Law Enforcement Officer Charged with Transfer of Firearm to a Felon, Transferee Charged with Felon in Possession

 GREENSBORO, N.C. –Timothy Jay Norman, age 47, of Browns Summit, NC, and Tommy Lee Hudson, age 33, of Reidsville, NC, were arrested today on criminal firearm charges.

The Criminal Complaints unsealed today allege that Norman, a North Carolina Highway Patrol State Trooper, transferred firearms to Hudson, knowing or having reasonable cause to believe that Hudson is a convicted felon.

The defendants had initial appearances in federal court in Greensboro this afternoon and were detained pending their next scheduled court appearances on July 14 at 3:00 p.m. (Hudson) and 3:45 p.m. (Norman), in Greensboro Courtroom 1A.

Norman is charged with unlawful transfer of a firearm to a prohibited person. If convicted, he faces a maximum penalty of 10 years in prison.

Hudson is charged with felon in possession of a firearm. If convicted, he also faces a maximum penalty of 10 years in prison.

A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.

The charges were announced by Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina. The case has been investigated by the North Carolina State Bureau of Investigation (SBI), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Operator of Residential Nursing Facility Sentenced for Health Care Fraud

 NORFOLK, Va. – A Portsmouth man was sentenced today to two years in prison for defrauding the Virginia Medicaid program by submitting over $188,000 in false claims for a residential nursing facility.

“For three years, the defendant used his position as a nursing home operator to fraudulently obtain over $188,000 from the Virginia Medicaid program,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Health care fraud takes funding and critical services away from those who truly need it. We will continue to hold accountable those who exploit these essential health care programs at the expense of vulnerable members of our communities.”

According to court documents, Lopez Scott, 47, operated Turning Points Residential Care, a business authorized to provide residential support services and skilled nursing services to recipients of Medicaid. Between October 2016 and October 2019, Scott submitted numerous false and fraudulent claims to Virginia Medicaid, known as the Virginia Medical Assistance Program (VMAP), which misrepresented that 5,847.75 hours of skilled nursing services had been provided to a Medicaid recipient. As a result, Scott received approximately $188,297.39 in health care payments to which he was not entitled.

“When Lopez Scott launched his fraud scheme, he threatened the integrity of the Medicaid program and illegally pocketed taxpayer funds meant to pay for the legitimate care of needy patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services (HHS) Office of the Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their unprincipled actions.”

According to court documents, in order to conceal and cover up the fact that no skilled nursing services had been provided to the Medicaid recipient, Scott created fraudulent entries of nursing notes in the electronic office records of Turning Points, including the forged signature of a nurse, which falsely indicated that such services had been provided. Scott also asked this nurse to falsely state to investigators that she had continued to work for the company even after her employment had ceased.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for HHS, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.

Assistant U.S. Attorney Alan Salsbury prosecuted the case.

Plaquemines Parish Man Sentenced for Federal Drug Trafficking Crime

 NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DALE PHILLIPS, age 40, a resident of Plaquemines Parish, Louisiana, was sentenced on June 30, 2021 to 151 months imprisonment after previously pleading guilty to one count of  distributing cocaine in violation of Title 21, United States Code, Section 841.

According to the Indictment, PHILLIPS conspired with others to distribute cocaine, obtained from the Houston, Texas area, in Plaquemines Parish.

The Honorable U.S. District Judge Jane Triche Milazzo sentenced PHILLIPS as a “Career Offender” to 151 months imprisonment and payment of a $100 special assessment fee, to be followed by a three-year term of supervised release.

The case was prosecuted by Assistant United States Attorney Maurice Landrieu and was investigated by the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office.

Waterbury Man Sentenced to 87 Months in Prison for Role in Heroin and Fentanyl Trafficking Ring

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that FRANCIS AYBAR-PEGUERO, also known as “Grena,” 29, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release, for his role in a heroin and fentanyl trafficking ring.  Judge Bryant also ordered Aybar-Peguero to pay a fine of $30,000.

