Former College Track and Field Coach Charged in Cyberstalking, Extortion and Fraud Investigation

 Defendant coached at Boston, Chicago, Pennsylvania and Tennessee universities

BOSTON – A former track and field coach at various universities was arrested and charged today in connection with a scheme to trick female student-athletes, through sham social media accounts, into sending him nude or semi-nude photos. The defendant also allegedly cyberstalked at least one female student-athlete.

Steve Waithe, 28, of Chicago, Ill., was charged by criminal complaint with one count of cyberstalking and one count of wire fraud. Waithe was arrested today in Chicago and will make an initial appearance in federal court in the Northern District of Illinois this afternoon. He will appear in Boston at a later date.

According to charging documents, Waithe was employed as a track and field coach at Northeastern University in Boston from October 2018 to February 2019. It is alleged that during that time, Waithe frequently requested to use female athletes’ cellphones under the pretense of filming their form at practice and at meets. At times, he was observed “scrolling through” the phones.

Beginning in at least February 2020, Waithe allegedly perpetrated a scheme to dupe female Northeastern University track and field athletes into sending him nude or semi-nude photos of themselves. Specifically, Waithe contacted the alleged victims through social media accounts, stated that he had found compromising photos of them online and offered to “help” get the photos removed from the internet. Under this pretense, it is alleged that Waithe requested additional nude or semi-nude photos that he could purportedly use for “reverse image searches.” He used various pseudonyms on social media including variations of the phrase “Privacy Protector,” “Katie Janovich,” and “Anon” followed by various numbers.  

As detailed in court documents, from at least June 21, 2020 to Oct. 3, 2020, Waithe cyberstalked at least one female Northeastern student-athlete through messages sent via social media, an anonymized phone number and intrusion into her Snapchat account. The investigation revealed that internet search and browsing history tied to Waithe allegedly included searches for information on how to hack Snapchat accounts and visits to webpages with titles like, “Can anyone trace my fake Instagram account back to me?”

Under the purported premise of an “athlete research” or “body development” study, it is alleged that Waithe emailed prospective victims using the personas of “Katie Janovich” and/or “Kathryn Svoboda.” The emails described a phony study for athletes and requested information relating to height, weight and diet habits. The emails also included a request for the victims to send photos of themselves in a “uniform or bathing suit to show as much skin as possible” and suggested that the photos would not be shared or saved. The emails often included attachments of sample nude and semi-nude images of “Katie” to illustrate the types of photos that victims should send. According to court documents, investigators have identified more than 10 victims of the “body development study” scheme and over 300 related nude and semi-nude images of victims of the scheme in Waithe’s email accounts.

According to charging documents, Waithe previously worked as a track and field coach at several academic institutions, including Penn State University, Illinois Institute of Technology, University of Tennessee and Concordia University Chicago.

If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-steven-waithe

The charge of cyberstalking provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. The Northeastern University Police Department provided substantial assistance with the investigation; the Suffolk County District Attorney’s Office and the Chicago Police Department also provided valuable assistance. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Wheeling residents indicted on drug charges

 WHEELING, WEST VIRGINIA – Cordale Antonio Williams and Tina Soper, of both of Wheeling, West Virginia, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.

Williams, 30, was indicted on one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Methamphetamine, and Cocaine Hydrochloride,” one count of “Distribution of Cocaine Base,” one count of “Unlawful Possession of a Firearm,” one count of “Unlawful Possession of Ammunition,” one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.” 

Soper, 43, was indicted on one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Methamphetamine, and Cocaine Hydrochloride,” one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine,” and one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride,” and one count of “Maintaining a Drug-Involved Premise.” 

Both are accused of working together to distribute cocaine base, methamphetamine, and cocaine hydrochloride from the summer of 2020 to March 2021 in Ohio County.  Williams, a person prohibited from having firearms because of prior convictions, is accused of having two 9mm pistols, a .380 pistol, a semi-automatic rifle, and 105 rounds of various ammunition. Soper is also accused of maintaining a house for drug trafficking on Edgwood Street in Wheeling.

Williams and Soper each face at least 10 years and up to life incarceration and a fine of up to $10,000,000 for the conspiracy charge and face up to 20 years of incarceration and a fine of up to $1,000,000 for each of the other drug possession charges. Williams is also facing up to 10 years of incarceration and a fine of up to $250,000 for each of the firearms charges. Soper is also facing up to 20 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
 

Sexual Predators Sentenced for Attempted Coercion and Enticement, Distribution of Child Pornography

 PLANO, Texas – Two men have been sentenced for crimes against children, including attempted coercion and enticement of a minor and distribution of child pornography, in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

“The Eastern District of Texas, along with its law enforcement partners, is committed to locating and stopping the most dangerous predators,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Many of the events of these cases occurred during the height of the pandemic; however, these agents never stopped working to ensure the safety of the children in our community.”

“Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish once they occur,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are thankful for the collaboration of our partners in the Dallas Child Exploitation and Human Trafficking Task Force. It is because of this partnership that these two individuals are now facing lengthy sentences for their crimes.”

Christopher A. Sheffer, 58, of Media, Pennsylvania pleaded guilty to attempted coercion and enticement of a minor on Oct. 30, 2020 and was sentenced to 240 months in federal prison today by U.S. District Judge Sean D. Jordan.  Judge Jordan also ordered Sheffer to pay a fine of $40,000 and a $5,000 assessment pursuant to the Justice for Victims of Trafficking Act of 2015. 

According to information presented in court, in September 2019, Sheffer was the administrator of a group on a popular social media and communications application.  As an administrator, he had the authority to determine who could join the group, which was devoted to incest and individuals who sexually abuse children.  Participants in the group shared child pornography as well as their interest in molesting children.  Sheffer privately communicated with an individual who he believed had access to a prepubescent child.  Over the next few months, Sheffer expressed his interest in meeting the child for sex, mailed the child gifts, and sent the child private messages.  On July 10, 2020, Sheffer flew from his home in Pennsylvania to Texas, where he then rented a car and drove to a specific location to meet the child and engage in sexual acts.

Judge Jordan also sentenced Thomas Earl Cardwell, Jr., 43, of Kemp, Texas, to 210 months in federal prison.  Cardwell had previously pleaded guilty to distributing child pornography on Oct. 19, 2020. 

According to information presented in court, Cardwell had been arrested for and convicted of online solicitation of a minor, sexual conduct in July 2019 in the 371st District Court of Tarrant County, Texas.  He was released from the Texas Department of Criminal Justice in December 2019.  Two months later, in February 2020, Cardwell began communicating with individuals on a social media application about his desire to perform oral sex on female children.  As part of those communications, on March 6, 2020, Cardwell distributed four videos of child pornography, depicting prepubescent minors engaged in sexually explicit conduct.

This case is 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

These cases were investigated by the Federal Bureau of Investigation – Dallas Child Exploitation and Human Trafficking Task Force and members of the Plano Police Department.  These cases were prosecuted by Assistant U.S. Attorney Marisa Miller.

Deputy constable arrested on drug and money laundering charges

HOUSTON – A Harris County deputy constable has been charged with conspiring with his girlfriend to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Jennifer Lowery.

A federal grand jury returned a three-count indictment April 1 against Alexsander S. Reyes, 47, and his girlfriend, Priscilla Yvette Cervantes, 44, both of Huffman. They were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Andrew M. Edison tomorrow at 2 p.m.

