ATLANTA - U.S. Attorney Byung J. “BJay” Pak announced that Wellspring Living, in the Northern District of Georgia 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.”

“A core mission of this office is the targeting and dismantling of human trafficking organizations operating in this district. The support our anti-trafficking prosecutors and investigators receive from victim advocates and non-governmental organizations, like Wellspring Living, is absolutely critical to our office’s success in combatting these horrific crimes,” said U.S. Attorney Pak. “This grant will provide essential resources to sex trafficking victims who are especially vulnerable due to ongoing fear of reprisal to themselves and their families, a wish to avoid embarrassment and public shame, and a simple desire to move on with their lives.”

“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 Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

“Wellspring Living is grateful for this investment in survivors of Human Trafficking through the recent OVC award,” said Wellspring Living Executive Director Mary Frances Bowley. “We are honored to work alongside incredible partners like the Justice Department, specifically the U.S. Attorney, to provide a safe and restorative environment for survivors to recover from the complex trauma of trafficking.  As our survivors recover, the ability to work cooperatively with prosecutors provides vital progress to end trafficking.”

The grant, awarded to Wellspring Living, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, 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, secure employment, as well as occupational training and counseling. Wellspring Living is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

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 reflects. 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.

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 the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

U.S. Attorney Justin Herdman announced today that Jaquar Keyshore Latimer, age 43, of Akron, was sentenced by Judge Sara Lioi to 199 months imprisonment after being found guilty during a trial by jury of possession with intent to distribute cocaine and possession of firearms as a convicted felon on August 23, 2019.

“This defendant has spent the majority of his adult life dealing drugs and illegally possessing firearms,” said U.S. Attorney Justin Herdman. “Violent crime and felonious assaults with a firearm are on the rise in cities like Akron and throughout Northern Ohio. We must send a strong message to the community and career-criminals that illegally possessing a stolen firearm or having a firearm with felony convictions will result in many years and months in federal prison.”

“As stated by U.S. Attorney Herdman, Latimer has spent most of his adult life spreading violence and addiction,” stated Roland Herndon, ATF’s Special Agent in Charge for the Columbus Field Division. “This lengthy sentence will ensure that he does not have the opportunity to continue to terrify and intimidate the Akron community.”

According to court documents, in December of 2017, Latimer was on supervised release from federal prison after serving a sentence for a conviction of felon in possession of a firearm.  On February 9, 2018, officers with the Ohio Parole Authority conducted a home visit at the residence where Latimer resided. When APA officers entered the home, they found Latimer walking within a few feet of a firearm on a couch.

Court documents state that Akron Police Department officers arrived on the scene and assisted with searching the home. During the search, law enforcement officers discovered 11 grams of cocaine, more than $1,000 in cash, and three firearms: a 9mm automatic handgun, which had been reported stolen; a loaded .380 caliber, semi-automatic handgun; and a loaded .357 caliber revolver. Latimer was prohibited from possessing a firearm due to previous convictions of being a felon in possession of a firearm, sexual battery, aggravated assault, and drug possession.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department and was prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea and Mark S. Bennett.

A two-count indictment was unsealed today in federal court in Brooklyn charging Davon Brown and Christian Williams, members of the violent street gang Folk Nation Gangster Disciples, with being felons in possession of a firearm in connection with their involvement in a March 14, 2020 shooting that wounded a man.  The defendants were arrested this morning and will make their initial appearance this afternoon via videoconference before United States Magistrate Judge Peggy Kuo.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges and arrests.

“Preventing gun violence by repeat offenders is a priority of this Office, and we are addressing it aggressively in close coordination with our federal and local law enforcement partners,” stated Acting United States Attorney DuCharme.  “As alleged, a minor dispute escalated to a shooting, underscoring the need to eradicate violent gangs that jeopardize the safety of our communities.”

“It's the random violence alleged here that keeps escalating, and enveloping an entire community of innocent people who are being terrorized by the actions of repeat offenders. We are working hourly with our law enforcement partners to address the recent spate of violence, and doing everything we can to make sure their return to crime is a short-lived exercise in futility,” stated FBI Assistant Director-in-Charge Sweeney. 

