U.S. Attorney for the Northern District of Texas Erin Nealy Cox testified before the Senate Judiciary Subcommitee on the Constitution on Tuesday, Aug. 4. You can watch the full hearing -- entitled "The Right of the People Peaceably to Assemble: Protecting Free Speech by Stopping Anarchist Violence" -- here. 

Below is the U.S. Attorney's prepared opening statement for the subcommittee:

Good afternoon Chairman Cruz, Ranking Member Hirono, and members of the Subcommittee.  I’m Erin Nealy Cox, United States Attorney for the Northern District of Texas and Chair of the Attorney General’s Advisory Committee.

Thank you for inviting me here today to discuss the Justice Department’s efforts to counter violent anti-government extremism.  For me, it’s a topic that hits close to home. 

A little over a year ago, in June, a gunman clad in military gear and carrying an AR-15 style rifle opened fire on the federal courthouse in Dallas, which houses not only the federal judiciary, but also the United States Attorney’s Office and many other offices. The sudden violence ripped through the morning, just as we were arriving for work that day. Several of my prosecutors and others were caught in the midst of the attack. They resorted to hiding behind a cars in parking lot and one was pushed into the doorway by a FPS officer just as the bullets whizzed past them both.  

Our office will be forever grateful to the FPS officers who engaged the shooter, ending the attack before innocent lives were lost.  But to this day, we remain rattled by the gunman’s anti-government motives.  He chose his location for a reason: A courthouse is one of the essential nodes within the body politics.  It’s where laws are upheld, where justice is meted out. To target a courthouse, and those who work there, is to target the core of our lawful society.

And Dallas is no stranger to assaults on the rule of law. Three years prior – just blocks from the federal courthouse – a gunman, targeting law enforcement, ambushed police during a Black Lives Matter protest. Five officers were killed. Eleven others were injured, including nine officers. This was deadliest single incident for law enforcement in the United States since 9/11.

That day in July 2016 is certainly something etched in our memory. Just as the bullet holes still etched into the federal courthouse remind us daily: Anti-government fanaticism didn’t emerge with the 2020 protests.

But as our citizens have organized lawful demonstrations across this country following the tragic events in Minneapolis, anarchists have continue to exploit this lawful First Amendment activity as a shield for their violent behavior. Somehow, the notion of committing violence in the name of an anti-government dogma – be it Antifa, Boogaloo, or any of the other espoused ideologies – has been gaining traction at an alarming rate.

Unlike the lawful protestors whose demonstrations they undermine, these anti-government extremists aim to tear down the rule of law in America, not improve it.  In fact, in resorting to violence, they are drowning out the voices of the protesters that this country wants to hear.

We’ve seen the anti-government violence making headlines across the nation. Just a few examples:

• In Seattle, during the anarchist occupation of the Capitol Hill area, an individual allegedly set fire to a Police Precinct. Thankfully, protesters rushed in to extinguish the blaze.

• In Portland, a would-be anarchist outside the Federal Courthouse allegedly attacked a Deputy U.S. Marshal with a large hammer, landing blows on the officer’s neck and shouting expletives  and as other deputies pulled him off.  On the courthouse barricade were scribbled the letters, A.C.A.B. – an acronym for “all cops are bastards.” 

• In Oakland, a violent extremist allegedly used a peaceful protest as cover to murder an FPS Officer stationed at the Federal Courthouse, firing at the officer and his partner before taking off.

In response to this type of violence, Attorney General Barr directed U.S. Attorney Craig Carpenito in the District of New Jersey and me to stand up a Task Force to Combat Violent Anti-Government Extremism.

Working in close collaboration with the FBI, the Task Force aims to investigate, prosecute extremists of all persuasions.

We will follow where the evidence leads us, investigating any person or group who plans to commit or commits violence in the name of anarchist ideology.

Our goal is to focus on cases where violent extremists commit federal crimes and to seek ways to disrupt these criminal acts before they harm Americans. 

Of course, let me be very clear with this final point — adhering to repugnant ideologies is not a crime, nor is expressing those beliefs. The right to freedom of speech is enshrined in our First Amendment.  But committing violence or inciting violence in order to further that dogma is a criminal act, and it’s one that we should all take very seriously.

Extremist violence endangers our community.  It endangers law enforcement.  But as importantly, it also interferes with citizens’ right to speak freely and assemble peaceably.

I look forward to taking your questions.

In addition to servinga as the chief federal law enforcement officer for the Northern District of Texas, U.S. Attorney Nealy Cox chairs the Attorney General's Advisory Commitee and was recently tapped to stand up his Taskforce on Violent Anti-Government Extremists. 

Jackson, Miss. - United States Attorney Mike Hurst, Director of U.S. Immigration and Customs Enforcement (ICE) Matt Albence, and ICE Homeland Security Investigations (HSI) New Orleans Acting Special Agent in Charge Gilbert Trill will hold a press conference on Thursday, August 6, 2020 at 10:00 a.m. at the Federal Courthouse in Jackson to give an update and make new announcements on investigations and prosecutions arising from the August 2019 execution of criminal and administrative search warrants at multiple locations throughout central Mississippi.    

WHEN:        THURSDAY, AUGUST 6, 2020 - 10:00 A.M.

WHERE:       THAD COCHRAN U.S. COURTHOUSE - SECOND FLOOR EXTERIOR COURTYARD

                       501 E. COURT STREET, JACKSON, MS  39201

  NOTE:

• If you are sick, show any signs or symptoms of COVID-19, or have tested positive for COVID-19 (or anyone in your household) and you have not yet completed a 14-day quarantine after testing positive, do not come to the Courthouse. 
• Everyone entering the courthouse must wear a mask while in any common area of the courthouse, unless speaking publicly or asking a question during the press conference. 
• Everyone must also observe physical distancing requirements, maintaining at least 6 feet between others.
   
  Doors open to press at 9:30 a.m. All cameras must be preset by 9:45 a.m.  All media must RSVP to Sheila Wilbanks at sheila.wilbanks@usdoj.gov and present government-issued photo identification and valid media credentials. This event in limited to only members of the media.

The United States Attorney's Office for the Northern District of Ohio presented awards to honor exceptional advocacy, support and legal work on behalf of the district's six million residents in 2019.

"These awards recognize the best efforts put forth by our office on behalf of the citizens of the Northern District," said U.S. Attorney Justin Herdman. "Whether it's combating violent crime, protecting taxpayers, trying to curb the tide of the opioid epidemic, just to name a few, these employees embody the best of public service."