According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County.  The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.

On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge.  On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin.  Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.

The investigation revealed that Aybar-Peguero received fentanyl and heroin from members of the Sosa-Ortiz organization and sold the drugs out of his business, the Corner Mini market located on East Farm Road in Waterbury.

Aybar-Peguero and several co-defendants were arrested on October 29, 2019.  On that date, investigators executed search warrants at five locations, including the Corner Mini Market, and seized a total of approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.

Further investigation revealed that the Corner Mini Market was primarily being used by Aybar-Peguero to distribute narcotics and to launder drug proceeds.

Law enforcement seized approximately $98,000 from Aybar-Peguero’s business bank account.

On September 30, 2020, Aybar-Peguero pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, and one count of concealment money laundering.

Aybar-Peguero, who is released on bond, is required to report to prison on August 25, 2021. 

Sixteen individuals were charged as a result of this investigation.  Sosa-Ortiz has pleaded guilty and awaits sentencing.

This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department.  The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, and Lauren Clark through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Navajo man sentenced to 30 years in prison for 2017 murder of tribal police officer

             ALBUQUERQUE, N.M. – Kirby Cleveland, 37, of Prewitt New Mexico, and an enrolled member of Navajo Nation, was sentenced on June 28 in federal court to 30 years in prison for second-degree murder for killing Houston James Largo, a tribal police officer for the Navajo Nation. Cleveland pleaded guilty on Dec. 12, 2019.

            In his plea, Cleveland admitted to killing Largo with callous and wanton disregard for human life on March 11, 2017, in McKinley County, New Mexico, on the Navajo Nation.  According to court records, Cleveland became drunk and angry while at home with his children and his common law wife, who called the police. When Officer Largo responded to the home, Cleveland shot Officer Largo in the head, killing him.  Cleveland then fled the scene.  State, local, and tribal law enforcement conducted a large-scale search for Cleveland and located him the next morning hiding under a rock about a mile and a half away.

            “Kirby Cleveland’s murder of Officer Houston Largo was a cowardly, hateful act,” said Fred J. Federici, Acting U.S. Attorney for the District of New Mexico. “But the response of law enforcement upon learning that Officer Largo had been senselessly killed while he was bravely serving the people of the Navajo Nation and New Mexico, exemplifies the concern that all law enforcement officers in our state have for those who risk their lives while protecting the public. Within minutes of learning of the shooting, dozens of officers from different departments converged on the tragic scene to look for the killer. Officer Largo’s service and sacrifice in the line of duty were exemplary, and the public should know that law enforcement and the U.S. Attorney’s Office will spare no resource in the investigation and prosecution of anyone who takes the life of an officer in New Mexico.”

             “All too often, law enforcement officers are called upon to sacrifice their lives to protect their communities,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “While the loss of Houston James Largo is a tragedy that affects us all, his courage and devotion to duty should be an inspiration to everyone who wears the badge. The FBI hopes this lengthy prison sentence will provide some measure of justice and peace for Officer Largo's family and co-workers.”

             “Officer Largo will always be remembered as a frontline warrior who devoted his life to serving and protecting our Navajo people,” said Navajo Nation President Jonathan Nez. “Our prayers are with his family, his fellow officers and his community as they continue on the path of healing. I appreciate the support and commitment of Police Chief Francisco, Mr. Delmar and Council Delegate Edmund Yazzie for Officer Largo’s family and all of our Navajo Police Officers. We will continue to pray for strength, comfort and healing for the Largo family.”

              “Officer Houston James Largo was an outstanding officer who went above and beyond his duty to help our community and the people we serve, said Navajo Chief of Police Philip Francisco.  “Houston was young and ambitious and I have no doubt he would have become a great leader within our department. It is heartbreaking to think of how young he was and all that he could have done but we will keep his memory alive and remember his courage, his character, and the light he brought to the Navajo Police Department.”

