ST. LOUIS – Brandon Phillips, 35, of Florissant, Missouri, pleaded guilty to one count of being a felon in possession of a firearm. Phillips appeared, today, before United States District Court Judge Stephen R. Clark.

On May 23, 2019, officers were conducting surveillance of Phillips as part of a narcotics investigation.  Officers located Phillips parking a car at a home in the 2700 block of Blue Heron Drive in Florissant. Phillips was driving his co-defendant, was in the front passenger seat. Officers approached Phillips and the co-defendant, and placed Phillips under arrest for a warrant for violating his parole. Officers found, after searching Phillips, two bags containing suspected controlled substances. In a bag Phillips was carrying, officers located a loaded 9mm Ruger handgun and three bags containing suspected controlled substances.

During interactions with Phillips and his co-defendant, officers observed multiple bags containing pills, powders, and rock-like substances, believed to be controlled substances, sitting on the center console of the car. During a thorough search of the car, officers located a bag tucked partially under the driver’s seat. The bag contained a loaded 9mm handgun, multiple bags containing suspected controlled substances along with Phillips’ identification and credit cards. Laboratory analysis revealed the suspected controlled substances were methamphetamine, fentanyl, and heroin.

Judge Clark has set sentencing for August 15, 2021 at 11:00 a.m. 

The St. Louis County Police Department investigated this case. Assistant United States Attorney Jennifer Szczucinski is handling the case.

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Orlando, FL – U.S. District Judge Paul G. Byron has sentenced Brandon Planas (39, Orlando) to 17 years in federal prison for enticing an 11-year-old child to produce sexually explicit videos of himself and send them over the internet. Planas was also ordered to serve a 10-year term of supervised, register as a sex offender, and forfeit the electronic devices that he had used to commit his offense. 

Planas had pleaded guilty on March 2, 2021.

According to court documents, in August 2019, Planas began chatting online with an 11-year-old child via Instagram messenger. In September 2019, Planas sent the child a pornographic image over the internet that he claimed to be himself. After sending this image, Planas asked the child to reciprocate. On October 8, 2019, at Planas’s request, the child created several videos of his genitalia and sent at least one of these videos to Planas.

The child’s parents discovered these chats and contacted the Pinellas County Sheriff’s Office which began a criminal investigation. Between October 2019 and June 2020, Planas made several attempts to reinitiate contact with the child by sending the child messages, video chat requests, and using a different Instagram username. When the child’s parents discovered Planas’s attempts to reinitiate communication, they contacted the FBI. An undercover FBI agent assumed the child’s online identity and continued online conversations with Planas, during which Planas asked for another pornographic image of the “child.”

On July 21, 2020, FBI agents executed a search warrant at Planas’s residence.  During an interview, Planas admitted, among other things, that he had solicited pornographic images from the 11-year-old child. The agents conducted a forensic review of his computer devices and located other social media profiles that Planas had used to solicit pornographic images from other users, including the child.           

This case was investigated by the Pinellas County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Amanda Daniels.

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

RALEIGH, N.C. – An Angier man was sentenced today to 360 months in prison for production of child pornography.  On April 26, 2020, Raul Ayala, Jr. pled guilty to the charge.

According to court documents and other information presented in court, Ayala, 72, was accused of sexually molesting a prepubescent minor.  Upon the minor’s disclosure, Ayala was confronted and admitted to some of the conduct but claimed there were explanations for the behavior.  Law enforcement was contacted, and Fuquay-Varina Police Department began an investigation.  Detectives interviewed Ayala about the allegations, and Ayala admitted to touching the child’s penis and putting his mouth on the child’s penis.  Ayala said the molestation had been on-going for a couple of years.  He also admitted he had taken some nude photographs of the child, but insisted they were innocent photographs.  In addition, Ayala admitted he had molested children in the 1970’s.

A search warrant was executed at Ayala’s residence in Angier and multiple digital devices were seized.  In addition, in Ayala’s attic law enforcement found a briefcase that contained adult pornography and child pornography.  The briefcase contained tri-fold advertisements for child pornography videos which contained pictures of children engaged in sexual acts with adults and a description of what the videos depicted.  In the briefcase were Polaroid pictures of nude minor children, dating back to the late 1960’s and early 1970’s.  On Ayala’s digital devices, law enforcement found lascivious images of the minor child who disclosed sexual abuse along with child pornography unrelated to the minor child.

