NEWARK, N.J. – A high-ranking member of a set of the Bloods street gang will make his initial court appearance today on charges he possessed a weapon as a convicted felon, U.S. Attorney Craig Carpenito announced today.

Farod Baldwin, 37, of Newark, was arrested July 7, 2020, at the Betty Shabazz Village Housing Complex. He is charged by complaint with one count of unlawful possession of a firearm and ammunition by a convicted felon and is scheduled to appear by videoconference later today before U.S. Magistrate Judge Leda Dunn Wettre.

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

Law enforcement officers were conducting surveillance in Newark when they observed Baldwin park a Jeep Grand Cherokee near an apartment. He removed a 9 mm semi-automatic pistol from the Jeep. Officers observed Baldwin tuck the firearm into his pants before entering the front door of an apartment. Law enforcement officers lawfully searched the apartment and recovered the firearm. Baldwin attempted to flee from the apartment but was apprehended. A further search of the apartment resulted in the seizure of approximately 20 jugs of suspected cocaine base, a bullet-proof vest, two high-capacity magazines, and various ammunition, including rifle ammunition.

Baldwin is allegedly a high-ranking member of a set of the national Bloods street gang known as Sex Money Murder (SMM). Members of SMM have been engaging in violent disputes with other gangs, have trafficked narcotics, and have committed various firearms offenses.  Several recent violent crimes, including shootings and homicides, in Newark and elsewhere, are believed to be related to a dispute between SMM and rival gangs.  

The firearms offense carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; the Essex County Prosecutor’s Office, under the direction Acting Prosecutor Theodore N. Stephens II; and special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charge. 

This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.

The government is represented by Assistant U.S. Attorney Mary E. Toscano, Deputy Chief of the Criminal Division in Newark, and Assistant U.S. Attorney Lauren Repole of the OCDETF Unit of the Criminal Division.

The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT ALLEN, 30, of Hartford, pleaded guilty today before U.S. District Judge Victor A. Bolden to fentanyl distribution and firearm possession offenses.

Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.

According to court documents and statements made in court, on November 23, 2019, Hartford Police conducted a traffic stop of a vehicle Allen was driving on Woodland Street.  A search of the car revealed a loaded Ruger LCP .380 caliber handgun and approximately 48 wax paper sleeves containing a mixture of heroin and fentanyl.  The firearm had been reported stolen in Louisiana.

Allen’s criminal history includes state convictions for assault, firearm, drug, larceny and witness tampering offenses.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.

Allen pleaded guilty to one count of possessing with intent to distribute fentanyl, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon.  A sentencing date is not scheduled.

Allen is released on a $50,000 bond pending sentencing.

This case has been investigated by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

This prosecution has been brought through 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.

CHARLESTON, W.Va. – Frank Russo, 69, of North Carolina, entered a guilty plea to wire fraud for his role in a scheme to defraud Toyota of more than $4 million, announced United States Attorney Mike Stuart. Previously, Kevin Fluharty, 59, of West Virginia, entered a guilty plea in the same case to mail fraud concerning the same scheme to defraud. Russo and Fluharty face up to 20 years in prison and will be required to pay restitution to Toyota. Russo’s sentencing is scheduled for October 1, 2020. Fluharty’s sentencing will be held on August 24, 2020.

“What a tangled web of deception these two men wove – from fraudulently using driver’s licenses to falsifying vehicle ownership information – and seeking more than $4 million for their deception,” said United States Attorney Mike Stuart. “Crime may pay until you get caught.”

Russo was employed as service manager by a Toyota dealership in Kanawha County and Fluharty was a notary public. Russo and Fluharty admitted they were participants in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.

The scheme relied on Russo to ensure that vehicles brought to the Toyota dealership qualified for the extended warranty extension program and relied on Fluharty to notarize documentation used in the repurchase transactions. Russo admitted that he sent false ownership information to Toyota by electronic wire in furtherance of the scheme. Fluharty admitted that he falsely notarized documents knowing that those documents would be sent through the mail to Toyota. Russo and Fluharty admitted that they received bribes or kickbacks from Big Blue Motor Sales for their participation in the scheme.

The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner conducted the investigation. United States District Judge Joseph R. Goodwin presided over both hearings. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.

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BOSTON – An American man was arrested and charged yesterday in connection with exploiting teenage boys in Laos.

Michael Sebastian, 52, was charged by criminal complaint with engaging in illicit sexual conduct in foreign places and sex trafficking of children. Sebastian was arrested yesterday in Lynn, where he has been living with his mother. Following an initial appearance in federal court in Boston today, Sebastian was detained pending a detention and probable cause hearing scheduled for July 13, 2020.

