Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Daniel Edward Johnson, 47, Former Fifth Circuit Solicitor and resident of Blythewood, South Carolina, was charged in a 36-count Superseding Indictment by a federal Grand Jury in Columbia for Wire Fraud, Mail Fraud, Theft of Federal Funds, False Statements, Conversion of Federal Funds, and Obstruction of Justice.   

Johnson faces a maximum penalty of 20 years in federal prison on the Wire Fraud, Mail Fraud, and Obstruction of Justice charges; a maximum penalty of 10 years in federal prison on the Theft of Federal Funds and Conversion of Federal Funds charges; and a maximum penalty of five years in federal prison for the False Statements charge.

The Federal Bureau of Investigation (FBI) and South Carolina Law Enforcement Division (SLED) investigated the case.  Assistant United States Attorneys Winston D. Holliday, Jr., Alyssa Leigh Richardson, and William C. Lewis of the Columbia office are prosecuting the case.

The United States Attorney stated that all charges in the indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

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Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Dewayne Hasan Davis, 29, of Georgetown, South Carolina, was sentenced to seven years in federal prison for being a felon in possession of a firearm and ammunition. 

Evidence presented to the court showed that on January 9, 2018, Georgetown City Police arrested Davis on outstanding state warrants. A search of Davis—who was on probation at the time of his arrest—revealed a bag of heroin and a loaded .44 Magnum revolver that had recently been reported stolen. Federal law prohibits Davis from possessing firearms and ammunitions because of his numerous prior felony convictions, including for pointing and presenting a firearm at a person and distribution of cocaine.

United States District Judge Richard M. Gergel accepted Davis’ guilty plea and sentenced him to 84 months in federal prison, to be followed by 3 years of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Georgetown City Police. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.

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WASHINGTON – The Justice Department today filed a Statement of Interest in U.S. District Court in South Carolina supporting a church’s claim that the Town of Edisto Beach violated its rights under the First Amendment when the town barred it from renting space at the Town’s Civic Center. 

“The Constitution protects the right of individuals and groups to exercise their religion without discrimination because of their religion,” said Acting Attorney General Matthew Whitaker. “The First Amendment requires that religious individuals and groups have the same opportunity to rent public facilities as other members of the community. The Department of Justice is committed to protecting the First Amendment rights of Americans, including fostering the religious expression of members of all faiths.”

The case, Redeemer Fellowship of Edisto Island v. Town of Edisto Beach, involves a small Christian congregation that sought to rent space for Sunday worship in the Civic Center, which is available for rental by community groups to hold events and activities.  The town responded by enacting a policy barring worship services at the Civic Center, citing separation of church and state concerns.  The town claimed that it wanted to avoid appearing as though they endorsed a religious group.  As a result, the church filed a First Amendment lawsuit to allow it to rent space at the facility.

The Constitution requires that churches be allowed to rent facilities on an equal basis with other community groups.  The Supreme Court held in the landmark case of Widmar v. Vincent (1981), that a university could not “discriminate against student groups and speakers based on their desire to use a generally open forum to engage in religious worship and discussion.”  The United States’ Statement of Interest argues that allowing equal access to all groups, including the church, is required by the First Amendment.  Allowing equal access, the United States argues, ensures the government neutrality toward religious expression that the Constitution requires.

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The U.S. Attorney’s Office announced that the following persons were arraigned before U.S. magistrate judges this week. Indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:

Appearing before U.S. Magistrate Judge Timothy J. Cavan in Billings on Nov. 20 and entering Not Guilty pleas were:

ARLYN JUAN CASTRO, 35, of the Northern Cheyenne Reservation, appeared on charges of failing to register as a sex offender. If convicted of the most serious charge, the defendant faces a maximum 10 years in prison and a $250,000 fine. The case was investigated by the U.S. Marshal’s Service. Pacer case reference. 18-133

EUGENE MAJOR BIGBACK, JR., 59, of the Northern Cheyenne Reservation, appeared on charges of failing to register as a sex offender. If convicted of the most serious charge, the defendant faces a maximum 10 years in prison and a $250,000 fine. The case was investigated by the U.S. Marshal’s Service. Pacer case reference. 18-132

RENIE RAYMOND JOSEPH FILLION, 34, of Livingston, appeared on charges of distribution of methamphetamine, receipt of a firearm while under indictment and possession of an unregistered firearm. If convicted of the most serious charge, the defendant faces a minimum mandatory five years to 40 years in prison and a $5 million fine. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 18-134   

FRANCISCO MORALES, 44,of Lubbock, Texas,appeared on charges of conspiracy to possess methamphetamine for distribution and possession of meth for distribution. If convicted of the most serious charge, the defendant faces a minimum mandatory 10 years to life in prison and a $10 million fine. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 18-139

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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John H. Durham, United States Attorney for the District of Connecticut, today announced that HECTOR ALFONSO, 37, of Manchester, pleaded guilty yesterday in New Haven federal court to drug and firearm offenses related to a shooting that occurred in Hartford’s South End in December 2016.

