MOBILE, AL – A Pensacola, Florida, man was sentenced on October 15, 2021, to 10 years in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
 
According to court documents, Jeffery Mason Baisch, 48, distributed methamphetamine ice he obtained to various suppliers in Baldwin County, Alabama.   Baisch was implicated by several co-conspirators in a drug distribution organization operating in central Baldwin County.  During the investigation, Baisch sold methamphetamine to an undercover informant who was working with local investigators.  In addition, Baisch was in possession of methamphetamine and other controlled substances when a search warrant was executed at his residence in Pensacola.
 
United States District Court Judge Kristi K. Dubose imposed the 10-year sentence, which will be followed by five years on supervised release following his imprisonment.  As conditions of his supervision, Baisch will undergo testing and treatment for drug abuse, and he will be subject to a search of his person and premises upon reasonable suspicion.  No fine was imposed but the judge ordered that Baisch pay $100 in special assessments.
 
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the Pensacola office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Safe Streets Task Force.  Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.

Damian Williams, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Marty Raybon, Acting Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States settled a civil fraud lawsuit against QUEEN APPAREL NY, INC. (“QUEEN”), a defunct manufacturer and importer of apparel, and HANK HYUNHO CHOI (“CHOI”), the sole owner of QUEEN, for defrauding the United States by knowingly evading customs duties owed on imported goods.  Specifically, the Government alleges that for years QUEEN, with CHOI’s knowledge, repeatedly falsified customs forms by undervaluing the garments it manufactured overseas and then imported into the United States.  As part of the settlement, approved today in Manhattan federal court by U.S. District Judge George B. Daniels, QUEEN and CHOI made admissions regarding their conduct, agreed to pay $50,000 to the United States, and agreed, among other things, to refrain from acting as the importer of record for the purpose of entering merchandise into the United States.

U.S. Attorney Damian Williams said: “Queen and its owner engaged in a fraudulent scheme to cheat the Government of customs duties owed on imported garments.  This Office remains committed to combatting customs fraud.  Manufacturers, importers, and their owners will be held responsible when they evade customs duties by lying about the value of the goods they bring into the United States.”

HSI Special Agent in Charge Peter C. Fitzhugh said: “Queen Apparel NY underreported the value of garments imported in the United States for the sole purpose of evading customs duties, resulting in a significant financial loss to the US government.  Import fraud affects the integrity of our economy and trade, so HSI makes a priority to investigate any organization who chooses profits over honesty.  Working closely with our partners at U.S. Customs and Border Protection, together we ensure anything that comes through our borders is in compliance with U.S. law.”

CBP Acting Director of New York Field Operations Marty Raybon said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”                    

QUEEN is a defunct New York-based manufacturer and importer of garments.  While in business, QUEEN manufactured and imported garments for third parties who would then sell those garments through department stores and national retail chains in the United States.  CHOI was the sole owner of QUEEN and was involved in the management and operations of the business.

The Complaint previously filed in Manhattan federal court alleges that from 2009 to 2013, QUEEN and CHOI manufactured garments overseas, imported those garments into the United States, and then repeatedly and falsely undervalued those garments on customs forms in order to evade the payment of lawful duties to the United States.

As part of the settlement, QUEEN and CHOI admit, acknowledge, and accept responsibility for the following conduct:

• QUEEN manufactured garments and imported them into the United States for various wholesalers.  CHOI was the sole owner of QUEEN and was involved in the management and operations of QUEEN, including the importing of goods.

• QUEEN was responsible for paying any import duties owed to the United States for garments manufactured abroad and imported into the United States by QUEEN.

• During the relevant time period, and at CHOI’s direction, QUEEN repeatedly undervalued the garments it imported into the United States by making false statements in entry documents and commercial invoices that it presented to CBP.  As a result of these false valuations, QUEEN underpaid customs duties that were due and owing to the United States. 

On March 26, 2019, the United States settled a related civil fraud lawsuit against Byer California, Inc., a wholesaler that used QUEEN to manufacture and import garments from Vietnam.  The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act. 

Mr. Williams praised the investigative work of HSI on this case.  He also thanked CBP for its assistance.

This case is being handled by the Office’s Civil Frauds Unit.  Assistant United States Attorney Jacob Bergman is in charge of the case.                                                                      

A convicted felon who unlawfully possessed a handgun was sentenced today to six years in federal prison.

Mitchell Berry, age 29, from Waterloo, Iowa, received the prison term after a March 22, 2021 guilty plea to one count of being a felon in possession of a firearm.

Evidence at sentencing showed that Berry was in a car stopped by Waterloo police officers on December 31, 2019.  Officers found a handgun in the car.  Berry’s DNA was found on the trigger and the magazine of the gun.

