OKLAHOMA CITY – Today, a court in the Western District of Oklahoma unsealed an indictment charging three individuals with violating federal wire fraud and money laundering statutes in connection with an operation to sell over $88 million of stolen Avaya Direct International (ADI) software licenses, which were used to unlock features of a popular telephone system used by thousands of companies around the globe.

The grand jury charged the following defendants with conspiracy to commit wire fraud and 13 counts of wire fraud:  Raymond Bradley Pearce aka Brad Pearce, 46, of Tuttle, Oklahoma; Dusti O. Pearce, 44, of Tuttle, Oklahoma; and Jason M. Hines aka Joe Brown, aka Chad Johnson, aka Justin Albaum, 42, of Caldwell, New Jersey. In addition, the grand jury charged both Brad Pearce and Dusti Pearce with one count of conspiracy to commit money laundering and money laundering.

According to the indictment, Avaya Holdings Corporation, a multinational business communications company headquartered in California, sold a product called IP Office, a telephone system used by many midsize and small businesses in the United States and abroad. To enable additional functionality of IP Office such as voicemail or more telephones, customers had to purchase software licenses – which Avaya generated – from an authorized Avaya distributor or reseller. Avaya used software license keys to control access to Avaya’s copyright-protected software and to ensure that only customers who paid for the software could use it. In addition, Avaya required that each software license on an IP Office system be associated with the system’s Avaya Secure Digital (SD) card – a small flash memory card with a unique serial number that plugged into the IP Office manager computer – which the end user had to keep in its possession in order to use the licenses.

According to the indictment, Brad Pearce, a long-time customer service employee at Avaya, allegedly used his system administrator privileges to generate tens of millions of dollars of ADI software license keys that he sold to Hines and other customers, who in turn sold them to resellers and end users around the globe. The retail value of each Avaya software license ranged from under $100 to thousands of dollars.

As set forth in the indictment, Brad Pearce also allegedly employed his system administrator privileges to hijack the accounts of former Avaya employees to generate additional ADI software license keys. Furthermore, he allegedly used these privileges to alter information about the accounts to conceal the fact that he was generating ADI license keys, preventing Avaya from discovering the fraud scheme for many years. Brad Pearce’s wife, Dusti Pearce, is alleged to have handled accounting and helped run the financial side of the illegal business. Hines operated Direct Business Services International (DBSI), a de-authorized Avaya reseller, in New Jersey. He allegedly bought software licenses from the Pearces under his own name and also using an alias, Joe Brown. Hines was the Pearces’ largest customer and significantly influenced how the scheme operated. Hines also received help from Brad Pearce to resell the stolen software licenses.  Hines was allegedly one of the biggest users of the ADI license system in the world.

According to the indictment, the Pearces and Hines’ operation not only prevented Avaya from making any money on its stolen intellectual property but also undercut the global market in Avaya ADI software licenses because the Pearces and Hines were selling licenses for significantly below the wholesale price. In fact, Brad Pearce allegedly told Hines that the Pearces’ customers could not obtain same-day ADI software licenses from anyone else for anything even close to the Pearces’ prices, and Hines suggested that he and Brad Pearce work together to “corner” the market in licenses. Altogether, the Pearces and Hines allegedly reaped millions of dollars from the fraud. Moreover, to hide the nature and source of the money, the Pearces allegedly funneled their illegal gains through a PayPal account created under a false name to multiple bank accounts, and then transferred the money to numerous other investment and bank accounts. They also allegedly purchased large quantities of gold bullion and other valuable items. The indictment lists numerous assets subject to forfeiture including cash, gold, silver, collectible coins, cryptocurrency, and real property.

U.S. Attorney Robert J. Troester of the Western District of Oklahoma, Special Agent in Charge Edward J. Gray of the FBI’s Oklahoma City Field Office, and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division made the announcement.

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

The FBI conducted the investigation. Assistant U.S. Attorneys Julia E. Barry and William Farrior of the Western District of Oklahoma and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.

SPRINGFIELD, Mo. – A Missouri state representative was convicted by a federal trial jury today for a nearly $900,000 COVID-19 fraud scheme, as well as a separate $200,000 fraud scheme in which she made false claims about a fake stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.

“This is an elected official who stole money from the public, a purported humanitarian who cheated and lied to her patients, and a medical professional who illegally distributed drugs,” said U.S. Attorney Teresa Moore. “She violated her position of trust to selfishly enrich herself at the expense of others. But a jury of her peers, in a unanimous verdict, saw through her smokescreen of excuses and ridiculous claims, and now she will be held accountable for her criminal behavior.”

Patricia “Tricia” Ashton Derges, 64, of Nixa, Mo., was found guilty of 10 counts of wire fraud, 10 counts of distributing drugs over the internet without a valid prescription, and two counts of making false statements to a federal law enforcement agent.

Derges was elected in November 2020 as a Missouri state representative in District 140 (Christian County). Derges, who is not a physician but is licensed as an assistant physician, operates three for-profit Ozark Valley Medical Clinic locations in Springfield, Ozark, and Branson, Mo. Derges also operates the non-profit corporation Lift Up Someone Today, Inc., with a medical and dental clinic in Springfield.

“Derges betrayed the confidence entrusted in her as both an elected lawmaker and an assistant physician,” said Charles Dayoub, Special Agent in Charge of FBI Kansas City. “She took advantage of a global pandemic to benefit herself financially with complete disregard, not only to her constituents, but to the oath she took as a health care professional to do no harm. Today’s verdict, decided by a jury of her peers, is a direct message to those who wish to profit on the backs of others: the FBI will vigorously pursue any individual who abuses their position of power and the trust of Missourians for their own gain.”

