Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JAQUAN GRAY, 27, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to 27 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.  Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.

This prosecution is part of a coordinated federal, state and local law enforcement effort to address rising gun violence in New Haven.  Participating in this effort are the New Haven Police Department; the FBI’s New Haven Safe Streets/Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Haven State’s Attorney’s Office, and the U.S. Attorney’s Office.

According to court documents and statements made in court, on July 31, 2020, law enforcement received information that several members of the “Exit 8” group were in possession of firearms near the entrance of the Essex Townhouses complex at 1134 Quinnipiac Avenue in New Haven.  Members of the New Haven Police and the FBI’s New Haven Safe Streets/Gang Task Force entered the housing complex at approximately 10 p.m. and identified several Exit 8 members, including Gray.  Gray ran from the scene as law enforcement arrived and ignored commands to stop.  He was quickly apprehended, and a search of a fanny pack he was wearing revealed a loaded Smith and Wesson Model 469, 9mm handgun.

The handgun seized from Gray was reported stolen in Hamden in 2018, and the National Interrelated Ballistic Information Network (NIBIN) determined that it was used in a shooting between rival gangs in New Haven on July 14, 2020, 17 days before it was recovered.

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

Gray has been detained since his federal arrest on September 1, 2020.  On April 30, 2021, he pleaded guilty to possession of a firearm by a felon.

This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

Acting U.S. Attorney Boyle noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.  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 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.

Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

OAKLAND - Thomas Henderson pleaded guilty in federal court today to one count of conspiracy to commit wire fraud and one count of making a false statement to a government agency related to his role in deceiving investors in various Oakland, California-based businesses, announced Acting United States Attorney Stephanie M. Hinds; U.S. Department of State’s Diplomatic Security Service (DSS) Special Agent in Charge William Chang; Homeland Security Investigations Special Agent in Charge Tatum King; and Federal Bureau of Investigation Special Agent in Charge Craig Fair.  A second defendant, Cooper Lee, also pleaded guilty to one count of conspiracy for his role in diverting certain investor funds. The guilty pleas were accepted by the Hon. Richard Seeborg, Chief U.S. District Judge.

Henderson, 72, of Oakland, and Lee, 44, formerly of Oakland, pleaded guilty to charges pursuant to separate plea agreements entered by the court.  According to Henderson’s plea agreement, Henderson admitted he formed the San Francisco Regional Center, LLC  (SFRC) in 2010 to raise money from foreign investors through the “EB-5” visa program, a job-creation and immigration program administered by U.S. Citizenship and Immigration Services (USCIS).  From 2011 to 2017, SFRC raised more than $100 million from foreign investors for seven commercial enterprises approved under the EB-5 program.  Henderson admitted that by at least the middle of 2014, SFRC began using investor funds for purposes and projects other than the specific enterprise corresponding to the investment, and that investors were not specifically told that their investment funds would be or were used for those purposes.  For example, Henderson admitted that funds raised from 42 investors for the enterprise North America 3PL LP were used for other projects and businesses, including to fund the operation of earlier struggling projects.  Henderson also admitted that he made false statements to USCIS when he submitted a declaration to the agency regarding the use of North America 3PL investor funds.

According to Lee’s plea agreement, from about August 2016 to January 2017, Lee conspired with Henderson to divert some funds raised for the EB-5 enterprise operating as California Gold Medal LP to other EB-5 enterprises and businesses controlled by Henderson.  Lee admitted that he transferred funds and prepared documents to make it appear that the transfers were for legitimate business transactions. 

USCIS administers the EB-5 visa program.  Under the program, foreign nationals may obtain permanent United States residency, commonly known as a Green Card, by investing in qualifying U.S. businesses and creating jobs for U.S. citizens and residents.  To receive a two-year grant of conditional permanent residency status, foreign investors must meet certain requirements for an entry visa, comply with program requirements and make an investment of a minimum of $1 million, or $500,000 if the investment is made in certain areas of high unemployment.  After two years, the foreign investor and immediate family can petition for permanent residency after meeting program requirements, including the creation of at least 10 jobs for United States citizens and residents through the business funded by the investment.

Chief Judge Seeborg scheduled Lee’s sentencing for December 7, 2021, and Henderson’s sentencing for June 7, 2022.  