“The gun violence alleged in this indictment tears at the fabric of life in our city. I applaud the NYPD’s vigorous efforts, along with our federal partners, to stop this kind of violence and work closely with the communities we are sworn to serve,” stated NYPD Commissioner Shea. 

As detailed in the government’s detention letter filed earlier today, Brown and  Williams were involved in the shooting of a victim who was disrespectful toward their gang.  On March 20, 2020, an individual with the victim threw a drink at a woman inside the Gold Room Restaurant and Lounge in Prospect Lefferts Gardens, splashing a person standing with Brown.  An argument ensued, and the victim, a Crips gang member, flashed a gang sign known as “dropping the rake” — a gesture intended to be insulting to the Folk Nation.  The argument continued outside the bar where Brown allegedly displayed a gun and fired a shot into the air.  Brown then handed the gun to Williams who walked behind the victim and shot him in the buttocks at close-range.  Williams fled and discarded the gun a half block away.  The gun was recovered by law enforcement, and DNA from both defendants was found on the weapon.

Brown, who was on federal supervised release at the time of the charged offense, has prior convictions for criminal possession of a loaded firearm, robbery and racketeering conspiracy, among other crimes.  Williams, who was on New York state parole at the time of the charged offense, has prior convictions for, among other crimes, conspiracy and criminal possession of a loaded firearm in connection with an earlier shooting of a Folk Nation gang rival.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, both defendants face a maximum sentence of 10 years in prison.  If convicted of violating his supervised release, Brown faces an additional sentence of up to two years in prison.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General William Barr has enhanced PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Jonathan Siegel is in charge of the prosecution.

The Defendants:

DAVON BROWN (also known as “Chico Dinero”)
Age:  26
Brooklyn, New York

CHRISTIAN WILLIAMS (also known as “Zonee Flocks”)
Age:  25
Brooklyn, New York

E.D.N.Y. Docket No. 20-CR-293 (WFK)

GRAND JUNCTION – United States Attorney Jason R. Dunn announced that Angelina Maestas and Naomi Vaughn, both of Montrose, Colorado, pleaded guilty to possession and distribution of methamphetamine and heroin.  United States Magistrate Judge Gordon P. Gallagher heard the change of pleas late last week.  Additionally, Maestas separately pleaded guilty to witness, victim or informant tampering.  The Denver Division of the Drug Enforcement Administration joined in today’s announcement.

According to court documents, including the stipulated facts contained in the defendants’ plea agreements, Maestas and Vaughn conspired to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin.  

In addition to her plea on the drug charge, Maestas also pleaded guilty to witness, victim or informant tampering.  According to court records, Maestas posted discovery documents protected by court order on Facebook.  This included material that identified at least one co-conspirator who Maestas alleged cooperated with police. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado.  Related court documents can be found on PACER by searching for Case Numbers 19-cr-535 and 20-cr-0166.  The defendants are being prosecuted by Assistant U.S. Attorney Zachary Phillips. 

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.

PHILADELPHIA – United States Attorney William M. McSwain announced that Artavius Horne, a/k/a “Lo”, 36, of Philadelphia, PA was sentenced to 45 years in prison and 10 years of supervised release by United States District Court Judge Gerald J. Pappert for sex trafficking three children for years.

In September 2019, Horne was convicted at trial of three counts of sex trafficking minors by force, fraud or coercion. During the week-long trial, the government proved that the defendant organized, operated and led a sex trafficking venture based in and around Northeast Philadelphia between 2013 and 2015, and in 2018. As part of the scheme, the defendant recruited, enticed and maintained three minor children, one of whom was as young as 13 years old, to engage in commercial sexual encounters. Horne created Internet advertisements for each of the victims on the website Backpage.com, and he transported them across state lines to New Jersey, New York, Washington D.C., and Maryland for the purpose of engaging in commercial sex acts. He also kept the victims in apartments throughout Philadelphia, known as “trap houses,” where they were made to engage in commercial sex for the benefit of the defendant. In 2017, Horne was convicted of similar offenses in Bucks County, PA.

“Horne committed these heinous acts while on parole for doing the exact same thing,” said U.S. Attorney McSwain. “He has no regard for the law -- or even basic human decency -- as evidenced by his willingness to sell the bodies of children for sex to benefit himself. He deserves every minute of the 45 years that he received today.”