According to the charging documents, Sebastian has been living in Laos, where he teaches English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13-18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the complaint, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.

The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of sex trafficking of children provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of up to $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; Acting Assistant Attorney General for the Justice Department’s Criminal Division Brian C. Rabbitt; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator, and Leslie Fisher, a Trial Attorney in the Justice Department’s Child Exploitation and Obscenity Section, are prosecuting the case.

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

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

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Michael Shore, 35, of Richboro, Pennsylvania, was sentenced to 180 months in prison, lifetime supervised release, a prohibition on contact with any of his victims or their families, and a lifetime restriction on his Internet usage by United States District Court Judge Timothy R. Savage for manufacturing child pornography involving multiple victims, as well as enticing a minor to engage in illicit sexual conduct. His sentence also requires him to register as a sex offender under Megan’s Law for the rest of his life.

In October 2017, Shore was convicted of manufacturing child pornography and exploitation of four minor victims on multiple occasions over a span of almost two years. At least two of his victims he met at Comic-Con, which is an annual entertainment and comic book convention held in San Diego, where he worked with his family. His victims included a 12-year old girl in the 6th grade, two teenaged girls, and one child who is on the autism spectrum. Shore corresponded with these girls online at all times of the day and night, and coerced them to self-produce sexually explicit images and send them to him. For one child, he then distributed her images out over the Internet – showing her face and naked body - in an effort to engage in sexual activity with yet another person online. After communicating at length with one of his victims, Shore traveled from Pennsylvania to Florida and engaged in sexual intercourse with her on multiple occasions.

The Federal Bureau of Investigation was called in by local authorities after the 12-year old victim’s mother alerted police. A search warrant was executed on Shore’s home, and federal agents recovered more than 2,500 images of child pornography that Shore had downloaded and saved from the Internet over an eight year period. Shore confessed to the FBI on the day they searched his home, and later pleaded guilty to a 10-count federal indictment charging him with manufacturing, distributing, and possessing child pornography, as well as enticing a minor to engage in illicit sexual conduct.

“Michael Shore is a serial sexual predator who took advantage of some of the most vulnerable among us – young children, one of whom has autism. This criminal behavior is reprehensible,” said U.S. Attorney McSwain. “Further, at least one of these children will continue to be victimized for years to come because Shore shared explicit images of her on the Internet with others. Fortunately, he will now sit behind bars where he belongs for many years, unable to victimize anyone else in the meantime.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation and the Saint Mary’s County Sheriff’s Office in Maryland. It is being prosecuted by Assistant United States Attorney Michelle Rotella.

CLARKSBURG, WEST VIRGINIA – Former Harrison County Sheriff’s Deputy Timothy Rock, of Clarksburg, West Virginia, was sentenced today to 58 months and seven days for drug charges, U.S. Attorney Bill Powell announced.

“The rule of law will be applied no matter what position you hold.  The defendant breached the trust bestowed upon him and broke the law.  He is now being held accountable for his actions.  Our office will continue to prosecute cases involving the breach of public trust and corruption,” said Powell. 

After a three-day trial in November 2019, Rock, age 42, was found guilty of four counts of “Distribution of Heroin.” Rock distributed heroin in Harrison County in July, September, and October 2016.

At trial, three former confidential informants testified that Rock gave them heroin on dozens of occasions, most often by letting them keep a portion of heroin purchased in law enforcement monitored drug transactions.  Two of the informants directly received uniquely packaged heroin labeled “FLIGHT 18” from Rock on other occasions.  Trial evidence established that Rock acquired the FLIGHT 18 heroin from the evidence lockers at the now defunct Street Crimes and Drug Unit of the Harrison County Sheriff’s Office.  

Other evidence demonstrated that Rock falsified sheriff’s department and court records to conceal his distribution of heroin to informants, and that he violated numerous other standard protocols with respect to managing informants, tracking government funds, securing evidence, and ensuring officer safety.  

The judge ordered the sentence to run concurrently with a sentence imposed in Harrison County Circuit Court in a related state prosecution.

Assistant U.S. Attorneys Andrew R. Cogar and Zelda E. Wesley prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated. 

Senior U.S. District Judge Irene M. Keeley presided.

James Davis, 53, Port San Lucie, Florida, and Gary Baker, 49, Madison, Wisconsin, are charged with four counts of wire fraud and two counts of food stamp fraud.  The indictment alleges that from January 2011 to April 2016, Davis and Baker used fraudulently obtained Supplemental Nutrition Assistance Program (SNAP) cards, commonly known as food stamps, to purchase food and other items for use at a food cart and a restaurant they operated in Madison, both named JD’s. 