“By putting personal profit before the health and welfare of her constituents, this official egregiously violated the duties of her position as an elected public servant,” said Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will not tolerate any attempts to defraud federal health care programs, particularly those that steal from essential taxpayer funds and endanger public health.”

COVID-19 Fraud Scheme

Derges was convicted of three counts of wire fraud related to her attempt to fraudulently receive nearly $900,000 in CARES Act funds. Derges actually was awarded $296,574 in CARES Act funds for Lift Up, although Lift Up did not provide any COVID-19 testing services to its patients. In fact, Lift Up’s medical clinic closed at the beginning of the COVID-19 pandemic and remained closed from March to June 2020.

Derges sought CARES Act funding for COVID-19 testing that had been provided, and already paid for, at her for-profit Ozark Valley Medical Clinic. Derges requested reimbursement for $379,294 in COVID-19 testing and related expenses, and future funding in the amount of $503,350. In total, Derges applied for $882,644 from the CARES Act Relief Fund on Lift Up’s behalf.

Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which provided $150 billion to states, tribal governments, and units of local government. Missouri was allocated approximately $2.3 billion. Missouri allocated approximately $34 million in CARES Act funds to Greene County. To administer the CARES Act funds it received, the Greene County Commission created the CARES Act Relief Fund to “promote recovery by funding programs and services that support the needs of those impacted by the COVID-19 public health emergency.” An advisory council of 30 citizen volunteers was appointed to review funding requests and make funding recommendations to the Greene County Commission.

Derges claimed in her application to the Greene County CARES Act Relief Fund that Lift Up provided COVID-19 testing and she sought reimbursement for “COVID-19 eligible expenses” that Lift Up had incurred. To support her claim, Derges provided invoices totaling $296,574 from Dynamic DNA for more than 3,000 COVID-19 laboratory tests. Derges submitted the Dynamic DNA invoices as Lift Up expenditures, although they were actually for testing done at Derges’s for-profit Ozark Valley Medical Clinic.

Lift Up, a non-profit charity, and Ozark Valley Medical Clinic, a for-profit corporation, are separate legal entities. Ozark Valley Medical Center had already received payment from its clients of approximately $517,000 for these COVID-19 tests. Ozark Valley Medical Center charged clients, patients, or their patients’ employers approximately $167 per sample for its COVID-19 testing services. Derges concealed from Greene County that these COVID-19 tests had already been paid for by other payors.

In December 2020, the Greene County Commission awarded Lift Up $296,574 in CARES Act funding based upon Lift Up’s fraudulent application and the Dynamic DNA invoices Derges had submitted. Derges deposited the check into Lift Up’s bank account, then transferred the funds into Ozark Valley Medical Center’s bank account.

Derges provided several more invoices from Dynamic DNA to Greene County later in December 2020 to further support her application for Lift Up, although the invoices were actually for testing done for clients at Ozark Valley Medical Center, raising the total to $589,143 for 6,177 COVID-19 tests. Derges concealed from Greene County that Ozark Valley Medical Center already had been paid approximately $1 million by clients, patients, or their patients’ employers, for these COVID-19 tests.

Stem Cell Fraud Scheme

Derges also was convicted of seven counts of wire fraud related to a nearly $200,000 fraud scheme, which lasted from December 2018 to May 2020. Derges marketed a stem cell treatment that actually utilized amniotic fluid that did not contain any stem cells. The federal indictment charged her with defrauding four specific victims, each of whom testified during the trial.

Derges exclusively obtained amniotic fluid, which she marketed under the name Regenerative Biologics, from the University of Utah. Derges advertised Ozark Valley Medical Clinic as a “Leader in … Regenerative Medicine,” including stem cells, and marketed her “stem cell” practice through seminars, media interviews, and social media. Derges made similar claims in personal consultations.

In fact, however, the amniotic fluid Derges administered to her patients did not contain mesenchymal stem cells, or any other stem cells. The amniotic fluid she obtained from the University of Utah was a sterile filtered amniotic fluid allograft (a tissue graft comprised of human amniotic membrane and amniotic fluid components derived from placental tissue). The amniotic fluid allograft was “acellular,” meaning it did not contain any cells, including stem cells.

Despite being told that the University of Utah’s amniotic fluid allograft was “acellular” and did not contain mesenchymal stem cells, Derges continued to tell her patients and the public that the amniotic fluid allograft contained stem cells.

Derges administered amniotic fluid, which she falsely claimed contained stem cells, to patients who suffered from, among other things, tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, and urinary incontinence. In an April 11, 2020, Facebook post Derges wrote of amniotic fluid allograft: “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”

The University of Utah sold its amniotic fluid allograft to Derges for approximately $244 per milliliter and $438 for two milliliters. Derges charged her patients $950 to $1,450 per milliliter. In total, Derges’s patients paid her approximately $191,815 for amniotic fluid that did not contain stem cells.

Controlled Substances Act

Derges also was convicted of 10 counts of distributing Oxycodone and Adderall over the internet without valid prescriptions. The indictment alleges that Derges, without conducting in-person medical evaluations of the patients, wrote electronic prescriptions for Oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.

Because none of the assistant physicians whom Derges employed at Ozark Valley Medical Clinic could prescribe Schedule II controlled substances, it was the standard practice of the assistant physicians to see a patient and later communicate to Derges the controlled substances they wanted her to prescribe to their patients. Derges, without conducting an in-person medical evaluation of the patients as required by federal law, wrote electronic prescriptions for the patients and transmitted the prescriptions over the internet to pharmacies.