According to court documents and statements made in court, at approximately 10:00 p.m. on December 21, 2016, Hartford Police officers responded to a report of a person shot at a car wash located at 156 Franklin Avenue in Hartford.  At the car wash, officers encountered an employee of the car wash who was suffering from two gunshot wounds.  The victim was transported to the hospital where he was treated for his injuries and released.

The investigation, which has included analysis of a surveillance video, revealed that, shortly before the shooting, Alfonso and Michael Rivera arrived at the car wash to acquire a distribution quantity of heroin from Ruben Rodriguez and another individual.  A dispute and subsequent struggle occurred during the transaction, and Alfonso brandished a firearm.  He then shot the employee.

Alfonso was arrested on a federal criminal complaint on April 26, 2017.  A search of his Manchester residence on that date revealed cocaine residue on a toilet seat, cocaine and crack cocaine residue in another part of home, and items used to process and package narcotics for street sale.  He has been detained since his arrest.

Alfonso pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years, and one count of brandishing a firearm during and in relation to a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of at least seven years.  Alfonso is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on February 12, 2019.

Alfonso’s criminal history includes a federal conviction for possession with intent to distribute, and distribution of, cocaine base (“crack”).  In June 2014, he was sentenced to 18 months of imprisonment and three years of supervised release for that offense.

Alfonso faces additional penalties for violating the conditions of his supervised release from his prior federal conviction.

Michael Rivera, 35, of Hartford, and Ruben Rodriguez, 38, of Meriden, have pleaded guilty to related charges and are detained while awaiting sentencing.

When Rodriguez was arrested on September 29, 2017, a search of his residence and vehicle revealed a loaded .40 caliber pistol, numerous rounds of ammunition, approximately 133 grams of heroin, approximately 170 grams of cocaine, and $61,909 in cash.

This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

This prosecution has been brought though Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.

United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.

Angelo Ashley, age 20, was indicted on September 11, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on March 26, 2016, Ashley did knowingly engage in, and attempt to engage in, a sexual act with a minor who had not yet attained the age of 12 years.

The charge is merely an accusation and Ashley is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.   

Ashley was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

BOISE – Elena C. Lupuleasa, 33, of Nampa, Idaho, pleaded guilty today to bank fraud and aggravated identity theft, U.S. Attorney Bart M. Davis announced.  Lupuleasa pleaded guilty pursuant to a written plea agreement filed with the Court.

According to the plea agreement, from April 2016 through November 2016, Lupuleasa devised and executed a scheme to defraud banks.  The scheme involved obtaining stolen checks, driver’s licenses, and other personal information from residents in Boise and Nampa.  Lupuleasa would then forge a check of one victim and make it payable to another theft victim.  Lupuleasa would then impersonate the payee and attempt to cash the check at a bank by presenting the stolen driver’s license or other form of identification of the payee.

Sentencing for Lupuleasa is set for February 6, 2019, before Senior U.S. District Court Judge Edward J. Lodge at the federal courthouse in Boise.

Bank fraud is punishable by up to 30 years in prison, a fine of up to $1,000,000, and a term of supervised release of up to 5 years.

Aggravated identity theft is punishable by a mandatory sentence of two years to run consecutive to any other term of imprisonment, a fine of up to $250,000, and a term of supervised release of one year.

This case was investigated by the Nampa Police Department, Boise Police Department, and Ada County Sheriff’s Office.

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United States Attorney Ron Parsons announced that a Sacramento, California, man has been indicted by a federal grand jury for Interstate Communications of Threats to Injure.

Zackary Anthony Mitchell, age 22, was indicted on October 16, 2018.  He appeared before U.S. Magistrate Judge Mark A. Moreno on November 21, 2018, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between December 23, 2017, and January 14, 2018, Mitchell repeatedly texted the victim with threats to injure her and kill the victim’s family.

The charge is merely an accusation and Mitchell is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.   

Mitchell was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.

Robert Wayne Old Horse, age 50, was sentenced on November 16, 2018, to 16 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and restitution in an amount to be determined.

Old Horse was charged on April 17, 2018.  The conviction stems from Old Horse reporting a false allegation of sexual contact against him by a physician working at Indian Health Services in Kyle.  Old Horse later admitted the allegation was entirely false.

The investigation was conducted by the Office of Inspector General, Health and Human Services.  Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Old Horse was immediately remanded to the custody of the U.S. Marshals Service.   

ALBANY, NEW YORK – Justin W. May, age 36, of Edinburg, New York, pled guilty today to possessing a machine gun, possessing handguns in furtherance of a drug trafficking crime, and manufacturing marijuana.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and New York State Police Superintendent George P. Beach II.

