BILLINGS—A Billings woman who admitted possessing meth for distribution was sentenced on April 4 to four years in prison and four years of supervised release, U.S. Attorney Kurt Alme said.

Leah Summer Garcia, 41, pleaded guilty earlier to possession with intent to distribute meth.

U.S. District Judge Susan P. Watters presided.

On April 19, 2018, Garcia, who was on state probation, was arrested on two outstanding warrants while she was at the jail visiting an inmate, prosecutors said in court records. In a search of the vehicle Garcia drove to the jail, law enforcement found an ounce of meth, which is the equivalent of about 224 doses. Garcia had been linked through drug-related text messages to others in an ongoing drug investigation.

Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI task force.

The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

ASHEVILLE, N.C. – Each year in April, the Department of Justice and the United States Attorney’s Office for the Western District of North Carolina observe National Crime Victims’ Rights Week, by taking time to honor victims of crime and those who advocate on their behalf.

This year’s observance takes place April 7-13, with the theme “Honoring Our Past. Creating Hope for the Future,” which celebrates the progresses made, and a future of crime victim services that is more inclusive, accessible and trauma-informed.

“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”

“Behind crime statistics are real crimes, inflicted upon real people. National Crime Victims’ Rights Week is a time of remembrance, and a tribute to those whose lives have been affected by crime,” said U.S. Attorney Andrew Murray. “Each day, the public servants of the U.S. Attorney’s Office work hard to honor their oath to serve the citizens of the Western District, to advocate for those individuals and communities affected by crime, and to seek justice for crime victims, their families, and their loved ones.”    

In observance of National Crime Victims’ Rights Week, the Western North Carolina Crime Victims Coalition will hold a meet-and-greet on Tuesday, April 9, 2019, between 8:30 and 10:00 a.m. in Asheville.  Local Asheville City and Buncombe County government staff, council members, commissioners, law enforcement, service providers, and survivors of crime are invited to discuss the County’s efforts to provide assistance and support to crime victims. Also on that date, the Asheville Buncombe Homicide Survivors Support Group will celebrate its first anniversary.  The group meets on the second Tuesday of every month at 7:00 p.m., at the YWCA, located at 185 S. French Broad Avenue, in Asheville. 

Lynne W. Crout to be Recognized for Her Contributions to Crime Victims

Lynne Ward Crout, Victim Assistance Specialist for the U.S. Attorney’s Office, will receive the “Outstanding Criminal Justice Professional Award,” in recognition of her lifelong service and advocacy for victims of crime.  Ms. Crout will be honored by the Crime Victim Coalition in Charlotte, and the ceremony will take place on Thursday, April 11, 2019, at the Mayfield Missionary Baptist Church. 

Ms. Crout works for the U.S. Attorney’s Office branch located in Asheville. She has been with the office for 34 years, with the past 20 years working as a Victim Witness Coordinator.  Ms. Crout works directly with victims on the Cherokee Indian Reservation, the Blue Ridge Parkway, the Great Smoky Mountains National Park and the Pisgah National Forest.  Her duties include providing advocacy, support and services to federal crime victims.  In 2002, Ms. Crout won the National Crime Victims’ Services Award for her work with victim families on three capital murder cases.  Ms. Crout is a member of the North Carolina Victim Assistance Network, and Co-chair of the Western North Carolina Crime Victims Coalition. 

“Ms.  Crout’s work embodies this Office’s ongoing commitment to uphold the rule of law, to protect our fellow citizens, to help and empower the most vulnerable among us, and to give justice to those who have been affected by crime and violence.  I commend Ms. Crout for her decades of public service, during which she has achieved outstanding results in work that makes a difference in the lives of citizens across the Western District.”

***

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.

COLUMBUS, Ohio – A Jackson, Ohio man has agreed to plead guilty in U.S. District Court to orchestrating a $50 million dollar Ponzi scheme that defrauded at least 46 investors.

Jason E. Adkins, 40, was arraigned in federal court today in Columbus.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case.

According to the plea agreement, beginning in 2012 and continuing through 2018, Adkins conspired to solicit millions of dollars from investors under false pretenses, failed to invest the funds as promised and misappropriated investors’ funds for his own benefit and the benefit of others.

