A Euclid man pleaded guilty to distribution of fentanyl that he ordered from China and sold domestically, including to an undercover FBI agent in Pittsburgh, U.S. Attorney Justin Herdman of the Northern District of Ohio and U.S. Attorney Scott W. Brady of the Western District of Pennsylvania announced today.

Antoin Austin, 28, is scheduled be sentenced Nov. 5.

Austin used the online moniker “DARKKING22” on the dark web. DARKKING22 advertised some of the following items for sale this year: “Fentanyl Pure HCL, Methozymethylfentanyl ‘30490’, molly, pure lofentanil, and MMAF New Product.” Methozymethylfentanyl, pure lofentanil, and MMAF New Product are known to be various types of fentanyl analogues, according to court documents.

Undercover law enforcement agents made multiple purchases of opioids from DARKKING22 on the Dark Web in 2018. The purchases were made using bitcoins and the shipments indicated the letters carrying the drugs originated in the Cleveland area.  The initial undercover purchase from Austin occurred in March of 2018 when undercover FBI special agents based in the Western District of Pennsylvania purchased and received cyclopropyl fentanyl, a Schedule I controlled substance, from Austin. 

According to court documents, the FBI and U.S. Postal Inspectors tracked the March shipment of fentanyl from DARKKING22 to the U.S. Post Office in Wickliffe.  They observed Austin travel from his home in Euclid to the Wickliffe Post Office, where he attempted to mail packages using false return addresses.  These packages were intercepted by agents and were found to contain fentanyl consistent with the undercover purchases.  In October 2017, law enforcement also seized a package shipped from a known Chinese fentanyl distributor to Austin which contained 10 grams of fentanyl.

The U.S. Attorney’s Office in the Western District of Pennsylvania charged Austin by information with distribution of fentanyl in July 2018 and that case was transferred to the Northern District of Ohio and consolidated with the Ohio distribution case for purposes of Austin’s guilty plea and upcoming sentencing.

“This defendant ordered thousands of deadly doses of fentanyl from China, brought it to a residential neighborhood in Euclid and then mailed the dangerous drugs all over Ohio and across the country,” U.S. Attorney Justin Herdman said. “Drug traffickers like this have enriched themselves while causing so much pain in our community.”

“DARKKING22 is one of the first defendants in the country to be investigated, charged and convicted since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year,” said U.S. Attorney Brady.  “Through our office’s expertise in opioids and cybercrime, we are disrupting illegal opioid sales on the Darknet by dismantling these marketplaces and criminal enterprises.”

"Online drug trafficking takes the risk out of dealing drugs face to face," said FBI-Pittsburgh Special Agent in Charge Robert Jones. "But we want to send a clear message to those buying and selling drugs on the Darknet. You are not anonymous and we will find you. Shutting down this on-line illegal activity is a coordinated effort and all of our law enforcement partners are committed to stopping the opioid epidemic."

This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service as part of the Joint Criminal Opioid Darknet Enforcement (JCODE) initiative aimed at targeting drug trafficking of fentanyl and other opioids on the Darknet.  It is being prosecuted by Assistant U.S. Attorney Matthew Cronin of the Northern District of Ohio and Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania.

The prosecution involved more than 200 grams of the powerful and dangerous opioid

ASHLAND, Ky.– Demetre Brown-Lovelace, 27, of Belleville, Mich., and Noelle Tufts, 24, of Ironton, Ohio, were sentenced to federal prison today, by United States District Judge David L. Bunning, for a conspiracy to distribute fentanyl.  Brown-Lovelace was sentenced to ten years and Tufts was sentenced to five years.

Brown-Lovelace and Tufts previously admitted that in April 2017, they conspired together and with others to distribute 209 grams of fentanyl.  Brown-Lovelace had a prior conviction for trafficking in a controlled substance, heroin, from the Boyd Circuit Court, in April 2016.  Brown-Lovelace and Tufts entered a plea to the conspiracy charge in May 2018.            