On April 12, 2016, the New York State Police responded to a call for shots fired on Fox Hill Road in Edinburg.  Upon arrival, one individual was immediately taken into custody, but the second shooter, later identified as May, was not visible.  In response, State Police members looked around May’s property and observed a marijuana grow operation, along with an AR-15-type weapon. 

May later returned home and was taken into custody.  He possessed two handguns in his vehicle.  The State Police executed a search warrant on the property and found marijuana plants in various stages of growth, approximately 6 pounds of processed marijuana, two semi-automatic rifles, and other firearms.

Further ATF examination of one of the rifles, an AR-15 type, .300 Blackout caliber rifle, concluded that the hammer had been modified to allow the firearm to fire automatically, as a machine gun.  May admitted that he knew the Blackout rifle, as modified, was a machine gun, and that he possessed two handguns to protect his marijuana grow operation and drug money.

May faces at least 5 years and up to life in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 2 years when sentenced by United States District Judge Mae A. D’Agostino on March 25, 2019.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. 

This case was investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.

DENVER – Dashae Eugene Armstrong, age 23, of Denver, appeared in U.S. District Court this morning to be advised of firearm charges pending against him and his rights following a deadly shooting between rival gangs on November 19, 2018, in downtown Denver, U.S. Attorney Jason R. Dunn, ATF Denver Special Agent in Charge Debbie Livingston and FBI Denver Division Special Agent in Charge Dean Phillips announced.  Armstrong was remanded into custody pending a detention hearing scheduled for November 27, 2018.

Armstrong faces one count of being a felon in possession of ammunition.  If convicted of that charge he would face not more than 10 years in federal prison and up to a $250,000 fine.  According to the facts contained in the affidavit, on November 19, 2018, at approximately 4:04 p.m., Denver Police officers responded to 1200 21^st St, Denver, in response to a shooting.  Multiple people called 911 saying that several people had been shot.  When Denver Police arrived on scene they discovered five victims suffering from gunshot wounds, including one who was deceased. 

Witnesses on scene stated two men were shooting at each other.  They then provided descriptions of the shooters.  One of the shooters was described as being a heavy set black male, wearing a grey sweatshirt and black pants.  A short time later Denver Fire Department first responders were with a male in front of the Marquis Theater who matched that description.  The male, identified as Dashae Eugene Armstrong, had a gunshot wound to his leg. 

Armstrong was transported to the hospital where he was treated and detained.  During the investigation detectives at the shooting scene observed two distinct groups of spent shell casings.  One group was 9mm, which matches the gun Armstrong was alleged to be shooting.  He is a Tre Deuce Crip gang member.  The other shooter was reportedly a Tre Tre Crip gang member. 

Armstrong has a criminal record going back to 2007.  His first conviction was a felony in Denver District Court on November 11, 2013, for Distribution of a Schedule I/II Controlled Substance.  His next felony was also in Denver District Court on May 20, 2014, also for Distribution of a Schedule I/II Controlled Substance. 

“Today my office filed charges as a part of the law enforcement and prosecutorial response to this violent crime,” said U.S. Attorney Jason R. Dunn.  “We work together with our state and local partners and will step in when state prosecution is not feasible or possible.”

This investigation was conducted by the Denver Police Department, with assistance from the Denver of the ATF and the Safe Streets Task Force led by the Denver Division of the FBI.  The defendant is being prosecuted by Assistant U.S. Attorney Celeste Rangel. 

These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.

NEWS RELEASE SUMMARY– November 21, 2018

SAN DIEGO, CA – A federal jury today convicted Andrew Otero and his company, A&D General Contracting, Inc. (“A&D”), on charges that they fraudulently obtained $11 million in federal contracts specifically set aside for service-disabled veteran-owned businesses.

The evidence demonstrated that Otero had no military experience.  Yet Otero (on behalf of A&D) and veteran Roger Ramsey (on behalf of Action) participated in a conspiracy to defraud the government by forming a joint venture (“the JV”) – and falsely representing that Action and the JV qualified as service-disabled veteran-owned small businesses (“SDVOSB”).  Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs (“VA”) and the Army Corps of Engineers (“ACE”).

As proven at trial, the fraudulent conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D.  To appear qualified, Otero and Ramsey initially executed an agreement to create the JV (“the JV Agreement”), which stated that Ramsey’s company (Action) would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the JV’s profits.

However, as proved at trial, six months later, Otero and Ramsey signed a secret side agreement that made clear the JV was ineligible under the SDVOSB program. For example, the side agreement said the parties created the JV so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts.  The side agreement also stated that A&D – not Action – would run the construction jobs.  They also agreed that “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”

In addition to the secret side agreement, the evidence demonstrated several ways in which the JV did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D.  For example, although Ramsey (a service-disabled veteran) nominally served as president of Action and the JV, he actually worked full-time for another telecommunications company.  Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the JV. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order.