Adkins and others claimed that they bought and sold over-sized tires commonly known as off-the-road tires, which are used on earth moving equipment and/or mining equipment. Investors were told their money would be used to buy the tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate.

Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days. Adkins would sometimes pay the return on investment for the first transaction with investor victims.

“Making good on early investments perpetuated Adkins’s scheme by appearing to corroborate his claims, which helped him attract more investors,” said U.S. Attorney Glassman. “What the victims didn’t know was that Adkins was paying off early investments with the money from later ones. Although the product that Jason Adkins was purporting to buy and sell—oversize tires—was unusual, the operation of his scheme was not. It was right out of Ponzi’s playbook.”

For example, although two specific investors were paid for their initial investment of $20,000 with Adkins in 2016, they only received $320,000 total from Adkins in return for approximately $1 million worth of investments overall.

Adkins used several methods to conceal the scope of the Ponzi scheme and to minimize associated tax liabilities. For example, he and others sent various amounts of investor funds through a long series of wire transfers to many bank accounts. He created more than 15 corporate bank accounts to receive and distribute fraudulently obtained funds from investors.

Adkins also laundered his ill-gotten proceeds for at least five years, inlcuding by investing in front businesses created by co-conspirators.

Adkins bought cars, vacations and property with the funds from the scheme. For example, he paid for the construction of a pool at his personal residence and also paid more than $20,000 to lease a private jet.

Further, Adkins failed to file individual income tax returns reporting his income derived from the scheme. In 2013, specifically, Adkins earned at least $1.1 million, which caused a tax loss of nearly $237,000 to the IRS.

“A person who creates a web of financial lies will soon be caught up in it. Mr. Adkins offered rates of return of 15 to 20 percent to investors and unfortunately these were false promises,” said William Cheung, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “No matter the source of income, everyone has an obligation to the American public to pay their fair share of income taxes. The success of this investigation was a direct result of the excellent partnership amongst IRS Criminal Investigation, FBI, and the U.S. Attorney’s Office.”

Adkins has agreed to plead guilty to three counts of wire fraud and six counts related to money laundering – all crimes punishable by up to 20 years in prison – and one count of tax evasion, which carries a maximum penalty of up to five years in prison.

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, David M. DeVillers and S. Courter Shimeall, who are representing the United States in this case.

If you believe you’re also a victim of Adkins’s scheme, please contact the U.S. Attorney’s Office Victim Witness Coordinator, Barbara Vanarsdall, at 614-469-5715.

# # #

COLUMBUS, Ohio – A Jackson, Ohio man has agreed to plead guilty in U.S. District Court to orchestrating a $50 million dollar Ponzi scheme that defrauded at least 46 investors.

Jason E. Adkins, 40, was arraigned in federal court today in Columbus.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the case.

According to the plea agreement, beginning in 2012 and continuing through 2018, Adkins conspired to solicit millions of dollars from investors under false pretenses, failed to invest the funds as promised and misappropriated investors’ funds for his own benefit and the benefit of others.

Adkins and others claimed that they bought and sold over-sized tires commonly known as off-the-road tires, which are used on earth moving equipment and/or mining equipment. Investors were told their money would be used to buy the tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate.

Investors were promised a 15 to 20 percent rate of return on investment, generally within 180 days. Adkins would sometimes pay the return on investment for the first transaction with investor victims.

“Making good on early investments perpetuated Adkins’s scheme by appearing to corroborate his claims, which helped him attract more investors,” said U.S. Attorney Glassman. “What the victims didn’t know was that Adkins was paying off early investments with the money from later ones. Although the product that Jason Adkins was purporting to buy and sell—oversize tires—was unusual, the operation of his scheme was not. It was right out of Ponzi’s playbook.”

For example, although two specific investors were paid for their initial investment of $20,000 with Adkins in 2016, they only received $320,000 total from Adkins in return for approximately $1 million worth of investments overall.

Adkins used several methods to conceal the scope of the Ponzi scheme and to minimize associated tax liabilities. For example, he and others sent various amounts of investor funds through a long series of wire transfers to many bank accounts. He created more than 15 corporate bank accounts to receive and distribute fraudulently obtained funds from investors.