The indictment alleges Reyes laundered what he believed was $350,000 in drug proceeds over a four-month-period. At the time of the offense, Reyes was a deputy constable with Harris County Precinct 1 Constable’s Office.

Reyes and his girlfriend are charged with one count of conspiracy to possess with the intent to distribute cocaine. If convicted, they face a minimum of 10 years and up to life in prison as well as a possible $10 million maximum fine. Reyes also faces up to 20 years if convicted of either of the two counts of money laundering.

The FBI conducted the investigation with Harris County Constable Precinct 1 as part of the FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department and the Texas Department of Public Safety. 

Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.  

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Former Latin Kings East Coast Leader Pleads Guilty to Racketeering Conspiracy

 BOSTON – The former East Coast leader of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering and drug charges.

Michael Cecchetelli, a/k/a “King Merlin, 41, of Springfield, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 8, 2021.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

As stated during the plea hearing, Cecchetelli led the Latin Kings’ criminal activity in the Eastern Region and held the title of Supreme Regional Overseer for the East Coast. Cecchetelli is the conduit between each of the Eastern Region states and the Latin Kings national leadership in Chicago. In this position, thousands of Latin Kings members fell under his authority. Cecchetelli developed a leadership approach to the gang which became a model for other Latin Kings regions across the country. Cecchetelli also organized conspiracies to murder two members of the Latin Kings who accused him of cooperating with law enforcement. 

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Cecchetelli is the 43^rd defendant to plead guilty in the case.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

West Haven Man Sentenced to Federal Prison for Firearm and Cocaine Offenses

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN MELENDEZ, 32, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by six years of supervised release, for cocaine distribution and ammunition possession offenses.

According to court documents and statements made in court, Melendez was arrested on January 7, 2020, after a court-authorized search of his West Haven residence and a car parked at the residence revealed a loaded .22 caliber pistol, a distribution quantity of cocaine, and items used to process and package narcotics for street sale.  Melendez’s residence is located in proximity to the Washington Elementary School.

Melendez’s criminal history includes felony convictions for firearms possession offenses in Connecticut and North Carolina.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

On January 4, 2021, Melendez pleaded guilty to one count of possession of ammunition by a convicted felon, and one count of possession with intent to distribute cocaine near a school.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Haven Police Department.  The case was prosecuted by Assistant U.S. Attorney Patrick J. Doherty.

Pennsylvania Resident Charged with Fentanyl Trafficking Offenses

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury in Hartford returned an indictment today charging REGINO MORILLO-ESPINAL, 38, of Allentown, Pennsylvania, with possession with intent to distribute 400 grams or more of fentanyl.

As alleged in court documents, members of the Drug Enforcement Administration’s Hartford Task Force identified Morillo-Espinal as a trafficker of wholesale quantities of fentanyl.  On March 26, 2021, investigators stopped Morillo-Espinal’s vehicle on I-91 South after he had traveled from Allentown to multiple locations in Hartford.  A search of the vehicle revealed approximately two kilograms of suspected fentanyl.

The charge of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

Morillo-Espinal has been detained since March 26, 2021.

Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.  The Connecticut State Police has assisted the investigation.

This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Charleston Man Sentenced to Five Years in Federal Prison for Distribution of Methamphetamine

 CHARLESTON, W.Va. – Jawhar Baruti Jones, 41, of Charleston, was sentenced to 60 months in prison to be followed by four years of supervised release for distribution of methamphetamine.  Jones pleaded guilty to the charge in January 2021.

According to the plea agreement and statements made in court, Jones sold methamphetamine to a confidential informant in Charleston on three separate occasions in May 2017.  In total, Jones distributed approximately 161 grams of 98% pure methamphetamine during the investigation.  A search warrant was executed at Jones’ residence shortly after the third transaction and law enforcement officers found several bills of United States currency with serial numbers matching those previously utilized by the confidential informant to purchase methamphetamine from Jones.   

The Drug Enforcement Administration (DEA) conducted the investigation with the assistance of the West Virginia State Police.   Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence.  Assistant United States Attorney Jeremy B. Wolfe handled the prosecution.

Previously Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child Pornography

 Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Santos Nicolas Obando-Flores, age 48, of Brentwood, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography.  Judge Messitte also ordered that, upon his release from prison, Obando-Flores must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  In 2015, Obando-Flores was convicted of a sex offense after engaging in sexual contact with a nine-year-old minor and was sentenced to 20 years in prison with all but six years suspended.

The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police (MSP).

According to his guilty plea, on September 13, 2018, Obando-Flores was being administered a routine polygraph examination by a Maryland State Police polygraph examiner.  The routine polygraph was required because Obando-Flores was a registered sex offender.  During the post-polygraph interview, Obando-Flores admitted to the polygraph examiner that he had viewed child pornography on his cellphone and that the pornography was still on the cellphone. Obando-Flores also admitted to having as many as one hundred videos containing child pornography on his phone.

The polygraph examiner stopped the interview and read Obando-Flores his Miranda Rights, which Obando-Flores acknowledged that he understood.  Obando-Flores agreed to speak with law enforcement without an attorney present and again admitted to the MSP polygraph examiner that there was child pornography on his cellphone.  He explained to the polygraph examiner that he got it from a Facebook page and that he received multiple videos of child pornography through a “group chat” from an application on his phone. Obando-Flores was able to describe some videos depicting prepubescent minors engaged in sex acts or provocatively posed.  Obando-Flores admitted that he started getting the videos approximately six to eight months prior.

The polygraph examiner confiscated Obando-Flores’s cellphone, which Obando-Flores had brought with him to the scheduled meeting and Obando-Flores consented to the search of his phone.  An MSP trooper previewed the phone and found numerous files of suspected child pornography. Obando-Flores was arrested and a federal search warrant was obtained from the phone.  Forensic analysts identified approximately 359 videos and 200 images documenting the sexual abuse of minors. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.  For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.         

United States Attorney Jonathan F. Lenzner commended HSI-Baltimore and the Maryland State Police for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Jennifer R. Sykes, who prosecuted the federal case.

Three Plead Guilty to Methamphetamine Charges

 Three defendants have pleaded guilty to methamphetamine charges that resulted from an investigation conducted by the Tulsa Housing Authority Community Enhancement Unit and the Drug Enforcement Administration.

Albert Douglas Parker, 35, and Tina Marie Tankersley, 33, pleaded guilty to conspiring with Charles Studie and others to distribute pure methamphetamine and to maintaining their public housing unit as a drug involved premises to use and distribute methamphetamine. Marty Jay Foster, 53, pleaded guilty to maintaining a drug involved premises to use methamphetamine.

“The Tulsa County Sheriff’s Office, DEA, and my office dismantled this methamphetamine distribution operation, and these defendants now face time in federal prison for their crimes,” said Acting U.S. Attorney Clint Johnson. “The law enforcement community remains committed to protecting families living within Tulsa’s neighborhoods from this deadly drug and from the violence that accompanies methamphetamine distribution.”

Parker and Tankersley admitted that they intentionally conspired with others to possess methamphetamine with intent to distribute the drug from June 2019 to August 2020. The two defendants’ involvement required the participation, direction, and action of others, and all parties worked together for their shared mutual benefit, including monetary profit and drugs. The two further admitted to maintaining their public housing unit for the purpose of distributing and using methamphetamine beginning on Nov. 15, 2019. Parker will be sentenced June 29, 2021, and Tankersley will be sentenced July 2, 2021.