False Statements

Derges also was convicted of two counts of making false statements to federal agents investigating this case in May 2020.

Derges told agents that the amniotic fluid allograft that she used in her practice contained mesenchymal stem cells, which she knew was false. Derges also told federal agents that she had not treated a patient for urinary incontinence with amniotic fluid allograft, which she knew was false.

Assistant Physician

Derges is not a physician but is licensed as an assistant physician. An assistant physician is a mid-level medical professional in the state of Missouri. Under Missouri law, medical school graduates who have not been accepted into a residency program but have passed Step 1 and Step 2 of the United States Medical Licensing Examination may apply to become an assistant physician. State law mandates that assistant physicians practice pursuant to a collaborative practice arrangement with a licensed physician.

Derges obtained her medical degree from the Caribbean Medical University of Curacao in May 2014 but was not accepted into a post-graduate residency program. Derges was licensed as an assistant physician by the state of Missouri on Sept. 8, 2017.

Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about six hours over two days before returning guilty verdicts on all counts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, June 13.

Under federal statutes, Derges is subject to a sentence of up to 20 years in federal prison without parole on each of the 10 wire fraud counts and on each of the 10 drug distribution counts, and a sentence of up to five years in federal prison without parole on each of the two false statements counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, Health and Human Services – Office of Inspector General, the DEA and the Missouri Attorney General’s Medicaid Fraud Control Unit.

ATLANTA - Oluwagbemiga Otufale has been arraigned on federal charges of conspiracy and money laundering.  Otufale was indicted by a federal grand jury on June 21, 2022

“Money launderers function as the financiers of criminal organizations, enabling the victimization of our communities while hiding behind a shield of anonymity built through a maze of aliases, bank accounts, and business transactions,” said U.S. Attorney Ryan K. Buchanan.  “We will continue to bring sophisticated money launderers to justice, especially the criminals who exploited the pandemic to steal from those in need.”

“It is disheartening to see the lengths that some individuals will go to take advantage of people in need during a national and world crisis,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “No matter how elaborate or complicated the fraud scheme, the FBI and our partners will work to uncover it and bring those responsible to justice.”

“An important mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance benefit programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Mathew Broadhurst, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.

According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed as a result of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible.  That temporary federal program was administered by state employment agencies. 

Oluwagbemiga Otufale allegedly laundered money procured from fraudulent unemployment claims submitted to state employment agencies in Washington, Illinois, and Massachusetts.  These claims were filed using stolen personally identifiable information of over a hundred individuals.  Otufale also allegedly laundered proceeds from a business email compromise scheme targeting two Georgia businesses.  Additionally, Otufale allegedly created multiple aliases and sham business entities to open financial accounts in which he deposited the fraudulent proceeds.        

Oluwagbemiga Otufale, a/k/a Joseph Perrone, a/k/a Kelvin Benjamin, a/k/a Abraham Young, 44, of Riverdale, Georgia, who was arraigned before U.S. Magistrate Judge J. Elizabeth McBath, was charged with money laundering conspiracy and concealment money laundering as a result of these activities.  Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General.

Assistant U.S. Attorneys Sarah E. Klapman and Tracia King are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Georgia Unemployment Insurance Task Force.  The Task Force is comprised of federal and state agencies throughout Georgia that are dedicated to combat COVID-related Unemployment Insurance Benefit Fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

PROVIDENCE – A Warwick man previously convicted and sentenced to federal prison for bank robbery admitted to a federal judge on Wednesday that he illegally possessed a firearm; that gun was discharged by a juvenile in the man’s home, resulting in a self-inflicted gunshot wound, announced United States Attorney Zachary A. Cunha.

Branden Eddie Smith, 37, pleaded guilty to possession of a firearm by a prohibited person.

According to information presented to the court, on March 21, 2022, Warwick police and emergency services were called to a Warwick residence several hours after a juvenile discharged a firearm, causing a self-inflicted wound to his knee. The juvenile ultimately told police that, earlier in the evening, he was handling what he believed to be an unloaded firearm; the gun was in fact loaded, however, and when the juvenile pulled the trigger, the firearm discharged sending a bullet through his knee.

Warwick police executed a court-authorized search of the residence and located the firearm, a Glock 42 semi-automatic pistol, as well as eight rounds of .380 caliber ammunition. The gun and ammunition were found inside a safe in the defendant’s bedroom.

Smith is scheduled to be sentenced on September 29, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

According to court documents, Smith was previously convicted of bank robbery in U.S. District Court in the District of Nevada in 2017 and sentenced to fifty-six months in prison to be followed by three years of federal supervised release.

 The case is being prosecuted by Assistant U.S. Attorney Christine D. Lowell.

The matter was investigated by the Warwick Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

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United States Attorney Alison J. Ramsdell announced that a Fort Pierre, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.

Lisa Herren, a/k/a Lisa Miller, age 43, was sentenced to 26 months in federal prison, followed by four years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Herren was indicted by a federal grand jury on June 8, 2021.  She pled guilty on January 27, 2022.

The conviction stemmed from a conspiracy which began in September 2018, in which Herren conspired with others to knowingly and intentionally distribute methamphetamine in and around Stanley County, South Dakota.  It was reasonably foreseeable that over 50 grams of methamphetamine was distributed during the course of the conspiracy.   

This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the Stanley County Sheriff’s Office.  Assistant U.S. Attorney Meghan Dilges prosecuted the case.

Herren was immediately turned over to the custody of the U.S. Marshals Service.