Adkins also laundered his ill-gotten proceeds for at least five years, inlcuding by investing in front businesses created by co-conspirators.

Adkins bought cars, vacations and property with the funds from the scheme. For example, he paid for the construction of a pool at his personal residence and also paid more than $20,000 to lease a private jet.

Further, Adkins failed to file individual income tax returns reporting his income derived from the scheme. In 2013, specifically, Adkins earned at least $1.1 million, which caused a tax loss of nearly $237,000 to the IRS.

“A person who creates a web of financial lies will soon be caught up in it. Mr. Adkins offered rates of return of 15 to 20 percent to investors and unfortunately these were false promises,” said William Cheung, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “No matter the source of income, everyone has an obligation to the American public to pay their fair share of income taxes. The success of this investigation was a direct result of the excellent partnership amongst IRS Criminal Investigation, FBI, and the U.S. Attorney’s Office.”

Adkins has agreed to plead guilty to three counts of wire fraud and six counts related to money laundering – all crimes punishable by up to 20 years in prison – and one count of tax evasion, which carries a maximum penalty of up to five years in prison.

U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorneys Douglas W. Squires, David M. DeVillers and S. Courter Shimeall, who are representing the United States in this case.

If you believe you’re also a victim of Adkins’s scheme, please contact the U.S. Attorney’s Office Victim Witness Coordinator, Barbara Vanarsdall, at 614-469-5715.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nicholas Stanley, age  40, of Dalton, Pennsylvania, owner of Nick Stanley Paving, Inc., was indicted on April 2, 2019, for tax evasion and structuring transactions to evade a reporting requirement.

According to United States Attorney David J. Freed, the indictment alleges that Stanley took affirmative steps to evade the payment of taxes while owing $1,062,312.10 for tax years 2005 to 2011. 

The case was investigated by the Internal Revenue Service, Criminal Investigation Division.  Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.

Criminal Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for each offense charged is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Edward Gonzalez, age 30, of Hazelton, Pennsylvania, was indicted by a federal grand jury on April 2, 2019, for drug trafficking and firearms charges.

According to United States Attorney David J. Freed, the indictment alleges that Gonzalez possessed with the intent to distribute over 500 grams of cocaine and a quantity of marijuana on November 30, 2018, in Hazelton, Pennsylvania.  The indictment also alleges that Gonzalez possessed a .40 caliber Smith & Wesson handgun in furtherance of drug trafficking.

The case is being investigated by the U.S. Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.

This case was brought as 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. The Department of Justice 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 also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

Indictments are only allegations.  All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum total penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Samuel Serrano, age 24, a prisoner at the United States Penitentiary, (“USP”) Allenwood, was indicted on March 28, 2019, by a federal grand jury for possession of a controlled substance.  

According to United States Attorney David J. Freed, Serrano was found in possession of ADB-FUBINACA, a synthetic form of marihuana, during a search conducted on April 12, 2017. 

The charges stem from an investigation by officers at USP Allenwood and agents of the Federal Bureau of Investigation.  Assistant United States Attorney Geoffrey MacArthur is prosecuting the case.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The defendant is facing a maximum of ten years of incarceration and a $250,000 fine.   Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two United States Penitentiary, (“USP”) Lewisburg inmates were indicted separately by a federal grand jury on March 28, 2019, for possession of a weapon while in prison.

According to United States Attorney David J. Freed, Jermaine Ray, age 36, was found in possession of a homemade sharpened piece of plastic with a metal tip, commonly referred to as a “shank” that was designed to be a weapon on August 22, 2018.  

Tony C. Knott, age 36, was found in possession of a homemade sharpened piece of plastic with a metal tip, commonly referred to as a “shank” that was designed to be a weapon on August 24, 2018.

The charges in both cases stem from an investigation by officers at USP Lewisburg and the Federal Bureau of Investigation.  Assistant United States Attorney Geoffrey MacArthur and Special Assistant United States Attorney Michael P. Figgsganter are prosecuting the case.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The defendant is facing a maximum of ten years of incarceration and a $250,000 fine.   Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Rodrequis Council, age 33, of North Carolina, was sentenced to 108 months in prison followed by four years of supervised release on March 29, 2019, by U.S. District Court Judge Matthew W. Brann. 