Details of the award winners are below:

Graduates of the Cleveland Federal Community Leadership Institute (CFCLI): Antoinette Burrell, Angelia Johnson and Crystal Williamson

The Cleveland Federal Community Leadership Institute is a program designed to develop leaders among Cleveland's federal agencies. This program gives students opportunities to network with like-minded leaders in the Cleveland area, develop effective teamwork skills, and design a community outreach project. This year, the Northern District had three graduates: Antoinette Burrell, Angelia Johnson and Crystal Williamson. Congratulations, graduates.

Wings of Excellence Award: Jeanette Albrecht and Michelle Baeppler.  

The purpose of this award is to recognize those employees whose outstanding performances, either on or off the job, have served as an inspiration to others and/or brought credit to the Federal service. Awardees may be recognized for on-the-job performance, community service, or both.

Jeanette Albrecht has been with the Northern District since 2014. She was hired as a Legal Assistant in the Civil Division, where she supported several Assistant U.S. Attorneys in the Financial Litigation and Defensive Units. She assisted in mentoring new legal assistants and has never missed an opportunity to support other personnel within the division.   

Michelle Baeppler has handled some of the office's most notable prosecutions. She joined the U.S. Attorney's Office in 2007 as an Assistant U.S. Attorney and has since prosecuted a myriad of criminal cases, including narcotics trafficking, firearms, bank robbery, terrorism, national security and civil rights matters. She has served as the Deputy Chief of the Organized Crime Drug Enforcement Task Force (OCDETF) Unit and is currently the Branch Chief for the Akron office.  

Congratulations, Jeanette and Michelle. 

2020 Franklin A. Polk Public Servant Award: Renee Mackey

Renee Mackey has been recognized by the Cleveland Metropolitan Bar Association for demonstrating outstanding service to the legal profession, the general public, and the justice system. These merit awards are given for long and faithful service, devotion to duty, wise counsel, and unfailing patience. Renee has worked tirelessly on behalf of the Northern District's six million residents for the past 31 years and is an exemplary public servant. Congratulations, Renee.  

The Bill Edwards Career Award: Jim Morford.

Jim Morford is honored for over 30 years of exceptional federal service. Jim began his career as an Assistant Prosecuting Attorney in Montgomery County and joined the Northern District in 1991. Jim is an Assistant U.S. Attorney who oversees the district's forfeiture division. Jim is widely considered an expert and leading authority on all things related to both criminal and civil forfeiture. Jim's division consistently nets forfeiture results that far exceed districts much larger than Ohio Northern. Congratulations, Jim.

The Roberta Sladick Career Award: Cindy Jenkins 

Cindy is described as an "invaluable asset" and "one of the best employees the U.S. Attorney's Office has had over her long career." Cindy is a leader, mentor and trainer. Cindy has trained countless new employees as they have joined the Criminal Division and is always ready to help and fill in for anyone who needs help, and she has a hands-on approach when it comes to completing the mission. Congratulations, Cindy.

Excellence in Criminal Advocacy: Dan Riedl, Duncan Brown, Om Kakani, Matt Kall and Michelle McEwen

This year's recipients are awarded the Excellence in Criminal Advocacy award for their unwavering commitment and professionalism demonstrated throughout trial. Congratulations to Dan, Duncan, Om, Matt and Michelle.

Excellence in Civil Advocacy: Renee Bacchus, James Bennett, Karen Swanson Haan, Twana Rogers and Devin Zabarsky.

This year's recipients are recognized for their legal skills and adaptability while protecting the United States, and their shining example of professionalism in the face of national headlines and unexpected challenging circumstances. The team used keen legal knowledge and exceptional judgment in meeting, conferring, and negotiating with both the Plaintiffs and defense counsel, the Special Masters, the Court and numerous agency officials and attorneys. Congratulations to Renee, James, Karen, Twana and Devin.

Excellence in Criminal Support: Allison Kretz

Allison Kretz is such an instrumental part of the Northern District's Criminal Division. Many of the office's 2019 success stories would not have happened without Allison. She is approachable, knowledgeable, easy to work with, encouraging and patient. She leads by example and becomes an integral part of every team to which she is assigned. But more important than helping the office, Allison assists the victim community that the district serves. Congratulations, Allison. 

Excellence in Civil Support: Donna Stroffolino

Donna Stroffolino is awarded this year's "Excellence in Civil Support" award for providing support on high-volume foreclosure matters and doing so in a timely manner. The foreclosure unit files in 17 different state courts, has approximately 1500 cases pending and bring in over $1M a year. Donna helps manage the unit's workload by assessing and reviewing each foreclosure complaint and coordinating with the respective agencies in order to enable the office to file an answer or response. Congratulations, Donna. 

Excellence in Paralegal Support: Jen Bosher

Jen Bosher is awarded this year's "Excellence in Paralegal Support" award for her meticulous work and exemplary attention to detail. Jen has worked as a paralegal for the past 10-plus years and has demonstrated exceptional writing ability and the aptitude to handle large and complex discovery productions. Congratulations, Jen.   

Excellence in Administrative Support: Annette Coreno 

Annette is recognized for her positive attitude and willingness to assist whoever calls or walks through the door. Annette manages multiple duties and tasks throughout the day and handles all of her assignments with a pleasant attitude and smile. Congratulations, Annette.   

New Assistant U.S. Attorney Award: Elliot Morrison 

In the few short years that Elliot has been with the Northern District office, he has demonstrated outstanding written and oral advocacy skills, thorough and meticulous approach to case development and prosecution, and has earned numerous convictions and significant trial accomplishments. During 2019, AUSA Morrison worked tirelessly on cases involving public corruption and drug trafficking. AUSA Morrison is a conscientious, dedicated and thorough advocate and deserves recognition by his peers as this year's New Assistant U.S. Attorney award recipient. Congratulations, Elliot.   

New Legal Support Award: Chiquita Bonner 

Chiquita's work ethic and professionalism have earned her this year's New Legal Support award. Chiquita is always ready to say yes to a project, a quick learner, and values her time and others. Chiquita strives to represent the office with professionalism, honesty, and integrity and readily volunteers her time to assist with the planning of events, such as the diversity and outreach programs, holiday events, etc. Congratulations, Chiquita.   