According to the indictment, in Wisconsin SNAP benefits are issued to qualified recipients through magnetically encoded cards that operate like debit cards.  The indictment alleges that Davis and Baker acquired approximately 358 SNAP cards representing 254 different households in Wisconsin, and used the SNAP cards to purchase approximately $90,837 of food and other items at Sam’s Club in Madison.  Specifically, the indictment charges them with four counts of wire fraud related to these purchases, and with two counts of presenting more than $100 worth of SNAP benefits belonging to a SNAP recipient for redemption at Sam’s Club. 

If convicted, Davis and Baker face a maximum penalty of 20 years in federal prison on each wire fraud count and five years in prison on each food stamp fraud count.  The charges against them are the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General.  Assistant U.S. Attorney Aaron D. Wegner is handling the prosecution.

Madison Man Charged with Extortion

Devonere Johnson, 28, Madison, Wisconsin, is charged with two counts of extortion in connection with threats made to Madison businesses.  Johnson previously was charged with these offenses in a criminal complaint filed in U.S. District Court in Madison on June 26.  Federal law requires that felony offenses charged in a criminal complaint subsequently be charged by an indictment returned by a grand jury. 

The indictment alleges that Johnson attempted to obtain money and property by consent induced by the threatened use of force, violence, and fear.  The indictment alleges that on June 22 and 23, 2020, Johnson threated that the windows of a business would be destroyed unless a person associated with the business made a payment to Johnson’s Venmo account.  The second count of the indictment alleges that on June 22 and 23, 2020, Johnson threatened to shut down and destroy a second business unless Johnson and his associates were provided free food and beverages.  

If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each count.  The charges against him are the result of an investigation by the Federal Bureau of Investigation and the Madison Police Department.  Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.

Lafayette County Man Charged with Receiving and Possessing Child Pornography

Alan J. Liphart, 36, Darlington, Wisconsin, is charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct.  The indictment alleges that on September 7, 2015, Liphart received a child pornography image via text message, and that on May 25, 2020, he possessed a TracFone that contained child pornography depictions and that at least one of the depictions involved a minor who had not attained 12 years of age.

If convicted, Liphart faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on the charge of receiving child pornography, and 10 years on the possession of child pornography charge.  The charges against him are the result of an investigation by the Darlington Police Department, Lafayette County Sheriff’s Office, and Rock Island (Illinois) Police Department.  Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.

Altoona Man Previously Charged with Sex Trafficking Faces Additional Child Pornography Charges

Daniel Peggs, 33, Altoona, Wisconsin, is charged in a superseding indictment with sex trafficking a minor, two counts of producing child pornography, one count of possessing child pornography, and two counts of receiving child pornography.  Peggs previously was charged in an indictment returned by the grand jury on February 12, 2020, with sex trafficking a minor and one count of producing child pornography.

The superseding indictment alleges that from October 2015 through May 2016, Peggs recruited a minor knowing that the minor would be caused to engage in a commercial sex act; that he produced two videos of sexually explicit conduct using the minor; that he possessed a computer hard drive that contained depictions of child pornography and that at least one of the depictions involved a minor who had not attained 12 years of age; and that twice he knowingly received child pornography images via text message. 

If convicted, Peggs faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the sex trafficking a minor charge, a mandatory minimum penalty of 15 years and a maximum of 30 years on each production of child pornography charge, a mandatory minimum of five years and a maximum of 20 years on each receiving child pornography charge, and a maximum of 20 years on the possession of child pornography charge. 

Peggs’ trial is scheduled to take place on October 19, 2020, in U.S. District Court in Madison before Chief U.S. District Judge James D. Peterson.

The charges against Peggs are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant U.S. Attorney Julie S. Pfluger is handling the prosecution.

Madison Man Faces Drug & Gun Charges

Arwin C. Lacy, 29, Madison, Wisconsin, is charged with possessing cocaine with intent to distribute on June 18, 2020, and with possessing a loaded firearm in furtherance of that drug trafficking crime.  The indictment also charges him with being a felon in possession of a firearm and ammunition, alleging that he possessed a loaded 9mm handgun and ammunition on June 18. 

If convicted, Lacy faces a maximum penalty of 20 years in federal prison on the cocaine charge and 10 years on the felon in possession of a firearm and ammunition charge.  Lacy faces a mandatory minimum penalty of five years in federal prison on the charge of possessing a firearm in furtherance of a drug trafficking crime; federal law requires that any penalty imposed for this charge be served consecutive to any penalty imposed on the possession of cocaine with intent to distribute charge. 

The charges against Lacy are the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Steven P. Anderson is handling the prosecution.

The indictment charging Lacy has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime.  The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms. 

Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury returned an Indictment charging Clifton Frank Peter with two counts of first degree murder, one count of second degree murder, and two counts of discharging a firearm during a crime of violence. Peter was arrested today and his initial appearance before U.S. Magistrate Mary K. Dimke in Federal Court in Yakima, Washington is scheduled for tomorrow.

According to allegations in the Indictment, Peter shot and killed three people within the external boundaries of the Yakama Nation. As to each count of first degree murder, if convicted, Peter faces a mandatory minimum sentence of life imprisonment, up to a $250,000 fine and restitution obligations. As to the second degree murder count, if convicted, Peter faces a maximum penalty of up to life imprisonment, up to a $250,000 fine, up to five years supervised release and restitution obligations. As to the two counts of discharge of a firearm during a crime of violence, if convicted, each carries a penalty of ten years to life imprisonment, to run consecutive to any other sentence, up to five years of supervised release and up to a $250,000 fine.

William D. Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is committed to pursuing those involved in violent crimes within the external boundaries of the Yakama Nation. The charges contained in the Indictment are merely allegations. Peter is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.”

FBI Special Agent in Charge Raymond Duda said, "There is no logical explanation that can be offered regarding the horrific acts allegedly perpetrated by Mr. Peter. The professionalism displayed by the investigators of this case should be commended and will hopefully result in justice for the victim's families."

The charges contained in the Indictment are the result of an investigation by the Federal Bureau of Investigation, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case is being prosecuted by Richard Burson and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.

NEWS RELEASE SUMMARY– July 8, 2020

SAN DIEGO – Jeffrey Fildey, founder and former CEO of San Diego startup GoFormz Inc. pleaded guilty today to stealing more than $1,500,000 from his own company for his personal benefit.  According to public records, GoFormz Inc., founded in 2012, is a San Diego company that provides online mobile forms and reporting products.

According to Fildey’s plea agreement, beginning on or before September 30, 2015 and continuing through August 12, 2017, Fildey used various methods to defraud GoFormz.  His deceptive ways included obtaining loans, supposedly on the company’s behalf, but then taking the funds for himself, putting personal expenditures on the GoFormz credit cards which the company then paid for, obtaining cash advances for himself on GoFormz credit cards, and simply stealing money directly from the company’s bank account.

As just one example, on September 1, 2016, Fildey obtained a business loan for GoFormz by misrepresenting the purpose of the loan.  The loan was approved and on September 7, 2016, $146,250 was wired to GoFormz’s bank account.  That same date, Fildey wired the entire amount to his personal bank account.  Fildey used the funds for personal expenses while GoFormz made payments on the loan.  Fildey took out a total of three unauthorized loans on behalf of GoFormz and each time transferred the funds to his personal bank account shortly after the loan funds were transferred to GoFormz.  In addition to the loans, Fildey withdrew over $700,000 in cash from the GoFormz bank account for his personal use, and made over $2,600 in unauthorized purchases on the GoFormz corporate credit card. 

“Defendant abused a position of trust to brazenly steal company assets, treating GoFormz Inc. as his own private slush fund,” said U.S. Attorney Robert S. Brewer.  “Thanks to the dedicated work of our law enforcement partners at the FBI, he will be held fully accountable for his fraudulent misdeeds.”

“The FBI identified and disrupted this fraud perpetrated by Jeffrey Fildey," said Acting Special Agent in Charge Omer Meisel.  “The FBI is committed to identifying and preventing fraud schemes that harm our financial and business sectors.”

Fildey admitted in his plea agreement that as a result of his fraud, GoFormz lost $1,544,147.  Fildey is next scheduled to appear before U.S. District Court Judge Larry Burns for sentencing on November 9, 2020. 

U.S. Attorney Brewer commended AUSA Michelle Wasserman for her work prosecuting this matter.

DEFENDANT                                                           Case Number   20cr1917-LAB         

Jeffrey Fildey                                      Age: 56                                   Las Vegas, NV

SUMMARY OF CHARGES

Wire Fraud – Title 18, U.S.C., Section 1343

Maximum penalty: 20 years’ imprisonment and $250,000 fine or twice the gross gain or loss from the offense, whichever is greater

AGENCY

Federal Bureau of Investigation

NORFOLK, Va. – A Norfolk man pleaded guilty today to being a felon in possession of a firearm.

According to court documents, Davidro Leondre Smith, aka “Kastor Troy,” 30, is a five-time felon and member of the Norfolk-based Cream/200K/2K criminal street gang.