“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said United States Attorney Adam Braverman.  “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme.  They are now being held fully accountable for robbing truly deserving vets of important economic opportunities.”

All four defendants are also facing civil charges in United States v. Otero, et al., Case No. 15CV0441-JAH, a case alleging violations of the false claims act based on the similar misconduct.

The defendants were ordered to appear before U.S. District Judge John Houston for sentencing on February 19, 2019 at 10:30 a.m.

This case is being prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen.

CORPORATE DEFENDANTS

A&D General Contracting, Inc., Santee, California

INDIVIDUAL DEFENDANTS                                          

Andrew Otero                                            El Cajon, CA

Criminal Case No. 17CR0879-BEN

SUMMARY OF CHARGES

Count 1:                                  Conspiracy to defraud and commit offenses (18 U.S.C. § 371)

Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10

Count 2-4:                               Major fraud against the United States (18 U.S.C. § 1031)

Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100

Counts 5-7:                             Wire fraud (18 U.S.C. § 1343)

Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100

10, 14:                                     False statements (18 U.S.C. § 1001)

Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100

AGENCIES

Department of Veterans Affairs, Office of Inspector General

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced former U.S. Postal Service (USPS) letter carrier James Thomas Woodland, age 49, of Temple Hills, Maryland, to four years in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine.  The sentence was imposed on November 19, 2018.

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) - Washington Division; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and Chief J. Thomas Manger of the Montgomery County Police Department.

According to his plea agreement, from at least September 2016 through April 25, 2017, Woodland delivered drug-laden parcels coming from Nevada and California through the U.S. Mail, to his co-conspirators.  On April 21, 2017, the U.S. Postal Inspection Service identified several USPS Priority Mail parcels which were suspected to contain illegal narcotics.  On April 24, 2017, after a drug-detection canine positively alerted to the parcels, Inspectors obtained a warrant to search them.

Five of the parcels were addressed to five separate locations in Bethesda, Maryland, that were on the postal route assigned to Woodland.  None of the names listed on the parcels were associated with the addresses on the parcels.  Upon execution of the search warrant, Inspectors discovered that each of the parcels contained approximately one kilogram of cocaine. Each parcel was packaged the same, including a light-blue wax covering with a candle wick and the word “King’s” or the shape of a shamrock stamped into the vacuum-sealed cocaine brick.  The estimated street value of the cocaine was $187,600.

As detailed in Woodland’s plea agreement, postal records confirm that the drug parcels Woodland intercepted often had the same or similar characteristics as the parcels that were interdicted on April 21, 2017.  To alert Woodland that parcels were being sent, Woodland’s co-conspirators typically sent Woodland a text message containing (in whole or part) the address on Woodland’s route and/or a fictional name (i.e., a name not associated with the address on Woodland’s route).  Woodland admitted that when the parcel(s) arrived at the Bethesda Post Office for delivery, he retrieved the parcel(s), notified his co-conspirators by call or text message that he had the parcel(s), marked the parcel(s) as “delivered” using his USPS scanner, and then redirected the parcel(s) to his co-conspirators.                    

United States Attorney Robert K. Hur praised the U.S. Postal Inspection Service, the U.S. Postal Service, Office of Inspector General, and the Montgomery County Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Ray D. McKenzie and Timothy F. Hagan, who prosecuted the case.

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The U.S. Attorney’s Office announced that the following persons were arraigned today before U.S. Magistrate Judge Timothy J. Cavan in Billings. Indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty.

CHARLES EUGENE VENDITTI, 41, of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious charge, the defendant faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years supervised release. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 18-147

DAVID CHARLES SPENCER, 45, of Billings, appeared on charges of possession with intent to distribute meth, distribution of meth, use of a firearm during and in relation to a drug trafficking offense, prohibited person in possession of a firearm and possession of a firearm in a school zone. If convicted of the most serious drug charge, the defendant faces a maximum 20 years in prison, a $1 million fine and three years supervised release. If convicted of the most serious firearms charge, the defendant faces a minimum mandatory 10 years in prison, consecutive to any other sentence, a $250,000 fine and three years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 18-144

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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OAKLAND – Kaybaun Rodgers was sentenced today to 121 months in prison for sex trafficking of a minor, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John Bennett. The sentence was handed down by the Honorable Phyllis J. Hamilton, Chief United States District Judge.

Rodgers, 26, whose last known address was in Oakland, Calif., pleaded guilty to the charge on September 5, 2018. According to the plea agreement, between August 28, 2016, and February 19, 2017, he used the website Backpage.com to advertise the availability of a minor for commercial sex acts. Rodgers posted at least 46 advertisements depicting and describing the minor victim.  Rodgers also admitted that from August 28, 2016, to April 20, 2018, he collected proceeds from the minor which were derived from the commercial sex acts in which the minor participated.  For example, on April 20, 2018, Rodgers instructed the minor to send him $50 via Western Union after she had received $200 in exchange for a commercial sex act.   