“Artavius Horne made his living by sexually exploiting children, advertising underage girls for sex with strangers,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He even transported them to other cities and states, determined to keep the money coming in at their expense. Know that the FBI and our law enforcement partners are working every day to put traffickers like Horne behind bars and ensure some justice for their victims. We ask anyone with knowledge of child or adult sex trafficking to let us know about it, so we can help. Call 1-800-CALL-FBI or go online to tips.fbi.gov. Tipsters can remain anonymous, if they like.” 

The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.

CHATTANOOGA, Tenn. – On August 5, 2020, Savannah Grissum, 22, of Douglasville, Georgia, and Alonzo Dean Westmoreland, 31, of Kennesaw, Georgia, were sentenced by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.

Both plead guilty in September 2019 to transporting in commerce an underage victim for the purpose of engaging in prostitution. As part of the plea agreement, Grissum and Westmoreland admitted to bringing the underage victim from Georgia to Tennessee for the purpose of prostitution. Grissum was sentenced to 78 months in prison, followed by six years’ supervised release; Westmoreland received 108 months in prison and six years’ supervised release. Both will be required to register with the sex offender registry in any state in which they reside, work, or attend school, and comply with special sex offender conditions during the supervised release.

In June 2018, Cobb County Police Department received a report of a runaway juvenile. The FBI from the Atlanta and Chattanooga divisions, were informed that the juvenile was located in Chattanooga. Deputies from the Hamilton County Sheriff’s Office and the FBI responded to a local motel, where they recovered the underage victim who had been prostituted in Chattanooga for approximately four days. Grissum and Westmoreland used the proceeds from that illegal activity to pay for their hotel room and other expenses.

The prosecution was the result of a joint investigation led by FBI Special Agents Terrilynn James and Terri L. Green of the Chattanooga Division, and Nathan Whiteman of the Atlanta Division, Detective Robert Rush of the Hamilton County Sheriff’s Office, with assistance from Detectives Hunter Llewellyn and Ray Drew with the Cobb County Police Department.

Assistant U.S. Attorney Jay Woods represented the United States in court proceedings.

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McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has been ordered to prison for bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.

Jorge Alberto Ruiz-Periban pleaded guilty April 8, admitting he evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.

Today, U.S. District Judge Randy Crane handed Ruiz-Periban a 30-month sentence. As part of the terms of the plea agreement, the money will be forfeited to the United States. In handing down the sentence, the court noted the Ruiz-Periban’s employment as a horse trainer in Mexico and that he was likely recruited by the cartel to launder money. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.

“Today’s sentencing of Ruiz-Periban demonstrates that bulk cash smuggling is a serious crime motivated by greed, which directly contributes to the cartel violence that damages communities on both sides of the border,” said Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio. “HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”

On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.  

At the time of his plea, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.

He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HSI conducted the investigation with Customs and Border Protection. Assistant U.S. Attorney Matthew Redavid prosecuted the case.

Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on Friday, August 7, 2020 James K. Nicksion (age 24) of Milwaukee was sentenced by the Honorable Judge Lynn Adelman to 60 months’ imprisonment. Once released, Nicksion will serve a three-year term of supervised release.

According to court records, Nicksion ran from police officers during a traffic stop. Inside the car, police found a 9mm semi-automatic pistol carrying an extended magazine. The gun was loaded with 30 rounds of ammunition. Police also found roughly five grams of crack cocaine and a scale. Nicksion had previously been convicted of dealing marijuana and bail jumping.

This case was prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.

 Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://go.usa.gov/xpBrs.

The Milwaukee Police Department and Federal Bureau of Investigation investigated the case, with assistance from the Drug Enforcement Administration and Shawano County Sheriff’s Office. Assistant United States Attorney Farris Martini prosecuted the case.

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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For further information contact: Public Information Officer Kenneth Gales                        

(414) 297-1700

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         LOS ANGELES– The founder and former CEO of an investment firm that specializes in debt instruments was arrested this morning on federal charges alleging he falsified financial records to fraudulently inflate the value of the funds he managed, allowing him to charge investors millions of dollars in unauthorized fees.