On July 26, 2019, Norfolk police officers attempted to conduct a traffic stop on a car driven by Smith, with fellow gang member Dequan McKee, aka “The General,” in the passenger seat. Smith refused to stop and led several police vehicles on a high-speed chase. During the pursuit, Smith maneuvered around police vehicles stopped in the middle of the road and at one point drove in the opposite lane facing oncoming traffic. Smith and McKee finally abandoned the car in an apartment-complex parking lot, and police officers chased them on foot. While running from one of the officers, Smith drew his gun, brandished it, and tried to throw it into one of the apartments, but it bounced off the rear screen door. He then fought the pursuing officer, and was arrested after backup arrived. The arresting officer recovered from Smith roughly 7.1 grams of marijuana and 62 pills of varying colors and sizes, separated into three bags. Lab results confirmed the presence of Oxycodone.

The officers also recovered McKee’s handgun, which had been lying underneath the car’s front passenger floor mat, and his phone, which had been sitting on the front passenger seat, unlocked and recording on Facebook Live. The footage shows McKee sitting in the car’s passenger seat with his gun between his legs. It also shows McKee’s and Smith’s reactions at the moment the officers turned on their emergency lights to initiate the traffic stop—as they panic and discuss throwing drugs out of one of the car windows. Facebook friends of McKee who were viewing the live recording posted messages encouraging Smith and McKee to do so.

Smith faces a maximum penalty of 10 years in prison when sentenced on November 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Bloodline. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Douglas Miller accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-018.

COLUMBUS, Ohio – A Pickerington couple have been sentenced for conspiring to defraud multiple federal programs by committing student-aid fraud, tax-return fraud, and Medicaid and SNAP fraud. They caused a total loss of more than half a million dollars.

Damien M. Johnson, 40, was sentenced to 51 months in prison and was ordered to pay $219,976 in restitution to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiracy to commit student loan fraud and theft of government funds, and $73,120 to an individual victim on one count of bank fraud.

On March 5, 2020, Kisha C. Hollins-Johnson, 42, was sentenced to 28 months in prison, three years of supervised release, of which 12 months is to be served in home confinement, and was ordered to pay restitution in the amount of $219,976 to the U.S. Department of Education, $149,824 to the IRS and $87,404 to the Fairfield County Department of Job and Family Services on one count of conspiring to commit student loan fraud and theft of government funds, one count of committing student loan fraud, one count of making a false statement to HUD, one count of witness tampering and two counts of theft of government money.

According to court documents, from at least 2011 through 2017, the defendants recruited more than five people to provide their personal information to apply for college admissions at Columbus State Community College.

All of the students fraudulently enrolled in online classes at the college. Hollins-Johnson submitted false financial aid forms for the students and completed coursework for all of the students. Hollins-Johnson enrolled the students in the same courses and chose the same or similar topics for their papers.

When Johnson was not making satisfactory academic progress, Hollins-Johnson created fake documents, including medical records, for use in an academic appeals process in order for Johnson to remain eligible to receive financial aid. She fabricated a letter purporting to be from a doctor that claimed Johnson had sickle cell anemia. The doctor did not write the note, and in fact was a gynecologist.

In total, the U.S. Department of Education issued nearly $220,000 to Columbus State and as refunds to the defendants. Any amount of student loan above the cost of tuition and fees was given to the defendants.

Johnson also committed bank fraud by obtaining seven checks totaling at least $73,000 from an 87-year-old victim who had dementia. He met the victim going door-to-door, making sales pitches to get customers to switch their energy supplier to his employer. He called the victim’s bank, impersonating the victim, to request transfers of funds. Johnson used the money on a variety of personal transactions, including $7,150 at a pawnshop, $1,798 at Gucci, $1,558 at Louis Vuitton, $1,182 in payments to vehicle dealers and $2,500 at a law firm.

Hollins-Johnson submitted false tax returns by claiming fake defendants and educational credits, and submitting fictitious W-2s. Johnson contacted the IRS pretending to be at least one of the other taxpayers and delivered portions of the tax refunds to other individuals.

The couple also fraudulently obtained SNAP food stamp benefits by claiming they were each single when they were married. As part of the conspiracy, Hollins-Johnson submitted false letters verifying Johnson’s employment for food stamp eligibility.

In 2014, Hollins-Johnson submitted an application for a $200,000 home loan insured by the FHA. When she submitted the loan application, she used fabricated employment documents that stated she worked for the State of Ohio. Additionally, she fabricated a form the mortgage company sent to a person they believed was a Human Relations Manager to verify employment.

After investigators searched the defendants’ residence, they engaged in witness tampering. Hollins-Johnson engaged in a scheme that involved creating a fake Facebook account in the victim’s name. The scheme also involved using an app that allows users to change their caller ID and apply a voice changer feature to call a witness in the case, pretending to be from the Licking County Clerk of Courts. Johnson set up an in-person meeting with the witness, where Hollins-Johnson instructed the witness not to talk with law enforcement.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Johnson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; John F. Woolly, Special Agent in Charge, U.S. Department of Education Office of Inspector General; and officials with the Fairfield County Job & Family Services Fraud and Benefit Recovery division announced the sentence handed down today by U.S. District Judge U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.