Under federal law, Brown-Lovelace and Tufts must serve 85 percent of their prison sentence; and, upon their release, they will be under the supervision of the United States Probation Office for eight years and four years, respectively.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Robert Allan Jones, Special Agent in Charge, FBI, Pittsburgh Field Office; and Richard Sanders, Commissioner of the Kentucky State Police; jointly made the announcement.

The investigation was conducted by the FBI, Huntington, WV Resident Agency and the Kentucky State Police.  The United States was represented by Assistant United States Attorney Cynthia T. Rieker.

     PHOENIX – On Aug. 10, 2018, Cory Ryan Williams, 40, of Gilbert, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to seven years in prison.  A restitution hearing has been scheduled for September, where Williams will be ordered to pay restitution up to $13.5 million.  Williams had previously pleaded guilty to one count of transactional money laundering.

     For over two years, Williams lied to his family, friends, and fellow church members about the profitability of his investment scheme.  He solicited and obtained more than $13 million from over 50 victims.  To entice potential victims, Williams told them he consistently earned a five percent return each week and all investments were safe and would not lose money.  In reality, he lost more than $8 million by attempting to trade stock market futures.  He also concealed his fraudulent scheme by making Ponzi payments to investors - Williams paid earlier investors by using new capital from later investors.  He also diverted more than $800,000 of the victims’ funds to his own personal use.

     The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Andrew C. Stone and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:                   CR-17-01279-PHX-DLR

RELEASE NUMBER:           2018-105_ Williams

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

PITTSBURGH, PA - A Euclid, Ohio, man pleaded guilty to distribution of fentanyl that he ordered from China and sold domestically, including to an undercover FBI agent in Pittsburgh, U.S. Attorney Justin Herdman of the Northern District of Ohio and U.S. Attorney Scott W. Brady of the Western District of Pennsylvania announced today.

Antoin Austin, 28, is scheduled be sentenced Nov. 5.

Austin used the online moniker "DARKKING22" on the dark web. DARKKING22 advertised some of the following items for sale this year: "Fentanyl Pure HCL, Methozymethylfentanyl ‘30490’, molly, pure lofentanil, and MMAF New Product." Methozymethylfentanyl, pure lofentanil, and MMAF New Product are known to be various types of fentanyl analogues, according to court documents.

Undercover law enforcement agents made multiple purchases of opioids from DARKKING22 on the Dark Web in 2018. The purchases were made using bitcoins and the shipments indicated the letters carrying the drugs originated in the Cleveland area. The initial undercover purchase from Austin occurred in March of 2018 when undercover FBI special agents based in the Western District of Pennsylvania purchased and received cyclopropyl fentanyl, a Schedule I controlled substance, from Austin.

According to court documents, the FBI and U.S. Postal Inspectors tracked the March shipment of fentanyl from DARKKING22 to the U.S. Post Office in Wickliffe, Ohio. They observed Austin travel from his home in Euclid to the Wickliffe Post Office, where he attempted to mail packages using false return addresses. These packages were intercepted by agents and were found to contain fentanyl consistent with the undercover purchases. In October 2017, law enforcement also seized a package shipped from a known Chinese fentanyl distributor to Austin which contained 10 grams of fentanyl.

The U.S. Attorney’s Office in the Western District of Pennsylvania charged Austin by Information with distribution of fentanyl in July 2018 and that case was transferred to the Northern District of Ohio and consolidated with the Ohio distribution case for purposes of Austin’s guilty plea and upcoming sentencing.

"This defendant ordered thousands of deadly doses of fentanyl from China, brought it to a residential neighborhood in Euclid and then mailed the dangerous drugs all over Ohio and across the country," U.S. Attorney Justin Herdman said. "Drug traffickers like this have enriched themselves while causing so much pain in our community."

"DARKKING22 is one of the first defendants in the country to be investigated, charged and convicted since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year," said U.S. Attorney Brady. "Through our office’s expertise in opioids and cybercrime, we are disrupting illegal opioid sales on the Darknet by dismantling these marketplaces and criminal enterprises."