         Brendan Ross, 47, of La Cañada Flintridge, who founded Direct Lending Investments, LLC (DLI) in 2012, was taken into custody by special agents of the FBI.

         In conjunction with the unsealing of the criminal case, the United States Securities and Exchange Commission today filed a civil complaint today against Ross alleging he defrauded investors. 

         Today’s arrest was pursuant to a grand jury indictment filed on July 30 that charges Ross with 10 counts of wire fraud based on a scheme he executed between late 2013 and early 2019 to defraud investors in funds managed by DLI, a firm he still owns. Ross resigned as CEO in March 2019, and soon after the SEC filed a civil complaint against DLI, which resulted in the appointment of a court-ordered receiver in early April 2019.

         By the summer of 2017, only five years after Ross founded DLI, the firm had over $1 billion in assets under management. According to the indictment, Ross allegedly directed DLI to invest the funds’ assets in, among other things, a company that loaned money to small businesses and retailers. The DLI funds made money when the loans performed, meaning that the borrowers made timely payments. The indictment alleges that, rather than disclose some of the loans were not performing, Ross falsified monthly reports to make it appear borrowers were making payments. The “payments” actually came from fee rebates given by the company originating the loans.

         By lying about the true status of the loans, Ross caused DLI to overstate the value of these loans on the funds’ books and fraudulently inflate the funds’ value, according to the indictment. Specifically, Ross allegedly caused the monthly asset values of the funds to be cumulatively inflated by over $300 million over the course of about four years. By fraudulently inflating the value of the funds, Ross was able to collect millions of dollars in fees he otherwise would not have been able to charge to clients, according to the indictment.

         To further his scheme and help conceal it, Ross allegedly arranged for the sale of approximately $55 million of the loans to a third-party buyer in the summer of 2017. Ross once again inflated the value of these loans by lying about their status, falsely telling the buyer that borrowers had been making payments on many of these loans, according to the indictment.

         Ross is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.

         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.

         Each of the 10 wire fraud counts in the indictment carries a statutory maximum sentence of 20 years in federal prison. 

         This matter was investigated by the FBI. The SEC provided substantial assistance during the criminal investigation.

         This case is being prosecuted by Assistant United States Attorneys Poonam G. Kumar and Catherine S. Ahn of the Major Frauds Section.

WHEELING, WEST VIRGINIA – Charles Cesar Ansley, Jr., of Wheeling, was sentenced today to 12 months and one day of incarceration for drug distribution in the Wheeling area, U.S. Attorney Bill Powell announced.

Ansley, also known as “Mike,” pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location” in May 2020. Ansley, age 40, admitted to selling methamphetamine near Luau Manor in Ohio County in March 2019.

Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. 

U.S. District Judge John Preston Bailey presided.
 

WHEELING, WEST VIRGINIA – Dale Robert Barnhart, of Alma, West Virginia, was sentenced today to 33 months of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.

Barnhart, age 57, pled guilty to one count of “Unlawful Possession of a Firearm and Ammunition” in February 2020. Barnhart, who is prohibited from having a firearm because of prior convictions, is accused of having two shotguns, a rifle, and multiple rounds of ammunition in August 2019 in Tyler County.

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

Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.

U.S. District Judge John Presto Bailey presided.

NEWARK, N.J. – The co-owner of a commercial cleaning company in Bergen County, New Jersey, today admitted evading more than $300,000 in tax payments by cashing checks at a commercial check cashier, paying employees off-the-books cash wages, and failing to report all his income, U.S. Attorney Craig Carpenito announced.

Peter Jamgochian, 53, of Paramus, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to Count One of an information charging him with subscribing to false corporate tax returns.

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

Jamgochian was a co-owner of a commercial cleaning company in Hackensack, New Jersey. His duties included managing company payroll and interacting with the company’s accountant.

In 2013 and 2014, Jamgochian cashed over $2 million in check payments received from the company’s customers at a commercial check cashier. He then used the cash to pay off-the-books cash wages to his employees and kept a portion for himself. Jamgochian hid these cashed checks from the IRS by not disclosing this information to the company’s accountant. After the accountant prepared the corporate taxes, Jamgochian signed these false corporate returns under penalty of perjury, knowing that they were false.