Berry has six prior adult criminal convictions.  Two of the convictions involved firearms.  In 2012, he was convicted of carrying weapons, specifically a .22 caliber handgun.  In 2015, he was convicted of conspiracy to intimidate with a dangerous weapon and possession of a firearm as a felon.

Berry was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Berry was sentenced to 72 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Berry is being held in the United States Marshal’s custody until he can be transported to a federal prison.

The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department. 

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

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 20-CR-2032.

Follow us on Twitter @USAO_NDIA.

            CONCORD, N.H.– Acting United States Attorney John J. Farley announced that a federal jury found Corey Donovan, 38, of Wilmot, guilty of unlawful possession of a firearm by a felon.  The verdict was returned on Friday, October 15, 2021.

            According to trial exhibits and witness testimony during the four-day jury trial, Donovan was prohibited from possessing firearms due to prior felony convictions.  In March of 2021, law enforcement officers received a tip that Donovan possessed firearms.  After investigating the matter, law enforcement officers obtained search warrants for Donovan’s property and vehicles associated with him.  Located in Donovan’s Jeep, strapped to the roll bar, was a loaded 20-gauge shotgun.  There were several rounds of ammunition on and in the weapon.  Additional ammunition was in the Jeep’s center console.   A companion 20-gauge shotgun barrel, several shotgun parts, multiple rounds of ammunition, and various gun accessories also were located on Donovan’s property. 

            Donovan, who is detained, faces up to 10 years in prison.  He is scheduled to be sentenced on January 31, 2022. 

            “To protect our community from violent crime, it is essential to keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley.  “As this prosecution demonstrates, we will not hesitate to bring federal criminal charges against convicted felons who unlawfully possess firearms.  By prosecuting dangerous criminals like Mr. Donovan, we are working to keep families and communities in the Granite State safe from violence.”

            “ATF is committed to pursuing the illegal possession of firearms by prohibited persons. In this circumstance, Mr. Donovan had a previous violent felony conviction. These investigations are of high priority for the ATF because they directly impact public safety,” said Special Agent in Charge James Ferguson.

            This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the United States Marshals Service, New Hampshire State Police, New Hampshire Information and Analysis Center, New Hampshire Fish and Game Department, Andover Police Department, and United States Probation and Pretrial Services.  Special assistance was also provided by the Somersworth Police Department.  The case was prosecuted by Assistant United States Attorneys Anna Krasinski and Charles Rombeau. 

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CHICAGO — A federal jury today convicted a Chicago man of attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).

The jury convicted THOMAS OSADZINSKI, 22, after a two-week trial in U.S. District Court in Chicago.  The charge of attempting to provide material support and resources to a foreign terrorist organization is punishable by up to 20 years in federal prison. U.S. District Judge Robert W. Gettleman did not immediately set a sentencing date.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Mark Lesko, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. 

The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Melody Wells of the Northern District of Illinois, and Alexandra Hughes, Trial Attorney of the National Security Division’s Counterterrorism Section.

Evidence presented at trial revealed that ISIS and its supporters disseminated the terror group’s propaganda materials on social media to recruit fighters and inspire violence against the United States and other countries.  Many social media platforms remove ISIS media content due to the violent nature of the materials.  Osadzinski, a U.S. citizen, designed a process using a computer script to make ISIS propaganda more conveniently disseminated online.  The process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and share the content.

Osadzinski in 2019 shared his script – and instructions for how to use it – with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations.  Unbeknownst to Osadzinski, the individuals were actually covert FBI employees and a person confidentially working with law enforcement.

            WASHINGTON - Herman Cook, 50, of Washington, D.C., was sentenced today to 40 years in prison on first-degree murder while armed and other charges for an early evening shooting in Northwest Washington in August 2016, announced Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Cook was found guilty by a jury in February 2020 of murder and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet J. McKenna.

            According to the government’s evidence, on Aug. 8, 2016, shortly after 7 p.m., Cook was standing in the parking lot behind the Emery Recreation Center in the 5700 block of Georgia Avenue NW. The homicide victim, Donald Johnson, Jr., drove into the parking lot to meet a friend.  Cook and Mr. Johnson had been close friends decades earlier but became estranged at some point in the early 1990s.  As captured on video surveillance, after Mr. Johnson got out of his car to talk to the friend, Cook walked up to him slowly and, without any provocation, shot him multiple times at point blank range.  Mr. Johnson was struck four times, including twice in the back and once in the neck.  Cook then calmly walked away in the direction of Cook’s home on 13th Street NW. Mr. Johnson, 45, was pronounced dead later that evening.