"Online drug trafficking takes the risk out of dealing drugs face to face," said FBI-Pittsburgh Special Agent in Charge Robert Jones. "But we want to send a clear message to those buying and selling drugs on the Darknet. You are not anonymous and we will find you. Shutting down this on-line illegal activity is a coordinated effort and all of our law enforcement partners are committed to stopping the opioid epidemic."

This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service as part of the Joint Criminal Opioid Darknet Enforcement (JCODE) initiative aimed at targeting drug trafficking of fentanyl and other opioids on the Darknet. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin of the Northern District of Ohio and Assistant U.S. Attorney Jessica Lieber Smolar in the Western District of Pennsylvania.

            WASHINGTON – Andre Dudley, 22, Marcus King, 22, and Christopher Proctor, 28, all of Washington, D.C., were sentenced today to prison terms on charges stemming from the August 2015 slaying of Matthew Shlonsky, an innocent bystander who was shot three years ago on a crowded street in Northwest Washington. Dudley was sentenced to an 18 ½-year prison term for the murder, King was sentenced to 17 ½ years, and Proctor was sentenced to 14 years.

            The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            The three defendants pled guilty in June 2018 to one count of voluntary manslaughter while armed and two counts of assault with a dangerous weapon. Dudley also pled guilty to a charge of attempted assault with a dangerous weapon stemming from a jailhouse stabbing. The pleas took place in the Superior Court of the District of Columbia.

            Dudley’s plea, which was contingent upon the Court’s approval, called for him to be sentenced to an agreed-upon 18 ½-year prison term for the shooting and an additional 22 months for the jailhouse stabbing, for a total of 20 years and four months of incarceration. King’s plea called for an agreed-upon sentence of 15 to 20 years, and Proctor’s plea called for an agreed-upon term of 12 to 14 years. The Honorable Juliet McKenna accepted the pleas and sentenced the defendants accordingly. Following their prison terms, the defendants will each be placed on five years of supervised release.

            According to the government’s evidence, King and Proctor both associated with the Ninth Street neighborhood of Northwest Washington. On Saturday, Aug. 15, 2015, at approximately 4:45 p.m., King and Proctor were standing near a liquor store at the intersection of Seventh and S Streets NW, both armed with firearms. Dudley, meanwhile, drove to the area of Seventh and S in a red Chrysler 300 sedan. While stopped at the intersection of 8^th and S Streets, Dudley got into an argument with Ninth Street crew members. One pulled out a gun, and Dudley pulled out his gun as well. King and Proctor were both nearby, and Proctor yelled out to other crew members to find out the identity of the person in the red car.

            Dudley then turned from Eight Street onto S Street and headed east. He adjusted his position so that his head and arms were outside the sunroof. He then pointed his gun at individuals on the south side of S Street, near Seventh. King and Proctor both fired shots at Dudley as he crossed their path. King fired seven shots from a .40-caliber semiautomatic firearm and Proctor fired 10 shots from a different .40-caliber semiautomatic.  Dudley extended his arm out and fired several shots in the direction of King and Proctor.

            Mr. Shlonsky, 23, had just gotten out of an Uber with friends and was heading to a concert at the Howard Theatre. He was walking in the 1800 block of Seventh Street NW, near the entrance to the Shaw/Howard University Metro station, when one of the bullets from the shootout struck him in the chest. He was pronounced dead a short time later.

            While King and Proctor were firing their weapons, a couple was walking on the sidewalk of the 700 block of S Street NW. The man and woman were each pushing strollers that had two young children inside each of them. Hearing the gunshots, the couple sprinted away, however, their proximity to the gunfire put them in the zone of harm.

            While Dudley drove east on S Street NW, his vehicle came head-to-head with a vehicle turning left on S Street, NW, from Sixth Street NW.  Blocked, Dudley again lifted his head and arms out of the sunroof, pointed a gun at the driver, threatened to kill him, and yelled at him to move his car.  Scared, the driver moved his vehicle and Dudley then continued across S Street; as he sped into the 1900 block of Fourth Street NW, another man yelled at Dudley to slow down.  In response, Dudley slammed on the brakes, rolled down his window, pointed an imitation firearm at the man, which the man believed was an actual firearm, and fired shots in the general vicinity of the man. Dudley then left the area. Dudley pled guilty to two counts of assault with a dangerous weapon for these crimes.