Foster pleaded guilty to maintaining a drug-involved premises for the purpose of using methamphetamine from June 2019 to August 2020. Sentencing is set for June 30, 2021.

Also named in the indictment is Charles Dean Studie, 36, of Tulsa, who pleaded guilty on Jan. 28, 2021, to drug conspiracy, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. He will be sentenced May 26, 2021.

The Tulsa County Sheriff’s Office and Drug Enforcement Administration conducted the investigation. Tulsa County Sheriff’s Deputies that make up the Tulsa Housing Authority Community Enhancement Unit pursued this investigation as part of their responsibility to ensure the safety and security of the families that live within the Tulsa Housing Authority complexes. The Community Enhancement Unit (CEU) was created through a partnership between the Tulsa County Sheriff’s Office and the Tulsa Housing Authority.

Assistant U.S. Attorneys Christopher Nassar and Ryan Heatherman are prosecuting the case.

Maryland Man Pleads Guilty to Federal Arson Charge for a 2017 Fire That Destroyed a Pasadena Bar

 Baltimore, Maryland –Jamie Clemons, age 36 of Pasadena, Maryland, pleaded guilty today to malicious destruction of a property by fire, in connection with the fire on July 28, 2017, at Coconut Charlie’s, a bar in Pasadena.  As a result of the arson, Coconut Charlie’s sustained over $500,000 in damage; the building was razed and the business was forced to permanently close.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; the Anne Arundel County Fire Chief Trisha L. Wolford; and the Anne Arundel County Fire Marshal Division Chief John Lane.

“This defendant not only caused devastating damage to a longtime Maryland business, he also endangered our brave firefighters who responded to the arson that he set,” said Acting U. S. Attorney Jonathan F. Lenzner.  “I’d like to thank ATF and our partners in Anne Arundel County for their impressive investigative work in solving this arson.  Arsons are often difficult crimes to uncover and prove in court, and I am grateful to our investigative and prosecution teams for their dedication and persistence.”

 According to the indictment and the government’s plea letter, on July 28, 2017, Clemons maliciously damaged and destroyed by fire a bar known as Coconut Charlie’s, located in the 9100 block of Fort Smallwood Road in Pasadena, in order to conceal evidence of an assault he had committed there on July 22, 2017.

As detailed in the statement of facts filed as part of the government’s plea letter, on July 22, 2017, at approximately 1 a.m., Clemons assaulted his girlfriend on the patio area of Coconut Charlie’s.  An Anne Arundel County Police officer witnessed the assault and it was also captured on Coconut Charlie’s video surveillance system.  As a result, Clemons was charged with second degree assault and theft of less than $100 in the District Court for Anne Arundel County, and was served with a summons for the case on July 27, 2017.

Clemons admitted that in the early morning hours of July 28, 2017, Clemons assembled multiple incendiary devices akin to Molotov cocktails, then lit the wicks for the devices on fire, and threw them at the exterior of Coconut Charlie’s in an attempt to burn the structure and destroy the video surveillance system, which had captured his assault on his girlfriend the week prior.

Due to the size of the fire, several agencies responded in an attempt to control and extinguish the fire, and a firefighter sustained injuries due to the force of a backdraft that caused him to fall off a ladder. A fire scene examination was conducted, and the area of origin of the fire was determined to be the west exterior of the restaurant. Investigators reviewed the exterior camera footage from the video recording system, which remained operational after the fire, and were able to observe multiple flashes of light (at least three), followed by a sustained fire on the west exterior of the structure.

Charred melted plastic cups, which had been filled with gasoline, and a burnt cloth used as a wick material were located on the roof and exterior grounds of the building, and most were found to contain the presence of gasoline.  Clemons admitted that he set the wicks on fire prior to throwing the devices on the roof.  An accelerant detection K9 also alerted to the presence of gasoline on the west side of the exterior just on the other side of the fence surrounding Coconut Charlie’s. This is the area where Clemons launched the devices at Coconut Charlie’s. A short distance away, along the north side of the exterior of the property fence line, a glove was found which tested positive for the presence of an ignitable liquid and contained Clemons’ DNA.

On November 30, 2017, a federal search warrant was obtained for Clemons’ text messages on his cell phone. The contents of those messages revealed that after the assault and in the days leading up to the fire, Clemons sent multiple text messages expressing concern as to whether police would obtain the video surveillance of the assault, and what the video had captured.

Clemons faces a mandatory minimum of five years in federal prison and a maximum sentence of 20 years in prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for July 13, 2021, at 1:30 p.m.

Acting United States Attorney Jonathan F. Lenzner commended the ATF, the Anne Arundel County Fire Department, and the Anne Arundel County Fire and Explosives Investigation Unit for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorneys Judson T. Mihok and Mary W. Setzer, who are prosecuting the case.

Repeat Fraudster Sentenced to Over Five Years in Prison for Operating Credit Card Fraud Ring from Latvia Targeting U.S. Citizens

 PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edgar Ivulans, 43, of Latvia, was sentenced today to five years and five months in prison, and was ordered to pay $12,754 in restitution, to forfeit $12,754, and to further pay a $4,000 special assessment by United States District Judge R. Barclay Surrick for operating a fraud scheme utilizing the stolen identities of U.S. citizens. The defendant, a Latvian citizen who was arrested in Germany and successfully extradited to the United States to face the charges in this case, operated the fraud scheme from his home in Latvia.

In June 2020, the defendant pleaded guilty to a 40-count Indictment charging one count of conspiracy to commit mail and wire fraud; 13 counts of wire fraud; 14 counts of mail fraud; one count of conspiracy to commit access device fraud; one count of production, trafficking in, and possession of device-making equipment; one count of production of counterfeit access devices; five counts of money laundering; and four counts of aggravated identity theft.

Ivulans had previously lived in the United States but was deported to his native Latvia after sustaining two fraud convictions in federal court in Illinois. Ivulans’ deportation and residency in Latvia did not stop him from operating the sophisticated fraud scheme in this case. As part of the scheme, Ivulans used stolen identities of U.S. residents to obtain credit cards in their names, which he sent to a co-conspirator based in Philadelphia, who in turn used the fraudulently opened credit cards to buy merchandise that was then sold or returned for cash. The Philadelphia-based co-conspirator would then wire the funds to other co-conspirators in Russia, or first to co-conspirators in Ireland and then to the defendant. Ivulans, while in Latvia, also created additional counterfeit credit cards using the U.S. victims’ credit card information, and sent the Philadelphia-based co-conspirator a magnetic stripe card reader, which was used to create new counterfeit credit cards that the co-conspirator used to purchase pre-paid debit cards and other goods. That merchandise was then shipped to more co-conspirators in Sweden and Ukraine, and directly to the defendant. When Latvian authorities, working in conjunction with the FBI, searched Ivulans’ home in Latvia, over 12,000 credit card numbers were found on his computer, along with at least ten full identity profiles of U.S. residents.

“Identity theft crimes like these have a devastating and long-lasting impact on the victims,” said Acting U.S. Attorney Williams. “Ivulans’ crimes are especially offensive because he committed them after sustaining other fraud convictions resulting in his deportation. Our Office will continue to do everything we can to ensure that such fraud scams are stopped and punished, whether the fraudsters are located here or abroad.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

Washington, D.C. Man Sentenced for Armed Robbery Spree

 ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to 21 years in prison in connection with a series of armed robberies that he conducted at multiple banks and a retail store in northern Virginia in 2018 and 2019.