Henderson pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of making a false statement to a government agency, in violation of 18 U.S.C. § 1001(a)(2).  The conspiracy charge carries a maximum statutory penalty of 20 years in prison and a fine of up to $250,000.  The false statement charge carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Lee pleaded guilty to one count of conspiracy, in violation of 18 U.S.C. § 371, which carries a maximum penalty of 5 years in prison and $250,000.  Under the terms of each plea agreement, other charges will be dismissed at sentencing if the defendant complies with the agreement.  The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Lloyd Farnham and Sheila A.G. Armbrust are prosecuting the case, with the assistance of Patricia Mahoney.  The prosecution was the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the HSI, with the participation of the Federal Bureau of Investigation.  The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents.  U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.  Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.

BOSTON – A Dominican national who previously resided in Clifton, N.J., pleaded guilty today in federal court in Boston to fentanyl distribution.

Carlos Nunez, 49, pleaded guilty one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and two counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 8, 2021. Nunez was indicted in September 2019 along with co-defendant Yamel Cuevas Gonzalez.

Over the course of approximately six months in 2019, Nunez and Gonzalez conspired to distribute more than 400 grams of fentanyl to an individual in Massachusetts. Specifically, on two occasions in July and August of 2019, Nunez distributed more than 400 grams of fentanyl to the buyer. Nunez and Gonzalez were arrested after driving from New York to Walpole to distribute fentanyl in August 2019. 

On May 3, 2021, Gonzalez was sentenced by Judge Talwani to 10 years in prison and five years of supervised release. Upon completion of his sentence, Gonzalez will face deportation to the Dominican Republic.

The charges provide for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $10 million. 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 Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Walpole and Dedham Police Departments. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

CHICAGO — A Chicago man who allegedly carjacked a vehicle at gunpoint on the city’s West Side and fired a handgun while attempting to carjack another vehicle has been arraigned in federal court.

KIAR EVANS, 22, was indicted earlier this month by a federal grand jury on one count of carjacking, one count of attempted carjacking, one count of discharging a firearm during a crime of violence, one count of brandishing a firearm during a crime of violence, and one count of illegal possession of a firearm by a previously convicted felon.  Evans was arraigned in federal court on July 16, 2021, and pleaded not guilty to the charges.  U.S. District Judge Martha M. Pacold ordered the parties to file a joint status report on Sept. 7, 2021.

The indictment and arraignment were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.

According to the indictment and a criminal complaint previously filed in the case, the carjacking and attempted carjacking occurred within minutes of each other on the afternoon of May 20, 2021.  In the attempted carjacking, Evans approached a Chevrolet Impala near the intersection of Independence Boulevard and Congress Parkway in Chicago and fired two shots into the passenger-side window while attempting to get inside, the charges allege.  The driver of the Impala was able to drive away from the scene.

Evans then approached the driver-side window of a Nissan Altima, pointed a firearm at the driver and demanded that the driver exit the vehicle, the charges allege.  The victim complied and Evans drove off in the Nissan, the charges allege.  A short time later, Evans was allegedly driving the stolen vehicle when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago.  Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in the Nissan, the charges allege.

As a previously convicted felon, Evans was not lawfully allowed to possess a firearm.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The firearm discharge count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, and the firearm brandishing count is punishable by a mandatory minimum of seven years and a maximum of life.  The carjacking and attempted carjacking counts are each punishable by a maximum sentence of 15 years, while the illegal firearm possession charge carries a maximum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

PITTSBURGH- A resident of Westmoreland County, PA, pleaded guilty to three counts of Conspiracy to Violate the Anti-Kickback Statute, Health Care Fraud, and Conspiracy to Distribute Phentermine Hydrochloride and Diethylpropion, Acting U.S. Attorney Stephen R. Kaufman announced today.

Thomas Whitten, age 71, of Greensburg, PA, pleaded guilty before United States District Judge William S. Stickman.