            As part of the plea agreement, Dudley admitted to his role in the May 17, 2018 stabbing of a fellow inmate at the District of Columbia Jail.  The victim of that incident sustained non-life-threatening injuries.

            Dudley was arrested on a warrant in a burglary case on Sept. 11, 2015, and charged with the murder in December 2015. King was arrested on Aug. 21, 2015. Proctor was arrested on Feb. 23, 2016. All have been in custody since their arrests.

            In announcing the sentences, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, including the FBI’s Cellular Analysis Survey Team, and the District of Columbia Department of Forensic Sciences.

            They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Kimberley Nielsen, Laura A. Bach, Jeffrey Nestler, Julianne Johnston, and Sharon Marcus-Kurn; former Assistant U.S. Attorney Shana Fulton; Paralegal Specialists Lornce Applewhite and Sharon Newman; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Leif Hickling; Criminal Investigator Durand Odom, and Victim/Witness Advocate Marcia Rinker.

            Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the case.

Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tabitha A. Hammond, age 37, of Seneca, pled guilty to possession with the intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 841.  United States District Judge Donald C. Coggins, of Spartanburg, accepted the guilty plea and will sentence Hammond after he has a chance to review the Presentence Report prepared by the United States Probation Office. 

Evidence presented at the change of plea hearing established that on August 8, 2017, an Oconee County deputy sheriff was patrolling in the Fair Play area when he observed a vehicle turn without signaling and then turn quickly into a residence before he could initiate a traffic stop. The vehicle stopped at the residence for just a few minutes and resumed travel.  Upon observing a defective break light, he initiated a traffic stop.  There were four persons in the car and no one had a valid license with them. The deputy observed much suspicious behavior to include extreme nervousness, attempts to hide the contents of various bags, and one passenger giving indications of flight.  The deputy received consent to search from the driver and located more than five pounds of methamphetamine in a bag belonging to Hammond. After being given her Miranda warnings, Hammond admitted to engaging in drug trafficking activity.

Ms. Lydon stated the maximum penalty Hammond can receive is a fine of $20,000,000 and/or imprisonment for life, plus a special assessment of $100.

This case was investigated by the Oconee County Sheriff’s Office and the federal Drug Enforcement Administration. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Gulfport, Miss. – Joaquin Luna-Cijeros, age 27, a citizen of Mexico, pleaded guilty today before U.S. District Judge Sul Ozerden, to the crime of unlawful re-entry by an alien after removal, announced U.S. Attorney Mike Hurst, and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans.

In May, 2018, a Homeland Security Investigations (HSI) confidential informant identified Luna-Cijeros as an alien who was illegally present in the United States and who had been previously removed. The confidential informant told officials that Luna-Cijeros was working as a kitchen worker at Juan Tequila’s Restaurant in Saucier, Mississippi. Based on this information, HSI began an investigation which revealed that Luna-Cijeros was living in Long Beach, Mississippi, and working in Saucier.

Immigration databases revealed that on or about February 3, 2015, the U.S. Border Patrol had encountered, apprehended, and processed Luna-Cijeros for removal near Rio Grande Valley, Texas. Luna-Cijeros was lawfully ordered removed and, on or about February 4, 2015, Luna-Cijeros was verified by federal officials as having been physically removed from the United States pursuant to his removal order. At that time, he was given notice that he could not lawfully re-enter the United States for a minimum of five years, and that an unlawful re-entry could subject him to criminal prosecution.

Luna-Cijeros will be sentenced by Judge Ozerden on November 13, 2018. He faces a maximum penalty of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.

The case was investigated by Homeland Security Investigations and U.S. Customs & Border Protection. Assistant United States Attorney Stan Harris is the prosecutor for the case.