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BOSTON – Following a comprehensive investigation, the Justice Department has found reasonable cause to believe the Narcotics Bureau of the Springfield, Mass. Police Department (SPD) engages in a pattern or practice of using excessive force in violation of the Fourth Amendment to the United States Constitution. The investigation was conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994 and was announced on April 13, 2018.

The Department of Justice found that the Narcotics Bureau’s pattern or practice of excessive force is directly attributable to systemic deficiencies in policies, which fail to require detailed and consistent use-of-force reporting, and accountability systems that do not provide meaningful reviews of uses of force. 

“As demonstrated by recent events, it is crucial that our urban police departments keep the trust of their communities and ensure accountability for officer misconduct,” said United State Attorney Andrew E. Lelling. “Our investigation of the Springfield Police Department over the last year revealed chronic issues with the use of force, poor record keeping on that subject, and repeated failures to impose discipline for officer misconduct. That said, the Police Department and the City of Springfield have fully cooperated with this investigation and have made clear their commitment to genuine reform. We look forward to working with them to make Springfield a safer place.”

“I’ve said many times that being a police officer is the toughest job in America. We owe these public servants our respect and our support,” said Attorney General William Barr. “But with this high calling comes a tremendous responsibility to uphold the public trust. The Department of Justice is committed to supporting our law enforcement while holding departments accountable that violate this sacred trust. The Department will work with the City of Springfield and the Police Department to ensure that the police officers and people of Springfield get the law enforcement agency they deserve, one that effectively and constitutionally stops violent crime and narcotics trafficking.”

In the course of its investigation, the Justice Department conducted an in-depth review of SPD documents, including over 100,000 pages of written policies and procedures, training materials, and internal reports, data, video footage, and investigative files. Justice Department attorneys and investigators also conducted interviews with SPD officers, supervisors and command staff, and city officials, and met with community members and local advocates. SPD has cooperated with the Department’s investigation and has already begun to implement a number of remedial measures.

This investigation was conducted jointly by the U.S. Attorney’s Office for the District of Massachusetts and the Special Litigation Section of the Civil Rights Division, with the assistance of law enforcement experts.

Attached are the Department of Justice’s Report of its investigation of the Narcotics Bureau of the Springfield Police Department and a cover letter to Springfield government officials transmitting that Report.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement.  For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

Tax Payment and Filing Deadline July 15, 2020

DES MOINES, Iowa – United States Attorney Marc Krickbaum and Acting Special Agent in Charge Adam Steiner, IRS Criminal Investigation, St. Louis Field Office, are reminding taxpayers that the tax filing and payment deadline is July 15, 2020, and to continue to be on the lookout for scam artists.

USA Krickbaum and Steiner made the announcement today to urge people to owe taxes, even if they have a filing extension, to carefully review their situation and pay what they can by July 15 to avoid penalties and interest. Due to COVID-19, the original filing date and tax payment due date for 2019 was postponed from April 15 to July 15. For people facing hardships, including those affected by COVID-19, who cannot pay in full, the IRS has several options available on IRS.gov/payments.

“Taxpayers who are unable to pay their taxes in full should act as quickly as possible since interest and penalties can quickly accumulate when more time passes,” warned Steiner. “You must pay the taxes you owe by July 15.”

In addition, USA Krickbaum and Steiner remind taxpayers that scammers are hard at work looking for ways to steal your personal information and money. Stay alert to these scams. The IRS will not contact you by phone, email, or social media to ask for personal information. This is a scam.

“The U.S. Attorney’s Office and IRS Criminal Investigation will investigate and prosecute criminals who use taxpayer’s personal information to commit crimes,” stated USA Krickbaum. “Individuals who perpetrate tax scams and prey on the most vulnerable of taxpayers will be held responsible.”

For official information, go directly and solely to IRS.gov.

Anchorage, Alaska B U.S. Attorney Bryan Schroder announced today that a Kodiak man has been sentenced for money laundering and possessing drugs intended for distribution in Kodiak.

Luke Bunting, 23, of Kodiak, Alaska, was sentenced on Tuesday, July 7, 2020, by Chief U.S. District Judge Timothy M. Burgess to serve 18 months in federal prison, followed by three years of supervised release, to include six months of home confinement and 200 hours of community service. Bunting previously pleaded guilty to one count of possession with the intent to distribute, and one count of money laundering.