            Cook fled the area on foot.  Evidence indicated that he fled to Baltimore that night. He was arrested on Feb. 21, 2017, in Baltimore and has been in custody ever since.

            In announcing the sentence, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Baltimore Police Department and the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels; Special Agent Nelson Rhone of the Criminal Investigation and Intelligence Unit; Victim/Witness Advocate Marcia  Rinker, and Litigation Technology Specialist Leif Hickling.  Finally, they commended the work of Assistant U.S. Attorneys Michael Spence and Melissa Jackson, who prosecuted the case.

            WASHINGTON - Nequan Carthens, 21, of Washington, D.C., has pleaded guilty to opening fire last year with a handgun on a Southeast Washington street and killing a woman who was walking in the area, announced Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Carthens pleaded guilty on Oct. 15, 2021, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed. The plea, which is contingent upon the Court’s approval, calls for a 10-year prison term. The Honorable Danya A. Dayson scheduled sentencing for Jan. 7, 2022.

            According to the government’s evidence, on March 20, 2020, at approximately 9:55 p.m., Carthens exited from the rear passenger door of a blue-colored, four door sedan as it turned into an alley alongside the 1900 block of 16^th Street SE. He was holding a handgun and shot into the 1900 block of 16^th Street approximately nine times in the direction of a group of individuals who were congregating across the street. He then ran back into the waiting vehicle and fled the scene. 

            An innocent bystander, Lagoria Brinkley, 36, was walking southbound on 16^th Street towards U Street SE and was struck in the head by one of the fired bullets.  Medical personnel arrived at the scene and were unable to revive her. Carthens was arrested on March 26, 2020 and has been in custody ever since.

            In announcing the plea, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department.  They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels; Victim/Witness Program Specialist Jennifer Allen, and Investigative Analyst Zachary McMenamin. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Shehzad Akhtar, who investigated and prosecuted the case.

ST. LOUIS – United States District Court Judge Sarah E. Pitlyk accepted a plea of guilty from Paul Eric Latham on October 14, 2021 for aiding and abetting a carjacking in January 2020.

A grand jury in the Eastern District of Missouri indicted Latham in May 2021 for aiding and abetting Antwan Jones in carjacking a victim in St. Louis the previous year. According to the plea agreement, Latham stopped his SUV next to the victim on January 15, 2020. Latham waited in the SUV while his co-defendant approached the victim at gunpoint and demanded her purse. The carjacking victim surrendered her purse, which contained the keys to her car. Latham and his co-defendant drove around the area and used the victim’s key fob to locate her Mercedes Benz. Once they found the car parked nearby, Latham used the victim’s keys to drive her car away while his co-defendant drove away in Latham’s SUV.

Later that night, police tracked the victim’s phone to East St. Louis, Illinois. There, police discovered Latham’s SUV parked in the 1800 block of Boismenue Avenue with the victim’s purse still inside.

The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Kourtney Bell and Ryan Finlen are handling the case for the U.S. Attorney’s Office.

COLUMBIA, South Carolina ---- Acting United States Attorney M. Rhett DeHart stated today that on Wednesday, October 20, 2021, the United States Attorney’s Office (USAO), along with their local, state, and federal law enforcement partners, will support schools across the state as they participate in South Carolina’s 20th Annual Student Pledge Against Gun Violence.  With a focus on keeping our schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes.  Elementary school children are making a similar commitment—pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.

The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversations about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org.

As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. The pledge effort is part of Project Safe Neighborhoods (PSN), a national program that has been historically successful in bringing together law enforcement agencies and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.

The following South Carolina schools and law enforcement agencies are participating in this year’s pledge.  For information on events scheduled for a particular school, please contact the respective school or local law enforcement agency.

Participating Law Enforcement Agencies

Bennettsville Police Department

Cherokee County Sheriff’s Office

Chesterfield County Sheriff’s Office

City of Charleston Police Department

Easley Police Department

Lexington County Sheriff’s Office

Participating Schools

Brookdale Elementary School

Cheraw Intermediate School

Elloree Elementary School

Fairfield Magnet School for Math and Science

Julian Mitchell Elementary School

Luther Vaughan Elementary School 

Marlboro County High School (9th Grade) 

McKissick Academy of Science and Technology

Northwest Elementary School 

Rivelon Elementary School 

Sandhills Middle School

Swansea Freshman Academy

Wallace-Gregg Elementary School 

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Seattle – A False Claims Act/Anti-Kickback Statute civil matter was resolved today with an agreed $1.1 million payment by the former Chief Executive Officer of a now defunct medical testing lab, announced U.S. Attorney Nicholas W. Brown.  Jae Lee, 50, of Bellevue, Washington, served as the CEO of Northwest Physicians Laboratory (NWPL) from January 1, 2013, until July 30, 2015.  Lee has agreed to pay $500,000 within 30 days of the settlement agreement, with additional payments annually until full payment is made. 