The Jane Corrigan Award: Anthony Myers 

This award recognizes a supportive staff member who is always professional, ready to help others in the performance of their duties, who expresses a "can-do" attitude, and whose demeanor is always engaging. Anthony receives this year's award for going out of his way to assist others, ensuring that his work is professional and error-free, and addressing deficiencies in internal processes. Congratulations, Anthony.   

The Craig Tame Award for Excellence in Community Outreach: Marlon Primes

Marlon is the recipient of the first-ever Craig Tame Award for Excellence in Community Outreach. Marlon is a true leader – both in the office and throughout our community. He has been a champion for Cleveland's youth for several years as he has advanced and supported the Cleveland Metropolitan Bar Association's 3R's program – teaching high school-aged students about their rights and responsibilities as reflected in the U.S. Constitution. Marlon organizes an annual field trip for students to visit the federal courthouse and experience a moot court opportunity. Additionally, he has been a long-standing member of the Office's Diversity and Outreach committee, leading all of us by example. He is described by his peers in many positive ways, including being described as good-natured, exceptionally kind, and "having a heart of gold and the patience of a saint." Congratulations, Marlon.   

Administrative Employee of the Year: Jeff Oleyar 

Jeff receives this year's award for his role in helping the office navigate the information technology challenges posed by remote-working due to the COVID-19 pandemic. Even before the pandemic, Jeff provided the office with knowledgeable, timely, and friendly service and support. Congratulations, Jeff. 

Legal Support Employee of the Year: Rowenda Dellisanti

Rowenda provides outstanding support to all civil Assistant U.S. Attorneys in the Toledo Branch Office. Rowenda is the primary Legal Assistant for two Civil Assistant U.S. Attorneys, provides backup support when necessary, and also supports the bankruptcy and medicare unit, two high-volume areas. Well-organized and meticulous, Rowenda exhibits exceptional skills in all areas of civil litigation support. This includes the difficult and sometimes tedious tasks associated with civil discovery. Congratulations, Rowenda. 

Assistant U.S. Attorney of the Year: Margaret Sweeney 

Margaret Sweeney is this year's Assistant U.S. Attorney of the Year. Margaret's attention and dedication to her work resulted in 77 defendants charged last year, with several of these matters being significant prosecutions resulting from complex, long-term investigations.  

Notable accomplishments in 2019 include:  

•The first trial in this district for a fentanyl analogue under the mandatory minimum statute. It was also then the largest carfentanil seizure with 200 grams of carfentanil found.

•Indicting the leader of a drug trafficking organization that, for at least 10 years, has been trafficking upwards of 200 kilos of cocaine into the Northern District.

In 2019, Margaret was selected to be the lead Strike Force attorney for the newly created Cleveland Strike Force. In addition, she coordinates the summer intern program and mentors new Assistant U.S. Attorneys. Her colleagues describe Margaret as motivating, thoughtful and keenly observant of details. Congratulations, Margaret.

BOSTON – A Boston man pleaded guilty today to being a felon in possession of a firearm.

Naysaan Austin, 23, pleaded guilty via videoconference to one count of being a felon in possession of a firearm before U.S. District Court Judge Patti B. Saris, who scheduled sentencing for Nov. 12, 2020. Austin was arrested on Sept. 19, 2019, and charged by criminal complaint.

On June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Austin is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

The charging statute provides for a sentence of up to 10 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division is prosecuting the case.

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. PSN is 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.

PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey Blackwell, 47, of Philadelphia, PA, pleaded guilty today to charges of honest services wire fraud, filing a false tax return, and two counts of failure to file a tax return. The defendant was charged by Superseding Indictment in September 2019.

Blackwell, a former City of Philadelphia employee in the Office of the City Controller, committed a series of frauds, accepting more than $20,000 in bribes and kickbacks. Between 2013 and 2015, while serving in the Investigations Division of the Controller’s Office, Blackwell misused his official position to enrich himself by soliciting money in exchange for official actions or the promise of official actions, but rarely provided the promised permits or contracts.

At his plea hearing, he admitted that he solicited bribes from at least five individuals who were seeking permits or contracts from the City. One of these individuals owned a furniture store and paid Blackwell for permits to park a storage container on the street. The second person was renovating a house and paid Blackwell for permits to allow that renovation. The third person owned a construction business and paid Blackwell to obtain a plumbing permit. The fourth person owned an auto body shop and paid Blackwell in the hope of getting a license to buy and sell cars as well as a City contract to install decals on police vehicles. The fifth person, who was cooperating with the FBI at the time, told Blackwell that he needed permits from the City of Philadelphia to renovate a house.

Blackwell also admitted that he filed a false 2012 federal income tax return that falsely deducted travel expenses and falsely claimed a dependent, and he admitted that he failed to file a return as required by law for tax years 2013 and 2014.

“Philadelphians deserve public employees who do their jobs honestly and faithfully. Blackwell did not meet this standard – instead choosing to use his public position to extort money for himself,” said U.S. Attorney McSwain. “Now he will face the consequences. My Office will continue to attack and destroy the cancer of corruption wherever we find it in Philadelphia or elsewhere in the District.”

“Jeffrey Blackwell traded on his official position, seeking bribes in order to pad his pockets,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He put his own interests above those of the people he served, depriving Philadelphians of their right to honest services from city workers. The FBI is committed to protecting the integrity of government at all levels from the plunder of public corruption.”

“Mr. Blackwell had a duty to report all of his income to the IRS and to pay the correct tax on that income,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Mr. Blackwell’s decision to shirk this duty undermines public confidence in our tax system. His admission of guilt and acceptance of responsibility is a reminder that no one is above the law.”

“This case is one of a bad actor who abused his position and took advantage of the system for his own personal gain. When offenders, like this one, are held accountable, we’re taking an important step toward restoring the public’s trust in government and committing to the idea that Philadelphia works for everyone, not just the connected,” said Philadelphia City Controller Rebecca Rhynhart. “But it is important to underscore that this case is not reflective of all city employees, most of whom are hardworking, do their job with integrity and want to make Philadelphia a better place.”

The defendant faces a maximum possible sentence of 24 years’ imprisonment,a three-year period of supervised release, $600,000 fine, and a $225 special assessment. United States District Judge Chad F. Kenney set sentencing for December 2020.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service with assistance from the Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorney David J. Ignall.

Greenbelt, Maryland – Robert Carl Diienno, age 32, formerly of Laurel, Maryland, pleaded guilty on August 4, 2020, to three counts of enticement to travel in interstate commerce for the purposes of prostitution.  