Jamgochian caused the company to underpay $248,936 in Medicare and Social Security taxes. He also understated his personal income received from the company, causing an additional tax loss to the IRS of $76,201.

The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for Dec. 16, 2020.

U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.

Defense counsel: Frank Agostino Esq., Hackensack, New Jersey

ALBANY, NEW YORK – Alex Cheney, age 55, of Moriah, New York, was sentenced today to 3 years of probation and 100 hours of community service for making a false statement to the Department of Veterans Affairs (VA) in order to receive Individual Unemployability benefits. 

The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Sean J. Smith, United States Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office. 

As part of his guilty plea, Cheney admitted that he falsely certified on an employment questionnaire that he was not employed or self-employed at any time during the prior 12 months when he was, in fact, working in construction and earning wages. 

This case was investigated by the VA Office of Inspector General and prosecuted by Assistant U.S. Attorney Ashlyn Miranda. 

ALBANY, NEW YORK – Mario Figueroa-Portalatin, age 41, of Troy, New York, pled guilty today to conspiring to distribute at least 10 kilograms of heroin.

The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Rensselaer County Sheriff Pat Russo.

In pleading guilty, Figueroa-Portalatin admitted that for two years ending in March 2020, he sold at least 10 kilograms of heroin, which he acquired from a source of supply in New York City.  From March 2018 to March 2020, he traveled to New York City once a month, on average, and each time purchased between 500 grams and 1 kilogram of heroin that he brought back to Troy, packaged, and sold.

On March 30, 2020, Figueroa was the subject of a traffic stop in Troy.  Police officers seized a black canvas bag, on the front passenger floorboard of his vehicle, that contained approximately 200 grams of heroin that Figueroa intended to sell that day to a customer.  Law enforcement then executed warrants on Figueroa’s apartment and another apartment in the same building, and seized $34,001 in drug trafficking proceedings.  In Figueroa’s bedroom, officers found a Hi-Point model JHP .45 caliber pistol.

Figueroa will be sentenced on December 8, 2020 by Chief United States District Judge Glenn T. Suddaby.  He faces at least 10 years and up to life in prison, as well as post-release supervision of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case was investigated by DEA Albany and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Keith Lessard, 40, of Uxbridge, Massachusetts, was arrested on a federal criminal complaint alleging that he mailed threatening communications to a Kanawha County Circuit Judge. According to the criminal complaint, Lessard engaged in a series of communications with the Judge and others using email and the United States Postal Service. The communications were part of a scheme to extort money from the Judge by threatening injury to her reputation by claiming that she engaged in illegal prosecutorial misconduct in a 2010 case against Lessard when she was serving as an Assistant Prosecuting Attorney in Kanawha County. The complaint further notes that there is no evidence supporting Lessard’s claims of illegal conduct on the part of the Assistant Prosecutor.

“Any threat to any member of the judiciary is taken very seriously. I commend the FBI and the U.S. Postal Inspection Service for conducting the thorough investigation which led to Lessard’s arrest today,” said United States Attorney Mike Stuart.

“We take extortion threats very seriously and will investigate them to our full potential,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “People who think they can extort others need to know there will be consequences. These crimes cause severe emotional distress and will not be tolerated.”

“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. mail. By working closely with our law enforcement partners in operations like this, we can hold those engaged in terrible crimes accountable for their actions,” said Tosha Dennis, Acting Inspector in Charge of the Pittsburgh Division.

Lessard faces up to two years in prison, if convicted.

The Federal Bureau of Investigation (FBI) and the United States Postal Inspection Service (USPIS) are conducting the investigation. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.

Note: The charge contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-mj-00106.

Follow us on Twitter:SDWVNewsand USAttyStuart

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PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.

The two separate but related indictments, returned on August 4, named Rahde Williamson aka "Raw" age 25, as the sole defendant.

According to the first Indictment, the defendant conspired to possess with intent to distribute and to distribute 400 grams or more of fentanyl from November of 2018 through August of 2019. The Indictment further alleges that in June of 2019 Williamson distributed fentanyl that caused an overdose death. The second Indictment alleges that on July 15, 2020, the defendant, a convicted felon, possessed ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include a federal drug conviction for conspiracy to distribute more than one kilo of heroin and possession with intent to distribute less than 100 grams of heroin. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. The court was further informed that the defendant was on federal supervised release when he purchased the ammunition.