EVANSVILLE – Rodney Allen Cannon, Jr., 36, of Indianapolis, was sentenced to 4 years in federal prison for being a felon in possession of a firearm and for violating the conditions of his federal supervised release. 

According to court documents, on February 13, 2021, officers with the Evansville Police Department stopped Cannon for committing multiple traffic violations. Further investigation led to a search of the vehicle where officers located a loaded pistol belonging to Cannon underneath the driver’s seat. Cannon is prohibited from lawfully possessing firearms or ammunition due to multiple prior felony convictions, including dealing in cocaine in Marion County, Indiana, and unlawful possession of a firearm by a serious violent felon, also in Marion County. Cannon was also previously convicted of a felony in federal court for possession of a firearm and ammunition by a felon. Cannon was still on federal supervised release for that conviction at the time of his arrest.

Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Evansville Police Chief Billy Bolin made the announcement.

The Evansville Police Department investigated the case. The Vanderburgh County Prosecuting Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives also provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young following the defendant’s guilty plea. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for 3 years following his release from prison.

U.S. Attorney Myers thanked Assistant U.S. Attorney Kristian R. Mukoski who prosecuted this case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.

SPRINGFIELD, Mo. – A Springfield man has been sentenced in federal court for leading a conspiracy to distribute methamphetamine in the Springfield area, including an undercover drug transaction that occurred in a home with two young children.

Devin J.H. Wrinkle, 32, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 28, to 18 years and four months in federal prison without parole.

On Jan. 27, 2022, Wrinkle pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Mo., from Dec. 27, 2019, to Aug. 19, 2020. He also pleaded guilty to distributing methamphetamine on a premises where a minor resided.

During the course of the drug-trafficking conspiracy, officers seized more than 425 grams of methamphetamine from Wrinkle and co-defendant Ashley N. Cooney, 39, of Springfield. In addition to the methamphetamine that was seized, an undercover law enforcement officer saw Wrinkle in possession of at least two pounds of methamphetamine.

Two confidential informants contacted law enforcement in January 2020 regarding Wrinkle being a pound-level distributor of methamphetamine in the Springfield area. An undercover law enforcement officer purchased methamphetamine from Wrinkle on two occasions. Wrinkle was in possession of a firearm during one of those undercover transactions, and again when he fled from the police on a motorcycle.

The second undercover drug transaction occurred at the John B. Hughes Apartments, inside another person’s apartment where two children, ages five and seven, resided. Wrinkle was in possession of at least two pounds of methamphetamine on that occasion.

On March 4, 2020, law enforcement officers executed a search warrant at Cooney’s residence. Officers found a Starbucks cup with approximately 34.2 grams of methamphetamine, a purse that contained a small baggie with approximately 1.1 grams of methamphetamine, another small baggie that contained approximately 1.1 grams of methamphetamine, three water bongs with methamphetamine residue inside a desk drawer, and drug paraphernalia in an upstairs office. Inside the toilet bowl of the upstairs bedroom, officers found two plastic bags that contained a total of approximately 329 grams of methamphetamine.

Later that month, according to court documents, Wrinkle fled from police on a motorcycle in possession of a firearm, ammunition, methamphetamine, and marijuana. He wrecked the motorcycle and took off running, at which point he tossed the firearm on the ground.

Cooney pleaded guilty and was sentenced on March 17, 2022, to three years in federal prison without parole.

This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration, the Springfield, Mo., Police Department, and the Greene County, Mo., Sheriff’s Department.

Organized Crime and Drug Enforcement Task Force

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

ALBANY, NEW YORK – Leonard Samuels, age 39, of Schenectady, New York, pled guilty today to illegally possessing a firearm as a convicted felon.

The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his plea, Samuels admitted to possessing a loaded semi-automatic pistol, which FBI agents and Schenectady Police Department officers recovered in his apartment during a search warrant executed on April 8, 2021.  Samuels also agreed to forfeit a loaded “ghost gun” pistol that was recovered from the apartment, as well as a quantity of ammunition for both pistols.  A prior felony conviction for criminal possession of a firearm prevented Samuels from legally possessing a firearm in New York. 

Samuels faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on October 28, 2022, by United States District Judge Mae A. D’Agostino.

A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

This case was investigated by the FBI and the Schenectady Police Department.  This case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.

MINNEAPOLIS – A Minneapolis man has been charged in a federal criminal complaint for the armed carjacking of a woman outside her place of work in northeast Minneapolis, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 9, 2022, Shamir Nathann Black, 18, approached a woman outside of her place of work and demanded her car keys. Black proceeded to push the victim to the ground and hit her on the head with a firearm. A bystander attempted to assist the victim but was also assaulted by Black. Black pointed his firearm at the bystander and pulled the trigger, but the gun did not discharge a bullet. Black and an accomplice got into the victim’s vehicle, but surrounding witnesses pulled Black from the driver’s seat and put him on the ground. Black and his accomplice fled the scene on foot.

After arriving at the scene, officers with the Minneapolis Police Department located a Shadow Systems 9mm semiautomatic pistol wrapped in a gray sweatshirt. The firearm had been reported stolen in Prior Lake in April 2022. Investigators reviewed a social media video that showed Black waving around a handgun that matched the firearm recovered at the crime scene. Further investigation revealed that a Volkswagen Jetta had been taken in a Prior Lake home burglary on the same night the firearm was stolen. Law enforcement later recovered the stolen Jetta from Black’s Minneapolis residence. On June 24, 2022, Black was taken into custody.