According to United States Attorney David J. Freed, Council previously pleaded guilty to aiding and abetting the armed bank robbery of the SPE Federal Credit Union in State College on August 22, 2017.

Marquis Buckley, age 41, of Virginia, pled guilty to committing the armed bank robbery on July 3, 2018, in the Eastern District of Virginia, where he also faced charges related to two other bank robberies in Virginia.  Buckley was sentenced to 184 months in prison followed by five years of supervised release for his participation in the three robberies on October 3, 2018. 

The matter was investigated by Ferguson Township Police Department, Penn State University Police, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Alisan V. Martin prosecuted the case.

This case was brought as 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. The Department of Justice 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.

# # #

WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Adam Poeth, age 33, of Shamokin, Pennsylvania was sentenced on March 28, 2019, by United States District Matthew W. Brann to 48 months’ imprisonment followed by a 4-year term of supervised release for conspiring to sell 100 grams or more of heroin, which is equivalent to approximately 4,000 individual doses of heroin.

According to United States Attorney David J. Freed, in August 2018, Poeth pled guilty to conspiring with others to distribute heroin.  Co-defendant, Chad Snyder was sentenced to time-served followed by a 3-year term of supervised release on February 8, 2019.  The final co-defendant, Frank Galasso, age 65, of Sunbury, Pennsylvania, is awaiting trial.

The investigation was conducted by the Berwick Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Alisan V. Martin prosecuted the case.

This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

This case was also brought as 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. The Department of Justice 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.

# # #

KNOXVILLE, Tenn. – In observance of National Crime Victims’ Rights Week, April 7-13, 2019, the U.S. Attorney’s Office for the Eastern District of Tennessee will be participating in several events across the district including:

• A bell ringing ceremony to honor victims of crime, “Honoring Our Past – Creating Hope for the Future,” at Chester Foster Park in Chattanooga on Tuesday, April 9, 2019. 

• A Crime Victims’ Right Ceremony at the Cocke County Courthouse on Wednesday, April 10, 2019, sponsored by Fourth Judicial District Attorney General James Dunn.

• A Crime Victims’ Tree Planting Ceremony on Friday, April 12, 2019, at  Memorial Park Community Center in Johnson City, Tennessee.

“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."       

“National Crime Victims’ Rights Week is a time to reflect on the history of the victims’ rights movement, celebrate its progress, and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve,” said U.S. Attorney J. Douglas Overbey. “The U.S. Attorney’s Office has dedicated victim-witness personnel who serve federal crime victims across the district’s 41 counties. Our prosecutors are also committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children.”     

Each year in April, the Department of Justice and U.S. Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.

The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.

The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.

The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Victim Witness Program at 865-545-4167.

# # #

SPRINGFIELD, Mo. – A Branson, Mo., sex offender has been sentenced in federal court for receiving and distributing child pornography.

Bill Lawrence, Jr., 57, was sentenced by U.S. District Judge Roseann Ketchmark on Friday, April 5, to 15 years in federal prison without parole. The court also sentenced Lawrence to 15 years of supervised release following incarceration.

Lawrence, who pleaded guilty on Aug. 28, 2018, has prior convictions for possessing child pornography and promoting child pornography.

According to court documents, the investigation began with two CyberTips from the National Center for Missing and Exploited Children. Lawrence had attached images of child pornography to at least two emails that were sent from his Google account. The images depicted prepubescent children being sexually abused or in sexual poses.

Law enforcement officers executed a search warrant at Lawrence’s residence and seized his cell phone, which contained multiple images of child pornography. Lawrence admitted to officers that he used the Chat Hour application to both receive and distribute child pornography over the internet.

This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.

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

Eight Co-Defendants Previously Pleaded Guilty and Were Sentenced to Between 10 and 30 Years In Federal Prison 

Baltimore, Maryland – On Friday, April 5, 2019, Christopher Dukes, age 27; and Marcus Johnson, age 28, both of Baltimore, Maryland, pleaded guilty to conspiracy to participate in a racketeering enterprise related to their activities as members of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore.  As part of Dukes’ plea agreement, he admitted to participating in two murders; two attempted murders, including of a law enforcement officer; and the distribution of narcotics. 