RALEIGH– United States Attorney Robert, J. Higdon, Jr., the U.S. Department of Justice, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS) jointly announced that on August 8, 2018, Chief Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina entered an order that revoked the naturalized U.S. citizenship of a child sex offender, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities.  The court found that prior to naturalizing, Agyemang engaged in sexual abuse of his minor stepchild, for which he was later convicted after pleading guilty.  This prior conduct rendered Agyemang ineligible U.S. citizenship because he did not show the moral conduct necessary for naturalization. Additionally, throughout his naturalization proceedings Agyemang misrepresented and hid his unlawful activity.

Mr. Higdon commented:  “Under our laws, United States citizenship is conferred on those who demonstrate honesty and integrity, who respect our laws, and who can demonstrate the moral character necessary to be a positive and cultivating member of American society.  The defendant fell short of that mark in every regard and we are satisfied that this Court saw fit to revoke his naturalized citizenship.  As part of the Justice Department’s mission to enforce the nation’s immigration laws, we will seek denaturalizations in cases where individuals are dishonest and where criminal activity demonstrated the lack of moral character necessary for American citizenship.”

“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications or lie during the naturalization interview, especially in a circumstance like this one, which involved an alien who repeatedly sexually abused the minor victim on almost a daily basis.”

Prempeh Ernest Agyemang, a native of Ghana, was admitted to the United States in 1989.  Agyemang then married a United States citizen who had a young child.  When the child was in fourth grade, Agyemang began sexually abusing her starting in late 1999 or early 2000.   Notably, after the sexual abuse began, while under oath during his naturalization interview, Agyemang stated that he had never committed a crime or offense for which he was not arrested. Relying on this answer, USCIS granted his naturalization application and Agyemang became a U.S. citizen later that year. On November 5, 2003, Mr. Agyemang pleaded guilty to sexually assaulting his minor stepchild on April 1, 2000.  Specifically, Mr. Agyemang pleaded guilty to Sexual Activity by a Substitute Parent or Custodian. 

 “This order sends a clear message to individuals who commit any type of sexual offense, particularly those involving children, during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said Acting ICE Director Ronald D. Vitiello. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for sexual offenses, especially those involving child victims.”

“I congratulate the trial team for bringing Mr. Agyemang to justice,” said USCIS Acting Director James McCament. “Mr. Agyemang repeatedly sexually abused a minor child and then lied about the sexual abuse to obtain naturalization. By doing so, he threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see him held accountable.”

This case was investigated by ICE Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was litigated by John Inkeles of OIL-DCS, with support from ICE Assistant Chief Counsel Cori White, Gaston County District Attorney Locke Bell, and the United States Attorney’s Office for the Eastern District of North Carolina.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PETER G. JOHNSON was sentenced to 36 months in prison for leading a scheme to defraud a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for his cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”).  JOHNSON pled guilty on March 9, 2018, to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution.  The sentence was imposed by United States District Judge Jed S. Rakoff.

U.S. Attorney Geoffrey S. Berman said:  “Peter G. Johnson, CEO of Transmar, a commodities trading company specializing in cocoa trading, previously admitted to his role in a scheme to defraud the banks which extended high lines of credit to Transmar.  Johnson and his co-defendants fudged the company’s required reports, which banks used to gauge the amount they extended Transmar, to make the company seem financially healthier, thus receiving higher credit than deserved.  All told, Johnson’s scheme led to the bankruptcy of Transmar, unpaid debt of over $350 million, and now he has been sentenced to 36 months in prison time.”

According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:

Transmar was a closely-held, family-run cocoa commodity trading company.  PETER G. JOHNSON was Transmar’s founder, President, and chief executive officer. 

From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million.  To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, his son, Peter B. Johnson, Transmar’s Vice President of Finance, Thomas Reich, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.

The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension.  The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks. 

Beginning no later than 2014, Transmar employees, acting with JOHNSON’s knowledge and at his direction, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending.  The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar Commodities GMBH, Transmar’s affiliate.

Following the discovery of the fraud, Transmar filed for bankruptcy in December 2016.  At that time, the Company owed the Banks approximately $360 million.
                                                                                                                                                                   

*                      *                      *           

In addition to the prison term, JOHNSON, 69, of Harding Township, New Jersey, was sentenced to two years of supervised release.