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Chief Russell E. Hamill III of the Laurel Police Department.

According to his plea agreement, from at least November 2016 through June 2017, Diienno acted as a pimp for Victim 1, and at other times for Victims 2 and 3, who were all adult women.  During that time, Diienno persuaded, enticed, induced, and coerced the victims to engage in a prostitution enterprise that included travel between Maryland and Washington, D.C., Virginia, Florida, and South Carolina in order to service “dates” in acts of prostitution.  The victims provided any money earned from the commercial sex to Diienno, including transferring payments electronically through Internet-based payment services, such as PayPal and Venmo.

As detailed in his plea agreement, Diienno and the victims resided at a residence in Laurel, which was used as a group home and the base of the enterprise.  “Meeting minutes” recovered from the house identify the location as “Duh ho house.”  Some of the meeting minutes are signed by one of the victims and record attendance at the meeting; a report on potential new recruits; and the “Comptroller’s Report” that showed the amount earned by each of the victims related to their prostitution activities.  In the residence and on Diienno’s laptop law enforcement recovered documents titled, “ho Training Manual,” “ho Rules,” and “Pimp/ho Contract.”  The documents stated requirements that a “ho” submits to the control of the “Pimp,” including accepting any punishment the Pimp decides to inflict, with certain limitations, such as punishment must not incur permanent bodily harm, and must stop immediately if blood is drawn, among others.

A text exchange in late May 2017, between Diienno and Victim 3 demonstrated how Diienno coerced the victims.  When Diienno persuaded Victim 3 to “walk the streets” in Washington, D.C., Victim 3 claimed to be ill.  Diienno told Victim 3, “I care about seeing you become a strong ho and a strong person in general…Taking you home is what would show that I don’t care.  That would mean I don’t give a f*** about your development as a person.”

On June 1, 2017, Laurel Police Department was called to the residence for a disturbance at that location.  Victim 1 and Victim 3 were found hiding in a nearby treeline and reported that Diienno had assaulted Victim 1 when she refused to walk the streets.  Diienno was arrested.

During the subsequent investigation, two firearms belonging to Diienno were recovered from the Laurel residence.  At least one victim recalled seeing Diienno handle a firearm and was intimidated by that behavior.

As part of his plea agreement, Diienno must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Diienno faces a maximum sentence of 20 years in federal prison for each of the three counts of enticement to travel to engage in prostitution.   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.  U.S. District Judge George J. Hazel has scheduled sentencing for December 8, 2020, at 2:00 p.m.

This case was investigated by law enforcement agencies that are members of the Prince George’s County Human Trafficking Task Force, part of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form.  Both are staffed around the clock by investigators.

United States Attorney Robert K. Hur commended HSI and the Laurel Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who is prosecuting the case.

# # #

Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced DeShawn Torrell Salley (40, Tampa) to 15 years in federal prison for distributing 50 grams or more of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.

Salley had pleaded guilty on February 6, 2020.

According to court documents and information presented at the sentencing hearing, between 1999 and 2004, Salley was convicted of six felony offenses, including attempted murder in the first degree. On eight occasions, between April and June 2019, Salley sold methamphetamine and heroin in Tampa. On July 31, 2019, federal agents arrested Salley and searched his apartment pursuant to a federal search warrant. The agents recovered a loaded Glock .45 caliber pistol, a bulletproof vest, heroin, and marijuana. As a previously convicted felon, Salley is prohibited from possessing firearms or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Christopher Keith Held (37, Orlando) to six years and nine months in federal prison for conspiring to commit access device (credit card) fraud, producing counterfeit access devices, possessing 15 or more counterfeit access devices, possessing device-making equipment, and committing aggravated identity theft. Held had pleaded guilty on May 13, 2020. Held’s co-defendant, Bonnie Brooke Vogt (25, Orlando), pleaded guilty to several fraud-related charges on June 23, 2020. Her sentencing is scheduled for September 18, 2020.

According to court documents, sometime prior to 2018, Held and Vogt conspired to steal the identities of approximately 2,900 individuals from the Orlando chapter of a labor union where Vogt had been employed. Between 2018 and 2019, Held and Vogt used many of these stolen identities to obtain loans, lines of credit, and credit cards in victims’ names. Held and Vogt then used the fraudulently-obtained funds and stolen identities to purchase four vehicles and to pay other personal expenses, including staying at various hotels in central Florida and renting a new Mercedes. In January 2019, when officers from the Orlando Police Department searched the Mercedes, they found more than 100 counterfeit driver licenses displaying Held or Vogt’s photos, but with the personal information of the identity theft victims, as well as numerous debit and credit cards that had been opened in victims’ names. Officers also located two card printers and a card encoder in the vehicle. Held and Vogt were later found in possession of additional stolen and counterfeit access devices, in September 2019 and October 2019.

This case was investigated by the United States Postal Inspection Service and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Miami, Fl. -- South Florida federal prosecutors have charged a former Economics Minister of Guatemala, Asisclo Valladares Urruela, 44, with helping to launder close to $10 million of illegal drug proceeds and other ill-gotten money. Prosecutors allege that during a four-year conspiracy, Valladares Urruela enabled the illegal drug trade by creating a demand for untraceable cash, cash that Valladares Urruela used to bribe corrupt Guatemalan politicians.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert E. Bornstein, Acting Special Agent in Charge, FBI, Washington Field Office Criminal Division, and Kevin W. Carter, Special Agent in Charge, DEA, Miami Field Division, made the announcement.

According to the criminal complaint affidavit, former Minister Valladares Urruela’s co-conspirators included a major drug trafficker, a corrupt Guatemalan politician, and a crooked Guatemalan bank employee. The bank employee was the conduit between those with the dirty cash (the drug trafficker and the corrupt politician) and the person who needed it (Valladares Urruela). Maximizing on the employee’s access to and familiarity with banking mechanisms, the co-conspirators executed a sophisticated money laundering scheme that allegedly involved, among other activities, unlawful money exchanges between parties in different countries through “mirror transactions” that left no paper trails, development of fraudulent investment opportunities that yielded false financial gains, creation of sham documents to make ill-gotten gains appear legitimate, and steady hand-to-hand deliveries of large amounts of cash.   