Rodgers further admitted that on October 24, 2017, he went to a hotel room where he made a video recording of the minor and a male who had solicited a commercial sex act through one of the Rodgers’s Backpage.com advertisements.  In the recording, Rodgers confirmed with the minor that she had received $120 for performing the sex act.  Rodgers then attempted to extort additional money from the man by threatening to post the video on Facebook unless the man paid more money.  

Rodgers also used the minor to produce visual depictions of sexually explicit conduct and used his cellular telephone to record videos depicting the minor performing sex acts on himself.

On August 2, 2018, Rodgers was charged in a federal information with one count of sex trafficking of a minor, in violation of 18 U.S.C. §§ 1951(a)(1), (a)(2) and (b)(2).  Pursuant to his plea agreement, Rodgers pleaded guilty to the charge.  

In addition to the prison term, Chief Judge Hamilton sentenced the defendant to a 20-year period of supervised release. Rodgers also was ordered to register as a sex offender.  The defendant has been in custody since his arrest in April of 2018 and will begin serving his sentence immediately.

Assistant U.S. Attorney Vanessa Ann Baehr-Jones is prosecuting the case with the assistance of Michelle Alter. The prosecution is the result of an investigation by the Federal Bureau of Investigation with assistance from the Union City Police Department.   
 

SAN FRANCISCO – United States Attorney Alex G. Tse congratulated Superior Court Judges Ioana Petrou and Tracie L. Brown on their respective selections by Governor Edmund G. Brown Jr. for appointments to First District Court of Appeal.  Both selectees worked for the Office of the United States Attorney for the Northern District of California.
 
Judge Petrou, who has been appointed associate justice for Division Three of the First District Court of Appeal, served as an Assistant U.S. Attorney in the Northern District of California from 2004 to 2010.  Judge Petrou also served as an Assistant U.S. Attorney in the Eastern District of New York from 2000 to 2002.  Judge Brown, who has been appointed associate justice for Division Four of the First District Court of Appeal, served as an Assistant U.S. Attorney from 2002 to 2013.  Both appointments require confirmation by the California Commission on Judicial Appointments.
 
“We are proud to see the elevation of these former assistant U.S. attorneys to the California Courts of Appeal,” said U.S. Attorney Tse.  “I am certain that both Judge Petrou and Judge Brown will continue to serve with distinction as justices of the California Courts of Appeal.”
 

HUNTINGTON, W.Va. – Two more Operation Saigon Sunset defendants have been sentenced to prison in connection with their roles in the Peterson drug trafficking organization (DTO), announced United States Attorney Mike Stuart.  Stuart praised the joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.  

“Bringing an end to the Peterson drug network which had been operating in Huntington for some time signaled change and hope in Huntington,” said United States Attorney Mike Stuart.  “We will protect every community throughout southern West Virginia by eradicating drug dealers that prey on our good citizens.”

Luther Peterson, also known as “Mook,” 24, from Detroit, was caught selling heroin in October 2017 and later pled guilty to an indictment charging him with conspiracy to distribute heroin. Peterson was sentenced to 36 months in prison.

Peterson admitted that between October 2017 and April 2018 he conspired with Willie Peterson and Manget Peterson to sell heroin in the Huntington area.  As part of the plea agreement, Peterson admitted to distributing heroin to a confidential informant in October 2017.     

Terrell Redd, 43, of Huntington, was caught selling heroin in February 2018, and pled guilty to an indictment charging him with conspiracy to distribute heroin. Redd admitted that in January and February 2018 he conspired with Manget Peterson and Charles Graves, Jr. to sell heroin in the Huntington, WV area.  As part of the plea agreement, Redd admitted to distributing heroin to a confidential informant in February 2018.   

Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.  United States District Judge Robert C. Chambers imposed the sentences.

 Follow us on Twitter:SDWVNews  

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HONOLULU – A federal jury in Honolulu, Hawaii, convicted Wagdy Guirguis and Michael Higa of conspiracy to defraud the United States yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the District of Hawaii Kenji M. Price. In addition to the conspiracy conviction, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of witness tampering. Higa was convicted of the conspiracy and one count of aiding and assisting in the preparation of a false tax return for one of Guirguis’ business entities. The convictions arise from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment and income taxes.

“Employers who withhold employment taxes from their employees’ paychecks and choose to pocket those funds violate the trust of their employees and the United States,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department of Justice will continue to identify and prosecute employment tax offenders, ensuring that such businesses and executives are held to account and do not gain an unfair advantage over honest employers who follow the law and pay their fair share.”