In connection with the guilty plea, the court was advised that, from May 2013 to November 2015, Whitten conspired to receive kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona in exchange for prescribing Subsys, a powerful opioid narcotic containing fentanyl. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain.” Whitten admitted to prescribing Subsys to patients for whom Subsys was not medically necessary and thus not eligible for insurance reimbursement. Further, Whitten admitted that from November 2017 through December 12, 2019, Whitten conspired with a co-conspirator to unlawfully distribute Schedule IV controlled substances, phentermine hydrochloride and diethylpropion, to patients at five weight loss clinics.

Judge Stickman scheduled sentencing for December 7, 2021. The law provides for a maximum total sentence of 10 years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Cindy K. Chung and Karen Gal-Or are prosecuting this case on behalf of the government.

The matter was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and the Pennsylvania State Attorney General’s Office.

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 21, 2021, Christopher B. Tolley, age 35, of Hinton, West Virginia, was charged in a criminal information with making false statements to the Federal Bureau of Investigation (FBI).

According to Acting United States Attorney Bruce D. Brandler, the information alleges that on May 22, 2019, Tolley represented to a task force officer with the FBI that he was unaware of a bank account held in his name at Sun Trust Bank.  That statement allegedly was false, because Tolley had personally opened the bank account and deposited a stolen check for $95,154.54 into the account.

The case was investigated by the FBI.  Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.

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

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

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

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NEW ORLEANS – U.S. Attorney Duane A. Evans announced that THIERNO O. BAH, age 30, a resident of New York, New York, pleaded guilty on July 21, 2021 to passport fraud conspiracy and aggravated identity theft before U.S. District Judge Sarah S. Vance. BAH is the second and final defendant to plead guilty in this case arising from an arrest in Metairie, Louisiana on February 19, 2020. BAH’s codefendant, Manuela Gonzalez-Bookman, also of New York, previously pleaded guilty in this case.

According to court documents, BAH and Gonzalez-Bookman flew from Newark Liberty International Airport to Louis Armstrong International on February 18, 2020. The following day they drove a rental car to a Capital One branch in Metairie. Gonzalez-Bookman entered the bank while BAH waited in the car outside. Gonzalez-Bookman then attempted to cash a stolen check while using a false passport card in the name of another person. When bank employees became suspicious, they called Jefferson Parish Sheriff’s deputies who arrested the pair. Federal agents subsequently determined that BAH and Gonzalez-Bookman had executed the scheme at several other bank branches while using stolen identities. The two individuals had even taken a prior trip to New Orleans on January 31, 2020, where they executed or attempted to execute at least seven fraudulent transactions, including a failed attempt to withdraw $18,600.00 in cash from one victim’s account.

Court documents further detailed how agents developed additional evidence connecting BAH to further fraud. Agents searched BAH’s phone after obtaining a search warrant and found additional stolen credit card numbers along with identities. In one example, BAH’s phone contained a photo of a handwritten note that included a victim’s name, address, social security number, date of birth, current account balance, and last transaction from the victim’s bank account. Agents used this information to corroborate further fraud committed by BAH.

Agents also learned that BAH had pending charges in the Supreme Court for New York, Bronx County. As set forth in BAH’s factual basis, he was pulled over by NYPD officers on July 31, 2019. During the traffic stop, BAH provided a fake ID to officers. The officers also observed credit card skimming paraphernalia in his vehicle. Officers subsequently seized a total of 29 credit cards, three drivers’ licenses, and a card skimming device. The Bronx District Attorney’s Office obtained an indictment charging BAH with 30 counts of criminal possession of a forged instrument second degree, 30 counts of criminal possession of a forged instrument second degree, one count of criminal possession of forgery devices, and one count of unlawful possession of a skimmer device in the second degree.

As to Count 1, passport fraud conspiracy, BAH faces a maximum sentence of five years in prison, a maximum $250,000.00 fine, and up to three years of supervised release. As to Count 3, aggravated identity theft, BAH faces a mandatory term of two years in prison that must be served consecutively to any other sentence, a maximum $250,000.00 fine, and up to one year of supervised release. Judge Vance scheduled sentencing for December 1, 2021.

The investigation is being handled by the U.S. Diplomatic Security Service and Homeland Security Investigations. U.S. Attorney Evans extended his thanks to the Jefferson Parish Sheriff’s Office and the Jefferson Parish District Attorney’s Office for their assistance. U.S. Attorney Evans also thanked the Bronx District Attorney’s Office and the New York Police Department for their contribution to this successful prosecution. Assistant United States Attorneys Matthew R. Payne, K. Paige O’Hale, and J. Ryan McLaren are in charge of the prosecution.