“Resolving this civil case, as well as Mr. Lee’s guilty plea in the criminal case last year, are major milestones in this health care fraud investigation,” said U.S. Attorney Brown.  “The Anti-Kickback statute is aimed at protecting the public by keeping fraud from inflating our health care costs. When, as in this case, a whistleblower brings fraud to our attention the U.S. Attorney’s Office will vigorously pursue an investigation.”

The settlement with Jae Lee is the third such settlement involving the kick-back scheme and NWPL.  In July 2020, the U.S. Department of Justice reached a $12 million settlement with Sterling Healthcare Opco, LLC d/b/a/Cordant Health Solutions (Cordant) of Tacoma and Denver.  In December 2018,Vancouver, Washington, testing lab MTL agreed to pay $1,777,738 to settle allegations that it violated the False Claims Act by paying illegal kickbacks to obtain referrals for government healthcare insurance programs.  

According to those settlements, and the one signed today with Jae Lee, between January 2013 and July 2015, both MTL and Sterling/Cordant made payments to NWPL in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute.  Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services.  The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior. NWPL was physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE.  In order to conceal the payment of the kickbacks, MTL, Sterling/Cordant and NWPL described the fees as being for marketing services; however, no marketing services were performed. 

“The payment or acceptance of kickbacks run counter to the goals of Federal health care programs,” stated Steven Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “Providers are trusted to select patient services based on medical necessity and their sound judgement, not their greed. Stamping out kickbacks in these programs remains a top priority for our agency and partners.”

“The announced settlement concludes a multi-year civil investigation that clearly demonstrates the government’s commitment to hold accountable those whose actions tainted the integrity of federal healthcare programs, including the Department of Defense's TRICARE program,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “As exemplified in this case, DCIS will continually work with its law enforcement partners to defend against questionable business practices in order to protect taxpayer dollars and the health care interests of our military members and their families, as well as the American public.”

The whistleblower in this case will receive 15% of the funds as is common under the qui tam statute.

The criminal case concerning the kickback scheme remains ongoing.  Richard Reid, 52, of Astoria, Oregon, Kevin Puls, 56, of Bellevue, are scheduled for trial in January 2022.  Former NWPL CEO Jae Lee and MTL Vice-President Steve Verschoor have pleaded guilty and are scheduled for sentencing in March 2022.  NWPL as a corporate entity was sentenced in May 2021, and ordered to pay $8,114,417 in restitution joint and several with the other defendants. 

The case is being investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).

The civil case was handled by Assistant United States Attorney Kayla Stahman. 

PORTLAND, Ore.—Community members and law enforcement officials from throughout the tri-county area will convene this week for the sixth-annual Building Bridges of Understanding in Our Community event on October 21, 2021 at 6:30pm PDT.

This two-hour virtual event is open to the public and hosted by the Muslim Educational Trust (MET) in Tigard, Oregon. To register, please visit https://conta.cc/3jwOKem.

This year’s theme is “What is Public Safety? Joining together to build bridges, share perspectives, and create solutions.” Criminal justice and community leaders will share perspectives in two moderated panel discussions: “What is public safety and what does it mean to you?” and “A year after George Floyd’s murder: Where are we now?” Each panel discussion will include a question-and-answer period.

Participating organizations include: MET, the U.S. Attorney’s Office for the District of Oregon, the Immigrant and Refugee Community Organization (IRCO), Washington County District Attorney’s Office, Washington County Sheriff’s Office, Clackamas County District Attorney’s Office, City of Portland’s Office of Violence Prevention, Multnomah County Department of Community Justice, Portland Police Bureau, Department of Safety Standards and Training, Oregon Department of Justice, Lake Oswego Police Department, and Beaverton Police Department.

For six consecutive years, leaders from public safety and civil society organizations have come together to build and strengthen trust in one another and to cultivate trust with the communities they serve. The annual event has been held at MET since its inception in the fall of 2016.

To view a video of last year’s event, please visit https://youtu.be/ae3Zj6TNDIY.