Peter B. Johnson, 39, of Morristown, New Jersey, and Thomas Reich, 60, of Montvale, New Jersey, each pled guilty to the same offenses for their participation in the scheme to defraud the Banks.  They are scheduled to be sentenced on September 17 and 21, 2018, respectively.

Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation. 

This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit.  Assistant U.S. Attorneys Benet J. Kearney and Daniel M. Tracer are in charge of the prosecution.   

            CONCORD - United States Attorney Scott W. Murray announced today that Debra Kerouac, 28, of Manchester, New Hampshire, pleaded guilty to one count of producing child pornography.

            A sentencing hearing is scheduled for November 20, 2018.   Under the terms of a plea agreement, which is subject to review and approval by the court, Kerouac will serve 25 years in prison and remain under supervised release for 20 years after she is released from prison.

            According to documents filed in the case and statements made at the change of plea hearing, sometime before May 24, 2017, Kerouac produced visual depictions of a minor female engaging in sexually explicit conduct.  Kerouac used a cellular phone to produce the images.  Kerouac’s activities were discovered based on a lead from a case investigated by the FBI in Duluth, Minnesota.  A Duluth FBI agent notified the Bedford office of the FBI and an arrest warrant and search warrant were executed on May 24, 2017 in Manchester.

            “Few crimes are as reprehensible as the sexual exploitation of a child,” said U.S. Attorney Murray. “The impact of such acts on the child, family members, and those close to them may be severe and long-lasting. The U.S. Attorney’s Office is committed to protecting our children and making our community safer by prosecuting those who produce child pornography.”

            “The production of child pornography is an assault against the most vulnerable members of our society, and with today's plea, Ms. Kerouac is accepting responsibility for preying on and exploiting her young victim,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is committed to working with our law enforcement partners to identify and apprehend predators like her who carry out these heinous crimes.”   

            The FBI and the Manchester Police Department participated in the investigation of this case.  Staff from the Hillsborough County Child Advocacy Center assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.

            In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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WHEELING, WEST VIRGINIA – Daniel P. Sprowl, of New Martinsville, West Virginia, was sentenced today to 33 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.

Sprowl, age 54, pled guilty to one count of “Possession of Child Pornography” in April 2018. Sprowl admitted to possessing images of child pornography involving children under the age of 12 in November 2016 in Wetzel County. 

Sprowl was also ordered to pay $8,000 in restitution and ordered to forfeit his electronic devices used in the crime.

Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.

Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
 

CLARKSBURG, WEST VIRGINIA – Travis Knight, of Mingo Junction, Ohio, was sentenced today to 37 months incarceration for counterfeit currency charges, United States Attorney Bill Powell announced.

Knight, age 33, pled guilty to one count of “Uttering Counterfeit Currency,” and one count of “Attempted Uttering of Counterfeit Currency” in April 2018. Knight admitted to passing counterfeit $50 bills and attempting to pass counterfeit $50 bills in Marion and Monongalia Counties in October and November 2017. 

Knight was also ordered to pay $12,450 in restitution for the crimes. 

Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Secret Service investigated.
 
Senior U.S. District Judge Irene M. Keeley presided.

COUNCIL BLUFFS, Iowa – On August 10, 2018, Terry Hannan, age 39, of Council Bluffs was sentenced by United States District Court Senior Judge Robert W. Pratt to 63 months in prison for a felon in possession of a firearm charge announced United States Attorney Marc Krickbaum. Hannan was ordered to serve three years of supervised release to follow his prison term.

Hannan pleaded guilty to the offense on March 13, 2018. On December 29, 2017, the Council Bluffs Police and Fire Departments responded to a fire at Hannan’s home. Officers entered the house and observed ammunition and a gun safe, but did not locate anyone in the residence. As the fire inspector investigated the cause of the fire, Hannan was seen in a car near the home. The car left abruptly when the fire inspector approached Hannan, and a short pursuit ensued. When the vehicle was stopped, Hannan was found in possession of a loaded Taurus Titanium .38 revolver.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case was investigated by Council Bluffs Police Department, Council Bluffs Fire Department, and The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

WHEELING, WEST VIRGINIA – Joshua Cathers, of Sistersville, West Virginia, and Ronald Morgan, of New Martinsville, West Virginia, have admitted to their involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.