Black is charged with one count of carjacking. He made his initial appearance yesterday in U.S. District Court before Magistrate Judge Becky R. Thorson and was ordered temporarily detained pending a formal detention hearing on June 30, 2022.

This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Hennepin County Sheriff’s Office.

Assistant U.S. Attorney Lauren Roso is prosecuting the case.

A complaint is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SPRINGFIELD, Mo. – A three-time convicted sex offender in Branson has been sentenced in federal court today for possessing child pornography.

Andrew David Ferrill, 35, was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, June 28, to 12 years in federal prison without parole. The court also sentenced Ferrill to spend 20 years on supervised release following incarceration.

Today’s sentence includes an enhancement for obstruction of justice. According to court documents, Ferrill intentionally attempted to destroy his Apple iPad when he overheard law enforcement officers speaking to his mother when they arrived to execute a search warrant at his parents’ residence, where he lived. He also uninstalled the Kik application from his iPad.

On Oct. 21, 2021, Ferrill pleaded guilty to one count of possessing child pornography. Ferrill admitted that he uploaded an image of child pornography to the Kik application.

On Aug. 10, 2020, law enforcement officers executed a search warrant at Ferill’s residence. He admitted to investigators that he used an iPad to access the internet and Kik to view child pornography.

Ferrill was convicted in a general court martial on Feb. 18, 2010, while he was enlisted in the U.S. Marine Corps, of aggravated sexual assault of a child and indecent acts with a 14-year-old victim, as well as production, receipt, and possession of child pornography under the Uniform Code of Military Justice. Ferrill also was convicted of sexual abuse for assaulting a co-worker in Taney County, Mo., on Nov. 30, 2018. He was on probation for that state offense at the time of this federal offense.

This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the South Central Missouri Cyber Crimes Task Force.

            WASHINGTON — A Rhode Island man was arrested today on felony and misdemeanor charges for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Bernard Joseph Sirr, 47, of North Kingstown, Rhode Island, is charged in a criminal complaint filed in the District of Columbia with civil disorder, a felony, and related misdemeanor offenses. He was arrested in North Kingstown. He is expected to make his initial court appearance later today in the District of Rhode Island.

            According to court documents, on Jan. 6, Sirr was among rioters who illegally entered the Capitol grounds. He joined a line of rioters that was engaged in a confrontation with law enforcement officers in the tunnel area of the Lower West Terrace. At approximately 3:08 p.m., video shows Sirr entering the tunnel. During a video taken inside the tunnel, Sirr is at the front of the police line pushing against rioters who are assaulting officers. He is seen pushing against the police line with his hand pressed against a police shield. He also participated in a struggle in which a group of rioters chanted “Heave! Ho!” in unison as they moved together as a team against the officer. 

            Sirr exited the tunnel at approximately 3:14 p.m. About an hour later, however, he reappeared at the Lower West Terrace doorway, pushing other rioters who were pushing against police officers. Sirr ultimately was ejected from the tunnel area.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Rhode Island.

            The case is being investigated by the FBI’s Boston Field Office and its Providence Resident Agency. Valuable assistance was provided by the FBI’s Washington Field Office, which identified Sirr as #249 on its seeking information photos, the U.S. Capitol Police, and the Metropolitan Police Department.

            In the 17 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.  Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

            A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – Rashaud Nesmith, a/k/a Shaud, age 21, and Michael Chester, a/k/a Mikkie, age 23, both of Baltimore, have pleaded guilty to their participation in a racketeering conspiracy, including attempted murder and murder, respectively, related to their participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, that operated throughout Baltimore City.  Chester entered his guilty plea today and Nesmith entered his plea yesterday.

Rashaud Nesmith also pleaded guilty to a second racketeering conspiracy charge in connection with his participation in a group that conspired to commit multiple armed carjackings and robberies throughout Baltimore City. 

The guilty pleas were announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Commissioner Michael Harrison of the Baltimore Police Department.

According to Nesmith’s plea agreement, Nesmith admitted that in connection with the carjacking and robbery conspiracy, Nesmith participated in a carjacking and two armed robberies and an attempted armed robbery, during two victims were shot and killed and one was shot and seriously injured.  Specifically, a carjacking on April 19, 2019, in which a firearm was brandished; the July 23, 2019 robbery of Devon Chavis during which at least one member of the conspiracy discharged a firearm, striking and killing Chavis; the August 1, 2019 attempted robbery of Kendrick Sharpe, during which at least one member of the conspiracy fired a gun, striking and killing Sharpe; and the August 8, 2019 robbery of a victim, during which at least one member of the conspiracy fired a gun, striking and severely injuring the victim.  In addition, Nesmith knew that his co-conspirators would commit other acts that he did not participate in, including a carjacking on June 12, 2019 where an individual was shot and killed, and five additional carjackings committed from June 12, 2019 through July 29, 2019.

According to Nesmith’s and Chester’s plea agreements, Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood.  Other spin-offs of the gang are “SCL” and recently, “TRD.”

As detailed in the plea agreements, the gang benefitted financially from, and affected interstate commerce by, selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies.  Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of the robberies and murders among members who participated, and often contacted each other to commit a robbery if that member needed money.  

Also, according to the plea agreements, Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members.  Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence.  They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions.