According to court documents, Freddie Lee McRae, 35, committed a series of robberies in 2018 and 2019. On November 13, 2018, McRae robbed a Wells Fargo bank branch located in Alexandria. McRae handed a teller a note that demanded money, indicated he had a firearm, and threatened to “[k]ill [a]ll [b]ankers” if the teller did not comply. McRae pointed a firearm at two tellers before fleeing with approximately $8,750 in cash.

“This case involved a chilling armed robbery spree during which innocent community members were threatened with serious injury or death if they did not comply with repeated demands for money,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are thankful to our law enforcement partners for their thorough investigation across multiple jurisdictions to bring the defendant to justice, including apprehending him after he jumped out of a moving vehicle prior to it crashing and sinking into the Potomac River.”

“The FBI, along with our partners at every level of law enforcement, are committed to protecting the public from the most egregious and violent criminals who terrorize the community,” said James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s significant sentence demonstrates the seriousness and threat McRae posed to businesses and people in our community. The sentence is the result of teamwork among our partners to hold him accountable and prevent future violence.”

On December 10, 2018, McRae robbed a Burke & Herbert bank branch located in Alexandria. McRae approached a teller, who asked if he wanted to make a deposit. McRae responded, “gimmie your money,” before lifting up his shirt and pulling a pistol from his waistband, which he pointed at the teller. As the teller gathered money, McRae racked the slide on the pistol and demanded all large bills. McRae fled with approximately $1,366 in cash.

On April 21, 2019, McRae robbed the Legend Kicks & Apparel store located in Arlington. McRae brandished a pistol and demanded that two store employees empty their pockets, which they did. McRae then ordered the employees to lie on the floor before taking approximately $2,160 in cash that belonged to the store. McRae fled the store on foot and the area by vehicle. When a law enforcement officer tried to pull over the vehicle, McRae stopped only briefly before leading law enforcement officers on a vehicle pursuit on the George Washington Memorial Parkway. McRae ultimately jumped out of his moving vehicle prior to it crashing and sinking into the Potomac River. McRae tried to flee law enforcement by jumping into the river, but officers pulled him out and placed him under arrest.

As part of his guilty plea, McRae also admitted to robbing a Bank of America branch in Springfield on October 27, 2018; a BB&T branch located in Alexandria on December 20, 2018; and a Capital One branch located in Bowie, Maryland, on January 2, 2019. McRae further admitted to attempting to rob a Capital One branch located in Arlington on February 11, 2019, and to obstructing justice following his apprehension.

The bank robberies that McRae admitted to committing were investigated by the FBI as part of the “Beltway Bank Bandit” series.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Acting Chief Andy Penn, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

This case was investigated by the FBI Washington Field Office’s Northern Virginia Violent Crime Safe Streets Task Force, which is composed of FBI Special Agents and Task Force Officers from northern Virginia law enforcement agencies. Significant investigative assistance in this case was provided by the Arlington County Police and the Fairfax County Police. The task force is charged with identifying, investigating, and disrupting the most egregious and violent criminal actors within northern Virginia.

Assistant U.S. Attorneys Natasha Smalky and Alexander E. Blanchard 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. 1:19-cr-268.

Harrison County woman admits to meth charge

 CLARKSBURG, WEST VIRGINIA – Amber Ramos, of Hepzibah, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.

Ramos, also known as “Amber Finch,” 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Ramos admitted to selling methamphetamine in July 2018 in Harrison County.

Ramos is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.

U.S. Magistrate Judge Michael John Aloi presided.

Toledo man arrested and charged with selling fentanyl that caused two overdose deaths in Lucas County

 Acting U.S. Attorney Bridget M. Brennan announced that Gerald Isom, age 46, of Toledo, Ohio, was arrested today and charged in a two-count indictment for allegedly distributing fentanyl that caused six overdose incidents, two of which were fatal.

The Defendant is charged with two counts of distribution of a controlled substance. Both counts carry a penalty enhancement due to death or serious bodily injury resulting from the use of the substance and a prior felony drug offense. If convicted, the Defendant potentially faces a mandatory life imprisonment sentence.

According to the indictment, from December 26 to December 27, 2019, it is alleged that the Defendant distributed a controlled substance mixture containing fentanyl that caused six people in Lucas County to overdose, two of which were fatal. In addition, prior to committing these alleged offenses, the Defendant was convicted of felony drug trafficking of cocaine in the Lucas County Court of Common Pleas. 

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the Defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.

In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

This case was investigated by the Lucas County Sheriff's Office and the Cleveland Division of the FBI – Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Robert Melching.

Former Ft. Bragg Private Sentenced to More Than 12 Years After Taking 12-Year-Old “Girlfriend” Across State Lines in Fake Kidnapping

 NEW BERN, N.C. – A South Carolina man was sentenced today to 151 months in prison for transportation of a minor with intent to engage in criminal sexual activity.

According to court documents and statements made during hearings, on the morning of October 21, 2018, a New Bern woman found that her 12-year-old granddaughter was missing from the child’s bedroom.  The window was open, and a hand-written ransom note demanded $20,000 for her return.  Investigators found mulch from a flower bed on the granddaughter’s bed and smudges on the window but no sign of forced entry.  They reviewed the granddaughter’s Facebook account and found a page that identified the defendant James Murdoch Peele as a boyfriend. 

The Federal Bureau of Investigation (FBI) determined that Peele was enlisted in the US Army and stationed at Ft. Bragg.  They traced him to a barracks room, where the same afternoon they found Peele together with the minor victim.  A forensic examination confirmed that Peele had recently had sexual intercourse with the minor. 

Law enforcement interviewed a friend of Peele’s, also a soldier stationed at Ft. Bragg.  The friend described how a week before the apparent kidnapping, Peele had asked for a ride to his “girlfriend’s” house in New Bern.  Peele had shown a photo of the victim and claimed that she was 18 years old.  When they arrived, however, Peele instructed the friend to park at a vacant neighboring house, and Peele entered the home through a window.   The friend also entered the room and became concerned about the girl’s age after noticing childlike décor, including middle school photographs and a hamster.  The friend explained to investigators that he had become disgusted and left the room when Peele and the minor began kissing.    

Investigators determined that on the morning of October 21, after leaving New Bern, Peele drove the minor victim to his parents’ home in South Carolina.  During a brief stay, he introduced the 12-year-old to his parents as his girlfriend and claimed that she worked in a sewing shop.  They stayed for less than a half-hour before Peele’s sergeant called and Peele had to return to base. 

Back at Fort Bragg, Peele’s barracks roommate was present when Peele arrived with the minor shortly before noon.  As the roommate later recounted to investigators, the minor stayed in the room as Peele left to meet his sergeant.  Later, Peele returned and asked his roommate to turn up his music, which the roommate understood to mean that Peele planned to have sex with the girl behind a sheet that had been hung across the room for privacy.  The roommate left, and the FBI arrived soon after.  

During a forensic interviewed, the minor victim stated that she and Peele had been involved in a sexual relationship.  She had told Peele her true age, and he responded that age is just a number.  She admitted that she had not been kidnapped but denied coming up with the idea to stage a kidnapping. 

After his arrest, Peele made a videotaped confession.  He admitted to having sexual intercourse with the minor victim.  He also admitted to writing the ransom note, although he stated that the victim had asked to leave with him and had come up with the idea of staging a kidnapping.  Peele claimed that he believed the victim was 18 years old, but he admitted that he saw her at a sleepover with friends who looked very young, including one girl whose age he had seen to be 12 years old. 