Ten other Hillside gang members have previously pleaded guilty to their participation in the racketeering conspiracy.  Of those, eight have been sentenced to between 10 and 30 years in federal prison.  Seven defendants are scheduled to go to trial on May 6, 2019.  Two defendants remain at large and are being sought by law enforcement.

The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.

“The most important thing that law enforcement officers can do to stop violence is to make clear that killers will be held accountable,” said U.S. Attorney Robert K. Hur. “The Hillside gang is responsible for murders and other acts of violence throughout their community.  All of the members of the conspiracy were aware of the violent acts committed by this gang.  Christopher Dukes personally participated in two murders and two attempted murders.  He and his co-defendants will now serve years in federal prison, where there is no parole--ever.”

“The gun violence resulting from these gang turf wars and rivalries is tearing this city apart,” said ATF Baltimore Special Agent in Charge Rob Cekada. “We remain committed in our mission to identify, investigate, and incarcerate anyone using firearms to commit these violent crimes.”         

According to their plea agreements, Dukes and Johnson were members and associates of the Hillside Enterprise, which they knew distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City.  The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack.  Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale.  In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring.  Dukes admitted that he sold drugs as a member of Hillside, including on school grounds in 2012, and was captured on video in a Hillside cut house preparing drugs for sale in 2014.  Johnson also admitted that he regularly distributed drugs on behalf of the gang.

Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking.  Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.  For example, Johnson admitted that on January 13, 2012, in the 400 block of Roundview Road in Baltimore, he participated in an assault of an individual who sold narcotics on behalf of Hillside.

Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others.  Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations.  Dukes and Johnson knew that these acts of violence, including the homicides, were committed by Hillside members and associates.   

Specifically, Dukes admitted that on August 1, 2011, he attempted to hit a law enforcement officer with his car in the 2900 block of Waterview Avenue.  Further, in a case of mistaken identity, on August 6, 2012, Duke and three other Hillside members shot two individuals, killing one of them, in the 2700 block of Giles Road, in the Up Da Hill section of Cherry Hill.  The intended target of Dukes and his fellow Hillside members was a member of the Up Da Hill gang.  Dukes and two other Hillside members also participated in the murder of an individual on September 8, 2012, in the 2600 block of Kent Street in Baltimore, in a dispute over drugs and money.  Dukes admitted that on October 18, 2012, he and at least one Hillside co-conspirator shot an individual during an attempted robbery, using the same gun that was used in the murder on September 8, 2012.  On March 12, 2015, Dukes and another Hillside member possessed with intent to distribute two baggies of cocaine, and had a 9mm semi-automatic handgun that had been used by another Hillside member to shoot a rival Up Da Hill member on November 2, 2013.

Johnson was arrested for possessing a firearm on August 15, 2009, and posted videos on social media in which he identified himself as a Hillside member, and raps about other Hillside members and their activities, including dealing narcotics.

Dukes and the government have agreed that if the Court accepts the plea agreement Dukes will be sentenced to 23 years in federal prison.  Johnson and the government have agreed that if the Court accepts his plea, Johnson will be sentenced to between 12 and 17 years in federal prison.  U.S. District Judge George L. Russell, III has scheduled sentencing for Dukes and Johnson on June 17, 2019 at 9:30 a.m. and 10:30 a.m., respectively.

According to the ATF, a reward of $10,000 each is available for information leading to the arrest of the two fugitive defendants in this case, Travis Eugene Alewine, a/k/a Sticks, age 27; and Deaven Raeshawn Cherry, a/k/a Gotti, age 32, both of Baltimore, who are charged federally with drug and racketeering conspiracies, including murders.  They are actively being sought by ATF Baltimore Special Agents and the U.S. Marshals Service. They should be considered armed and dangerous. Law enforcement believes they are likely still in the counties near Baltimore City, if not within the city itself. Anyone with information should contact ATF at (888) ATF-TIPS, ATFtips@atf.gov, text “ATFBAL” to 63975, or contact ATF via the mobile reportit® app.