Cathers, age 38, pled guilty today to one count of “Distribution of Methamphetamine.” Cathers admitted selling methamphetamine in November 2017 in Tyler County. 

Morgan, age 50, pled guilty on Friday, August 10, 2018 to one count of “Aiding and Abetting Distribution of Methamphetamine” Morgan admitted to selling methamphetamine in March 2017 in Tyler County.

Cathers and Morgan each face up to 20 years 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. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the cases. 

The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Senior U.S. District Judge Frederick P. Stamp, Jr. presided.

A former Microsoft employee was sentenced today to 18 months in prison after pleading guilty to conspiracy to commit money laundering in connection with the spread of a particular type of ransomware commonly referred to as Reveton. 

U.S. Attorney Benjamin C. Greenberg for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division made the announcement. 

Raymond Odigie Uadiale, 41, of Maple Valley, Washington, was sentenced by U.S. District Court Judge William P. Dimitrouleas for the Southern District of Florida following his June 4 guilty plea.  The indictment charged Uadiale with one count of conspiracy to commit money laundering and one count of substantive money laundering.  As part of the plea agreement, the government dismissed the substantive count.  In addition to his prison sentence, Uadiale was also sentenced to three years of supervised release.

According to the factual proffer filed in connection with the plea agreement, Uadiale helped to “cash out” the payments of victims whose computers were infected with Reveton, a type of ransomware that displayed a splash screen on the victim’s computer with the logo of a law enforcement organization.  The splash screen would include a message falsely telling the victim that the law enforcement organization had found illegal material on the infected computer and required the payment of a “fine” to regain access to the computer and its data.  The ransomware directed the victim to purchase a GreenDot MoneyPak and enter the account number into a form on the splash screen.  Using prepaid debit cards, Uadiale transformed the MoneyPak funds into cash, kept a portion for himself, and sent a portion back to Reveton’s distributor, who resided in the United Kingdom.

“This was a sophisticated scheme to conceal the proceeds of a particularly insidious type of ransomware,” said U.S. Attorney Greenberg.  “By claiming to originate from law enforcement agencies, Reveton not only victimized computer users, it also exploited the agencies in whose names the ransomware claimed to be acting.  Today’s sentence demonstrates that those who seek to profit from the spread of such malicious software face serious consequences.”

“By cashing out and then laundering victim payments, Raymond Uadiale played an essential role in an international criminal operation that victimized unsuspecting Americans by infecting their computers with malicious ransomware,” said Assistant Attorney General Benczkowski.  “This conviction and sentence is another demonstration of the Department of Justice’s commitment to prosecuting cybercriminals and shutting down the networks they use to launder their criminal proceeds.  We are grateful for the outstanding collaboration of our U.S. and international law enforcement partners in this successful investigation.”

According to court documents, Uadiale used the digital currency platform Liberty Reserve to transfer approximately 70 percent of the ransomware proceeds back to the ransomware distributor.  Between October 2012 and March 27, 2013, while he was a graduate student at Florida International University, Uadiale sent approximately $93,640 in Liberty Reserve dollars to his co-conspirator as part of their scheme.  Public records show that Uadiale was hired by Microsoft as a network engineer after the conspiracy charged in the indictment ended.

The case was investigated by the FBI, with assistance from the U.K.’s National Crime Agency, and was prosecuted by Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel W. Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section, with assistance from the U.S. Attorney’s Offices for the Eastern District of Virginia and the Western District of Washington.        

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Michael Galloway, 63, of Bakersfield, to 21 months in prison for tax evasion, U.S. Attorney McGregor W. Scott announced. Galloway was ordered to surrender to serve his sentence beginning on November 14, 2018.