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office and Federal Bureau of Investigation conducted the investigation.  Assistant U.S. Attorneys Jake D. Pugh and Erin Blondel prosecuted the case.

Florida Counseling Center Owner and Provider Convicted Of Medicaid Fraud, Conspiracy, False Statements, And Identity Theft

 

TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, today announced the convictions of Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland, and both formerly of Tallahassee, Florida. Both defendants were found guilty of health care fraud conspiracy, health care fraud, and aggravated identity theft. Fleming was also found guilty of making false statements in connection to health care matters. The convictions came yesterday after a 3-day federal bench trial that involved testimony from more than 15 witnesses and over 125 exhibits introduced into evidence.

“These convictions demonstrate that the United States Attorney’s Office is committed to aggressively and diligently prosecuting those who commit healthcare fraud,” said Acting U.S. Attorney Coody. “The concerted and cooperative effort of our federal and state law enforcement partners was critical to bringing these defendants to justice. We will continue to work toward our common goals of protecting our community members and preserving the integrity of our federally-funded healthcare programs.”

Storey owned and operated North Florida Mental Health (NFMH), a Tallahassee-based counseling center, and employed Fleming as a licensed mental health counselor. Evidence presented in court showed that between April 15, 2016 and December 31, 2017, Storey and Fleming improperly obtained, or attempted to obtain, more than $250,000 from Florida Medicaid by submitting fraudulent claims through NFMH. 

“Convicted fraudsters Storey and Fleming fraudulently billed the Medicaid program for bogus claims. The pair ignored an exclusion from all federal health care programs, thus stealing from this taxpayer-funded safety net program that is designed to provide legitimate health services to vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar. “Our investigators will continue to aggressively investigate such bad actors to hold them accountable and to send a warning to others tempted to loot from federal health care programs.” 

Fleming, who provided psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services to patients of NFMH, agreed to a five-year debarment from participating in any state Medicaid program as a result of a 2016 felony conviction involving Medicaid fraud in the state of New Jersey. Evidence presented in court proved that Fleming falsely claimed on an application to become a Florida Medicaid provider that she had not been convicted of, or pled guilty or no contest to, a felony.  Additional evidence demonstrated that Storey knew of Fleming’s conviction and debarment, and that Fleming was therefore ineligible to participate as a Florida Medicaid provider.   

During the trial, evidence showed that Fleming caused to be submitted – and that Storey submitted – multiple fraudulent Medicare claims by means of aggravated identity theft. In doing so, some of the false Medicare claims reflected that another eligible and licensed NFMH therapist performed services that, in reality, were provided by Fleming during the period of time that she was under debarment from participation in any state Medicaid program. The court heard evidence of additional instances in which the names and personal identification information of NFMH patients, many of whom were children, were used to submit fictitious Medicare claims for services that were not performed at all.

“These convicted criminals defrauded the Florida Medicaid program out of approximately a quarter of a million dollars,” said Florida Attorney General Ashley Moody. “They fled to Maryland, but through great investigative work by my Medicaid Fraud Control Unit and collaboration with federal officials, they were brought back to Florida to answer for their crimes—and today were found guilty on a myriad of charges. I look forward to seeing this criminal duo sentenced.”

Both defendants face a maximum sentence of 20 years in prison for conspiracy to commit health care fraud and 10 years in prison for each of the health care fraud convictions. They both also face 2 years in prison as a mandatory minimum sentence, consecutive to any other sentence imposed, for each count of aggravated identity theft.  Fleming’s conviction for making false statements in connection to health care matters carries a maximum sentence of 5 years in prison.  Sentencing is scheduled for August 20, 2021, at 1:30 p.m. at the United States Courthouse in Tallahassee.

Assistant United States Attorney Justin M. Keen prosecuted the case, which was jointly investigated by the Department of Health and Human Services - Office of Inspector General and the Florida Attorney General Office’s Medicaid Fraud Control Unit.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Union County Man Admits to Possessing Child Pornography

 NEWARK, N.J. – A Union County, New Jersey, man pleaded guilty today to possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Andrew Chu, 30, of Garwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of possession of child pornography.

According to documents filed in this case and statements made in court:

In February 2018, Chu downloaded approximately 90 videos depicting the sexual abuse of children from a website on the darknet.

The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 26, 2021.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.

25 Members Of A Violent Gang Charged With Drug Trafficking In Mayagüez, Puerto Rico

 SAN JUAN, Puerto Rico – On March 29, 2021, a federal grand jury in the District of Puerto Rico returned a six-count indictment charging 25 gang members with conspiracy to possess with intent to distribute controlled substances, and aiding and abetting in the possession/distribution of controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Police Bureau (PRPB) Mayagüez Strike Force investigated the case.

“This indictment and the arrests this morning demonstrate our continued resolve to combat drug trafficking,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “We are committed to dismantling and removing the threat posed by these criminal organizations flooding our communities with dangerous narcotics and violence.”

“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Iván J. Arvelo, special agent in charge for HSI San Juan. “HSI thanks our local, state and federal law enforcement partners for their significant cooperation in dismantling this drug trafficking organization.”

The indictment alleges that from in or about the year 2016, to the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana, within 1,000 feet of the Franklin D. Roosevelt Public Housing Project (PHP), and other areas in the municipality of Mayagüez, all for financial gain and profit.

As part of the conspiracy, the members of the drug trafficking gang established drug points that moved within different areas inside the public housing project to avoid police detection. Some co-conspirators collected the profits from the drug trafficking sales and traveled within the municipality of Mayagüez and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles to transport money, narcotics, and firearms.

At different points during the conspiracy the leaders provided members of the organization with different types of firearms to protect themselves, the narcotics, and their proceeds. The leaders had final approval authority as to disciplinary action to be imposed upon residents of the Franklin D. Roosevelt PHP and the members of the conspiracy to maintain control of the drug trafficking activities in the area. The co-conspirators of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. Nine defendants are facing one count of possession of firearms in furtherance of a drug trafficking crime.

The defendants acted in different roles to further the goals of the conspiracy, to wit leaders, enforcers, runners, sellers, and facilitators. The individuals indicted are:

Luis S. Rivera-Ruiz, a/k/a “Pantera”

Miguel Ángel Santiago-Jiménez, a/k/a “Miguelito”

Kifran A. Casiano-Alayon

Jeffrey E. González-Vargas

Joseph Vélez-Mondessi, a/k/a “El Negro/Joe”

Jordany Ayala-Vega

Francheska Valle-Díaz, a/k/a “Cheska”

Eduardo Rodríguez-Rodríguez, a/k/a “Edward”

Chayanne Torres-Hernández

Dianne Rivera-Rosas

William F. Vélez-Borrero, a/k/a “El Negro”

Emmanuel Alemar-Rosas

José A. Rivera-Soto, a/k/a/ “Che”

Nelson Rosario-Sánchez, a/k/a “El Menor/Nelsito”

Roy Alexander Santiago-Vélez

Isa Denisse Vélez-Cruz

Keishla Marie Colón, a/k/a “Kei”

Erickson Lugo-Méndez, a/k/a “Tripi”

Kevin O. Montalvo-Ruiz, a/k/a “Keva”

Kevin J. Rodríguez-Cruz

Miguel Alfredo Ruiz-Rodríguez

Yadiel Joebell Iglesias-Izquierdo

Athdiel Aponte-Pérez, a/k/a “Bebe”

Carlos G. Arce-Santiago

Isben Jaret Rivera-Cardoza

Assistant U.S. Attorney Pedro R. Casablanca and Special Assistant U.S. Attorney Yanira Colón-García from the Puerto Rico Department of Justice are in charge of the prosecution of the case. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the U.S. Customs and Border Protection collaborated during the arrests.