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.  Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

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BOSTON – Thirteen parents charged in the college admissions scandal will plead guilty to using bribery and other forms of fraud to facilitate their children’s admission to selective colleges and universities. One coach also agreed to plead guilty.

The defendants were arrested last month and charged with conspiring with William “Rick” Singer, 58, of Newport Beach, Calif., and others, to use bribery and other forms of fraud to secure the admission of students to colleges and universities. The conspiracy involved bribing SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of students, or to correct the students’ answers after they had taken the exam, and bribing university athletic coaches and administrators to facilitate the admission of students to elite universities as purported athletic recruits. 

The following defendants were charged in an Information with one count of conspiracy to commit mail fraud and honest services mail fraud and have agreed to plead guilty pursuant to plea agreements:

1. Gregory Abbott, 68, of New York, N.Y., together with his wife, Marcia, agreed to pay Singer $125,000 to participate in the college entrance exam cheating scheme for their daughter;
2. Marcia Abbott, 59, of New York, N.Y.;
3. Jane Buckingham, 50, of Beverly Hills, Calif., agreed to pay Singer $50,000 to participate in the college entrance exam cheating scheme for her son;
4. Gordon Caplan, 52, of Greenwich, Conn., agreed to pay Singer $75,000 to participate in the college entrance exam cheating scheme for his daughter;
5. Robert Flaxman, 62, of Laguna Beach, Calif., agreed to pay Singer $75,000 to participate in the college entrance exam cheating scheme for his daughter;
6. Felicity Huffman, 56, of Los Angeles, Calif., agreed to pay Singer at least $15,000 to participate in the college entrance exam cheating scheme for her oldest daughter;
7. Agustin Huneeus Jr., 53, of San Francisco, Calif., agreed to pay Singer $300,000 to participate in both the college entrance exam cheating scheme and the college recruitment scheme for his daughter;
8. Marjorie Klapper, 50, of Menlo Park, Calif., agreed to pay Singer $15,000 to participate in the college entrance exam cheating scheme for her son;
9. Peter Jan Sartorio, 53, of Menlo Park, Calif., agreed to pay Singer $15,000 to participate in the college entrance exam cheating scheme for his daughter;
10. Stephen Semprevivo, 53, of Los Angeles, Calif., agreed to pay Singer $400,000 to participate in the college recruitment scheme for his son; and
11. Devin Sloane, 53, of Los Angeles, Calif., agreed to pay Singer $250,000 to participate in the college recruitment scheme for his son.

In addition, Bruce Isackson, 61, and Davina Isackson, 55, of Hillsborough, Calif., were charged in a separate Information and have both agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. Bruce Isackson will also plead guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the IRS. The Isacksons agreed to pay Singer an amount, ultimately totaling $600,000, to participate in the college entrance exam cheating scheme for their younger daughter and the college recruitment scheme for both of their daughters. The Isacksons also underpaid their federal income taxes by deducting the bribe payments as purported charitable contributions. The Isacksons are cooperating with the government’s investigation.

Michael Center, 54, of Austin, Texas, the former head coach of men’s tennis at the University of Texas at Austin, was charged in a third Information and has agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. In 2015, Center personally accepted $60,000 in cash from Singer, as well as $40,000 directed to the University of Texas tennis program, in exchange for designating the child of one of Singer’s clients as a tennis recruit, thereby facilitating his admission to the University of Texas.

All of the defendants who improperly took tax deductions for the bribe payments have agreed to cooperate with the IRS to pay back taxes.

Plea hearings have not yet been scheduled by the Court. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. The charge of conspiracy to defraud the United States provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.

INDIANAPOLIS- United States Attorney Josh J. Minker announced that Jaylen Brancheau and Donaven Meadows have been charged in federal court in separate criminal complaints.  Brancheau has been charged with possession with intent to distribute a controlled substance, possession of a firearm during and in relation to a drug trafficking offense, and providing a false statement during the purchase of a firearm.  Meadows has been charged with possession of ammunition by a prohibited person and possession of a firearm by a prohibited person.