Homeland Security Investigators sought to identify the minor males in the Polaroid photographs.  Agents identified one of the males who affirmed he was one of the children in the Polaroids and he disclosed that Ayala had molested and photographed him, beginning when he was eight years old.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentence was entered by U.S. District Judge Terrence W. Boyle. Fuquay-Varina Police Department, Harnett County Sheriff’s Office, and the Department of Homeland Security Investigation investigated the case, and Assistant U.S. Attorney Charity Wilson and Charles Schmitz with the Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Carl Dean Churchman, a former Westinghouse Electric Corporation Vice President and the Project Director of the V.C. Summer Nuclear project, pled guilty today in federal court to making a false statement to an FBI agent during the investigation of the failed nuclear project at the V.C. Summer site.

“This guilty plea shows that the investigation into the V.C. Summer nuclear debacle did not end with the former SCANA executives,” said Acting United States Attorney DeHart. “We are committed to seeing this case through and holding all individual and corporate wrongdoers accountable.”

“Today’s plea highlights the FBI’s determination to conduct a comprehensive investigation that yields the truth,” said FBI Special Agent in Charge Susan Ferensic.  “We will continue to ask important questions and identify all involved in this failed nuclear project.”

As evidence presented to the court showed, Churchman was interviewed by FBI Special Agent Aaron Hawkins in May 2019.  During the interview, Agent Hawkins asked Churchman several questions about Westinghouse’s reporting of V.C. Summer’s completion dates to SCANA and Santee Cooper (“the owners”) in early 2017. 

Churchman told Agent Hawkins that Westinghouse’s executives did not consult him prior to reporting the completion dates to the owners.  Churchman claimed that he did not know the dates before they were reported and that he did not know who made the decision to report the dates to the owners. 

However, emails and other documents obtained during the investigation of the failed nuclear project at the V.C. Summer site revealed that Churchman lied to Agent Hawkins during the May 2019 interview.  An internal Westinghouse email chain establishes that Churchman received and discussed the dates in early 2017.

Additionally, detailed notes from an early 2017 meeting with Westinghouse executives by SCANA’s Executive Vice President Steve Byrne revealed that Churchman reported the completion dates to SCANA on February 14, 2017, directly contradicting the statements Churchman made to Agent Hawkins.

On May 19, 2021, Churchman sat down for another interview with the FBI.  At the beginning of the interview, Churchman acknowledged that his previous statements were untrue.

Today’s plea is the third stemming from the investigation of the failed nuclear project.  Byrne previously pled guilty to conspiracy to commit mail and wire fraud, and former SCANA Chief Executive Officer and former Chairman of its Board of Directors Kevin Marsh pled guilty in federal court to conspiracy to commit mail and wire fraud.

Today’s plea also follows a previously announced agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief; and it follows a previously announced settlement by SCANA and SCE&G on a Securities and Exchange Commission lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.

In the plea agreement, Churchman agrees to cooperate fully with federal, state, and local law enforcement agencies.  He also agrees to testify fully and truthfully before any grand juries until the investigation and prosecution in the criminal acts that occurred in relation to the failed V.C. Summer Nuclear plant expansion are complete.

On the federal charge, Churchman faces a maximum penalty of five years in prison, a fine of up to $250,000, supervised release of up to 3 years, and a $100 special assessment.

United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Churchman after receiving and reviewing a sentencing report prepared by the United States Probation Office.

Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, Emily Limehouse, and Jason Peavy along with Special Assistant United States Attorney John O’Halloran, a lawyer with the Securities and Exchange Commission, prosecuted the case.

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        ALBUQUERQUE, N.M. – Lester Padilla, 48, was sentenced in federal court on June 8 to 12 years and 7 months in prison for robbing three Wells Fargo Bank locations in Española and Santa Fe, New Mexico. Padilla pleaded to an indictment on Sept. 24, 2020.

        According to an indictment and other court records, on Sept. 9, 2019, Padilla entered a Wells Fargo Bank in Española and handed a teller a demand note that read, “Give me your loose cash or I’ll shoot you.” The teller handed money from the cash drawers and Padilla left the bank. Padilla walked to a nearby convenience store and solicited a ride.

        On September 24, 2019, Padilla entered a Wells Fargo Bank in Santa Fe and handed a demand note to a teller. The teller gave Padilla money and Padilla fled the bank. On Sept. 26, 2019, the FBI received a tip that Padilla had entered a pizza restaurant in Santa Fe and paper and requested a pen to write a note. Padilla then left the restaurant and walked to a third Wells Fargo Bank, where he once again handed a teller a demand note stating, “Give me the money or I will shoot you.”

         Upon his release from prison, Padilla will be subject to three years of supervised release.

         The Santa Fe Resident Agency of the Albuquerque Field Office of the FBI investigated the case with assistance from the Española Police Department and the Santa Fe Police Department. Assistant U.S. Attorney Eva Fontanez prosecuted the case.

BOSTON – A Dominican national pleaded guilty yesterday in federal court in Worcester to identity fraud charges and illegal reentry after deportation.