If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

Department of Justice Announces the Release of "Law Enforcement Officer Suicide: 2020 Report to Congress"

WASHINGTON, D.C. – The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced the release of “Law Enforcement Officer Suicide: 2020 Report to Congress.” The report is a result of a request from Congress, driven by the increase in suicides by current and former law enforcement officers, to review the availability of existing mental health resources for law enforcement agencies. The report also provides a review of peer responder programs and makes recommendations for establishing evidence-based behavioral health and suicide prevention efforts for both law enforcement and other first responders.

“One of the top priorities of the Department of Justice and the COPS Office is the health and wellness of the nation’s law enforcement officers, who put both their physical and mental health on the line every day to keep our communities safe,” said Robert Chapman, Acting Director of the COPS Office. “The Department has committed numerous resources to this effort and will continue to do so.”

After a wide-ranging review of current resources and research, the report states that all evidence “constantly circles back to the importance of peer support and behavioral health partnerships.” In addition, the report finds that “Training is also critically important to supporting officer mental health and suicide prevention. Colleagues, supervisors, and managers are all important players in suicide prevention efforts, as they are the ones who may see the signs that an individual is struggling.”

The report points out that the departments that have been successful in lowering their suicide rates are the ones that have continued to focus on the education and training of individuals in this area, as well as creating support networks such as peer-to-peer programs. But the report also stresses that one of the biggest challenges to suicide prevention programs in agencies continues to be the law enforcement “culture,” and that too many officers still fear both the stigma and the possible consequences of asking for help.

The report also identifies the numerous resources the Department already devotes to officer safety and wellness through the COPS Office and the Bureau of Justice Assistance (BJA) in the Office of Justice Programs. These resources include, but are not limited to, Law Enforcement Mental Health and Wellness Act (LEMHWA) grants; the VALOR Initiative; the COPS Office’s Collaborative Reform Initiative Technical Assistance Center (CRI-TAC); the National Consortium on Preventing Law Enforcement Suicide; and the Officer Safety and Wellness (OSW) Group, formed by BJA and the COPS Office.

In addition, the report provides a number of recommendations for moving forward, such as enhancing peer-led prevention programs, strengthening laws so that officers seeking help are protected, and improving confidentiality within agencies.

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers.  

Queens Man Charged For Defrauding Government Rental Assistance Programs By Renting Out Dilapidated Apartments He Did Not Own To Families In Need

 Audrey Strauss, United States Attorney for the Southern District of New York, and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a Complaint charging PAUL FISHBEIN, the defendant, with theft of government funds, wire fraud, and mail fraud for defrauding rental assistance programs administered by New York City’s Human Resources Administration (“HRA”), New York City’s Housing Preservation & Development (“HPD”), and the New York City Housing Authority (“NYCHA”), by falsely claiming to be the owner and landlord of 20 properties (the “Properties”) in New York City, renting out the Properties to families in need through the rental assistance programs, and collecting money – including federal funds – from HRA, HPD, and NYCHA as the purported owner and landlord of the Properties.  The defendant is also charged with Medicaid fraud.  The defendant was arrested today and will be presented later today in Manhattan federal court before United States Magistrate Judge Stewart D. Aaron.

U.S. Attorney Audrey Strauss said:  “As alleged, Paul Fishbein not only took advantage of New Yorkers in need, he also defrauded city and federal government programs designed to help those very people.  Fishbein allegedly lied about ownership of residential properties, fraudulently took rent subsidies and other benefits from those government housing programs, and often evicted tenants without cause from housing that was substandard in any event.  Now Paul Fishbein is in custody and facing serious federal charges for his alleged fraud and exploitation.”

DOI Commissioner Margaret Garnett said:  “This defendant’s alleged conduct wove a web of lies that allowed him to illegally profit from government programs meant to help those in desperate need of housing, and he further exploited them by providing squalid apartments in properties he did not rightly own, often evicting them shortly after they moved in, according to the charges.  Homeless New Yorkers, and others in critical need of housing, not only have a need but a right to homes that are clean, safe, and secure, especially when they are offered through public assistance programs.  DOI will continue to work in partnership with the U.S. Attorney’s Office for the Southern District of New York to root out and stop the corruption and fraud that undermines basic needs such as housing.”

As alleged in the Complaint unsealed today in Manhattan federal court[1]:

The Rental Assistance Program Fraud 

The Rental Assistance Programs

HRA, HPD, and NYCHA (collectively, the “Agencies”) each offer a rental subsidy program that helps provide critical affordable housing to New Yorkers in need.  Landlords who participate in these programs receive guaranteed monthly rent payments, among other benefits.  Rental units must meet federal “Housing Quality Standards,” which are based on the minimum criteria for safe housing, and otherwise meet basic safety and living conditions.

Specifically, HRA administers a rental assistance program (the “Rental Assistance Program”) that helps homeless families move out of the shelter system and into stable housing.  Landlords who participate in the Rental Assistance Program rent housing to homeless families, and in turn, HRA pays participating landlords, among other things, (i) the first month’s rent; (ii) a landlord bonus at signing, which is currently $4,300; and (iii) a rent supplement for either the first three or 11 months’ rent, which is paid in a lump sum at the time of the lease.  In addition, if a landlord uses the services of a broker in renting out the property, HRA will pay the broker a broker’s fee equal to 15 percent of the annual rent.  These and other program-related payments from HRA to participating landlords and brokers include funds from the federal government.  

HPD offers a Housing Choice Voucher program, which is also known as Section 8 (“HPD’s Section 8 Housing Program”).  This program provides federal funding to local housing agencies to assist eligible low-income families with rental subsidies toward decent, safe, and affordable housing.  Participating families pay a certain percentage of their income toward rent and HPD pays the difference directly to the landlord.

NYCHA also operates a Section 8 program (“NYCHA’s Section 8 Housing Program”), which provides assistance to eligible low- and moderate-income families to rent housing in the private market.  NYCHA’s Section 8 Housing Program works as a rental subsidy that allows families to pay a reasonable amount of their income toward their rent.  In general, families pay no more than 40 percent of their adjusted monthly income toward their rent share.  NYCHA pays the remaining amount to the property owner on the family’s behalf.

The Housing Fraud

In this case, from at least in or about 2013 through at least in or about the present, the defendant defrauded the Agencies’ rental assistance programs by falsely claiming to be the owner and landlord of 20 different Properties in New York City based on forged deeds that purported to transfer the Properties from legitimate owners to the defendant.  The defendant rented out the Properties to homeless and low/moderate-income families through the Agencies’ programs, and collected payments from the Agencies as the purported owner and landlord of the Properties.  In addition, the defendant falsely represented to HRA that he used a broker to rent out the Properties, and collected and kept for himself certain broker’s fees that HRA issued for the Properties.  The defendant also took advantage of the homeless and in-need families who were placed in the Properties.  For example, most of the Properties that Fishbein rented out were dilapidated and uninhabitable.  Moreover, even though he was not the lawful owner of the Properties, the defendant often evicted families shortly after they were placed in the Properties.  Through this scheme, the defendant fraudulently obtained more than $1.5 million from HRA, HPD, and NYCHA, including more than $270,000 in federal funds.