“In bringing charges against these individuals, we send a strong message that illegal gun possession will not be tolerated and individuals that break the law will receive the strongest sentencing possible,” said Minkler. “CGIC connects the dots between crime guns and trigger pullers. The facts alleged in these two cases demonstrate exactly what CGIC was created to do.”

These arrests were made possible by the joint efforts of the Crime Gun Intelligence Unit (CGIC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Indianapolis Metropolitan Police Department (IMPD), and the Greenwood Police Department (GPD).

CGIC is an interagency collaboration focused on the immediate collection, management, and analysis of crime gun evidence, such as shell casings, in real time, in an effort to identify shooters, disrupt criminal activity, and prevent future violence. The primary outcome of CGIC is identifying armed violent offenders for investigation and prosecution.  

A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

These cases are being prosecuted by Assistant United States Attorney Jeffrey D. Preston. Brancheau, if convicted, faces possible life imprisonment, and Meadows faces up to 20 years in prison. 

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime using firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3. 

BOSTON – A Dominican national was sentenced on Friday, April 5, 2019, in federal court in Boston for his role in a fentanyl conspiracy. 

Wareng Jhonny Villar-Ortiz, 31, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 73 months in prison and three years of supervised release. Villar-Ortiz will be subject to deportation upon completion of his sentence. In January 2019, Villar Ortiz pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute 400 grams or more of fentanyl, and one count of illegal reentry of a deported alien.

A federal drug investigation determined that Villar-Ortiz was a mid-level drug distributor and that Saul Martinez Escarfuller had delivered a kilogram of drugs to Villar-Ortiz in late January 2018. In February 2018, Villar-Ortiz expressed dissatisfaction with the quality of the drugs and made arrangements to return them to Martinez Escarfuller. On Feb. 14, 2018, agents observed Martinez Escarfuller exit Villar-Ortiz’s apartment building and drive off. A short while later, Martinez Escarfuller stopped his car and Joel Cesar Baez exited the vehicle and entered another car. Agents then stopped the second vehicle and asked Baez and the driver to exit. A large plastic bag, which was subsequently determined to contain 789.9 grams of fentanyl, was recovered from inside Baez’s coat.

Angel Milciades Santana Polanco was typically a distributor for Villar-Ortiz and he tested the quality of Villar-Ortiz’ drugs. Between Feb. 8 and Feb. 12, 2018, Santana Polanco offered to supply Villar-Ortiz with a kilogram of drugs. Before deciding whether to purchase the drugs, Villar-Ortiz wanted to test their quality. On Feb. 15, 2018, Villar-Ortiz expressed that the drugs were unacceptable and made arrangements for Santana Polanco to take them back. During a search of Villar-Ortriz’s residence, 978.6 grams of fentanyl from a hiding spot in the bathroom wall was seized. 

Villar-Ortiz was previously deported from the United States in 2016.

Santana Polanco was sentenced on Feb. 1, 2019, to five years in prison and three years of supervised release. Cesar Baez, who was a runner for a fentanyl supplier, was sentenced on Jan. 29, 2019, to 30 months in prison and three years of supervised release. Martinez Escarfuller is scheduled to be sentenced on May 30, 2019.

 United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement.  Valuable assistance was provided by the Boston, Ipswich, and Arlington Police Departments.  Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

PROVIDENCE – A Dominican national previously deported from the United States on three occasions pleaded guilty in U.S. District Court in Providence today to trafficking heroin and fentanyl, and illegal reentry into the United States, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent James M. Manni, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.

According to information presented to the Court, members of the Rhode Island Fugitive Task Force, who were attempting to locate Juan Manu Pena-Zapata based on a federal arrest warrant issued in the Western District of Michigan on a charge of using a false social security number, pulled over his a vehicle in Providence on September 18, 2018. After placing Pena-Zapata in custody, agents searched his vehicle. Inside a center console agents found three plastic bags containing controlled substances, later determined by the Rhode Island Department of Health to contain 4.89g of fentanyl, 5.00g of heroin, and 29.77g of fentanyl.