Audrey Strauss, the United States Attorney for the Southern District of New York, Ray Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), John B. DeVito, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a superseding indictment in Manhattan federal court charging PEDRO GUZMAN MARTINEZ, a/k/a “Peter,” ABEL MONTILLA, a/k/a “Coche Bomba,” JORGE MIRANDA-SANG, a/k/a “Chinito,” and LUIS GOMEZ ORTIZ, a/k/a “Kiké,” with participating in a drug trafficking organization that shipped approximately 4,500 kilograms of cocaine from Puerto Rico to the continental United States, including to New York, Massachusetts, Florida, and Connecticut, for sale and distribution over a period of approximately 10 months.  GUZMAN MARTINEZ and MIRANDA-SANG were arrested this morning in Puerto Rico and are expected to be presented before a magistrate judge in the District of Puerto Rico later today.  GOMEZ ORTIZ was arrested this morning in Florida and is expected to be presented before a magistrate judge in the Middle District of Florida later today.  MONTILLA was arrested this morning in Springfield, Massachusetts, and is expected to be presented before U.S. Magistrate Judge Katharine H. Parker in the Southern District of New York later today.  The case is assigned to U.S. District Judge P. Kevin Castel.    

U.S. Attorney Audrey Strauss said: “These defendants allegedly hid nearly five tons of cocaine in furniture so they could ship it from Puerto Rico to New York City and elsewhere.  As alleged, for a time, the defendants were able to hide their cocaine, but they were unable to hide the scheme from our law enforcement partners.  We will continue to focus on prosecuting large-scale traffickers of illegal drugs.”

DEA Special Agent in Charge Ray Donovan said: “Traffickers have always found new and innovative methods of smuggling drugs into the United States. In this case, they allegedly concealed cocaine into hollowed out furniture. This nearly three-year investigation has dismantled an international drug trafficking organization that allegedly has been shipping thousands of kilograms of cocaine, ultimately destined for our communities.  I applaud our law enforcement partners from the US Attorney’s Office in the Southern District of New York, the ATF and the USPIS for their efforts in bringing this organization to justice.”

ATF Special Agent in Charge John B. DeVito said: “The defendants are alleged to run a drug trafficking organization which conspired to flood our streets with unprecedented levels of illegal narcotics. Thankfully, through the diligent efforts of our law enforcement partners, their alleged operation has been disrupted and dismantled successfully. ATF is committed to the fight against the illegal drug trade and will stand shoulder to shoulder with all of our local, state and federal partners to see that these organizations are eradicated from our communities. I would like to thank the United States Attorney’s Office for their leadership during this investigation.”

USPIS Inspector-in-Charge Philip R. Bartlett: said: “Winning the battle against illicit drugs is a top priority for the Postal Inspection Service and our law enforcement partners. Our objectives are to rid society of illicit drug trafficking and the associated violence, and most importantly, provide a safe environment for the American public.”

According to the allegations contained in a Superseding Indictment unsealed today in Manhattan federal court and other filings in the case[1]: 

Between at least September 2018 and June 2019, GUZMAN MARTINEZ, MONTILLA, MIRANDA-SANG, and GOMEZ ORTIZ were members of a drug trafficking organization (“DTO”) who conspired to distribute and possess with intent to distribute five kilograms and more of cocaine.

The defendants operated the drug trafficking scheme by arranging for the shipment of approximately 70 large parcels from Puerto Rico to the continental United States.  The cocaine was concealed in custom tables and other furniture, and the packages containing the cocaine were represented to be furniture on shipping documentation, but the hollowed-out furniture in fact concealed hundred-kilogram quantities of cocaine.  In total, the trafficking organization shipped approximately 4,500 kilograms of cocaine, worth approximately $144 million on the street.

GUZMAN MARTINEZ was responsible for delivering the packaged cargo (containing hollowed-out furniture filled with cocaine) to co-conspirators whom GUZMAN MARTINEZ hired to facilitate the shipping logistics using a false company name.