Pedro Wilson Hernandez-Castillo, 49, pleaded guilty to false representation of a Social Security number, aggravated identity theft and unlawful reentry of a deported alien. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 1, 2021. Hernandez-Castillo was charged in a superseding indictment in February 2021.

On June 15, 2020, Hernandez-Castillo was stopped by a state trooper while driving and asked to provide his identification. The defendant provided the driver’s license and Social Security card of another individual. After determining that the defendant provided false information, the state trooper arrested Hernandez-Castillo.

Hernandez-Castillo illegally re-entered the United States after being deported in August 2018 following a conviction for possession with intent to distribute cocaine and heroin. Hernandez-Castillo was removed from the United States on four previous occasions: December 1998, June 2000, August 2011 and August 2018. 

The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful reentry after deportation provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year prison sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Todd Lyons, Field Office Director of Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was also provided by the Massachusetts State Police. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office is prosecuting the case.

McALLEN, Texas – The former controlling manager of Lone Star Shredding’s parent company has pleaded guilty to defrauding his employer, announced Acting U.S. Attorney Jennifer B. Lowery.

Lone Star Shredding is a local subsidiary in Mercedes. Its parent company is located in Tennessee.

Brian Janish, 44, admitted to using an unauthorized access device and engaging in other fraudulent activity to steal $403,293.19 between July 2013 and December 2017.

As part of his responsibilities, Janish was in charge of establishing bank accounts and approving expenses for the company. When the company switched banks, Janish failed to close the company’s previous bank account or destroy the corporate credit card issued in his name.

In fact, he charged personal expenses on the company credit card, including travel and online goods. Janish also wrote checks from the company account and withdrew cash for personal use. He attempted to cover his fraud by emailing fake bank statements to the company. 

The Morristown, Tennessee, resident also increased his payroll without authorization.

U.S. District Judge Randy Crane accepted the plea and set sentencing for Aug. 19. At that time, Janish faces up to 10 years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing. 

The FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Stephanie Bauman are prosecuting the case.

VALDOSTA, Ga. – A Southwest Georgia businessman and owner of a tractor supply company has pleaded guilty to orchestrating a complicated fraud involving millions of dollars of loans by multiple creditors.

Rickey Carter, 60, of Nashville, Georgia, pleaded guilty to one count bank fraud on Tuesday, June 8, before U.S. District Judge Hugh Lawson. Carter faces a maximum 30 years in prison to be followed by at least five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for September 15. There is no parole in the federal system.

“Rickey Carter’s decision to concoct various illegal schemes to keep his failing business afloat has damaged small businesses, community banks and defrauded the federal government. Carter’s criminal actions will ultimately land him in federal prison,” said Acting U.S. Attorney Peter D. Leary. “FBI and FDIC agents successfully unraveled Carter’s complicated fraud, preventing him from further harming small businesses and bringing him to justice.”

“Carter thought he was smart enough to swindle millions of dollars from these banks, but he wasn’t smart enough to avoid being caught and punished,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “He will be held accountable for the damage he has done, sending a strong message to anyone considering such fraud that it is a serious crime with serious consequences.”

“Rickey Carter’s guilty plea holds him responsible for his actions in fraudulently obtaining millions of dollars in loans from these banks,” said Special Agent in Charge, Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “We remain committed to working with our law enforcement partners to bring to justice those who threaten the integrity of the banking system.”

Carter was the President and CEO of Nashville Tractor (NTI), a business that sold and leased agricultural and construction equipment, attachments and parts. In 2016, he obtained a United States Small Business Administration (SBA) loan with Farmers and Merchants Bank (FMB) in the principal amount of $5,000,000. At the same time, NTI obtained a new line of credit and signed a credit agreement with FMB in the amount of $625,000.

In 2010, Carter had entered into an ongoing Wholesale Financing and Security Agreement with CNH Industrial Capital America, LLC, (CNH) to finance NTI’s purchases of inventory for retail sale or lease. He also entered into a Retail Financing Agreement (RFA) with CNH under which CNH would purchase NTI’s interest in retail installment contracts for the purchase of agricultural and construction equipment with retail customers. The CNH agreement was a primary source of farm and construction equipment inventory for NTI.