A follow-up investigation by the Fugitive Task Force and Homeland Security Investigations determined that Pena-Zapata, a native and citizen of the Dominican Republic, was previously deported from the United States on June 28, 2002; April 9, 2008; and April 7, 2010.

Appearing today before U.S. District Court Judge John J. McConnell, Jr., Pena-Zapata, 39, of Providence, pleaded guilty to knowingly and intentionally possessing with intent to distribute a mixture of heroin and fentanyl, and illegal reentry into the United States. He pleaded guilty on November 16, 2018, to the charge of using a false social security number brought by the United States Attorney's Office for the Western District of Michigan.

He is scheduled to be sentenced in both cases by U.S. District Court Judge John J. McConnell, Jr., on June 25, 2019.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

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ERIE, Pa. - A Braford County resident has been sentenced in federal court to 30 months in jail, 5 years supervised release and a $2,000 fine on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.

United States District Judge David S. Cercone imposed the sentence on John David Martin, 62, of Towanda, Pennsylvania.

According to information presented to the court, Martin possessed computer images and movies depicting minors engaging in sexually explicit conduct.

Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.

United States Attorney Brady commended the Federal Bureau of Investigation and the Erie County Detectives Bureau for the investigation leading to the successful prosecution of Martin.

GREAT FALLS – Great Falls resident Lothar Konrad Krauth on Monday admitted he received child pornography after an investigation found thousands of images on his computer and electronic storage devices, U.S. Attorney Kurt Alme said.

Krauth, 81, pleaded guilty to receipt of child porn as charged in an indictment. Krauth faces a minimum mandatory five years to 20 years in prison, a $250,000 fine and three years of supervised release.

U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for July 18 and continued Krauth’s release.

The prosecution said in court records that on Oct. 10, 2018, agents from the Homeland Security Investigations team in Great Falls received a CyberTipline report from the National Center for Missing and Exploited Children (NCMEC). The organization reported that the user of an internet provider address in Great Falls had uploaded an image of a nude prepubescent male. The address was identified as having been assigned to Krauth.

HSI agents and Great Falls police officers served a search warrant at Krauth’s residence on Oct. 26, 2018 and seized about 20 items of electronic media, including a desktop computer, nine external hard drives, six thumb drives and other items. Investigators then obtained a warrant to search all of the seized electronic media.

A forensic examination of Krauth’s desktop computer found about 400 images of child porn, while a subsequent analysis found thousands of child porn images. The majority of the child porn images depicted prepubescent children.

Assistant U.S. Attorneys Tom Bartleson and Cyndee Peterson prosecuted the case, which was investigated by HSI and the Great Falls Police Department.

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ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 14 years in prison and 10 years supervised release on his conviction of sex trafficking of a child and conspiracy to commit sex trafficking, United States Attorney Scott W. Brady announced today.

United States District Judge David S. Cercone imposed the sentence on Thomas Patrick Petoff, 31.

According to information presented to the court, from March 2015 to October 2015, Petoff and a co-defendant, Devonte Lucas, knowingly recruited, enticed, harbored, transported, provided, advertised and maintained two minor victims who engaged in commercial sex acts at the behest of Petoff and Lucas. Petoff’s illegal activity was ultimately stopped when members of the Millcreek Police Department observed Lucas transport a minor female to a Millcreek motel after the Millcreek officers, acting in an undercover capacity, had set up a meeting at the motel with the victim via an Internet advertisement that had been placed by Petoff.  Lucas was sentenced to 13 years in prison on September 11, 2017.

Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.

United States Attorney Brady commended the Federal Bureau of Investigation and the Millcreek Police Department for the investigation leading to the successful prosecution of Petoff.

A Lima man was indicted on charges of using firearms while trafficking cocaine.

Gregory L. Buckmon, 36, was charged in a seven-count indictment with possession of cocaine with intent to distribute, using a firearm in furtherance of drug trafficking and being a felon in possession of a firearm.

Buckmon at different points in 2018 possessed cocaine and various firearms. It was illegal for Buckmon to possess firearms because of previous convictions for burglary, according to the indictment.

If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Matthew D. Simko.

An indictment is only a charge and is not evidence of guilt.  The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.