The law provides for a maximum total sentence of up to life in prison, a fine of not more than $11,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendant will remain incarcerated pending the resolution of the case

Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Monessen Police Department conducted the investigation leading to the Indictment in this case. . This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

            WASHINGTON – Kenneth Gaughan, 41, of Washington, D.C., was arrested and charged by a criminal complaint, unsealed today, with fraudulently obtaining over $2.1 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”).  He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan.  Gaughan was also arrested on an indictment unsealed today, charging him for a separate embezzlement scheme relating to his alleged theft of over $472,000 in funds from the Catholic Archdiocese of Washington, D.C. (“ADW”), where he was previously employed as Assistant Superintendent.

            The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge Jennifer Boone of the Federal Bureau of Investigation’s Baltimore Field Office (“FBI”), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (“IRS-CI”), and Special Agent in Charge Kevin Kupperbusch of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region (“SBA-OIG”).

            The criminal complaint related to the PPP/EIDL loan fraud case was unsealed today as Gaughan has his initial appearance before U.S. Magistrate Judge G. Michael Harvey in the District of Columbia.  The complaint charges Gaughan with one count of bank fraud, one count of the theft of government funds, one count of wire fraud, and one count of money laundering.  The complaint alleges, through the scheme, Gaughan sought and received approximately $2.1 million in PPP and EIDL loans through applications to SBA lenders on behalf of multiple companies, all falsely purporting to register emotional support animals.  Gaughan is alleged to have made false representations to receive the loan funds, including forged paperwork and bank records.  Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger,and a rowhouse in Northeast, Washington, D.C.  In conjunction with Gaughan’s arrest, the government obtained a warrant authorizing the seizure of the yacht, the Kia Stinger, Gaughan’s investment account, and Gaughan’s bank accounts.  The government is also filing a civil forfeiture complaint against a home Gaughan purchased with his fraudulently obtained proceeds and filing a lis pendens on that property.

            The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

            EIDL is an existing SBA program designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue.  EIDL provides loan assistance, including up to $10,000 advances, for small businesses and other eligible entities for loans up to $2 million.  The EIDL proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred; however, such loan proceeds are not intended to replace lost sales or profits or for expansion of a business.  Unlike certain other types of SBA-guaranteed loans, EIDL funds are issued directly from the United States Treasury and applicants apply through the SBA via an online portal and application. 

            “We will not tolerate exploitation of this national emergency for personal gain,” said Acting U.S. Attorney Michael R. Sherwin.  “This Office will not allow fraudsters to steal taxpayer money intended to help small businesses that are currently struggling as a result of the COVID-19 pandemic.”

            “During this time, many businesses are feeling effects of the pandemic.  To help businesses make it through, the government offered loans to provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue and enable them to keep their workers on the payroll. Unfortunately, there are greedy individuals who choose to abuse these programs in order to enrich their lifestyle,” said Kelly R. Jackson IRS-CI Special Agent in Charge of the Washington DC Field Office.  “This conduct will be investigated to ensure crooks are held responsible for stealing this money away from those who were in need.”

            “Mr. Gaughan was so emboldened by deceiving a church for eight years he then, allegedly, turned his deception to the government,” said FBI Special Agent in Charge Jennifer Boone, “stealing funds that were meant to be a lifeline for struggling businesses during an unprecedented economic downturn, and greedily using them to satisfy his own materialistic desires. I want to thank the agents for their diligent work in this case.”

            “It is unconscionable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement will aggressively investigate allegations of fraud involving SBA’s programs.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.” 

            The indictment, also unsealed today before Magistrate Judge Harvey, charges Gaughan with offenses including mail fraud, wire fraud, and money laundering for perpetrating a separate scheme that defrauded ADW of over $472,000.  According to the 12-count indictment, Gaughan was employed as an Assistant Superintendent of ADW, headquartered in Hyattsville, Maryland.  In that role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to ADW.  These included contractors that could help ADW implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by ADW, located in Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland, and Washington, D.C.  Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.