Chester admitted that he participated in five murders during which at least one member of the conspiracy discharged a firearm, including the murder of Devonte Monroe on August 19, 2017, the murder of Carols Jones on August 28, 2017, the murder of Diamante Howard on April 21, 2018, the murder of Darius Mason on July 29, 2018, and the murder of Corey Moseley on December 31, 2018.  In addition, Chester participated in an attempted murder on April 4, 2018 and on May 1, 2018 was found with the firearm which is a ballistics match to that attempted murder.  Nesmith admitted that as part of his activities with Triple C, he participated in four attempted murders, including an attempted murder of an individual on February 24, 2019; the attempted murder of Bel Air Road rivals on March 2, 2019; and the attempted murder of two individuals on July 4, 2019.  Chester and Nesmith acknowledged that as part of their activities with Triple C, they agreed to distribute controlled substances, including crack cocaine and that it was reasonably foreseeable to them that members of the conspiracy would commit additional murders, attempted murders, carjackings, and robberies. 

Chester, Nesmith and the government have agreed that, if the Court accepts their pleas, Chester will be sentenced to 20 years in federal prison and Nesmith will be sentenced to 40 years in federal prison.  U.S. District Judge Catherine C. Blake has scheduled sentencing for Chester of October 7, 2022, at 10 a.m.  U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Nesmith on October 28, 2022, at 12 p.m.                                         

This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

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

United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigations and prosecution.  Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting these cases.

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CONCORD, N.H. – Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division today announced the formation of the New England Prescription Opioid (NEPO) Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorneys’ Offices for three federal districts, as well as law enforcement partners at the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), and the FBI. The mission of the NEPO Strike Force is to identify and investigate health care fraud schemes in the New England region, and to effectively and efficiently prosecute individuals involved in the illegal distribution of prescription opioids and other prescribed controlled substances. The NEPO Strike Force will primarily target criminal conduct by physicians, pharmacists, and other medical professionals, focusing upon both health care fraud and drug diversion offenses, as relevant based upon the facts of the particular case.

“This NEPO Strike Force expands and sharpens the Justice Department’s response to the nation’s opioid epidemic,” said Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division. “In the last year, more than 75,000 people in the United States lost their lives due to overdose. Since 2018, some of the greatest spikes in the drug overdose death rate have occurred in New England. The NEPO Strike Force will help to address one of the root causes of the epidemic: unlawful prescription and diversion of opioids. Together with our partners, we will fulfill the department’s solemn promise to deploy critical resources to address the opioid crisis.” 

Assistant Attorney General Polite was joined in the announcement in Concord, New Hampshire, by U.S. Attorney Jane E. Young for the District of New Hampshire; U.S. Attorney Darcie N. McElwee for the District of Maine; U.S. Attorney Nikolas P. Kerest for the District of Vermont; Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG; Assistant Administrator Kristi N. O’Malley of the DEA Diversion Control Division; and Acting Deputy Assistant Director Aaron Tapp of the FBI’s Criminal Investigative Division.

“The formation of NEPO presents a tremendous opportunity for our three Northern New England states to disrupt the illegal prescription and distribution of opioid,” said U.S. Attorney Jane E. Young for the District of New Hampshire. “As a state, we are grateful to the Department of Justice to be part of this initiative and excited that it will be based here in New Hampshire.”

“Maine’s opioid overdose death rate has skyrocketed, and law enforcement has identified the opioid epidemic as the number one issue officers face,” said U.S. Attorney Darcie N. McElwee for the District of Maine. “While the trafficking of illegal drugs, in particular fentanyl, is well publicized, 23% of overdose deaths in Maine are the result of pharmaceutical opioids, and many of those who died from illicit substances very likely first tried pharmaceuticals, either their own or those of a friend or family member. This Strike Force will provide vital resources to help fight a growing epidemic, and along with our partners, we will pursue any medical personnel who misuse their position to endanger lives through the overprescribing of opioids for their own financial gain.” 

“The announcement of the New England Prescription Opioid Strike Force demonstrates the Department of Justice’s commitment to working with our law enforcement partners in Vermont and elsewhere to hold accountable health care providers who exploit the opioid epidemic for personal gain,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Health care providers who issue illegal opioid prescriptions undermine important efforts to address the epidemic while putting patients at risk of overdose and physical harm.”

“HHS-OIG is unwavering in our commitment to hold accountable providers who illegally prescribe opioids for personal profit while neglecting the safety and wellbeing of their patients,” said Inspector General Christi A. Grimm of the U.S. Department of Health and Human Services. “Along with our law enforcement partners, HHS-OIG is proud to support the New England Prescription Opioid Strike Force in a collaborative effort to assist communities plagued by the opioid epidemic.” 

“At a time when the United States is losing tens of thousands of Americans to opioid overdoses every year, it has never been more critical to ensure doctors and health care practitioners are prioritizing the safety and health of their patients,” said DEA Administrator Anne Milgram. “The creation of the New England Prescription Opioid Strike Force further strengthens our important cooperation with partners in the region to hold accountable any practitioner who recklessly distributes opioid medications.” 

“The formation of the New England Prescription Opioid Strike Force provides the FBI and our law enforcement partners with important collective resources to combat health care fraud and drug diversion schemes within the region,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI will not tolerate those medical professionals willing to sacrifice patients’ health for their personal profit and will work tirelessly to root out and bring to justice those individuals who illegally distribute prescription opioids and other controlled substances.” 

The NEPO Strike Force will operate as a partnership between prosecutors and data analysts with the Fraud Section’s Health Care Fraud Unit, prosecutors with the U.S. Attorneys’ Offices in New Hampshire, Maine, and Vermont, and special agents with HHS-OIG, DEA, and the FBI. It will operate out of the Concord, New Hampshire, area, supporting the three districts that make up the NEPO Strike Force region. In addition, the NEPO Strike Force will work closely with other federal and state law enforcement agencies, including the State Medicaid Fraud Control Units. 