The Building Bridges event series is sponsored by the Washington County District Attorney’s Office, Washington County Sheriff’s Office, Washington County Administration, Clackamas County District Attorney’s Office, City of Lake Oswego, Lake Oswego Respond to Racism, Concerned Citizens of West Linn, Latino Network, Ecumenical Ministries of Oregon, IRCO, Muslim Community Center of Portland, Tigard Police Department, Portland Office of Civic Life, Portland Bureau of Transportation, Portland Police Bureau, New Portland Foundation, Portland’s New Portland Policy Commission, Salman Alfarisi Islamic Center of Corvallis, Multnomah County Sheriff’s and District Attorney’s Offices, and the U.S. Attorney’s Office for the District of Oregon.

For media inquiries or to book interviews with steering committee members, please contact Stephen Mayer of the Washington County District Attorney’s Office by emailing stephen_mayer@co.washington.or.us or calling (971) 708-8219.

Media outlets are also welcome to contact the following steering committee members directly:

• Wajdi Said; Muslim Educational Trust; wajdi@metpdx.org
• J.W. Matt Hennessee; Vancouver Avenue Baptist Church; vafbchurch1@aol.com
• Jack Hanna; New Portlanders Foundation; jackahanna@gmail.com 
• Linda Castillo; Commissioner for Hispanic Affairs and DEI Manager at IRCO; lindaC@irco.org
• Erin Hubert; Multnomah County Sheriff’s Office; erin.hubert@mcso.us
• Kevin Barton; Washington County DA; stephen_mayer@co.washington.or.us

   

ATHENS, Ga.– A former Oconee County, Georgia, middle school teacher was sentenced to federal prison today after he pleaded guilty to possessing child pornography.

Ira New, III, 56, of Watkinsville, Georgia, was sentenced to serve 37 months in prison to be followed by ten years of supervised release by U.S. District Judge C. Ashley Royal after previously pleading guilty to possession of child pornography. In addition, New will have to register for life as a sex offender upon release from prison. There is no parole in the federal system.

“Ira New was entrusted with the care and safety of middle school students at a time when he was actively victimizing children by possessing pornography of kids in the same age group. Every time an image of child pornography is viewed, the demented business of sexually exploiting innocent children only grows stronger. New—and predators like him—will be held accountable for their crimes against children in the Middle District of Georgia,” said Acting U.S. Attorney Peter D. Leary. “Protecting children is among the highest priorities for our office and our law enforcement partners.”

“The GBI will continue to work tirelessly to protect innocent victims. No child should be subject to online exploitation. As we work with internet service providers and other law enforcement agency partners, we are ensuring that predators like this defendant are held accountable,” said GBI Director Vic Reynolds.

According to court documents, the Georgia Bureau of Investigation (GBI) received a cyber tip from Yahoo investigators in Aug. 2019 regarding approximately 27 images of children at nudist colonies. Yahoo determined that the account belonged to New, who was an eighth-grade teacher at the time, and the cyber tip was escalated to the GBI. GBI discovered New taught at Malcolm Bridge Middle School in Watkinsville and had recently self-reported to the school administration for displaying an image of a topless female to his class. Subsequently, New resigned from his teaching position at Oconee County Schools and consented to a Professional Standards Commission sanction of reprimand regarding his teaching certificate.

The GBI conducted a knock and talk at his home on Sept. 5, 2019. New consented to allow forensic agents to view his phone, and they found it contained child pornography. A supplemental forensic review revealed New’s phone contained approximately 94 images of child pornography, including images of 12 to 14-year-old girls. When asked when he started to take an interest in children, New responded that it had been in the “past couple of years.” New also stated that he never sent the photographs to anyone, but he emailed the photographs to himself.

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

The case was investigated by the GBI.

Assistant U.S. Attorney Shanelle Booker is prosecuting the case.

ST. THOMAS, USVI – Drug Enforcement Administration (DEA) Acting/Special Agent in Charge, John F. Kanig and U.S. Attorney Gretchen C.F. Shappert announced the National Prescription Drug Take-Back Day event, scheduled for October 23rd, 2021 in St. Croix and St. Thomas. This initiative addresses a serious public safety and public health issue which impacts communities throughout the United States. Now in its eleventh year, the National Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA’s Take Back events provide an opportunity for Americans to prevent drug addiction and overdose deaths while providing an effective way to dispose of prescription drugs without harm to the environment.

“Too often, unused prescription drugs end up in the wrong hands,” said U.S. Attorney Shappert. “We are facing a national epidemic of drug abuse, some of which is fueled by outdated and unused prescription medications. DEA’s National Prescription Drug Take-Back is an excellent opportunity for us to eliminate prescription drugs that have outlived their usefulness.”

According to the 2019 National Survey on Drug Use and Health, 9.7 million people misused prescription pain relievers, 4.9 million people misused prescription stimulants, and 5.9 million people misused prescription tranquilizers or sedatives in 2019. The survey also showed that a majority of misused prescription drugs were obtained from family and friends, often from the home medicine cabinet.

Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.

Persons wishing to dispose of unused prescription drugs on St. Croix can take those prescriptions to the Gallows Bay and Kingshill Post Offices between the hours of 10:00 a.m. and 2:00 p.m. on Saturday, October 23rd, 2021.

For disposal of unused prescriptions on St. Thomas, persons may take them to the Sugar Estate Post Office, also on Saturday, October 23rd, 2021, between the hours of 10:00 a.m. and 2:00 p.m.

For more information on National Take-Back Day, please contact 1-800-882-9539, 571-362-4700 or visit https://takebackday.dea.gov. You can also click on the Partnership Toolbox option where
you can find and download materials to promote the event. In addition to DEA’s National Drug Take Back Day on Oct. 23, prescription drugs can be disposed of any day throughout the year at any of the 11,000 authorized collectors. For more information on collection sites, visit:
https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1

FRESNO, Calif. — Luis Madrigal-Reyes, 37, a native and citizen of Mexico, was sentenced today to two years and five months in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.

Madrigal was also ordered to pay $48,000 in restitution to the U.S. Forest Service for the extreme damage that the cultivation operation had on public land.

According to court documents, the cultivation operation consisted of 2,307 marijuana plants in the Sierra National Forest in Madera County. U.S. Forest Service agents saw Madrigal carrying fertilizers into the grow site and later apprehended him after they chased him down the side of a mountain. The cultivation operation caused significant damage to the area, which serves as habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl, which is currently being considered for listing under the Endangered Species Act. Agents found deadly banned pesticides sprayed directly on the plants.

The cultivation site was located in the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River. Approximately 8.55 million gallons of water had been diverted from a nearby natural stream to irrigate the marijuana plants.

This case was the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. The environmental damage to the forest was analyzed and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Madrigal’s co-defendant, Lester Eduardo Cardenas Flores, 24, also a native and citizen of Mexico, is scheduled for sentencing on Nov. 15, 2021. He faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will 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.

Marijuana plant sprayed with deadly pesticide

Marijuana plant sprayed with deadly pesticide

            ALBUQUERQUE, N.M. – Thomas Joseph Miller, 34, of Hanover, New Mexico, appeared in federal court on Oct. 15 for a detention hearing, charged with illegally possessing destructive devices and ammunition. Miller will remain in custody pending trial.

​            According to a criminal complaint, on Sept. 28, Miller allegedly was found in possession of several “pipe bombs,” considered destructive devices, and various rounds of ammunition in multiple calibers. At the time, Miller was subject to an order of protection and could not legally possess a firearm or ammunition. Miller did not possess a license to manufacture explosives or destructive devices.

            A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Miller faces up to 10 years in prison.

            The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Grant County Sheriff’s Department and the Doña Ana County Bomb Squad. Assistant U.S. Attorney Ry Ellison and Maria Armijo are prosecuting the case.

          GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Christopher Allan Boden, a/k/a “Captain,” 46, of Grand Rapids, Daniel Reynold DeJager, a/k/a “Daniel Miester,” and “Danichi,” 35, of Tacoma, Washington, and Leesa Beth Vogt, a/k/a “Lis Bokt,” and “Moose,” 37, also of Grand Rapids, pled guilty to various financial crimes.  Boden pled guilty to operating an unlicensed money transmitting business, money laundering, and structuring deposits to evade financial institution reporting requirements.  DeJager pled guilty to conspiracy to operate an unlicensed money transmitting business and money laundering.  Vogt pled guilty to structuring while operating the unlicensed money transmitting business.  The pleas occurred before the Honorable Robert J. Jonker, Chief United States District Judge.  Boden and DeJager pled to offenses carrying a maximum of up to twenty years in prison, and Vogt pled to an offense carrying a maximum of ten years.  The defendants also are subject to financial penalties.  The Court scheduled Vogt’s sentencing hearing for February 17, DeJager’s sentencing hearing for February 22, and Boden’s sentencing hearing for February 25.

          According to the plea agreements and other public records, Boden, DeJager, and Vogt operated an unlicensed money transmitting business at The Geek Group, a registered non-profit entity, between March 2017 and December 2018, when federal agents searched the business, leading to its closure.  DeJager purchased bitcoin from registered exchanges, often laundered it, and then sent it to Boden to sell.  Boden and other staff at The Geek Group, including Vogt, would sell bitcoin to customers.  Boden, Vogt, and others then “structured” deposits of the cash proceeds so as to avoid detection of their operation and in order to purchase more bitcoin.  The defendants sold more than $740,000 in bitcoin.  Boden’s customers included drug dealers, and he held himself out to be a money launderer, explaining to prospective customers that “people buy from” him because he sold “clean” bitcoin, not “dirty” bitcoin that could be traced. 