The Medicaid Fraud

The defendant also committed Medicaid fraud.  Medicaid is a health insurance program for low-income adults, children, pregnant women, elderly adults, and people with disabilities, which is funded jointly by states and the federal government.   

From at least in or about 2014 through at least in or about the present, the defendant received Medicaid benefits based on his false representations to HRA that he was financially eligible for Medicaid.  During that time, the defendant represented to HRA that he worked at a company where his total income was approximately $150 a week – that is, approximately $600 a month or approximately $7,200 a year.  In reality, the defendant made hundreds of thousands of dollars each year, thus, far exceeding the income and asset limitations for Medicaid eligibility.  By lying about his income and assets, the defendant received at least approximately $47,621 in Medicaid benefits to which he was not entitled.

*                *                *

FISHBEIN, 47, of Far Rockaway, New York, is charged with two counts of theft of government funds, in violation of Title 18, United States Code, Section 641, each of which carries a maximum sentence of 10 years in prison, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Ms. Strauss praised the outstanding investigative work of DOI. 

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

---

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.

Jury convicts former chairwoman of Montana Native Women’s Coalition of stealing federal grant funds

 BILLINGS — A federal jury on April 2 convicted the former chairwoman of the Montana Native Women’s Coalition of crimes related to unapproved spending of federal grant funds, including travel to Las Vegas, Nevada, Acting U.S. Attorney Leif Johnson said.

The jury found Meredith McConnell, 51, of Lame Deer, guilty of theft from a program receiving federal funding, wire fraud and false claims as charged in a superseding indictment. The five-day jury trial began on March 29. McConnell faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release.

U.S. District Judge Susan P. Watters presided and continued McConnell’s release pending further proceedings. A sentencing date is pending.

“Despite receiving training on financial oversight, conflicts of interest and ethics, Meredith McConnell stole grant funds intended to help Native American victims of violence and used the money for unauthorized travel and her own benefit,” Acting U.S. Attorney Johnson said.  “Our office will hold accountable and prosecute those who misuse grant funds. I want to thank Assistant U.S. Attorneys Ryan Weldon and Bryan Dake and the Department of Justice Office of the Inspector General for investigating and prosecuting this case.”

“Instead of using grant money to help Native American victims of domestic and sexual violence, McConnell stole those grant funds for her own benefit including to pay for lavish travel and gifts.  The Department of Justice Office of the Inspector General will investigate and bring to justice anyone who tries to steal Department of Justice grant funds,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office. 

In court documents and in evidence presented at trial, the government alleged that beginning in about August 2017, McConnell, along with others, misappropriated federal grant funds to hand out cash payments to others, to buy purses and earrings as door prizes, to meet in Las Vegas, a trip that cost $31,744, and to receive double payments for meals. Prosecutors alleged that during a four-month period, McConnell was responsible in the misappropriation of more than 10 percent of grant funds designed to help address violence on Indian reservations in Montana.

The government further alleged the thefts occurred four months after board officials, including McConnell, participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director pleaded guilty to fraud in March 2017 for stealing from the organization.

The Coalition is a Lame Deer-based organization that helps Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services. OVW awarded the Coalition $318,008 from October 1, 2017 to September 30, 2018.

Co-defendants Sheryl Lynn Lawrence, of Colstrip, who was the Coalition’s executive director, and Barbara Mary Daychief, of Browning, who was a Coalition board member, both pleaded guilty to theft of federal funds and are pending sentencing.

Assistant U.S. Attorneys Ryan Weldon and Bryan Dake are prosecuting the case, which was investigated by Department of Justice Office of the Inspector General.

Former Maryland Motor Vehicle Employee Facing Federal Indictment for Illegal Production of Fraudulent Driver’s Licenses, Aggravated Identity Theft, and Bribery

 Allegedly Created and Issued Approximately 267 Fraudulent Driver’s Licenses

Greenbelt, Maryland – A federal grand jury has indicted Marion Rose Payne, age 54, of Harwood, Maryland, on the federal charges of conspiracy to produce and transfer identification documents produced without lawful authority, the production and transfer of identification documents produced without lawful authority, aggravated identity theft, and bribery concerning programs receiving federal funds.  The indictment was returned on March 31, 2021.

The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.

According to the indictment, from July 2015 to March 2016, Payne conspired with Antonio Portillo, age 35, of Manassas, Virginia to produce and transfer Maryland driver’s licenses while she was employed with the Maryland Motor Vehicle Administration (MVA). Payne allegedly agreed to illegally produce, transfer, and sell Maryland driver’s licenses to unlawful applicants provided by Portillo.  According to the indictment, at Portillo’s direction, applicants were directed to Payne’s workstation at the MVA Largo Branch to obtain illegally produced and fraudulent driver’s licenses.   Payne allegedly received payment for each fraudulently issued driver’s license.  Payne is no longer employed by the MVA.

As detailed in the indictment and other court documents, prospective applicants paid Portillo thousands of dollars for each fraudulently issued driver’s license and additional funds for making the arrangements to obtain the illegal license.  Payne received names, addresses, and other information that applicants wished to appear on their Maryland driver’s license.  Portillo allegedly provided the information to Payne along with other fraudulent documents necessary to receive a driver’s license, including proof of tax payment for a two-year period, proof of Maryland residence, and an identification document.  Portillo also allegedly gave Payne, or caused Payne to be given, fraudulent documents purporting to show the applicants’ Virginia driver’s license numbers.  In fact, the Virginia driver’s license numbers depicted on the documents belonged to other real individuals who were not the applicants.  The indictment alleges that, using the information provided by Portillo, Payne produced and transferred, or caused to be produced and transferred, Maryland driver’s licenses produced without lawful authority to the applicants at the MVA Largo Branch.

According to the indictment, on January 7, 2016, Payne allegedly produced and transferred six fraudulent Maryland driver’s licenses, including licenses for three individuals that used the identity information of two victims. The license for individual 1 was allegedly fraudulently based on the Virginia driver’s license belonging to Victim 4. The licenses for the remaining two individuals were allegedly fraudulently based upon the Virginia driver’s license belonging to Victim 1. The indictment also claims that Payne met with Portillo and other individuals in the parking lot of the MVA Largo Branch.  Between January 7, 2016 and February 11, 2016 Payne allegedly created 35 fraudulent driver’s licenses, at least nine of which were based on the Virginia driver’s license numbers of at least five victims.

Antonio Portillo, age 35, of Manassas, Virginia, previously pleaded guilty to his role in the scheme.  He has not yet been sentenced.

Maryland Department of Transportation MVA Administrator Chrissy Nizer stated, “Following the April 2016 investigation, MDOT MVA immediately cancelled all of the fraudulent licenses in question. Additionally, we implemented system changes to prevent the unlawful production and transfer of licenses and retrained staff to reinforce proper protocols. MDOT MVA has a zero tolerance policy for fraud, and we take pride in maintaining the highest standards in the interest of safety on Maryland roads.”

If convicted, Payne faces a maximum sentence of 15 years in federal prison for the conspiracy and for production and transfer of identification documents produced without lawful authority; a maximum of 10 years in federal prison for bribery involving an agent of a program receiving federal funds; and a mandatory sentence of two years in federal prison, consecutive to any other sentenced imposed, for aggravated identity theft.  The government is also seeking forfeiture of $138,000.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Payne is expected to have an initial appearance in U.S. District Court in Greenbelt at a later date.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

Acting United States Attorney Jonathan F. Lenzner commended HSI for their work in the investigation and thanked the Maryland Motor Vehicle Administration Investigation and Security Services for its assistance.  Mr. Lenzner thanked Assistant U.S. Attorney Kelly O’Connell Hayes who is prosecuting the case.