Carter was able to continue operations of NTI and other loan arrangements were made with a number of other banks and financing entities. In each instance of a loan with the banks, Carter was required to provide true and complete financial information to the banks and was to provide continuing information for line of credit draws. However, during 2015, NTI began having financial and cash flow issues which made it difficult to make payments due on the loans and to make payroll. During that time, Carter began a practice of selling equipment which it held in trust but not paying the cash over to CNH and other creditors as required. Carter sold at least 88 pieces of equipment valued at more than $1.5 million subject to the security interest of CNH and sold other pieces of equipment securing financing from Kubota Credit Corporation, Ameris Bank, Bank of Alapaha and Diversified Financial Services. As part of the fraudulent scheme, Carter falsified NTI’s financial records in order to inflate the company’s net worth. As a part of falsifying records, on occasion, Carter directed NTI employees to generate payments checks on accounts payable but not send the checks, thereby reducing accounts payable but not deducting the checks from NTI’s accounts. In 2016, Carter falsified documents provided to FMB to secure the SBA loan and line of credit.

Carter also created fraudulent retail installment contracts for the sale or lease of numerous items of equipment with CNH using the names of real people whose information was available to Carter. Those fraudulent contracts generated more than $1.2 million in payments to NTI.           

Carter continued through the SBA loan period to provide false and fraudulent information. In total, Carter admitted to being accountable for an intended fraud loss totaling more than $3.5 million but not more than $9.5 million. Carter is responsible for restitution for actual monetary losses caused by the fraud to FMB ($1,227,319.66), SBA ($1,500,000), Ameris Bank ($321,934.50), Bank of Alapaha ($150,000), CNH ($2,782,959.99), KCC ($185,993.32) and Diversified Financial Services ($228,399.92).

The case was investigated by the FBI and FDIC-OIG.

Assistant U.S. Attorney Robert McCullers is prosecuting the case.

Baltimore, Maryland – Sidhartha Kumar Mathur, age 35, of West Friendship, Maryland, pleaded guilty today to making false statements to federal agents, relating to the death threats he sent to a Member of Congress.   

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Chief Yogananda D. Pittman of the United States Capitol Police.

According to his guilty plea, on December 10, 2020 Mathur used his phone to send a threatening webmail message on a congressional representative’s website.  Mathur’s threats included violent statements such as “I will kill you and blow up your office if you try to take my vote away” and “I know where you and your family lives.  You will be ended.” Mathur listed the name and previous address of a former classmate and neighbor (Individual B) for the contact information of the sender that Mathur provided on the webmail message. 

Minutes later, Mathur left a threatening voice message on the same Representative’s District Office voicemail.  In the voicemail, Mathur stated similar threats including, “If you even mess with my vote, I’m going to come and slit your throat and I’ll kill your family.”

During an interview with special agents of the United States Capitol Police on December 11, 2020, Mathur confirmed the phone number used to place the threatening voicemail belonged to him and that he called the congressional member out of anger.

As detailed in his plea agreement, Mathur further acknowledged that Individual B was a former neighbor and classmate. However, Mathur falsely denied responsibility for the webmail threat submitted in Individual B’s name.  Agents informed Mathur that the webmail message contained similar language to the voice message and was submitted from the internet service at Mathur’s residence.  The agents reiterated that providing false statements to federal agents was a felony offense.  Mathur continued to falsely deny responsibility for the threatening webmail messages written in Individual B’s name.  Agents again reminded Mathur that if he lied to federal agents he could be charged with a crime. When given a final opportunity to correct his false statement, Mathur again falsely denied making the webmail threat.

Mathur faces a maximum sentence of five years in prison followed by up to three years of supervised release for making false statements.  U.S. District Judge Richard D. Bennett has scheduled sentencing for September 9, 2021 at 2:30 p.m.

Acting United States Attorney Jonathan F. Lenzner commended the U.S. Capitol Police for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorney Zachary A. Myers who is prosecuting the case.

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SACRAMENTO, Calif. — A 16-count indictment was unsealed Wednesday charging Kenneth Ray Hawkins, 47, of Tracy; Jacqueline Marie Marquez, 34, formerly of Las Vegas; Alyssa Marie Jones, 32, of Barstow; and Ebony Chanel Jones, 20, of Barstow, with conspiracy to commit mail fraud and mail fraud, Acting U.S. Attorney Phillip A. Talbert announced.

A federal grand jury returned the indictment on May 13. According to court documents, between June 2020 and January 2021, the four defendants conspired to execute and executed a scheme to defraud by filing fraudulent unemployment insurance claims with the California Employment Development Department (EDD), seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, Hawkins was an inmate at the Deuel Vocational Institution (DVI), a California state prison in Tracy, California. Hawkins collected identity information, including names and Social Security numbers, of California prison inmates and other individuals and used the identities and an unauthorized cellphone to file fraudulent unemployment insurance claims from his jail cell. The claims represented, among other things, that the claimants had recently lost employment from businesses or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because, for example, the inmates were incarcerated, not recently employed, and ineligible for unemployment insurance benefits.