“Mr. Guirguis owed the Internal Revenue Service employment taxes and with the help of Mr. Higa, conspired to obstruct the Internal Revenue Service’s attempts to collect the tax by concealing income using a nominee entity and preparing false corporate and individual income tax returns,” said Acting Special Agent in Charge Troy Burrus. “The defendants’ actions to obstruct the Internal Revenue Service’s collection efforts are very serious. IRS–Criminal Investigation will continue to pursue employers, who collect these taxes and use the funds for personal gain.”

According to court documents and evidence presented at trial, Guirguis operated numerous engineering businesses. Higa, a certified public accountant, was the controller of these businesses. Higa also served as a nominee officer of another entity controlled by Guirguis. When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed a $812,000 penalty, Guirguis and Higa took various steps to place income and assets out of the IRS’ reach. For example, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife. After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.

From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000. In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts. For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.

After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business. Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS. Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.

To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating done in the books of the nominee entity, and asked the employee to sign a false statement to that effect.

Guirguis and Higa face a maximum sentence of five years in prison each on the conspiracy counts. Guirguis faces a maximum sentence of five years on each of the tax evasion counts, three years in prison on each of the counts involving false tax returns and corrupt endeavors, and one year in prison for the count of failure to file a tax return, as well as a period of supervised release, restitution, and monetary penalties. Guirguis faces an additional maximum 20 year sentence for witness tampering. In addition to the maximum sentence of five years in prison on the  onspiracy count, Higa faces a maximum sentence of three years on the aiding and assisting the filing of a false tax return count.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Price commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada, who prosecuted the case.

MACON— A federal grand jury has returned indictments during the month of November. Charles E. Peeler, the United States Attorney for the Middle District of Georgia, announced Wednesday, November 21, 2018 that the grand jury true billed indictments charging 23 new individuals. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.

“The successful collaboration between law enforcement at every level helped bring these cases before a federal grand jury,” said U.S. Attorney Peeler. “I want to thank our local, state and federal law enforcement for their dedication and hard work.” 

Indictment #1

MILTON WRENN, age 58 of Hartsfield, Georgia is charged with the following:

1) Possession of Child Pornography

If convicted on Count 1, Mr. Wrenn faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.

The case was investigated by the Colquitt County Sheriff’s Office, the Georgia Bureau of Investigation, and the United States Postal Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Julia C. Bowen.

Indictment #2

DERINIQUE MORROW, age 20 of Albany, Georgia is charged with the following:

1) Interstate Communications with Intent to Extort

2) Interstate Stalking

If convicted on Count 1, Mr. Morrow faces a maximum sentence of two (2) years in prison and a $250,000 fine, or both. If convicted on Count 2, Mr. Morrow faces a maximum sentence of five (5) years in prison and a $250,000 fine, or both.

The case was investigated by the Federal Bureau of Investigation and the Warminster, Pennsylvania Police Department. The case is being prosecuted by Assistant U.S. Attorney Alan Dasher.

Indictment #3 

GEORGE RANDOLPH JEFFERY, age 58 of Monroe, Georgia is charged with the following:

1) Attempted Online Enticement of a Minor

2) Possession of Child Pornography

If convicted on Count 1, Mr. Jeffery faces a maximum sentence of life in prison, with a 10 year mandatory minimum term, a $250,000 fine and a maximum Supervised Release of life. If convicted on Count 2, Mr. Jeffery faces a maximum sentence of 20 years in prison, a $250,000 fine and a maximum Supervised Release of Life.

The case was jointly investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Lyndie Freeman.

Indictment #4 

ORIEST STANLEY, JR., age 50 of Macon, Georgia, is charged with the following:

1) Failure to Register as a Sex Offender

If convicted on Count 1, Mr. Stanley faces a maximum sentence of 10 years in prison, a $250,000 fine and a maximum Supervised Release of three (3) years. 

The case was investigated by the United States Marshall Service and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Beth Howard.

Indictment #5

MAURICE HANCOCK, a/k/a “FREAKY”, a/k/a “NBA PHIL”, age 44 of Statham, Georgia, is charged with the following:

1-19) Distribution of a Controlled Substance

If convicted on Counts 1, 4, 5 and 6, Mr. Hancock faces a maximum sentence of 20 years in prison and a $1 million fine per count. If convicted on Counts 2, 3, 7 and 8, Mr. Hancock faces a maximum sentence of 40 years in prison, a $5 million fine, or both per count. If convicted on Counts 9 – 19, Mr. Hancock faces a maximum sentence of life in prison, a $10 million fine, or both, per count.  

The case was investigated by the Federal Bureau of Investigation, the United States Drug Enforcement Administration, the Georgia Bureau of Investigation and the Athens-Clarke County Police Department. The case is being prosecuted by Assistant U.S. Attorney Tamara Jarrett.