          “Cryptocurrency is not a license or invitation to commit crime,” said U.S. Attorney Birge.  “Federal law regulates those who deal in cryptocurrency as it does those who deal in government-issued currency.  We will root out and prosecute crypto criminals wherever we find them.  Whether cryptocurrency will be with us for years to come remains to be seen, but its vitality is contingent upon the willingness of those who use it to follow the law.”

          “HSI is in the forefront of investigating crimes that utilize cryptocurrency to launder criminal proceeds or to purchase illegal services from throughout the world,” said Homeland Security Investigations Detroit Special Agent in Charge Vance Callender.  “Our special agents, working with the IRS, dismantled this unlicensed money transmitting business and put a stop to their illegal enterprise.”

          “Financial transactions designed to mask the origin of proceeds from the sale of controlled substances often involve multiple crimes including money laundering, structuring and even unlicensed money service businesses.  Stopping complex financial schemes that inject proceeds from illicit sources into the financial system is paramount to dismantling criminal enterprises,” said IRS Criminal Investigation’s Acting Special Agent in Charge Brian Thomas.  “IRS-CI is committed to following the money every step, investigating and uncovering complex criminal financial schemes to disrupt and dismantle organized criminal enterprises.”

          The investigation was conducted by Homeland Security Investigations and IRS Criminal Investigation, with assistance from the Grand Rapids Police Department.  Assistant U.S. Attorney Justin M. Presant is prosecuting the case.

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URBANA, Ill. – Michael E. Hughes, 35, of Lange Ave in Savoy, Illinois, was sentenced today to 32 months in federal prison, to be followed by five years of supervised release, for possession of child pornography. Senior U.S. District Judge Michael M. Mihm imposed the sentence.

Hughes was arrested on March 10, 2020, following a February 2020 indictment. Hughes was released following a detention hearing on March 12, 2020, but was arrested and detained a year later after the court found that he violated the terms of his pretrial release. Hughes has remained in the custody of the U.S. Marshals since March 12, 2021.   

The indictment against Hughes charged that on March 14, 2019, Hughes possessed a cellular telephone containing child pornography. The statutory penalties for the offense are a maximum ten-year term of imprisonment and a fine of up to $250,000.

The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson, The charge is the result of investigation by the Federal Bureau of Investigation, Springfield Office, and the Champaign County Sheriff’s Office.

The case was brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

SACRAMENTO, Calif. — Juan Carlos Cortez-Gomez, 51, of Riverbank, pleaded guilty today to possession with intent to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Sept. 15, 2020, Cortez-Gomez agreed to sell methamphetamine to an FBI informant. When Cortez-Gomez arrived at the location for the sale, he was arrested by officers. A search of his truck revealed 10 pounds of methamphetamine. During a post-arrest statement, Cortez-Gomez admitted he knowingly possessed this methamphetamine and that he was planning to sell it.

This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, the California Highway Patrol, and the Stockton Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Cortez-Gomez is scheduled to be sentenced on Jan. 21, 2022, by U.S. District Judge Kimberly J. Mueller. Cortez-Gomez faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will 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.

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

Damian Williams, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Frank Russo, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States settled a civil fraud lawsuit against QUEEN APPAREL NY, INC. (“QUEEN”), a defunct manufacturer and importer of apparel, and HANK HYUNHO CHOI (“CHOI”), the sole owner of QUEEN, for defrauding the United States by knowingly evading customs duties owed on imported goods.  Specifically, the Government alleges that for years QUEEN, with CHOI’s knowledge, repeatedly falsified customs forms by undervaluing the garments it manufactured overseas and then imported into the United States.  As part of the settlement, approved today in Manhattan federal court by U.S. District Judge George B. Daniels, QUEEN and CHOI made admissions regarding their conduct, agreed to pay $50,000 to the United States, and agreed, among other things, to refrain from acting as the importer of record for the purpose of entering merchandise into the United States.

U.S. Attorney Damian Williams said: “Queen and its owner engaged in a fraudulent scheme to cheat the Government of customs duties owed on imported garments.  This Office remains committed to combatting customs fraud.  Manufacturers, importers, and their owners will be held responsible when they evade customs duties by lying about the value of the goods they bring into the United States.”

HSI Special Agent in Charge Peter C. Fitzhugh said: “Queen Apparel NY underreported the value of garments imported in the United States for the sole purpose of evading customs duties, resulting in a significant financial loss to the US government.  Import fraud affects the integrity of our economy and trade, so HSI makes a priority to investigate any organization who chooses profits over honesty.  Working closely with our partners at U.S. Customs and Border Protection, together we ensure anything that comes through our borders is in compliance with U.S. law.”