In the applications, Hawkins requested that the benefits be mailed to various California addresses that were under the control of one or more co-conspirators. EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. Co-defendants Marquez, Alyssa Jones, and Ebony Jones then obtained the EDD debit cards and used them to withdraw the benefits at ATMs throughout California for the benefit of the conspirators. The scheme sought over $1.2 million and resulted in EDD paying out over $900,000.

This case is the product of an investigation by the U.S. Postal Inspection Service, the California Department of Corrections and Rehabilitation Office of Correctional Safety, the DVI Investigative Services Unit, and EDD – Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Alyssa Jones and Ebony Jones recently made their initial appearances in the Central District of California and were released on bond to appear in the Eastern District of California. Marquez has not yet made her initial appearance in federal court. Hawkins remains in state prison for an unrelated conviction.

If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each of the 16 counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

NEWARK, N.J. – A Peruvian woman today admitted smuggling approximately seven kilograms of cocaine into the United States from Peru, Acting U.S. Attorney Rachael A. Honig announced.

Yolanda Fonseca Melgarejo, 59, a legal permanent resident of the United States and a citizen of Peru, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of importation of controlled substances.

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

Fonseca Melgarejo arrived at Newark Liberty International Airport aboard a flight from Lima, Peru, on March 31, 2019.  Law enforcement officers discovered that Fonseca Melgarejo possessed approximately seven kilograms of cocaine concealed within wrapped chocolate candy in her luggage.

The count to which Fonseca Melgarejo pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a potential maximum penalty of life in prison, and a maximum fine of $10 million dollars. Sentencing is scheduled for Oct. 14, 2021.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Acting Director of Field Operations Marty Raybon, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in Newark.

CHARLOTTE, N.C.– Western District of North Carolina Acting U.S. Attorney William T. Stetzer and Montana Acting U.S. Attorney Leif M. Johnson announced today that Wilburn Jonathan Wilson, 26, of Hickory, N.C. was sentenced to 132 months in prison and five years of supervised release on federal drug and gun charges. U.S. District Judge Kenneth D. Bell presided over the hearing.

According to filed court documents and today’s sentencing hearing, in 2016, Wilson was convicted in North Carolina of possession of a stolen firearm. As a result of that conviction, Wilson is prohibited from possessing firearms or ammunition. According to court records, in March 2020, law enforcement learned that Wilson was selling firearms illegally in and around Catawba County. Court records show that, between March and July 2020, Wilson sold 26 illegal firearms, including rifles, shotguns and handguns, and hundreds of rounds of ammunition. During the same time period, Wilson also possessed and distributed methamphetamine in the Hickory area.

According to court records, in April 2020, law enforcement in Montana conducted a traffic stop of the vehicle Wilson was driving for excessive speeding. Law enforcement executed a search warrant and seized from Wilson’s vehicle narcotics, a semi-automatic rifle with a full 30 round magazine, and two 12-gauge shotgun shells. Subsequently, Wilson was charged by the U.S. Attorney’s Office for the District of Montana with federal firearm violations.

In November 2020, Wilson pleaded guilty to possession of a firearm by a felon and distribution and possession with intent to distribute methamphetamine in connection with his federal case in the Western District of North Carolina. In March 2021, Wilson pleaded guilty to possession of a firearm by a prohibited person, after the federal case pending against Wilson in Montana was transferred to the Western District of North Carolina.  

Wilson is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the U.S. Attorney’s Office for the District of Montana for its continued coordination and assistance in this case, and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the North Carolina State Bureau of Investigation, the Montana Highway Patrol, the Catawba County Sheriff’s Office, the Stillwater County Sheriff’s Office in Montana, the Hickory Police Department, and the Long View Police Department for their investigation of the case.

Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte was in charge of Wilson’s prosecution in North Carolina. Wilson’s case in Montana was handled by Assistant U.S. Attorney Brendan P. McCarthy of the U.S. Attorney’s Office in Billings.

Earlier today, in federal court in Central Islip, a seven-count indictment was unsealed charging Joshua Lampley-Reid, a member of the Makk Balla set of the Bloods street gang, with sex trafficking, coercion and enticement of a minor, sexual exploitation of a minor, transportation of child pornography and interstate prostitution. Lampley-Reid was arrested on Wednesday and will be arraigned this afternoon before United States Magistrate Judge James M. Wicks.

Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Vincent F. DeMarco, United States Marshal for the Eastern District of New York; and Errol D. Toulon, Jr., Suffolk County Sheriff, announced the indictment.

“As alleged, through violence, coercion and manipulation, the defendant exploited and demeaned both underage and adult female victims by forcing them to engage in commercial sex acts and posting sexually explicit photographs of them on the internet,” stated Acting U.S. Attorney Lesko.  “This Office will use every tool in its law enforcement arsenal to combat the sexual exploitation of women, especially young girls, and ensure that predators like the defendant are prosecuted to the fullest extent of the law.”  Mr. Lesko expressed his appreciation to the Nassau County Police Department for their assistance during the investigation.