Today’s NEPO Strike Force announcement builds on the demonstrated success of the Health Care Fraud Unit’s Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged 111 defendants, collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 60 ARPO defendants have been convicted.

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Information about available treatment programs is available as follows:

New Hampshire: For a referral to addiction treatment services, please call 211. If you or a loved one is in a substance use crisis please call/text the New Hampshire Rapid Response Access Point at 1-833-710-6477. New Hampshire residents can call and speak to trained and caring clinical staff 24 hours a day, seven days a week.

Maine: The Overdose Prevention Through Intensive Outreach Naloxone and Safety (OPTIONS) initiative is a coordinated effort of the Maine Office of Behavioral Health (OBH) and other state agencies to improve the health of Mainers using substances through harm reduction strategies, helping them on the road to recovery, and dramatically reducing the number of fatal and non-fatal drug overdoses. Go to https://knowyouroptions.me. If you or a loved one are struggling with opiate addiction, please contact 211 to receive help and find information about local treatment programs.
 
Vermont: No matter where in Vermont you are, there are resources to help. Vermont 211 (https://vermont211.org/) is available. To speak to someone about substance use resources including treatment options, call VT Helplink 802-565-LINK (toll free at 833-565-LINK) or visit online at VTHelplink.org, and Vermont Alcohol and Abuse Programs (802-651-1550). All information and referral services are free and confidential.
 
For individuals seeking help in other states, please call the Substance Abuse and Mental Health Services Administration National Helpline at 1-800-662-HELP(4357) or TTY: 1-800-487-4889. This service provides referrals to local treatment facilities, support groups, and community-based organizations.

CHARLOTTE, N.C. – With summer upon us, U.S. Attorney Dena J. King urges consumers to be mindful of vacation, employment, and other summertime schemes, and take measures to avoid falling victims to common summer scams.

“Summer is the time of the year that many of us vacation, travel, and spend time with family and friends. But it’s also a popular time for scammers to maximize their profits by preying on consumers trying to save money on a good summer deal. Stay vigilant and beware of summer scams. Think before you buy and don’t let a scammer turn your summer into a nightmare,” said U.S. Attorney King.

The most common scams to look out for during the summer include:

Free or Discounted Vacation Packages – Whether it’s an email congratulating you for winning a free trip that requires you “only” to pay for fees and taxes, or a link to a website offering limited-time travel discounts, these types of summer scams are prominent. Common vacation scams include discounted deals on cruises, all-inclusive resorts, and flights, hotels and car rentals to popular destinations. Don’t be fooled by vacation scams and avoid the urge to take advantage of these too-good-to-be-true offers. Instead, book your travel through reputable, well-known travel engines or travel agencies. If you receive a special travel offer through email, do not make reservations using the provided link, even if it appears to be from a well-known travel booking website. Instead, go directly to the booking engine’s web page to locate the deal and make travel arrangements.

Low-Priced Vacation Rentals – Similar to bogus vacation packages, beware of scammers posting fake short-term rental properties available for a bargain price at popular vacation spots. Sometimes the advertised properties do not exist. Other times, scammers use photos of actual rental properties to create fraudulent listings. Be extra careful before booking a short-term rental property online especially one advertised at a discounted price. To avoid falling victim to this type of scam, either contact a local real estate company that specializes in vacation rentals or search the desired property on multiple short-term rental websites prior to booking to ensure the listing is not a scam. Also, ask the renter for additional photos, and reserve the property using a payment option that makes it easier to recoup a fraudulent charge.

Discounted Excursions or Entertainment Events – Be vigilant against scams that tout limited time offers on vacation excursions or cheap tickets to entertainment events, such as concerts. When booking an excursion, research the company offering the deal. Look for customer reviews that date a few months or years back to ensure this is a well-established business and check with the Better Business Bureau for any complaints on file. In addition, call the company directly before making an online credit card purchase. When buying tickets to events, it’s best to use reputable ticket sellers to ensure the tickets you are purchasing are legitimate.

Free Wi-Fi – During the summer, many people are on the go. With more and more businesses, restaurants, and venues offering free wi-fi access, it is easy to become a victim of wi-fi fraud. With this type of scam, fraudsters use what appears to be legitimate “free” wi-fi to dupe users into connecting to networks that can steal their information. Free wi-fi networks are generally unsecured. To the extent possible, avoid using them altogether, but definitely avoid using them to transmit sensitive information or conduct financial transactions. 

Online summer Jobs – Online summer jobs offer an opportunity for extra income. If you are applying for a summer job online, take extra precautions with furnishing personally identifying information (PII) such as a Social Security number, date of birth, home address, etc. Be extra cautious with online employers who require applicants to send their PII for the purpose of conducting a background check before being offered the job. Instead, research the company and call the company directly to ensure it is a legitimate business in need of summer help.

The Moving Scam– Lots of people take advantage of the summer months to move.  Unfortunately, scammers also are looking to exploit consumers in need of moving services. Moving schemes offering discounted deals can end up being very costly. When moving, take the time to research moving companies and ask for referrals. Be mindful of moving companies that offer low prices, have recent or no online reviews, or ask for advance payment to “lock in” the discounted rate. Check with the local Better Business Bureau to make sure you are dealing with a reputable moving company.

The tips below can help keep you safe from fraud this summer:

• Avoid paying with wire transfers, cash, gift cards, or sending money to individuals with whom you have only communicated online.
• Avoid “free” deals that require you to pay a fee. If a deal is truly free, you should never have to pay for any portion of it.
• Do not give out your credit card, bank account or other personal information.
• Before going on vacation, whether stateside or overseas, contact your banking institution and credit companies so they can alert you of unusual spending patterns or high dollar credit card charges.
• After your vacation, check your credit card or banking statements for extra or fraudulent charges.