CBP Director of New York Field Operations Frank Russo said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”                    

QUEEN is a defunct New York-based manufacturer and importer of garments.  While in business, QUEEN manufactured and imported garments for third parties who would then sell those garments through department stores and national retail chains in the United States.  CHOI was the sole owner of QUEEN and was involved in the management and operations of the business.

The Complaint previously filed in Manhattan federal court alleges that from 2009 to 2013, QUEEN and CHOI manufactured garments overseas, imported those garments into the United States, and then repeatedly and falsely undervalued those garments on customs forms in order to evade the payment of lawful duties to the United States.

As part of the settlement, QUEEN and CHOI admit, acknowledge, and accept responsibility for the following conduct:

• QUEEN manufactured garments and imported them into the United States for various wholesalers.  CHOI was the sole owner of QUEEN and was involved in the management and operations of QUEEN, including the importing of goods.

• QUEEN was responsible for paying any import duties owed to the United States for garments manufactured abroad and imported into the United States by QUEEN.

• During the relevant time period, and at CHOI’s direction, QUEEN repeatedly undervalued the garments it imported into the United States by making false statements in entry documents and commercial invoices that it presented to CBP.  As a result of these false valuations, QUEEN underpaid customs duties that were due and owing to the United States. 

On March 26, 2019, the United States settled a related civil fraud lawsuit against Byer California, Inc., a wholesaler that used QUEEN to manufacture and import garments from Vietnam.  The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act. 

Mr. Williams praised the investigative work of HSI on this case.  He also thanked CBP for its assistance.

This case is being handled by the Office’s Civil Frauds Unit.  Assistant United States Attorney Jacob Bergman is in charge of the case.                                                                      

Greenbelt, Maryland – A federal jury convicted Eunice Nkongho, a/k/a “Eunice Bisong,” age 40 of California, on October 15, 2021, after a seven day trial, for conspiracy to commit money laundering and money laundering, related to a scheme to fraudulently obtain goods using what appeared to be a military e-mail address, but was actually a registered Yahoo e-mail address. 

The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Nasir Khan of the U.S. Department of Commerce, Office of Export Enforcement's Washington Field Office.

According to testimony at the seven-day trial and court documents, a co-conspirator of Nkongho’s established and used what was purported to be a U.S. Navy e-mail address, authentic forms, titles, addresses and other indicia to pose as a U.S. government contracting agent and fraudulently obtain merchandise, including large-screen televisions, specialized communications equipment, iPhones and iPads.  Much of the fraud scheme was conducted from outside the United States, including from Nigeria.  Three victim companies—one that provided wireless voice and data services that was headquartered in Washington State, one that was a wholesale audio-video distributor and manufacturer’s representative located in Virginia, and a defense contractor that designed, manufactured, and marketed communications equipment that was headquartered in Maryland—shipped merchandise, without prior payment, to East Coast co-conspirators.  Those individuals then shipped the stolen items to other co-conspirators on the West Coast, where they were sold.

Specifically, the evidence at trial proved that after twice receiving bags of cash from a co-conspirator in a gas station parking lot in Los Angeles, which was proceeds from the sale of the fraudulently obtained Apple products, Nkongho laundered the money two separate series of complex transactions involving at least five bank accounts and, in doing so, both promoted the ongoing criminal activity and concealed the illegal source of the funds.  After multiple transactions, Nkongho wired some of this money to a co-conspirator in Nigeria in a way that would avoid transaction reporting requirements.Similarly, the evidence at trial proved that Nkongho engaged in other transactions to conceal the nature and ownership of proceeds from the sale of the fraudulently obtained televisions.

Of the nine defendants charged in this case, Nkongho has now been convicted after trial and seven others have pleaded guilty to their roles in the fraud scheme.  One defendant, Eunice Nkongho’s husband, Peter Unakalu, is a fugitive.

Nkongho faces a maximum penalty of 20 years in federal prison for the conspiracy and for money laundering.  U.S. District Judge George J. Hazel has scheduled sentencing for February 17, 2022, at 10:00 a.m.                   

United States Attorney Erek L. Barron praised the Defense Criminal Investigative Service, Homeland Security Investigations, and the Department of Commerce’s Office of Export Enforcement for their work in the investigation, and thanked the FBI Washington Field Office and the Naval Criminal Investigative Service for their assistance.  Mr. Barron thanked Assistant U.S. Attorneys Joseph R. Baldwin and Adam K. Ake, who are prosecuting the case.

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