This money laundering conspiracy lasted from 2014 to 2018 and benefitted each co-conspirator. The bank employee got a cut of the various financial transactions. The drug trafficker and corrupt politician were able to exchange their dirty cash for what appeared to be legitimate earnings, complete with papers trails. This allowed the criminals to enjoy their money openly and publicly, as well as to move money to other locations secretly, including to different locations in South America. Valladares Urruela regularly received backpacks, duffel bags, and brief cases full of dirty, untraceable cash that he knew came from drug trafficking and corruption and used it to bribe Guatemalan politicians, according to the complaint affidavit. Valladares Urruela’s demand for bribe cash was allegedly so great, he allegedly once remarked to a co-conspirator that politicians must think money grows on trees. 

Some of the money from Valladares Urruela’s alleged scheme with his co-conspirators passed through U.S. bank accounts. At least two Miami companies allegedly helped the co-conspirators move money to South America.

“This case demonstrates the unfortunate links that sometimes exist in Central and South American countries among drug traffickers, business people, and corrupt politicians,” said U.S. Attorney Ariana Fajardo Orshan.  “Although Miami serves as a bridge between the United States and our neighbors to the south, drug traffickers, corrupt officials, and their dirty money are not welcome in our district. The U.S. Department of Justice stands with its law enforcement partners in neighboring countries in the fight against money laundering and narcotics trafficking.”

“This investigation demonstrates that the FBI and our partners will not stop at the borders to identify and locate criminals,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI will continue to work with our foreign and domestic partners to bring to justice Asisclo Valladares Urruela and others like him who perpetuate the unfortunate link of drug trafficking and political corruption that sometimes exists."

“No one is ever above the law,” said DEA Miami Field Division Special Agent in Charge Kevin W. Carter.  “Government officials, both foreign and domestic, are expected to obey laws.  When corruption exists, it poisons the welfare of nations and almost always involves other types of crimes.  The DEA Miami Field Division will always support its law enforcement partners, both national and international, to combat drug trafficking and all other criminal activities that go along with it.”   

The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with this case: the Narcotic and Dangerous Drug Section of the Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the U.S. Department of Justice’s Office of International Affairs, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.

Assistant U.S. Attorney Walter M. Norkin is prosecuting this case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.

The criminal complaint charges Valladares Urruela with conspiring to commit money laundering. The charges in a criminal complaint are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under Case No. 20-MJ-03308.    

signed_complaint_valladares.pdf

BOSTON – A Cambridge man pleaded guilty today to firearms trafficking charges related to six separate sales.

Ezequiel Netzahualt, 25, pleaded guilty to dealing firearms without a license and selling cocaine base, commonly known as crack cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 2, 2020. Netzahualt was charged in February 2020.

Netzahualt sold 11 firearms in Cambridge during six separate transactions between October 2019 and January 2020. Netzahualt also sold crack cocaine on Nov. 20, 2019.

The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a $1 million fine. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit is prosecuting the case.

ST. GEORGE, UT – A former Kane County resident, who solicited money from victims with fraudulent promises that he was on the verge of receiving hundreds of millions of dollars – even billions – and would be able to pay a large return on their investment, will be arraigned Thursday morning in federal court in St. George.

Kurt Jurgens Bauer, 56, who has also lived in Las Vegas, is charged with three counts of wire fraud and two counts of false impersonation of an employee of the United States in a recently unsealed indictment.  The arraignment will be at 9 a.m. before U.S. Magistrate Judge Paul Kohler in St. George.  Bauer is in custody.  His continued detention status will also be considered during the Thursday hearing.

“This case involves a defendant who allegedly exploited the trust of hardworking and honest people, including elderly citizens of Southern Utah and Nevada,” U.S. Attorney John W. Huber said. “We prioritize investigations and prosecutions involving elderly victims. As I’ve said before – we revere our elders, we do not defraud them,” U.S. Attorney John W. Huber said today. “This case is also a priority for us because it includes allegations Bauer impersonated federal judges and a federal court administrator as a part of his fraud scheme.”

“Kurt Bauer is suspected of praying on some of the most vulnerable people in our community. We take fraud violations seriously, especially when these crimes are committed against the elderly who tend to be more trusting of such schemes. We will continue to work with our partners in the FBI and US Attorney’s Office to aggressively pursue, investigate and prosecute cases like the one involving Kurt Bauer,” Kane County Sheriff Tracy Glover said today.

“Kurt Bauer’s alleged crimes were based on lies that he perpetuated for many years,” said Special Agent in Charge Paul Haertel of the Salt Lake City FBI.  “The hundreds of thousands of dollars he’s accused of swindling from his victims, including the elderly, didn’t go toward legitimate investments, but to pay his bills. While the victims may never see their money again, we hope the hard work of investigators and prosecutors sends a message that ultimately, crimes like this don’t pay.” 

According to the indictment, beginning in 2011 and continuing until April 2020, Bauer devised an advance-fee scheme to solicit money from victims using a variety of what the indictment alleges were fraudulent representations and promises.

Bauer told victims that the United States District Court for the District of Nevada had frozen funds due to him, according to the indictment.  Bauer told victims that the court required “bond” payments to secure the frozen funds, and he solicited victims to make the payments – often on a weekly basis, the indictment alleges.  Bauer had various explanations for the court’s action.

Bauer represented to victim investors that the court was going to release funds to him in the near future.  Once the funds were released, the victims would receive large returns in exchange for their upfront payments.

In reality, Bauer fabricated the information he provided to victims about his wealth and the court process to release funds.  Bauer has relatively little wealth, the indictment says, apart from money he took from victims.  He had no prospect of receiving large amounts of money and no court was holding money Bauer was entitled to.  And, the indictment alleges, Bauer had no way of paying victims the promised returns.

The victims’ bond payments were not sent to a court, the indictment alleges.   Bauer spent the money on himself including paying hotel bills, credit card payments, and restaurants, among other things.

The indictment alleges Bauer received more than $300,000 from victims, including at least $200,000 from victims identified as C.B., age 82, and L.B., age 80, in the indictment.  

To further the scheme, Bauer created false identities of a New York attorney, a federal court employee, and a billionaire that he used to make misrepresentations to and solicit payments from victims.  The indictment alleges he created phone numbers and email accounts for the false identities. Communications between the victims and the false identities were actually between the victims and Bauer or one of his accomplices.

In furtherance of the scheme, Bauer and his accomplices impersonated federal judges and a federal court administrator during communications with victims to convince them the court process was real and to persuade victims to continue making payments.

Bauer was arrested following the return of the sealed federal indictment in late July.  He had an initial appearance on the charges July 30, 2020, in federal court in St. George.