MIRANDA-SANG and GOMEZ ORTIZ identified and hired individuals in the continental United States to receive and sign for DTO shipments, to unpack and distribute the cocaine to other DTO members as directed, and to dispose of the packaging materials to evade detection by law enforcement.

MONTILLA was a Massachusetts-based coordinator of cocaine deliveries who traveled to many delivery locations and coordinated the delivery of cocaine shipments with package recipients.  At least a dozen packages were sent to addresses affiliated with MONTILLA.

*                *                *

MONTILLA, 48, of Springfield, Massachusetts, and GUZMAN MARTINEZ, 47, MIRANDA-SANG, 42, and GOMEZ ORTIZ, 29, all of Puerto Rico, are each charged with one count of conspiracy to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.  The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Ms. Strauss praised the outstanding investigative work of the DEA, ATF, and the USPIS in this investigation.

The prosecution is being handled by the Office’s Narcotics Unit.  Assistant United States Attorneys Juliana N. Murray, Ryan B. Finkel, and Peter J. Davis are in charge of the prosecution.

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

ALBANY, NEW YORK – Cameron Hennelly, age 30, of Amsterdam, New York, pled guilty today to one count of distribution of child pornography and one count of possession of child pornography. 

The announcement was made by Acting United States Attorney Antoinette T. Bacon and Jodi Cohen, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). 

As part of his guilty plea, Hennelly admitted that, while using a social media application on his phone, he sent a graphic image file of child pornography to another individual over the internet.  A subsequent search of Hennelly’s phone revealed that he was also in possession of images and video files depicting child pornography. 

Chief United States District Judge Glenn T. Suddaby will sentence Hennelly on December 9, 2021.  Hennelly faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and 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.  Hennelly will also have to register as a sex offender upon his release from prison.

This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies.  This case is being prosecuted by Assistant United States Attorney Rachel Williams as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

TALLAHASSEE, FLORIDA – A federal jury in Tallahassee has convicted Daniel Gutierrez, 37, of San Luis, Arizona of possession of methamphetamine and fentanyl with the intent to distribute. The guilty verdict, returned yesterday, at the conclusion of a three-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.

Evidence introduced at trial revealed that on September 19, 2020, Gutierrez was driving a tractor trailer loaded with vehicles on I-10 in Madison County, Florida. A Trooper with the Florida Highway Patrol noted the license plate on the trailer was obscured and initiated a traffic stop. While conducting the traffic stop, a canine was deployed and alerted to the presence of narcotics.

During a search of the vehicle, Troopers recovered a clear bag with approximately 30 grams of methamphetamine, and a separate bag containing approximately 10 grams of what appeared to be oxycodone pills. Drug Enforcement Administration laboratory analysis confirmed the presence of methamphetamine and revealed that the pills thought to be oxycodone contained fentanyl.

“The Florida Highway Patrol works tirelessly to keep us safe and serve a critical role in our efforts to remove addictive and deadly controlled substances from our communities,” stated Acting U.S. Attorney Coody. “Along with our partners at the DEA, they are to be commended for their efforts.”

Gutierrez’s sentencing hearing is scheduled for October 12, 2021, at 11:00 am at the United States Courthouse in Tallahassee before the Honorable United States District Judge Allen Winsor. Gutierrez faces a sentence of ten years to life imprisonment, a fine of up to $5,000,000, and five years of supervised release.

The Florida Highway Patrol works tirelessly to ensure the safety and security for those travelling on Florida’s roadways,” said Colonel Gene Spaulding, Director of the Florida Highway Patrol. “I am extremely proud of our troopers who put their lives on the line every day to protect our communities. Our commitment to partnerships with federal, state and local law enforcement agencies are unwavering.”

“The guilty verdict demonstrates the outstanding work that is done through the successful partnership between the Drug Enforcement Administration and the Florida Highway Patrol,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “DEA remains

committed to our relationships with our law enforcement partners for the safety of our communities.”