            The indictment alleges that beginning in at least June 2010 and continuing through April 2018, Gaughan caused ADW to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to ADW’s students and families.  To execute the scheme, Gaughan allegedly concealed his ownership and control of three companies, including by submitting forms using an alias and falsely certifying that he did not transact any business with ADW.  According to the indictment, Gaughan then transmitted fraudulent invoices for these companies and persuaded ADW to issue checks for services that Gaughan knew the companies did not provide.  Gaughan allegedly opened virtual and private mailboxes in order to receive the checks that ADW issued to pay for the fraudulent invoices that Gaughan manufactured and transmitted to ADW officials.  The indictment alleges that Gaughan deposited the checks issued by ADW into the bank accounts he controlled, and converted the money to his personal use. 

            The charges in the complaint and the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

            This matter was investigated by the FBI, IRS-CI, and the SBA-OIG. Assistant U.S. Attorney Christine Macey of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia and Assistant U.S. Attorneys Greg Bernstein and Jessica Collins of the U.S. Attorney’s Office for the District of Maryland are investigating and prosecuting the case, supported by Paralegal Specialist Quiana Dunn-Gordon.  Assistant U.S. Attorney Arvind Lal and Special Assistant U.S. Attorney Steven Brantley are handling the seizure and forfeiture matters. 

            The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.

            Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at USADC.COVID19@usdoj.gov.

NORFOLK, Va. – A Chesapeake doctor pleaded guilty today to distribution of amphetamine.

According to court documents, Lopito Bugarin, 65, was a medical doctor with a practice in Chesapeake. From 2016 until 2019, Bugarin would write prescriptions without administering a medical exam. Bugarin would also write prescriptions for Adderall and Oxycodone in multiple names and give them to a single patient. For example, Bugarin would write prescriptions for a patient and for a friend or family member of the patient who had not seen Bugarin that day. Bugarin also provided prescriptions to patients for Schedule II controlled substances without ever seeing the patient, even during time periods where Bugarin was out of town.

Bugarin faces a maximum penalty of 20 years in prison when sentenced on Feb. 2, 2020. 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.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Kevin P. Hudson 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-25.

COLUMBUS, Ohio – A Virginia man pleaded guilty in federal court in Columbus today to participating in a racketeering conspiracy in Columbus on behalf of the transnational gang MS-13.

In his plea, Jose Daniel Gonzalez-Campos (a/k/a Flaco), 31, accepts responsibility for his role in the November 2015 murder of 17-year-old high school student Wilson Villeda.

Parties involved in Gonzalez-Campos’ case have recommended a sentence of 30 years in prison.

Gonzalez-Campos is one of 23 members and associates of MS-13 in Columbus charged in a February 2018 second superseding indictment. He is the eighteenth defendant to plead guilty.

The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.

Court documents detail that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.

The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death.

In the murder of Wilson Villeda, MS-13 members and associates attacked and killed the victim with bladed weapons and buried his body in a shallow grave in the woods in Innis Park.

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; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Thomas Quinlan announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr.

Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.

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RICHMOND, Va. – A Richmond man was sentenced today to 11 1/2 years in prison for possession with intent to distribute an ounce of cocaine and possession of firearm after being convicted of a felony.

“Illicit narcotics such as cocaine, heroin, and fentanyl are ravishing the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “With every gram of cocaine, rock of crack, or package of heroin that he sold, Graham fanned the flames of the opioid epidemic in Virginia. Graham has at least six prior felony convictions, including two involving the illegal possession of a firearm and four drug related convictions. This is precisely the type of defendant worthy of federal prosecution, and today’s sentence should send a strong message to those who choose to peddle poison in our communities.”

According to court documents, Nicholas Gabriel Graham, 29, was arrested on felony drug trafficking warrants as he drove away from his residence. Graham had an ounce of cocaine and $1,263 in his pocket and a loaded semiautomatic pistol in his car. A search of his residence pursuant to a search warrant resulted in the recovery of three more loaded pistols and a loaded AK-47, a quantity of fentanyl, more cocaine, including crack cocaine and items used to traffic narcotics. Graham had been previously convicted of a felony and was prohibited from possessing a firearm.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel David R. Hines, Hanover County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia N. Emerson prosecuted 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. 3:19-cr-147.