Reading, PA Internet Rapper and Member of Bloods Gang Sentenced to 15 Years for Drug Trafficking

 PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Louis Daniel Morales a/k/a “Trouble,” 29, of Reading, PA, was sentenced to 15 years in prison, five years of supervised release, and ordered to pay a $2,000 fine by United States District Judge Edward G. Smith for distributing large quantities of methamphetamine and other controlled substances in the Reading, PA area in 2019. Morales, a self-identified member of the “Nine Trey Gangsters” sect of the Bloods gang and an internet rap artist known as “Trouble” or “King Troub93,” was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police as part of a conspiracy which was responsible for trafficking methamphetamine, heroin, and cocaine in and around Berks County.

In October 2020, the defendant pleaded guilty to three felony counts of manufacture, possession and distribution of a controlled substance, stemming from the sale of more than 800 grams of methamphetamine and an additional quantity of heroin to an undercover Pennsylvania State Police Trooper on three separate occasions between May and June 2019. For approximately three months, the FBI and State Police utilized a federal wiretap to intercept conversations between the defendant, drug suppliers, and customers, revealing that Morales had access to a seemingly endless supply of methamphetamine through several sources. The recorded conversations further detailed that the defendant worked alongside his mother, who trafficked in marijuana, and other individuals with ties to a drug cartel in Mexico. Morales and his codefendants were arrested in September 2019, along with several other defendants charged elsewhere who were also under investigation for similar conduct involving methamphetamine distribution in Reading. 

“Morales and his co-conspirators pumped huge quantities of deadly, addictive drugs into Reading and its surrounding communities,” said Acting U.S. Attorney Williams. “Drug trafficking destroys lives and neighborhoods.  Our Office is determined to protect the communities impacted by drug trafficking by investigating and convicting the criminals responsible for it.”

“Drug traffickers know how much harm their product does to people’s lives and communities. They simply don’t care,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Putting Louis Morales out of business and behind bars is a win for folks in the Reading area. Bottom line: the FBI and our partners will never cede our cities to drug pushers and gang members.”

The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.

Chicago Man Pleads Guilty to Participating in Illegal Sports Gambling Business

 CHICAGO — A Chicago man pleaded guilty in federal court today to participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.

NICHOLAS STELLA, 43, pleaded guilty to one count of conspiracy to conduct an illegal gambling business.  The charge is punishable by up to five years in federal prison.  U.S. District Judge Virginia M. Kendall set sentencing for June 22, 2021, at 10:00 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.

The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.

Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events.  Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses.  During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states.  In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement.  In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.

Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.

Oklahoma City Man and Woman to Each Serve 15 Years in Federal Prison for Child Sex Trafficking

 OKLAHOMA CITY – Last week, MICHAEL KERRY KENDRICK, aka "Milkman," 49, of Oklahoma City, was sentenced to serve 15 years in federal prison for conspiring to commit child sex trafficking, announced Acting U.S. Attorney Robert J. Troester.  CHRISTA LYNN GLASS, aka "Lady Milk," aka "Diamond," 40, of Oklahoma City, has already been sentenced to serve 15 years in federal prison for conspiring with Kendrick to commit child sex trafficking in a related case.

On February 20, 2020, both Kendrick and Glass were charged by federal complaint with child sex trafficking.  On June 2, 2020, Kendrick was additionally charged by Indictment by a federal grand jury with conspiring to commit child sex trafficking and the substantive offense of child sex trafficking. 

On June 17, 2020, Glass entered a guilty plea to one count of conspiring to commit child sex trafficking between September 2019 and January 28, 2020, in Oklahoma City.  On July 8, 2020, Kendrick entered a guilty plea to Count 1 of the Indictment—conspiring to commit child sex trafficking during the same time period.

On March 1, 2021, U.S. District Judge Jodi W. Dishman sentenced Glass to serve 15 years in federal prison, followed by five years of supervised release.  On April 2, 2021, Judge Dishman sentenced Kendrick to serve 15 years in federal prison, followed by five years of supervised release.  Judge Dishman also imposed $5,100 in special assessments for each defendant and stated that restitution for the victim will be determined at a subsequent hearing.  At each sentencing, Judge Dishman noted the difficulty of finding words to convey how serious and egregious Kendrick and Glass’s crimes were. 

According to court documents and public record, Kendrick and Glass offered to teach a 16-year-old child about the commercial sex business.  They posted advertisements on the internet using photos they took of the child and arranged for commercial sex appointments with buyers who responded to the advertisements.  Kendrick and Glass took all the proceeds of the appointments between the child and the buyers.  Additionally, they provided the child with narcotics. 

Upon their release from prison, both Kendrick and Glass will be required to register as sex offenders.

This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division and the Oklahoma Bureau of Narcotics.  Assistant U.S. Attorneys K. McKenzie Anderson and Mary E. Walters prosecuted the case.

This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse.  Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Reference is made to public filings for more information.

Wake Forest Investment Advisor Sentenced for Wire Fraud

 WILMINGTON, N.C. – A Wake Forest, NC man was sentenced today to 135 months imprisonment for wire fraud and ordered to pay $6,040,965.00 in restitution.

According to court documents, Anthony Wayne March, 49 years old, operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, between 2012 to 2015.  March represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning.  Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization.  Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors.  Through Asset Trader, March and his co-conspirators engaged in and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.

During the course of the scheme, March solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader.  March and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to March’s § 501(c)(3) tax-exempt non-profit organization.  March did not utilize any of the victim’s money for charitable purposes; rather, he spent the money on "Ponzi" payments, his own lavish lifestyle, and expenses of the scheme.

March pled guilty today to conspiracy to wire fraud on August 3, 2020.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II.  The Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter.  The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance.  Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States. 

Mission Man Sentenced for Assault

 Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on March 29, 2021, by U.S. Magistrate Judge Mark A. Moreno.

Nicholas Miles Ten Fingers, age 27, was sentenced to 12 months in federal prison, one year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.

Ten Fingers was indicted by a federal grand jury on September 9, 2020.  He pled guilty on January 28, 2021.

The conviction stemmed from an incident that occurred on July 25, 2019, in Todd County, South Dakota.  On that date, Ten Fingers cut a man with a knife.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Michael J. Elmore prosecuted the case.

Ten Fingers was immediately turned over to the custody of the U.S. Marshals Service.

Texas Man Sentenced to 10 Years for Meth Trafficking

 Acting United States Attorney Dennis Holmes announced that a Fort Worth, Texas, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on March 29, 2021, by U.S. District Judge Karen E. Schreier.

Michael Allen Youngberg, a/k/a Opie, age 50, was sentenced to 120 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Youngberg was indicted by a federal grand jury on September 1, 2020.  He pled guilty on January 22, 2021.

The conviction stemmed from incidents beginning on an unknown date and continuing to on or about September 1, 2020, when Youngberg, along with at least one other person, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture containing methamphetamine.  Youngberg facilitated the transportation and exchange of the methamphetamine which was intended for re-distribution within South Dakota and elsewhere.  Methamphetamine is a Schedule II controlled substance.

This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration.  Special Assistant U.S. Attorney Tamara Nash prosecuted the case.

Youngberg was immediately turned over to the custody of the U.S. Marshals Service.