“Lampley-Reid lured young girls, some as young as 15, with romantic gestures.  Once he had them in his grip, it’s alleged that he enslaved these girls and used violence to force them to work as prostitutes for his insidious gain,” stated HSI Special Agent-in-Charge Fitzhugh.  “The deplorable actions of this one man will affect the lives of these young girls for years to come.  HSI works closely with its law enforcement partners in a victim-centered approach to rescue the victims and keep them safe.  Today, we are sending a unified message to anyone perpetrating crimes against children: no matter who you are, we will bring every resource available to hold you accountable for your crimes.”

“The U.S. Marshals Service has a long-standing and extremely successful history of cooperating with our federal, state and local law enforcement partners,” stated Marshal DeMarco.  “These law enforcement partnerships enable the Marshals Service to fulfil its mission to keep our communities safe.” 

“Sex trafficking is a particularly heinous crime that targets some of the most vulnerable in our communities.  Individuals who perpetrate this crime use drugs intimidation and ultimately violence to lure in their victims for financial gain while slowly destroying their lives,” stated Sheriff Toulon.  “I applaud this arrest and will continue to support and work closely with both our local and federal partners to help eliminate this scourge from our communities.”

As set forth in court filings, from December 2019 until his arrest yesterday, Lampley-Reid allegedly used violence and the threat of violence to compel the commission of commercial sex acts by numerous women for his financial benefit, including by minors as young as 15-years-old.  Lampley-Reid used social media and other internet applications to establish relationships with potential victims, groomed those victims by feigning a romantic interest in them, manipulated them into working for him as prostitutes, and then effectively enslaved them through acts of force and coercion.  Lampley-Reid demanded that the proceeds of prostitution “dates” be turned over to him, and any resistance from the victims was met with violence or threats.  Lampley-Reid trafficked victims on Long Island, including at motels in East Meadow, Freeport and Rockville Centre, as well as out of state, including locations in Florida, Maryland and North Carolina.  He also engaged in sexual intercourse with his victims, including minors, and provided them with illegal narcotics.  Lampley-Reid promoted and managed his prostitution business over the Internet, posting sexually exploitative photos of minor victims that he took or persuaded them to take of themselves in order to further his trafficking business.  

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of sex trafficking of a minor, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of life in prison.  If convicted of producing child pornography, he faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison.

The government’s case is being handled by the Long Island Criminal Division.  Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.

The Defendant:

JOSHUA LAMPLEY-REID
Age:  26
West Hempstead, New York

E.D.N.Y. Docket No. 21-CR-319 (GRB)

CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr. sentenced Eric C. Castulik to 96 months in prison today.  Castulik, a 36-year-old residence of Marble Hill, Missouri, pleaded guilty to possession of a firearm by a convicted felon. 

On November 18, 2020, a search warrant was executed at Castulik’s resident. He was home at the time. Investigators seized two firearms along with a small quantity of methamphetamine.  One of the firearms, a Smith & Wesson, .22 caliber rifle, was loaded with an extended capacity magazine containing 25 rounds of ammunition. Castulik admitted he knew he was a convicted felon and it was unlawful for him to possess firearms.

This case was investigated by the Bollinger County Sheriff’s Department and the SEMO Drug Task Force.  Assistant United States Attorney Julie A. Hunter handled the prosecution.

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Greenbelt, Maryland – A federal criminal complaint has been filed charging Kyle David Robinson, age 28, of Baltimore, Maryland, on the federal charges of sex trafficking of a minor.  At today’s initial appearance in U.S. District Court in Greenbelt, U.S. Magistrate Judge Charles B. Day ordered that Robinson be detained pending trial.

The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI).

According to the affidavit filed in support of the criminal complaint, HSI special agents learned that an individual in Baltimore had access to two teenage females—one a minor—for the purpose of commercial sex.  Agents learned that the telephone number allegedly used to communicate with clients interested in engaging in commercial sex acts with the teenage females was associated with Kyle Robinson.

On June 1, 2021, an undercover agent (UCA) contacted Robinson on the previously identified phone number.  Robinson allegedly stated, “I got girls,” early in the conversation and stated to the UCA several times during the call that “they young.”  The male explained that he had two teenagers available and the cost for an hour with both would be $1,000.  The UCA offered to pay $500 for ½ an hour, and the male agreed.  A tentative date of June 3, 2021 was agreed upon, and the affidavit alleges that Robinson stated that the meeting would have to occur before 7:30 p.m. due to conditions of one of the teenagers.  When the UCA asked if the girls were “that young” that they have to get home, Robinson allegedly stated “yeah, for one of them it’s like that bro.”  After the phone call, the UCA received sexually explicit images of one girl and an image of a younger looking girl wearing a crop top.