Indictment #6

HEATHER NICOLE GRAY, age 31 of Norman Park, Georgia, is charged with the following:

1-15) Bank Fraud

16-82) Counts of Wire Fraud

83) Count of Aggravated Identity Theft

If convicted on Counts 1-15, Ms. Gray faces a maximum sentence of 30 years in prison, a $250,000 fine or both, per count. If convicted on Counts 16-82, Ms. Gray faces a maximum of 20 years in prison, a $250,000 fine or both, per count. If convicted on Count 83, Ms. Gray faces a mandatory two (2) years in prison, a $250,000 fine or both. 

The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert D. McCullers.

Indictment #7 

FRANK DOUGLAS, age 59 of North Augusta, Georgia, is charged with the following:

1-2) Assault on a Federal Employee

If convicted on Counts 1-2, Mr. Douglas faces a maximum sentence of eight (8) years, a $250,000 fine or both, per count.

The case is being prosecuted by Assistant U.S. Attorney Leah McEwen.

Indictment #8

MIGUEL AYALA, age 26 of Marietta, Georgia, is charged with the following:

1) Possession with Intent to Distribute Methamphetamine 

If convicted on Count 1, Mr. Ayala faces a maximum sentence of life in prison, a $10 million fine or both.

The case was investigated by the United States Drug Enforcement Administration, the Peach County Sheriff’s Office and the Byron Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts.

EDUARDO ONOFRE, age 24 of Powder Springs, Georgia, is charged with the following:

1) Possession with Intent to Distribute Methamphetamine 

If convicted Count 1, Mr. Onofre faces a maximum sentence of life in prison, a $10 million fine or both.

The case was investigated by the United States Drug Enforcement Administration, the Peach County Sheriff’s Office, and Byron Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts.

Indictment #9

JUSTIN HUNT a/k/a “BIG BOY”, age 33 of Macon, Georgia, is charged with the following:

1-2) Distribution of Methamphetamine

If convicted on Counts 1-2, Mr. Hunt faces a maximum sentence of life in prison, a $10 million fine or both, per count. 

The case was investigated by the United States Drug Enforcement Administration and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts. 

VICTOR HENDERSON a/k/a “BLACK BOY”, age 39, of Macon, Georgia, is charged with the following:

3) Distribution of Methamphetamine

If convicted on Count 3, Mr. Henderson faces a maximum sentence of 40 years in prison, a $5 million fine or both.

The case was investigated by the United States Drug Enforcement Administration and the Bibb County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Ouzts.

Indictment #10

YESIKA DEL CARMEN VIVENES LINARES a/k/a ANA CARARINA GONCALVES ALVES, age 36 of Venezuela, is charged with the following:

1) Forgery and False Use of a Passport

If convicted on Count 1, Ms. Vivenes Linares faces a maximum sentence of ten (10) years in prison, a $250,000.00 fine or both. 

The case was investigated by the Department of State, Diplomatic Security Service and the Valdosta Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert D. McCullers.

Indictment #11 

MARTIN SOSA-TORRES, age 24 of Mexico is charged with the following:

1) Illegal Reentry into the United States

If convicted on Count 1, Mr. Torres faces a maximum sentence of two (2) years in prison, a $250,000.00 fine, or both, on each count.  

The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.

In addition to the above indictments, the following individuals were indicted for firearms offenses. All of these cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. PSN was launched in 2001 by the Office of the Attorney General.

Indictment #12

CECIL WAMPLER, age 33, of Bristol, Tennessee, is charged with the following:

1) Conspiracy to Possess with Intent to Distribute a Controlled Substance

2) Possession with Intent to Distribute Methamphetamine

3) Possession of a Firearm During a Drug Trafficking Crime

4) Possession of a Firearm by a Convicted Felon

If convicted on Count 1, Mr. Wampler faces a maximum sentence of life in prison, a $10 million fine or both. If convicted on Count 2, Mr. Wampler faces a maximum sentence of 20 years in prison, a $1 million fine or both. If convicted on Count 3, Mr. Wampler faces a maximum sentence of life in prison, a $250,000 fine or both. If convicted on Count 4, Mr. Wampler faces a maximum sentence of 10 years in prison, a $250,000 fine or both. 

The case was investigated by the Oconee County Sheriff’s Office, Athens-Clarke County Police Department, and the collaboration of District Attorney for the Western Judicial Circuit Ken Mauldin. The case is being prosecuted by Assistant U.S. Attorney Tamara Jarrett.  

AMY LAURA LEONARD, age 49 of Johnson City, Tennessee, is charged with the following:

1) Conspiracy to Possess with Intent to Distribute a Controlled Substance

2) Possession with Intent to Distribute Methamphetamine

3) Possession of a Firearm During a Drug Trafficking Crime

If convicted on Count 1, Ms. Leonard faces a maximum sentence of life in prison, a $10 million fine or both. If convicted on Count 2, Ms. Leonard faces a maximum sentence of 20 years in prison and a $1 million fine. If convicted on Count 3, Ms. Leonard faces a maximum sentence of life in prison, a $250,000.00 fine or both.  