He faces up to 20 years in federal prison for each count of wire fraud and up to three years for each count of false impersonation of an employee of the United States if convicted of the charges.  Indictments are not findings of guilt.  Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.

Assistant U.S. Attorneys in the U.S. Attorney’s Office in St. George and Salt Lake City are prosecuting the case.

U.S. Attorney Huber expressed appreciation for the significant investigative efforts of the FBI and the Kane County Sheriff’s Office, who are assisting with the case.

          SANTA ANA, California– Law enforcement authorities this morning arrested four defendants charged in two federal grand jury indictments alleging a narcotics trafficking ring that sold illegal opioid prescriptions for cash through a series of sham medical clinics.

          Those charged in the indictments include Dr. John Michael Korzelius, 68, a.k.a. “Dr. K,” of Camarillo, who worked at a Santa Ana pain management clinic where he allegedly wrote medically unnecessary prescriptions to “patients” who paid cash. Over the course of two years, Korzelius and other medical professionals working under his guidance, prescribed approximately 439,090 pills of 30mg oxycodone – the highest dose of short-acting oxycodone available, and the dose most popular for the drug-abusing population, according to court documents.

          The charges in this matter are the result of an investigation by agents with the DEA and IRS Criminal Investigation into ChiroMed, which operated a group of chiropractic, medical and wellness clinics in Los Angeles, Orange and San Bernardino counties. Korzelius, along with other medical professionals, including physician’s assistants, allegedly met with fraudulent patients and provided them with unnecessary prescriptions for drugs, including oxycodone.

          The two grand jury indictments unsealed today charge 10 defendants with a variety of narcotics-related offenses, including conspiracy to distribute controlled substances, possession with intent to distribute oxycodone, distribution of fentanyl, and money laundering.

          Along with Korzelius, the indictments charge:

• Justin Douglas Cozart, 42, of Woodland Hills, who operated and supervised the ChiroMed medical clinics;
• Damoon Joe Navarchi, 33, of Woodland Hills, who assisted Cozart in operating the clinics;
• Xavier Muduki Mabale, 42, of Anaheim, who is accused of recruiting sham patients to obtain fraudulent oxycodone prescriptions from the medical clinics;
• Mayra Barrios, 37, of Yorba Linda, who allegedly oversaw the day-to-day management of the medical clinics, including the issuance of fraudulent oxycodone prescriptions to sham patients;
• Harrison Maruje Mureithi, 42, of Norco, who allegedly coordinated the purchase, collection, packaging, and shipment of oxycodone to buyers on the East Coast;
• Duncan Muthoni Wanjohi, 23, of Anaheim, who allegedly assisted Mureithi in the buying and shipping of narcotics;
• Pierre Delva, Jr., 33, a.k.a. “Big Head,” of Medford, Massachusetts, who allegedly provided financing to Mureithi to purchase bulk quantities of oxycodone; and
• Louise W. Mureithi, 69, of Anaheim, Harrison Mureithi’s mother, who allegedly received packages of cash sent to her son for oxycodone;
• Majid Nojavan, 42, of Laguna Niguel, charged in a spinoff case from the primary investigation, who allegedly advertised oxycodone for sale onCraigslist, sold fentanyl to an undercover police officer, and escorted the undercover police office to an Inglewood medical clinic to obtain a fraudulent oxycodone prescription.

          Harrison Mureithi, Mabale, Louise Mureithi, and Nojavan were arrested by law enforcement this morning, and they are expected to make their initial court appearances this afternoon in United States District Court in Santa Ana. Korzelius, Cozart, Navarchi, and Barrios are being summonsed into court and are expected to make their initial appearances in United States District Court next week. Delva and Wanjohi are fugitives.

          As a result of a two-year investigation into the fraudulent medical clinics, DEA agents seized 20,737 oxycodone pills, and $177,610 in cash. Law enforcement intercepted a mailed parcel contained a teddy bear stuffed with two bags of oxycodone pills.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          If convicted of the charges, the defendants each would face a statutory maximum sentences of at least 20 years in federal prison.

          The investigation into the sham medical clinics was handled by the Drug Enforcement Administration and IRS Criminal Investigation. The Department of Health and Human Services, Office of Inspector General and the Torrance Police Department provided substantial assistance. The investigation of Majid Nojavan was handled by Homeland Security Investigations and the Costa Mesa Police Department.

          These cases are being prosecuted by Assistant United States Attorneys Scott D. Tenley and Andrew M. Beshai of the Santa Ana Branch Office.

COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the State of South Carolina received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“This office is committed to aggressively prosecuting human trafficking, which is among the most despicable and vile forms of criminal activity,” said U.S. Attorney McCoy. “Its victims suffer immeasurably, and I am thankful that there are safe places in South Carolina for survivors of this horrendous crime to experience a transformed life.”

The grant, awarded to Doors to Freedom, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rent, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing and secure employment, as well as occupational training and counseling. Doors to Freedom is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening thecriminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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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.

United States Attorney Brandon J.  Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced Jesse Sloane, age 59, of Denham Springs, Louisiana, to serve 68 months in federal prison following his conviction for receipt of child pornography.  Sloane will also be required to serve five years of supervised release and register as a convicted sex offender upon his release from prison.

According to admissions Sloane made during his plea, on March 14, 2018, Internet Crimes Against Children Task Force agents executed a search warrant at Sloane’s home where agents recovered computer equipment from his bedroom, which contained numerous images of child pornography.  During a post-Miranda interview, Sloane admitted that the electronic devices were his and that he was responsible for downloading child pornography at the residence. 

A subsequent forensic examination of Sloane’s devices revealed more than 600 images of child pornography including images and videos of prepubescent minors under the age of 12 years engaged in various sex acts.  

U.S. Attorney Fremin stated, “This conviction and sentence demonstrate the commitment this office has to prosecuting those who exploit our children, who are among the most innocent and vulnerable among us.  My office looks forward to continuing our partnership with federal, state and local law enforcement to aggressively pursue these child predators.  I want to commend our prosecutors and the FBI for their excellent work in this case.”

“Investigating individuals like Jesse Sloane is one of the highest priorities of the FBI.  He violated innocent lives by sexually exploiting children and viewing child sexual abuse material.  This sentence is the culmination of an investigation conducted by special agents, intelligence analysts, and Internet Crimes Against Children Task Force agents who worked tirelessly to bring him to justice,” stated Special Agent in Charge Bryan Vorndran. 