According to court documents, in 2018, a U.S. Postal Inspector in Anchorage seized three packages that contained various narcotics, which were addressed to Bunting in Kodiak. A subsequent search of Bunting’s Kodiak residence revealed large amounts of marijuana, tetrahydrocannabinol (THC) products, psilocin mushrooms, cocaine, and lysergic acid diethylamide (LSD) packaged for sale. The search also revealed three guns with loaded magazines co-located with the narcotics, approximately $39,500, and several cryptocurrency recovery codes.

The investigation further revealed that, after depositing drug proceeds into various bank accounts, Bunting would quickly move that money through payments to outside sources using applications including Venmo and Coinbase. Cyber specialists at the FBI lent assistance to identify and recover Bunting’s units of Bitcoin, Monero, and Ripple cryptocurrency, all of which were forfeited to the government. The total amount of drug proceeds acquired by Bunting during his illegal distribution enterprise amounted to approximately $327,966 in drug proceeds. 

Bunting was also implicated by several Coast Guard members in Kodiak who stated that Bunting was the source of their narcotics. The U.S. Coast Guard held those members separately accountable and subsequently removed them from the service for their illegal use of drugs supplied by Bunting.

Before imposing a sentence, Chief Judge Burgess commented that he was concerned that Bunting was a “for profit” drug trafficker from a supportive family environment and did not appear to have an addiction to the drugs he was selling in the community. Bunting previously held employment as a substitute teacher at a local high school, but was terminated prior to his arrest in this case.

The Coast Guard Investigative Service (CGIS), the Federal Bureau of Investigation (FBI), IRS Criminal Investigation (IRS-CI), the U.S. Postal Inspection Service (USPIS), the Kodiak Police Department (KPD), and the Alaska State Troopers (AST) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Special Assistant U.S. Attorney and U.S. Coast Guard Judge Advocate, Lieutenant Sharyl Pels.

HONOLULU, Hawaii – James Dean Kalani Goeas, 63, of Waipahu, Hawaii, was sentenced today in federal court by United States District Judge Jill Otake to 120 months of imprisonment, and 15 years of supervised released for knowingly attempting to entice an individual who had not attained the age of 18 years to engage in unlawful sexual activity.

U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 23, 2019 and March 24, 2019, Goeas engaged in a series of online chats and telephonic text sessions with an undercover agent acting in the role of a 13-year-old male. During their conversations, Goeas arranged to meet the underage male at Maukalani Park with the intent to engage in sexual activity. When Goeas arrived at Maukalani Park on March 24, agents arrested him. At the time of Goeas’s arrest, agents located both condoms and lubricating gel in his vehicle. During a post-arrest statement, Goeas admitted to past unlawful sexual contact with minor males.

“While online platforms and cellphones enhance our ability to connect with friends and loved ones, unfortunately, child sex predators use them to try to sexually exploit children. My Office will continue to partner with the FBI to fight child sex exploitation, and through our enforcement efforts, remind child sex offenders that we will find a suitable home for them in federal prison,” stated U.S. Attorney Price.

"The FBI takes a proactive approach to identify and hold accountable individuals who seek to sexually exploit children. We remain vigilant and are committed to ensure that the children of Hawaii and across the United States are protected from these predators. Today's sentencing reaffirms the FBI's commitment to removing sexual predators from children’s lives and doing it through the justice system," stated FBI Special Agent in Charge Eli S. Miranda. 

The case was investigated by the FBI and it was prosecuted by Assistant U.S. Attorney Ken Sorenson.

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

OKLAHOMA CITY – Earlier today, WILLIAM ART GUOLADDLE, SR., 64, of Weatherford, Oklahoma, was ordered to serve 78 months in federal prison, to be followed by 10 years of supervised release, for abusive sexual contact of a child in Indian Country, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.

A federal grand jury indicted Mr. Guoladdle on August 7, 2019, on two counts of aggravated sexual abuse and one count of abusive sexual contact of a child under seven years of age, occurring on Kiowa Tribe land in Comanche County.   He pleaded guilty to abusive sexual contact of a child on June 20, 2019, before U.S. District Judge David Russell.  At the plea hearing, the defendant admitted to touching the victim’s buttocks through her clothing in a sexual way.  At the sentencing hearing today, the Court noted it had considered that the victim’s age and that the victim would have to live with the effects of the defendant’s conduct for the rest of the victim’s life.  The Court ordered Mr. Guoladdle to serve 78 months in federal prison, to be followed by 10 years of supervised release. 

This case is the result of an investigation by Bureau of Indian Affairs, Office of Justice Services and Lawton Police Department.  Assistant U.S. Attorney Jessica L. Cárdenas prosecuted the case.

