cooperation of our federal and state law enforcement partners, whose efforts brought this case to a successful conclusion.” “This defendant will spend the next 40 years in federal prison for his actions,” said Special Agent in Charge Craig Larrabee for HSI San Antonio. “Human smuggling is dangerous but as this case demonstrates, it’s also deadly. HSI will not stop investigating and bringing smugglers to face justice. There can be no safe haven for smugglers who evade our nations laws, endangering our communities and causing deaths.” Codefendant Ruben Junior Rodriguez-Jaimes, a foot guide, was sentenced in August 2023 to 180 months in prison. Rogelio Manuel Luna was sentenced in June 2024 to 108 months in prison with credit for time served. Jennifer Oralia Davis, aka “Paypa,” was sentenced in September 2023 to 151 months in prison with credit for time served. Four additional defendants pleaded guilty in 2023 to one count of illegal alien transportation resulting in death: Lauren Michelle Malmquist aka “Mama” and “Lala,” Veronica Torres-Mendez, and Eduardo Rivera Benitez aka “Lalo” and “Casper,” each face a maximum penalty of life in prison. Jose Eli Rodriguez faces a maximum penalty of 10 years in prison. Another individual indicted in the case, Marco Antonio Hernandez aka “Temo,” was arrested on June 27 in Houston. Hernandez had previously been sentenced on Oct. 11, 2023 to 24 months in prison with credit for time served. HSI, USBP and DPS investigated the case with valuable assistance from the Travis County Sheriff’s Office. Assistant U.S. Attorney Joshua Banister prosecuted the case. ###


title: Second Defendant Charged In Connection With Cattle Theft Scheme

body_text: CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Clint Clifford Sicking, 40, of Muenster, Texas, for his role in a $780,000 scheme involving the theft of livestock, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Miles B. Davis, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG), Southeast Region, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Sheriff Alan Norman of the Cleveland County Sheriff’s Office and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement. According to allegations in the indictment and documents in related court proceedings, from April 2018 to October 2022, Sicking conspired with William Dalton Edwards, 25, of Mount Airy, N.C., to defraud livestock markets, also known as sales barns, in Iredell and Cleveland Counties, North Carolina, and in Texas, Oklahoma, and Virginia. The indictment alleges that, on multiple occasions during the relevant time frame, Sicking and Edwards purchased cattle from sales barns in North Carolina and wrote checks to pay for the cattle, knowing the checks were worthless, since there were insufficient funds to cover the checks and pay for the cattle. As alleged in the indictment, Sicking and Edwards arranged to transport the cattle out-of-state before the defrauded sales barns and financial institutions could determine their checks were worthless. The stolen cattle were then resold in Texas and Oklahoma. Over the course of the scheme, Sicking and Edwards allegedly fraudulently obtained more than 900 head of cattle and caused over $780,000 in losses to sales barns in North Carolina. The sales barns—which are family-owned—incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock. Sicking is charged with conspiring to defraud the United States and to violate the laws of the United States. One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division of the U.S. Department of Agriculture in its regulation of fair livestock markets. Other objects of the conspiracy included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations; to steal livestock valued at more than $10,000; and to transport stolen livestock in interstate commerce. The conspiracy charge carries a maximum prison term of five years. Sicking is also charged with bank fraud, which carries a maximum sentence of 30 years in prison, and with one count of theft of livestock, two counts of interstate transportation of stolen livestock, and two counts of sale and receipt of stolen livestock, which carry a maximum of five years in prison per charged offense. On August 2, 2024, Edwards pleaded guilty for his participation in the scheme. A sentencing date for Edwards has not been sent. The charges against Sicking are allegations and the defendant is innocent until proven guilty beyond a reasonable doubt in a court of law. In making today’s announcement, U.S. Attorney King commended the USDA-OIG, the U.S. Secret Service, IRS-CI, and the Cleveland and Iredell County Sheriff’s Offices for their investigation of the case. U.S. Attorney King also thanked the Stanly County District Attorney’s Office for its assistance. Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: Recruiter for Mexican Drug Trafficking Organization Sentenced to 20 Years in Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: EL PASO, Texas – A Mexican national was sentenced in El Paso to 245 months in prison for two counts related to her role in a drug trafficking conspiracy. According to court documents, Karla Adriana Votta-Cardenas aka “Adriana,” aka “Samantha,” aka “Sophia,” 43, of Ciudad Juarez, Chihuahua, Mexico, worked for a drug trafficking organization (DTO) led by Jorge Sanchez-Morales , primarily trafficking methamphetamine. The organization imported liquid methamphetamine from Juarez, Mexico into El Paso, and then transported it to Atlanta concealed in the fuel tanks of semi tractors. In Atlanta, the liquid methamphetamine was converted to a crystalline form and distributed. Sanchez Morales oversaw the operation on behalf of the Jalisco New Generation Cartel, otherwise known as CJNG. Votta-Cardenas served as a large scale recruiter for the DTO, recruiting drivers through “help wanted” ads on social media. Votta-Cardenas recruited more than 20 drivers using this method, withholding the fact that they would be trafficking drugs. Votta-Cardenas was arrested by Mexican authorities and extradited to the U.S. from Mexico on Nov. 1, 2023. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. Homeland Security Investigations and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Steven Spitzer and Nathan Brown prosecuted the case. ###