As detailed in the affidavit, over the next several days, the UCA exchanged phone calls and text messages with Robinson concerning the scheduled commercial sex date.  On June 3, 2021, Robinson advised the UCA that he was on his way but only had the older girl with him as he was not able to reach the younger girl.  The UCA requested that they postpone the commercial sex date until both girls were available.  Later that evening, Robinson allegedly confirmed that he found the younger girl and that she would be available on June 7, 2021.  After several more calls and text messages, Robinson agreed to meet the UCA at a hotel.  At approximately 4:10, Robinson came to the UCA’s room with the minor female, who Robinson stated was fifteen years old.  After agreeing to accept $740 for an hour with the minor female, the UCA paid Robinson and law enforcement entered the room and secured Robinson and the minor female.  Law enforcement executed search warrants on Robinson and his residence.  Law enforcement recovered $740 in cash, which was still in Robinson’s hand, his cell phone from his front pocket, and a key fob and four keys, which fit the vehicle he had driven to the location. Robinson was arrested for sex trafficking of a minor.

The young female that Robinson had brought to the hotel to engage in commercial sex with the UCA was identified as a 14-year-old 8^th grader.

If convicted, Robinson faces a mandatory minimum sentence of 10 years in federal prison and up to life in prison for sex trafficking of a minor.  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. 

A criminal complaint is not a finding of guilt.  An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

This case was investigated by law enforcement agencies that are members 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.mdhumantrafficking.org/.

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 Jonathan F. Lenzner commended the HSI for its work in the investigation and thanked the Baltimore County Police Department, the Baltimore Police Department, the Howard County Police Department, and ICE Enforcement Removal Operations for their assistance.  Mr. Lenzner thanked Assistant U.S. Attorney Mary Setzer who is prosecuting the case.

For more information about the Maryland U.S. Attorney’s Office, its priorities and, resources for victims of human trafficking, please visit http://www.justice.gov/usao/md/priorities_human.html.

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BOSTON – A Dominican national was arrested today for passport fraud.

Gustavo Vallejo, 47, a Dominican national living in Boston, was indicted in April 2021 on one count of making false statements in a United States passport application. Vallejo made his inital appearance today before U.S. Magistrate Judge Judith G. Dein.

According to the charging document, in July 2011, Vallejo allegedly submitted an application for a U.S. Passport using the personal identifying information of a United States citizen.

The charge of false statements in application and use of passport 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 on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Mendell’s Major Crimes Unit is prosecuting the case.

Baltimore, Maryland – Howard Hoffberg, M.D., age 65, of Reisterstown, Maryland, pleaded guilty on June 9, 2021, to the federal charge of conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from a pharmaceutical company in exchange for prescribing a drug the company marketed for breakthrough pain in cancer patients for off-label purposes.    

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief Melissa R. Hyatt of the Baltimore County Police Department.

According to his guilty plea, Howard Hoffberg, is a doctor and was licensed to practice medicine in the State of Maryland.  He served as the Associate Medical Director and part-owner of Rosen-Hoffberg Rehabilitation and Pain Management (the “Practice”).  The Practice’s Medical Director was Norman Rosen, who worked primarily at the Practice’s Towson, Maryland locations.  Hoffberg principally worked at the Practice’s location in Owings Mills, Maryland, but at times also was at the Practice’s locations in Towson, Maryland. 

Hoffberg was a Medicare provider and submitted claims to Medicare, which is federal healthcare program.  In September 2011, Hoffberg certified to Medicare that he would comply with Medicare rules and regulations, including that he would refrain from violating the federal anti-kickback statute.  Further, in August 2013, Hoffberg certified to the U.S. Food and Drug Administration (“FDA”), as part of his ability to prescribe drugs known as Transmucosal Immediate Release Fentanyl (“TIRF”) drugs, that: (a) he understood TIRF drugs are indicated only for the management of breakthrough pain in cancer patients; (b) he understood that TIRF drugs can be abused by patients; and (c) he understood that one TIRF drug is not interchangeable with another TIRF drug.   

As detailed in his plea agreement, starting in June 2012, Hoffberg solicited and received kickbacks and bribes for himself in the form of payments from Insys Therapeutics, Inc. (“Insys”) (a pharmaceutical company) and related entities.  In January 2012, the FDA approved Insys’s application to sell and market a TIRF drug named Subsys to treat cancer patients experiencing break-through pain, which is a sudden onset of pain in cancer patients that cannot be controlled with their usual treatment regimen.  Subsys is a potent opioid designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue.  Subsys contains fentanyl, which is a synthetic opioid pain reliever that has a high potential for abuse and addiction. 