This conviction was the result of a joint investigation conducted by the Florida Highway Patrol and the Drug Enforcement Administration. Assistant United States Attorneys Kaitlin Weiss and Lazaro Fields prosecuted the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

ALBANY, NEW YORK – Eugene Rosen of Palm Beach Gardens, Florida has agreed to pay the United States $805,000 to resolve allegations that he made improper payments to his family trusts while disregarding his obligation to make payments on a federally-backed mortgage, and submitted a false statement to the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) related to those payments, in violation of the civil equity skimming statute and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), announced Acting United States Attorney Antoinette T. Bacon.

Ellsworth Commons, a mixed use residential and commercial property in Malta, New York, was owned by Ellsworth Partners, LLC., a company that Rosen owned and operated.  In 2010, Ellsworth Partners obtained an FHA-insured mortgage to finance the construction of Ellsworth Commons.  FHA agreed that, if Ellsworth Partners defaulted on the mortgage, FHA would pay the outstanding balance to the lender.  In exchange, Ellsworth Partners agreed to use project revenue only for FHA-authorized purposes.  Transferring money to Rosen’s family trusts when the mortgage was in default was not an authorized purpose.

At various times, Ellsworth Partners borrowed money from outside sources, including from trusts that Rosen established for his family, and repaid those loans with project funds.  On at least three occasions, HUD notified Rosen that Ellsworth Partners could not use project funds to repay those loans.  From mid-2016 through early 2018, Ellsworth Partners stopped paying its mortgage causing it to go into default.  To prevent foreclosure, FHA agreed to pay down a substantial portion of the mortgage after Rosen certified that, while the mortgage was in default, Ellsworth Partners paid to its lender all net cash remaining after project expenses had been paid.  That statement was false because, as Rosen admitted in the settlement agreement, “Between April 2016 through January 2018, while the mortgage was in default, Ellsworth Partners made unauthorized payments on loans to the Rosen family trusts and another entity.”

“Eugene Rosen falsely certified that Ellsworth Partners used all available funds to pay down its federally insured mortgage on housing built for moderate income families when, in reality, he transferred some of those funds to his family’s trust accounts,” said Acting United States Attorney Antoinette T. Bacon.  “Our office will continue in partnership with HUD to hold accountable those who violate affordable housing program requirements.”

The investigation and settlement were the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of New York and HUD’s Office of Regional Counsel for New York and New Jersey.  The United States was represented by Assistant U.S. Attorney Adam J. Katz. 

PITTSBURGH - A resident of Columbia, South Carolina, pleaded guilty in federal court to a charge of conspiracy to commit offenses against the United States, including theft of mail, possessing forged securities, and bank fraud, Acting United States Attorney Stephen R. Kaufman announced today.

Taylor Frierson, age 29, originally from Columbia, South Carolina, pleaded guilty to one count before United States District Judge Robert J. Colville.

In connection with the guilty plea, the court was advised that from April 2019 to July 2019, Frierson conspired with others to steal checks contained in United States mail at local businesses and other establishments. Members of the conspiracy, including Frierson, would send photographs of the legitimate checks to other conspirators who would in turn create altered, fraudulent versions of the checks. The fraudulent checks were made payable to individuals from the local area recruited by Frierson and others. Frierson also drove the individuals to cash the fraudulent checks at local banks. The conspiracy victimized more than 10 victims in Western Pennsylvania and led to tens of thousands of dollars in losses.

Judge Colville scheduled sentencing for December 2, 2021 at 11:00 am. For the conspiracy charged, the law provides for a total sentence of not more than 5 years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

The Court ordered that Frierson be released on bond pending sentencing.

Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.

This case resulted from the investigations of multiple agencies, including the Pennsylvania State Police, Pennsylvania Office of Attorney General, the United States Secret Service, and the United States Postal Inspection Service.

ST. LOUIS – United States District Court Judge Henry E. Autrey sentenced Farraad Johnson, 46, of St. Louis, Missouri, to a 36-month term of imprisonment on Wednesday.  Johnson pleaded guilty in March to maintaining a drug-involved premises.

Johnson admitted leasing, maintaining, and controlling a residence in the 1100 block of Edlor Drive in St. Louis so that drug dealers could store their cocaine (intended for distribution), firearms, and other drug trafficking-related items inside that residence.