The case was investigated by the Oconee County Sheriff’s Office, Athens-Clarke County Police Department, and the collaboration of Ken Mauldin, District Attorney for the Western Judicial Circuit. The case is being prosecuted by Assistant U.S. Attorney Tamara Jarrett. 

WILLIAM MATHEW HOWARD, aged 44, of Crawford, Georgia, is charged with the following:

1) Conspiracy to Possess with Intent to Distribute a Controlled Substance

2) Possession with Intent to Distribute Methamphetamine

3) Possession of a Firearm During a Drug Trafficking Crime

If convicted on Count 1, Mr. Howard faces a maximum sentence of life in prison, a $10 million fine or both. If convicted on Count 2, Mr. Howard faces a maximum sentence of 20 years in prison, a $1 million fine or both. If convicted on Count 3, Mr. Howard faces a maximum sentence of life in prison, a $250,000.00 or both.

The case was investigated by the Oconee County Sheriff’s Office, Athens-Clarke County Police Department, and the collaboration of District Attorney for the Western Judicial Circuit Ken Mauldin. The case is being prosecuted by Assistant U.S. Attorney Tamara Jarrett. 

Indictment #13 

JAMES EARL BRIDGES, age 41, of Albany, Georgia is charged with the following:

1) Possession of a Firearm by a Convicted Felon

2) Possession of a Firearm by a Controlled Substance User 

3) Possession of Methamphetamine

If convicted on Counts 1-2, Mr. Bridges faces a maximum sentence of 10 years in prison, a fine of up to $250,000 or both, and a maximum Supervised Release of three (3) years, per count. If convicted on Count 3, Mr. Bridges faces one (1) year in prison and a $1,000 fine.

The case was investigated by the Albany-Dougherty Drug Unit. The case is being prosecuted by Assistant U.S. Attorney Alan Dasher.

Indictment #14 

JOSEPH FREDRICK KEGLER, age 45 of Columbus, Georgia is charged with the following:                                                                                                        

1) Felon in Possession of a Firearm

2) Simple Possession of a Controlled Substance

If convicted on Count 1, Mr. Kegler faces a maximum sentence of 10 years in prison, a $250,000 fine, or both and a maximum three (3) years of Supervised Release. If convicted on Count 2, Mr. Kegler faces a maximum sentence of three (3) years in prison, a $250,000 fine, or both and a maximum one (1) year of Supervised Release.

The case was investigated by the Columbus Police Department and ATF. The case is being prosecuted by Assistant U.S. Attorney Amelia G. Helmick.

Indictment #15

PAUL A. BRADFORD, age 47 of Lakeland, Georgia, is charged with the following:

1) Possession of a Firearm by a Convicted Felon

If convicted on Count 1, Bradford faces a maximum sentence of 10 years in prison, a $250,000 fine or both.  

The case was investigated by the Federal Bureau of Investigation and the Lanier and Berrien County Sheriff’s Offices. The case is being prosecuted by Assistant U.S. Attorney Robert D. McCullers. 

Indictment #16

BRANDON RASHAD DOWDELL, age 24, of Valdosta, Georgia, is charged with the following:

1) Possession of a Firearm by a Convicted Felon

If convicted on Count 1, Mr. Dowdell faces a maximum sentence of 10 years in prison, a $250,000 fine or both. 

The case was investigated by the Federal Bureau of Investigations and the Valdosta Police Department. The case is being prosecuted by Assistant U.S. Attorney Sonja Profit.

Indictment #17

ANTHONY LEVETTE GRUBBS, age 31 of Jacksonville, Florida, is charged with the following:

1) Possession of a Firearm by a Convicted Felon

If convicted on Count 1, Mr. Grubbs faces a maximum sentence of 10 years in prison, a $250,000 fine or both.

The case was investigated by the United States Drug Enforcement Administration, the Federal Bureau of Investigation and the Lowndes County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Sonja Profit.

Indictment #18

WILLIAM HENRY PHILLIPS, JR., age 43, of Valdosta, Georgia, is charged with the following:

1) Possession of a Firearm by a Convicted Felon

If convicted on Count 1, Mr. Phillips faces a maximum sentence of 10 years in prison, a $250,000 fine or both.

The case was investigated by the Federal Bureau of Investigations and the Valdosta Police Department. The case is being prosecuted by Assistant U.S. Attorney Sonja Profit.

Indictment #19

JAYLON WESLEY, age 21 of Columbus, Georgia, is charged with the following:

1) Possession of Firearm by a Convicted Felon

If convicted on Count 1, Mr. Wesley faces a maximum sentence of 10 years in prison, a $250,000 fine or both.  

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbus Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher Williams.

Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.