According to the plea agreement, because of the limited number of cancer patients experiencing breakthrough pain who fit the FDA-approved criteria, Insys devised an illegal kickback and bribery scheme to induce Hoffberg and others to prescribe Subsys off-label for conditions other than breakthrough pain in cancer patients.  In order to conceal and disguise that kickbacks and bribes were being paid to Hoffberg to prescribe Subsys, Insys falsely designated the payments to Hoffberg as “honoraria” for purportedly providing educational programs about Subsys (the “Speakers Bureau Program”).  Hoffberg admitted that his participation in the Speakers Bureau Program was a sham.  Hoffberg often made these presentations at high-end restaurants, and to staff at the Practice and/or to persons who could not even prescribe controlled substances.  Hoffberg knew that these presentations were not designed to promote any bona fide educational initiative about Subsys but rather were required to receive the honoraria. 

Hoffberg was paid $66,600 by Insys and knew that these payments were kickbacks and bribes that were paid, at least in part, to induce Hoffberg to prescribe, or in exchange for Hoffberg prescribing, Subsys.  As part of the scheme, through January 2018 Hoffberg prescribed Subsys to patients of the Practice who were not suffering from cancer, some of whose insurance coverage was paid for, in whole or in part, by a federal healthcare program.  Further, Hoffberg admitted that he switched several other patients to Subsys from another fentanyl-based drug because of the kickbacks he received from Insys, even though he previously certified that TIRF drugs were not interchangeable.  

Hoffberg faces a maximum sentence of five years in federal prison.  U.S. District Judge George L. Russell, III has scheduled sentencing for September 29, 2021 at 11:00 a.m.

Acting United States Attorney Jonathan F. Lenzner commended the FBI, the DEA, HHS-OIG, and the Baltimore County Police Department for their work in the investigation.   Mr. Lenzner thanked Assistant U.S. Attorney Jason D. Medinger, who is prosecuting the case.

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Memphis, TN – Alfonzo Mitchell, 48, has been sentenced to 106 months in federal prison for possession of a controlled substance with the intent to distribute and possession of a firearm in connection with a drug trafficking offense. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.

According to information presented in court, on November 9, 2018, detectives from the Memphis Police Department executed a search warrant at a residence on Busby Avenue. On the top floor in the northwest bedroom, detectives recovered a baggie containing ammunition, a green box of ammunition, a black digital scale, a black magazine with ammunition, and a box of plastic bags. Also, in the same bedroom, detectives recovered more ammunition on top of a dresser, along with a green leafy substance in a plastic bag.

In the kitchen, detectives recovered 3 glass beakers commonly used in making crack cocaine, as well as 2 scales commonly used for weighing narcotics. Detectives also located a blue ‘La Choy’ jar container with a hidden compartment in the bottom which had a plastic bag containing several smaller plastic bags filled with a white powder consistent with cocaine.

In the downstairs living room, detectives recovered a brown bag filled with assorted ammunition, a box of plastic baggies, a plate with a razor and white powder residue, a black Samsung Galaxy Cellular Phone, a gray scale, a box of clear plastic baggies, and a clear jar with a green leafy substance inside. Detectives also recovered a Norinco 7.62X39 caliber rifle and four boxes of ammunition from a closet in the living room. The rifle was loaded with one live round in the chamber and several rounds in the magazine.

In the downstairs northwest bedroom, detectives recovered a hard-white substance in medicine bottles, a green leafy substance in approximately six mason jars, and a pill bottle containing 12 pills. The pills were identified as Oxycodone. Mitchell was unable to provide a prescription. In the same bedroom, detectives also recovered a Strum, Ruger and Co.9 mm caliber pistol. The serial number had been obliterated. Detectives recovered in the downstairs northwest bedroom, a "Planters Peanut" container filled with several plastic baggies filled with a green leafy substance. Alonzo Mitchell had $220 in cash on his person.

Alfonzo Mitchell gave a written statement claiming all narcotics and firearms in the house belonged to him. When asked why he possessed the firearms, the defendant stated, "You have to be ready to go to war if something jumps off." Mitchell also admitted that he sold the marijuana, powder cocaine, and crack cocaine from his residence on Busby Avenue.

On March 12, 2021, Mitchell pled guilty.

On June 9, 2021, U.S. District Judge Jon P. McCalla sentenced Mitchell to 106 months in federal prison to be followed by a three-year supervised release term. There is no parole in the federal system.

This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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 Wendy K. Cornejo prosecuted this case on behalf of the government.

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