To report fraud, file an online complaint with the Federal Trade Commission.

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JERMAINE CANNON, 19, of New Haven, with charges stemming from two gunpoint robberies of a New Haven business in November 2021.

The indictment was returned on June 7, 2022.  On June 24, Cannon appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and entered a plea of not guilty to the charges.  He has been detained since his arrest on state charges on November 11, 2021.

The indictment alleges that on November 10, 2021, and again on November 11, 2021, Cannon, brandishing a firearm, robbed Howard Mini Mart & Deli, located on Howard Avenue in New Haven.

The indictment charges Cannon with two counts of interference with commerce by robbery, an offense that carries a maximum term imprisonment of 20 years, and two counts of carrying, using and brandishing a firearm during and in relation to a crime of violence, an offense that carries mandatory minimum term of imprisonment of at least seven years.

U.S. Attorney Avery stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and Jocelyn Courtney Kaoutzanis.

This case is part of Project Safe Neighborhoods (PSN), 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.

United States Attorney Alison J. Ramsdell announced that a Flandreau, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on June 27, 2022, by U.S. District Judge Karen E. Schreier.

Caley Studsdahl, age 24, was sentenced to three years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $25.

Studsdahl was indicted by a federal grand jury on September 8, 2021.  She pled guilty on April 4, 2022.

The conviction stemmed from an incident on or about April 21, 2020, when Studsdahl was approached by the Flandreau Santee Sioux Tribe Acting Chief of Police because there was a tribal warrant for her arrest.  The Acting Chief of Police placed Studsdahl in handcuffs, conducted a search, and placed her in the rear cage of his patrol vehicle.  Before he could close the door, Studsdahl voluntarily and intentionally assaulted the Acting Chief of Police by spitting on his face and said an obscenity directed at him. 

This case was investigated by the FBI.  Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.

United States Attorney Alison Ramsdell announced that a Sioux Falls, South Dakota, man convicted of Possession of Child Pornography was sentenced on June 27, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.

Shilo Ziegler, age 39, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay $3,000 in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Ziegler was indicted by a federal grand jury on September 9, 2020.  He pled guilty on March 28, 2022.

The conviction stemmed from an incident that occurred sometime prior to December 13, 2015, in Lower Brule, South Dakota.  Ziegler set up a video tablet in a room he knew a minor victim was about to enter and change in after she exited the shower.  A video was later recovered on the same tablet which showed the nude minor.

This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, and the FBI.  Assistant U.S. Attorney Troy R. Morley prosecuted the case.

Ziegler was immediately turned over to the custody of the U.S. Marshals Service.

COLUMBUS, Ohio – This morning federal agents arrested individuals charged as part of a national narcotics distribution operation bringing drugs into Central Ohio from California.

They have been charged by criminal complaints for allegedly participating in a polydrug trafficking organization involving 76 kilograms of fentanyl including 115,500 fentanyl-laced pills, nine kilograms each of methamphetamine, cocaine and marijuana, and distributable amounts of heroin and crack cocaine.

“In what is believed to be the largest single fentanyl seizure ever in the Southern District of Ohio, the government has removed approximately $4.5 million worth of fentanyl and fentanyl pills from our streets,” said U.S. Attorney Kenneth L. Parker. “Today’s cooperative law enforcement operation has the potential to save lives.”

This investigation stems from the early-June arrest of Isabel Odir Castellanos, of Los Angeles.

Those charged today include:

According to the charging documents, Castellanos transported narcotics from Los Angeles to Columbus via semi-truck. Castellanos is a business owner of a transportation company and a semi-truck driver who frequently travels across the United States.

It is alleged Castellanos delivered the narcotics to Susana Orellana’s residence in Columbus, which served as a stash house. Orellana then allegedly delivered the drugs to mid-level retail distributors. Those mid-level retailers then allegedly sold the drugs in Central Ohio, Youngstown, Ohio, Springfield, Ohio and in West Virginia.

Orellana allegedly collected the drug proceeds and provided them to Castellanos before he returned to California.

Many of the individual drug transactions charged involve tens of thousands of dollars. For example, one drug transaction detailed in an affidavit describes Orellana transporting 5,000 fentanyl pills to Childs’ home in Columbus in exchange for $36,000.

To date, law enforcement officials have seized from the defendants more than $478,000 in cash, a semi-truck, a Porsche Panamera, a BMW X5 and a GMC Terrain.

Defendants are making their initials appearances in federal court in Columbus today.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Orville Greene, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the charges and commended the cooperative investigation including the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Ohio Narcotics Intelligence Center, Ohio State Highway Patrol and Springfield Police Department. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.

Criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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This morning, the United States Supreme Court issued its decision in Oklahoma v. Castro-Huerta. This decision holds that the State of Oklahoma has concurrent jurisdiction with the federal government to prosecute non-Indians who commit crimes against Indian victims within Indian Country.

"Today’s decision does not diminish the United States’ trust responsibility to our tribal partners," said United States Attorneys Christopher J. Wilson, Clinton J. Johnson, and Robert J. Troester. "The United States Attorney’s Offices in the Eastern, Northern, and Western Districts of Oklahoma will continue to enforce federal law in Indian Country. We will also continue to coordinate and cooperate with our state, local, and tribal law enforcement partners as well as state and tribal prosecutors to promote public safety and provide justice to all Oklahomans in Indian Country."