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

Reference is made to public filings for further information.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Michael Shore, 35, of Richboro, Pennsylvania, was sentenced to 180 months in prison, lifetime supervised release, a prohibition on contact with any of his victims or their families, and a lifetime restriction on his Internet usage by United States District Court Judge Timothy R. Savage for manufacturing child pornography involving multiple victims, as well as enticing a minor to engage in illicit sexual conduct. His sentence also requires him to register as a sex offender under Megan’s Law for the rest of his life.

In October 2017, Shore was convicted of manufacturing child pornography and exploitation of four minor victims on multiple occasions over a span of almost two years. At least two of his victims he met at Comic-Con, which is an annual entertainment and comic book convention held in San Diego, where he worked with his family. His victims included a 12-year old girl in the 6th grade, two teenaged girls, and one child who is on the autism spectrum. Shore corresponded with these girls online at all times of the day and night, and coerced them to self-produce sexually explicit images and send them to him. For one child, he then distributed her images out over the Internet – showing her face and naked body - in an effort to engage in sexual activity with yet another person online. After communicating at length with one of his victims, Shore traveled from Pennsylvania to Florida and engaged in sexual intercourse with her on multiple occasions.

The Federal Bureau of Investigation was called in by local authorities after the 12-year old victim’s mother alerted police. A search warrant was executed on Shore’s home, and federal agents recovered more than 2,500 images of child pornography that Shore had downloaded and saved from the Internet over an eight year period. Shore confessed to the FBI on the day they searched his home, and later pleaded guilty to a 10-count federal indictment charging him with manufacturing, distributing, and possessing child pornography, as well as enticing a minor to engage in illicit sexual conduct.

“Michael Shore is a serial sexual predator who took advantage of some of the most vulnerable among us – young children, one of whom has autism. This criminal behavior is reprehensible,” said U.S. Attorney McSwain. “Further, at least one of these children will continue to be victimized for years to come because Shore shared explicit images of her on the Internet with others. Fortunately, he will now sit behind bars where he belongs for many years, unable to victimize anyone else in the meantime.”

“Child exploitation is among the most heinous crimes we investigate,” said Michael J. Driscoll, special agent in charge of the Philadelphia Division.  “Shore robbed these young girls of their innocence and childhood.  Although today’s sentence cannot repair the damage Shore caused, it sends the message to other predators that the FBI remains committed to hunting them down and holding them accountable.”

This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation and the Saint Mary’s County Sheriff’s Office in Maryland. It is being prosecuted by Assistant United States Attorney Michelle Rotella.

PITTSBURGH - A resident of Florida, has been sentenced in federal court to 41 months’ imprisonment, to be followed by a two-year term of supervised release, and ordered to pay $962,840.47 on his conviction of conspiracy to pass counterfeit checks and possession of stolen mail, United States Attorney Scott W. Brady announced today.

United States District Judge Marylyn J. Horan imposed the sentence on Brian Omar Campbell a/k/a Vincent Hugo a/k/a Troy Crimson on July 7, 2020.

According to information presented to the court, Campbell and two conspirators flew to Pittsburgh in October 2017 and rented a motel room in North Fayette Township. Afterwards, the group stole outgoing mail from residential mailboxes and opened the mail. If the mail contained a check, they prepared counterfeit checks using the account information from the purloined check. They then used the counterfeit checks to purchase merchandise from stores located in and around the Mall at Robinson. The conspirators targeted national chains with the intention of obtaining a cash refund for ill-gotten merchandise at counterpart stores located in another state. Campbell’s sentence under federal guidelines called for a term of imprisonment of between 41 and 51 months. Based on Campbell’s criminal history and the serious nature of the offense, the government requested a sentence within the advisory range. Campbell requested a lesser sentence based on his health. At the sentencing hearing, the government opposed this request on the basis of the risk of recidivism Campbell posed.

Prior to imposing sentence, Judge Horan denied Campbell’s request and imposed a sentence within the advisory range.

Assistant United States Attorney Michael Leo Ivory prosecuted this case on behalf of the government.

United States Attorney Brady commended the United States Postal Inspection Service and North Fayette Township Police Department for the investigation leading to the successful prosecution of Campbell.

RALEIGH, N.C. – A federal grand jury returned indictments charging Julian Arias-Rodriguez, age 21, of Mexico and Jorge Patricio-Ocampo, age 35, of Mexico, with illegal reentry of a removed alien. 

If convicted of illegal reentry, Arias-Rodriguez, previously deported four times and found in Harnett County, and Patricio-Ocampo, previously deported twice and found in Wake County would face a maximum imprisonment term of two years, a $250,000 fine, and a term of supervised release following any term of imprisonment.

Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.