As part of an extensive investigation into a large-scale drug trafficking conspiracy involving Adrian Lemons and other co-defendants, investigators executed a search warrant at Johnson’s residence on July 20, 2016. Investigators seized three hydraulic presses, two digital scales, four firearms, ammunition, gun boxes, multiple cellphones, a lock box containing 900 grams of cocaine, a bag containing 20 grams of cocaine, two blenders, Quinine (sometimes used to dilute drugs intended for sale), and other drug trafficking-related paraphernalia.  

“This prosecution and sentence of imprisonment make it clear that if you choose to assist individuals who are selling drugs and/or causing violence within our community, you will be prosecuted, convicted, and sent to federal prison,” said United States Attorney Sayler Fleming following Wednesday’s sentencing.

Johnson is one of 34 defendants named in federal indictments first filed in 2015 involving a variety of charges, including drug trafficking and homicide-related offenses. Thirty-three of the 34 defendants charged during this investigation have been convicted. One co-defendant’s case remains pending.  While that case remains pending, that co-defendant is presumed innocent and all charges that co-defendant presently faces are merely accusations and do not constitute proof of his guilt.  

This case was investigated by Homeland Security Investigations; the Drug Enforcement Administration; the Saint Louis Metropolitan Police Department; the Kennett, Missouri Police Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation. 

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TALLAHASSEE, FLORIDA – A federal jury in Tallahassee has convicted Daniel Gutierrez, 37, of San Luis, Arizona of possession of methamphetamine and fentanyl with the intent to distribute. The guilty verdict, returned yesterday, at the conclusion of a three-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.

Evidence introduced at trial revealed that on September 19, 2020, Gutierrez was driving a tractor trailer loaded with vehicles on I-10 in Madison County, Florida. A Trooper with the Florida Highway Patrol noted the license plate on the trailer was obscured and initiated a traffic stop. While conducting the traffic stop, a canine was deployed and alerted to the presence of narcotics.

During a search of the vehicle, Troopers recovered a clear bag with approximately 30 grams of methamphetamine, and a separate bag containing approximately 10 grams of what appeared to be oxycodone pills. Drug Enforcement Administration laboratory analysis confirmed the presence of methamphetamine and revealed that the pills thought to be oxycodone contained fentanyl.

“The Florida Highway Patrol works tirelessly to keep us safe and serve a critical role in our efforts to remove addictive and deadly controlled substances from our communities,” stated Acting U.S. Attorney Coody. “Along with our partners at the DEA, they are to be commended for their efforts.”
Gutierrez’s sentencing hearing is scheduled for October 12, 2021, at 11:00 am at the United States Courthouse in Tallahassee before the Honorable United States District Judge Allen Winsor. Gutierrez faces a sentence of ten years to life imprisonment, a fine of up to $5,000,000, and five years of supervised release.
“The Florida Highway Patrol works tirelessly to ensure the safety and security for those travelling on Florida’s roadways,” said Colonel Gene Spaulding, Director of the Florida Highway Patrol. “I am extremely proud of our troopers who put their lives on the line every day to protect our communities. Our commitment to partnerships with federal, state and local law enforcement agencies are unwavering.”

“The guilty verdict demonstrates the outstanding work that is done through the successful partnership between the Drug Enforcement Administration and the Florida Highway Patrol,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “DEA remains
committed to our relationships with our law enforcement partners for the safety of our communities.”
This conviction was the result of a joint investigation conducted by the Florida Highway Patrol and the Drug Enforcement Administration. Assistant United States Attorneys Kaitlin Weiss and Lazaro Fields prosecuted the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Tacoma – A former Air Force Special Agent was arrested today on a grand jury indictment charging him with five counts of sexual abuse of a child under the age of 12, announced Acting U.S. Attorney Tessa M. Gorman.  Joshua Carl Harrod, 42, of Spanaway, Washington, will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.

According to the indictment, between October 2017 and April 2018, Harrod sexually molested a young child left in his care.  The conduct occurred in the location where he resided on Joint Base Lewis-McChord, an area of exclusive federal jurisdiction.  Harrod separated from the Air Force in 2018 and currently serves as a recruiter for the Army National Guard in Lakewood, Washington.

Sexual abuse of a child under the age of 12 is punishable by a mandatory minimum 30 years in prison and up to life in prison.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI with assistance from the U.S. Air Force Office of Special Investigations (OSI), Joint Base Lewis-McChord Military Police Investigations, the Lakewood Police Department and the Washington State Patrol.