On March 21, 2018, a jury in Fresno returned a guilty verdict today, convicting on four counts of tax evasion. Galloway owns and operates the website, Catholic Online. According to court documents, Galloway generated revenue by selling advertising and hosting to faith-based businesses.

“No matter what the source of income, all income is taxable,” said Tara Sullivan, Special Agent in Charge, IRS Criminal Investigation. “Mr. Galloway received income from many sources, however, he failed to disclose his true income to the IRS. This sentence should send a clear message: tax evasion is a violation of federal law and can have severe consequences that can result in jail time.”

For tax years 2003 through 2006, Galloway improperly deducted personal expenses as business expenses, including his homeowner’s association fees for his personal residence, car payments and insurance, utilities and cable service for his personal residence, tile work, and personal legal fees.

For the four charged years, Galloway reported an income of $13,241 (2003); $28,846 (2004); $-60,438 (2005); and $23,053 (2006). During this time the defendant owned a 4,600 square-foot residence on a golf course in Bakersfield that he had purchased for $850,000. He made mortgage payments those years totaling $81,943 (2003); $78,694 (2004); $79,372 (2005); and $80,411 (2006). For the four years in question, these figures amounted to a claim by the defendant that he earned only $4,702 and yet was able to make $320,420 in mortgage payments.

Cumulatively, he underreported his and his spouse’s taxable income during those years by at least $671,755, resulting in an additional tax due and owing of over $102,000. The jury also found that he falsely claimed to IRS agents during a 2010 interview that he made his mortgage payments from cash that he had saved over 40 years. The jury found that this statement was an attempt to evade income tax.

This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Megan A. S. Richards and Michael Tierney prosecuted the case.

SPRINGFIELD, Mo. – A Joplin, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine that was shipped via UPS from Arizona.

Jennifer M. Conant, 38, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.

On March 28, 2018, Conant pleaded guilty to participating in a conspiracy to distribute methamphetamine. Conant admitted that she had a package shipped via UPS, which contained approximately one pound of methamphetamine, to a residence in Seneca, Mo. On May 6, 2017, law enforcement officers tracked the suspicious package from its origin in Arizona and upon its arrival at the Joplin UPS conducted a search to confirm the package contained methamphetamine. 

A federal agent conducted a controlled delivery of the package to its Seneca destination on May 7, 2017. Shortly after the package was delivered, officers executed a search warrant and located the package in a bedroom of the residence. An occupant of the residence told investigators that Conant had the package shipped to his address and that she had inquired about the package just prior to law enforcement executing the search warrant. He then contacted Conant, who arrived at the residence approximately 45 minutes later to pick up the package and was arrested.

This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Newton County, Mo., Sheriff’s Department and the Ozark Drug Enforcement Team.
 

     PHOENIX – Today, Colin Lee Juan, 33, of Laveen, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 30 months in prison followed by three years of supervised release.  Juan had previously pleaded guilty to assault by strangulation of an intimate partner. 

     Juan admitted to strangling the victim, his then-girlfriend, impeding her airflow.  The incident occurred on the Gila River Indian Community, and both Juan and the victim are members of that tribe. 

     The investigation in this case was conducted by the Gila River Police Department.  The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:           CR-18-1134-PHX-DJH

RELEASE NUMBER:    2018-106_Juan

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

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A Mexican man who used a false identification document to obtain a job was sentenced today to six months in federal prison.

Jose Lopez-Garcia, age 35, a citizen of Mexico illegally present in the United States and living in Cedar Rapids, Iowa, received the prison term after a June 7, 2018, jury verdict finding him guilty of one count of unlawful use of an identification document. 

Evidence at trial showed that Lopez-Garcia used a fraudulent permanent resident card, also known as a “green card,” bearing a number assigned to a female born in Cuba in 1934, when he completed an employment form on November 18, 2016, at a business in Cedar Rapids.  Lopez-Garcia also used a fraudulent “green card” when he applied for work at another Cedar Rapids business on February 22, 2017.

Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.  Lopez-Garcia was sentenced to six months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 18-CR-24-LRR.

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