This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.projectsafechildhood.gov.

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (“HSI”) in New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging MARIO REYNOSO-HICIANO, JOEL CABRERA, a/k/a “Gordo,” a/k/a “Oso,” VLADIMIR REYES, YUDITH REYNOSO-HICIANO, a/k/a “La Classica,” and PEDRO REYNOSO with kidnapping, narcotics, and firearm offenses.  Three defendants were taken into custody earlier today and will be presented before U.S. Magistrate Judge Kevin Nathaniel Fox.  A fourth defendant remains at large, and a fifth defendant is already in federal custody in connection with another matter and will be presented and arraigned at a later date.  The case is assigned to U.S. District Judge Denise L. Cote.

Acting U.S. Attorney Audrey Strauss said:  “As alleged, the defendants were involved in conspiracies to traffic in cocaine and/or to kidnap someone they believed had shortchanged them in a drug transaction.  This case illustrates once again how drug trafficking and gun violence so often go hand-in-hand.  Thanks to the efforts of HSI and the NYPD, people charged with violent crimes are in custody and facing federal charges.”

HSI Special Agent-in-Charge Peter C. Fitzhugh said:  “The safety and well-being of New York City residents remains the primary focus of HSI and our partners.  Today’s indictment alleging narcotics trafficking and kidnapping by the defendants, and use of a firearm by one of them, marks yet another positive step in ridding alleged criminals from our community.  HSI’s continued collaboration with the NYPD to investigate violent crimes and dismantle criminal organizations will ensure the safe removal of guns, drugs and bad actors from our neighborhoods.”

NYPD Commissioner Dermot Shea said:  “The illegal narcotics trade and associated violence alleged in this federal indictment are crimes that erode the fabric of city life. I commend our NYPD investigators, and federal partners, for their work in this successful case.”

According to the allegations in the Indictment[1]:

In or about May 2019, MARIO REYNOSO-HICIANO, JOEL CABRERA, and VLADIMIR REYES engaged in a conspiracy to distribute cocaine.  A dispute arose between MARIO REYNOSO-HICIANO and another individual who had brokered the sale of cocaine (“Victim-1”) because MARIO REYNOSO-HICIANO believed that he had been paid less than the full negotiated purchase price for the cocaine. 

As part of that dispute, MARIO REYNOSO-HICIANO, YUDITH REYNOSO-HICIANO, PEDRO REYNOSO, and others kidnapped Victim-1, tied him to a chair inside an apartment in the Bronx (“Apartment-1”), threatened to and did physically assault Victim-1, and demanded that Victim-1 provide information relating to the aforementioned cocaine transaction.  Portions of the kidnapping were recorded with a cellphone by YUDITH REYNOSO-HICIANO.

In the early morning of May 31, 2019, CABRERA brandished and discharged a firearm in connection with the cocaine transaction that occurred the day before.

*                *                *

A chart containing the names, charges, and maximum penalties for the defendants is set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the outstanding investigative work of HSI and the NYPD.

This case is being handled by the Office’s Narcotics Unit.  Assistant United States Attorneys Daniel H. Wolf and Alexander N. Li are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

PIKEVILLE, Ky. – A Red Fox, Kentucky man, Michael Slone, 43, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Robert Wier, after previously admitting to conspiring with others to distribute 500 grams or more of methamphetamine.           

According to his plea agreement, beginning in November 2017 and continuing through March 12, 2018, Slone conspired with Samantha Collins, 38, Danny Collins, 65, Kevin Quillen, 44, and Sabrina Chaffins, 46, to distribute 500 grams or more of methamphetamine. Specifically, Slone admitted to traveling to Louisville, on several occasions with a co-conspirator, to purchase pound-level quantities of methamphetamine from a source of supply. Slone would then return to Eastern Kentucky and resell the methamphetamine.

Slone is the fourth co-conspirator to be sentenced. The last co-conspirator, Chaffins, will be sentenced on November 10, 2020. The other co-conspirators have received the following sentences:

• Samantha Collins received 184 months in prison and five years of supervised release.
• Danny Collins received 251 months in prison and 10 years of supervised release.
• Kevin Quillen received 60 months in prison and four years of supervised release.

Under federal law, Slone and his co-conspirators must serve 85 percent of their prison sentences.  Slone will also be under the supervision of the U.S. Probation Office for five years, following his release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge for ATF, Louisville Field Division; Commissioner Rodney Brewer, Kentucky State Police; Sheriff Mike Worrell, Letcher County Sheriff, jointly announced the sentences.

The investigation was directed by ATF, Kentucky State Police, and Letcher County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Jenna Reed.

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.

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SAN DIEGO, Calif. – Today, Tyrone Cedric Duren, 50, of Bonsall, California was sentenced by Judge John A. Houston to 130 months in prison, followed by three years of supervised release. The court also ordered the forfeiture of Duren’s primary residence, a money judgment of $275,000, and restitution to the Internal Revenue Service. Duren previously pleaded guilty to 19 counts including charges of money laundering, making false statements, and tax evasion.

While working as a federal agent specializing in the investigation of bulk cash smuggling, Duren stole money from individuals smuggling drug proceeds to Mexico. Duren then laundered those funds by depositing them into personal and business accounts, and used the stolen cash for personal purchases. Over several years, Duren used his position as a federal agent to place GPS trackers on vehicles used to transport proceeds from drug sales. Duren then took some of the drug money after it was seized, laundered it into his own accounts, and spent it on real estate and international travel.

For example, during a July 2013 traffic stop, Duren stole money concealed in the hidden compartment of a vehicle on which he had previously placed a GPS tracker. In March 2014, Duren was tracking a vehicle he suspected to be loaded with cash as it headed toward Mexico. The vehicle was stopped and searched at a Border Patrol Checkpoint and found to contain a large amount of cash concealed in laundry detergent boxes. Duren took custody of the seized cash, but before putting it into evidence, Duren took over $100,000 for himself. He later admitted that he deposited the stolen money into business and personal accounts to conceal those thefts. Duren then failed to file taxes for 2013 to further hide his theft. Duren also lied numerous times to agents who were investigating his crimes.