The case is being prosecuted by Assistant United States Attorney Kristine Foerster.

WASHINGTON - The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country.  Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions:  New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with federal, state, and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away," said Attorney General Merrick B. Garland.  "We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes.  These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors.  The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

“Straw purchasers and unlicensed gun sellers enable violence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “The cross-jurisdictional strike force will increase collaboration with our federal, state, and local law enforcement partners, and enhance our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

According to gun trace data, a significant number of firearms recovered in Chicago originate outside Chicago and are illegally trafficked into the city.  The new strike force, led by U.S. Attorney Lausch, will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with counterparts in the locations where many of the firearms originate.

The strike forces represent one important, concrete step in implementing the Department of Justice’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime - and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.

ST. PAUL, Minn. – A Rochester man pleaded guilty today to arson of a Minneapolis pawn shop, announced Acting U.S. Attorney W. Anders Folk.

According to his guilty plea, on May 28, 2020, Montez Terriel Lee, 26, along with others, broke into the Max It Pawn Shop on East Lake Street in Minneapolis. Surveillance video footage showed Lee pouring a fire accelerant around the pawn shop and lighting the accelerant on fire. The fire destroyed the building. A second video showed Lee standing in front of the burning pawn shop and Lee could be heard saying, “[expletive] this place. We’re gonna burn this [expletive] down.”

This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the Minneapolis Police Department, the Rochester Police Department, and the Minnesota State Fire Marshal Division.

This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.

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RICHMOND, Va. –Three individuals made their initial appearances in federal court this afternoon on charges of participating in a bribery scheme.

According to the indictment, Susan May Keim, 52, and Russell John Keim, Sr., 59, of Hopewell, allegedly accepted bribes from Rodney Gale Wilson, 65, of Imperial, Missouri, in return for Susan Keim’s award of federal subcontracts to Wilson’s company, C&L Supply.

According to the indictment, Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Lee.  Rodney Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies for Skookum for use at Fort Lee. From 2013 to 2018, in return for the award of the subcontracts valued at least $912,765.89 and the supply of confidential information, Wilson allegedly provided various things of value, totaling at least $92,039.79, to Susan and her spouse, Russell Keim, including: (1) checks and cash payments to Russell Keim disguised as compensation to Russell Keim for work performed for C&L Supply, when, in fact, Russell Keim never worked for that company; and (2) payments for work done on a property owned by Susan and Russell Keim.

All three individuals are charged with conspiracy and payment, and receipt of bribes. If convicted, each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The defendants will be arraigned before U.S. District Judge John A. Gibney, Jr. on August 16.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; L. Scott Moreland, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit’s (MPFU) Mid-Atlantic Fraud Field Office; and Chris Dillard, Special Agent in Charge for Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.

Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Rebecca M. Schuman of the Justice Department’s Public Integrity Section are 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. 3:21-cr-083.

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

           ALBUQUERQUE, N.M. – Ismael Valdez, 38, of Las Cruces, New Mexico, was sentenced on July 19 in federal court to 12 years in prison for attempted coercion and enticement.

           Valdez pleaded guilty to these charges on Aug. 27, 2020. According to his plea agreement, between April 29, 2020, and May 29, 2020, Valdez met and messaged an undercover law enforcement officer posing as a 13-year-old girl on a social networking application. During the conversations, Valdez sent sexually explicit material to the “the child” and asked her to send sexually explicit material to him. Valdez arranged to meet with the child to have sex and traveled from his home in Las Cruces to a meeting location where law enforcement agents arrested him.

           Upon completion of his prison sentence, Valdez will be subject to 10 years of supervised release.

           The FBI investigated this case. Assistant U.S. Attorneys Matilda McCarthy Villalobos and Mark Saltman prosecuted the case.

WHEELING, WEST VIRGINIA – Genghis Taylor, of Cleveland, Ohio, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.

Taylor, also known as “G,” 38, pleaded guilty today to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Taylor admitted to selling cocaine base, also known as “crack,” near Riverview Towers in Ohio County in May 2020.

Taylor faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

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

U.S. Magistrate Judge James P. Mazzone presided.