Agents from the Department of Homeland Security-Office of Inspector General, Immigration and Customs Enforcement-Office of Professional Responsibility and Homeland Security Investigations, U.S. Customs and Border Protection-Office of Professional Responsibility, and the Internal Revenue Service-Criminal Investigations conducted this investigation. The United States Attorney’s Office for the Southern District of California is recused. Assistant United States Attorneys Kevin Rapp, Abbie Broughton Marsh, and Mark Wenker of the United States Attorney’s Office for the District of Arizona prosecuted this case.  

CASE NUMBER:            CR-16-02892-JAH
RELEASE NUMBER:    2020-066_Duren

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ 
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

CINCINNATI – A federal grand jury has charged Malikai Willis, 24, of Hamilton, Ohio, with sexually trafficking and exploiting a child in an indictment returned here.

Malikai appeared in federal court today on the four-count indictment.

According to the indictment, from September 2019 through January 2020, Willis trafficked a 16-year-old female and caused her to engage in commercial sex acts.

Additionally, in November 2019 and January 2020, Willis allegedly created child pornography when he created three sexually explicit videos of the victim.

Sex trafficking a minor is punishable by 10 years up to life in prison. Producing child pornography carries a potential prison sentence of 15 to 30 years.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Jim Neil and Hamilton County Prosecutor Joe Deters announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

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          LOS ANGELES– The company that produces “Crystal Geyser Natural Alpine Spring Water” was sentenced today to three years of probation and ordered to pay criminal fines totaling $5 million for illegally storing and transporting hazardous waste created from filtering arsenic out of spring water at its facility in Olancha, California.

          United States District Judge Dolly M. Gee also ordered CG Roxane LLC to implement a compliance program within 90 days to ensure it complies with federal and state environmental laws and implement that program within 180 days of today’s sentencing hearing. The compliance program includes the company’s retention of a qualified and experienced third-party environmental auditor to conduct annual audits of CG Roxane’s Olancha facility.

          The company pleaded guilty on January 9 to one count of unlawful storage of hazardous waste and one count of unlawful transportation of hazardous material. The financial penalty Judge Gee imposed today consisted of a $2.5 million criminal fine for each count.

          CG Roxane obtained water by drawing groundwater from the eastern slope of the Sierra Nevada mountains that contained naturally occurring arsenic. The company used sand filters to reduce the concentration of arsenic so the water would meet federal drinking water standards. To maintain the effectiveness of the sand filters, CG Roxane back-flushed the filters with a sodium hydroxide solution, which generated thousands of gallons of arsenic-contaminated wastewater.

          For approximately 15 years, CG Roxane discharged the arsenic-contaminated wastewater into a manmade pond – known as “the Arsenic Pond” – at its Olancha facility along Highway 395 in Inyo County.

          In March 2013, the Lahontan Regional Water Quality Control Board took a sample from the Arsenic Pond and in 2014 informed CG Roxane that the sample had an arsenic concentration that was more than eight times the hazardous waste limit, creating a risk to the area’s groundwater and wildlife. The water board referred the matter to the California Department of Toxic Substances Control (DTSC), which took its own samples that showed the Arsenic Pond had an arsenic concentration almost five times the federal hazardous waste limit. Subsequent sampling and testing by CG Roxane and its retained laboratory confirmed a similar arsenic concentration in the Arsenic Pond.

          DTSC officials met with CG Roxane representatives in April 2015, presented a list of preliminary violations, and instructed the company to arrange for the removal of the Arsenic Pond.

          In May 2015, CG Roxane hired two Los Angeles-area entities to remove the hazardous waste and transport it – which was done without the proper manifest and without identifying the wastewater as a hazardous material, according to court documents. The arsenic-contaminated wastewater was ultimately transported to a Southern California facility that was not authorized to receive or treat hazardous waste. As a result, more than 23,000 gallons of the wastewater from the Arsenic Pond allegedly was discharged into a sewer without appropriate treatment.

          The two companies hired to transport and treat the wastewater – United Pumping Services, Inc. and United Storm Water, Inc., both located in the City of Industry – each pleaded guilty on June 10 to four counts of negligently causing a violation of a pretreatment program requirement. On July 29, Judge Gee ordered each company to pay a $375,000 criminal fine.

          The investigation in this case focused on alleged violations involving the handling, storage and transportation of CG Roxane’s wastewater, not the safety or quality of CG Roxane’s bottled water.

          The investigation in this matter was conducted by the United States Environmental Protection Agency, Criminal Investigations Division and the United States Department of Transportation’s Office of Inspector General. These federal agencies received assistance from the California Department of Toxic Substances Control.

          This case was prosecuted by Assistant United States Attorneys Dennis Mitchell and Heather C. Gorman of the Environmental and Community Safety Crimes Section.

          The United States Attorney’s Office for the Eastern District of California also assisted in the investigation.

PHILADELPHIA – United States Attorney William M. McSwain announced that Stefan Tucker, 33, of Philadelphia, PA was sentenced to 200 months (over 16 years) in prison by United States District Judge Gerald J. Pappert for his involvement in an almost around-the-clock drug delivery service for several years in South Philadelphia. Two of Tucker’s co-defendants, Stephen Wilkerson, 30, and Jerome Tucker, 29, both of Philadelphia, PA, were also recently sentenced and received ten years and five years in prison, respectively. All three pleaded guilty to multiple drug offenses in January and February, 2020.

Between 2013 and 2016, the defendants and their co-conspirators, known as the “Friends” and the “7th Street” drug trafficking group, delivered crack cocaine and heroin to customers along the 7th Street corridor in South Philadelphia using a shared drug phone. The defendants used the phone to take orders and communicate with customers; they would pass the phone off in shifts to keep their operation going almost 24 hours per day. FBI agents conducted surveillance and controlled purchases of narcotics from the defendants using audio and video recording devices. During the course of the investigation, agents also intercepted phone calls and text messages from the shared drug phone, which documented the defendants’ illicit activities. Three co-defendants, Antoine Clark, Gerald Spruell, and Daniel Robinson, were convicted at trial in February 2020 of multiple drug offenses stemming from their involvement in the drug operation and await sentencing.

“Trafficking in heroin and crack cocaine destroys neighborhoods, it’s deadly, and it’s obviously illegal – for good reason,” said U.S. Attorney McSwain. “And it will land you in federal prison for many years. The 7th Street drug trafficking group is now gone, and we bid it good riddance.”

“This group’s constant churn of drug transactions kept the 7^th Street corridor awash in heroin, crack, and other narcotics,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Shutting them down makes the community safer and these sentences will put them out of business.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Matthew Newcomer and Jason Grenell.