               “Justice was administered to its extent according to the guidelines provided to the court,” said Jesse Delmar, Director of the Navajo Division of Public Safety. “We appreciate all those who were instrumental in bringing justice for Houston and his family.  Officer Largo was a young man who had the potential to become one of the best for this department and the Navajo Nation, and it is painful to know he was taken at such a young age. He had so much to offer as an officer, and it is just unfortunate this happened to our people. We will continue to stand with Houston's family in prayers and comfort.”

              Cleveland also pleaded guilty to violating the terms of his supervised release from a previous assault conviction involving an attack on a woman with a baseball bat. Cleveland failed to abstain from alcohol and complete a residential reentry program as ordered by the court. 

              Upon his release from prison, Cleveland will be subject to four years of supervised release.

              The FBI and the Crownpoint, Shiprock and Chinle offices of the Navajo Nation Department of Public Safety investigated this case with assistance from the New Mexico State Police, McKinley County Sheriff’s Office, the Albuquerque Police Department and Burlington Northern Santa Fe Railroad.  Assistant U.S. Attorneys Joseph M. Spindle and Jeremy Peña prosecuted the case.

Boston Gang Associate Pleads Guilty to Cocaine Trafficking

 BOSTON – A Boston gang associate pleaded guilty on Monday, June 28, 2021 to his role in a cocaine trafficking conspiracy.

Michael Toussaint, 40, of Hyde Park, pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine and cocaine base. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 2, 2021.

In June 2020, Toussiant was charged along with 23 others as part of Operation Snowfall.  According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.

The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Toussaint is the fifth defendant to plead guilty in the case.

During the investigation, investigators identified Toussaint as a drug customer and distributor for co-defendant Hassan Monroe, who was a significant supplier to co-defendant Kenji Drayton, the leader of the drug-trafficking organization. Over the course of the investigation, Monroe provided a large quantity of cocaine to Toussaint for the purpose of drug trafficking. Monroe has agreed to plead guilty and Drayton pleaded not guilty. 

The charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Mendell’s Organized Crime and Gang Unit are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Ohio Woman Indicted on Federal Drug and Firearms Charges

 PITTSBURGH, PA - A resident of Conneaut, Ohio has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.

The three-count Indictment, returned on June 8 and unsealed today, named Jennifer Glasscock, age 36, as the sole defendant.

According to the Indictment, on or about November 30, 2020, Glasscock possessed with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine, a quantity of a mixture and substance containing amounts of heroin, fentanyl, and cocaine, a quantity and mixture of a substance containing LSD, and a quantity of a mixture and substance containing oxycodone. The Indictment further charged Glasscock with possessing a firearm in furtherance of this drug trafficking crime. The Indictment finally alleged that Glasscock, a convicted felon, possessed a firearm and ammunition.

The law provides for a maximum total sentence of life in prison, a fine of $8,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.

The Pennsylvania State Police, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

St. John The Baptist Man Sentenced on Federal Drug and Firearms Charges

 NEW ORLEANS, LA. – U.S. Attorney Duane A. Evans announced that a St. John the Baptist man was sentenced on June 16, 2021 to 14 years in prison for violating federal drug and firearms laws.

According to court documents, JONATHAN WEBRE, age 35, a resident of Reserve, Louisiana, was indicted on August 29, 2019 by a Federal Grand Jury in a three-count indictment. In Count 1, WEBRE was charged with distribution of five grams or more of methamphetamine in violation of 21 U.S.C 841(a)(1) and 841(b)(1)(b),  In Count 2, WEBRE was charged with possession with the intent to distribute 50 grams or more of methamphetamine in violation of 21 U.S.C. 841(a)(1) and 841(b)(1)(A).  Lastly, in Count 3, WEBRE was charged with being a felon in possession of a firearm in violation of 18 U.S.C. 922 (g)(1) and 924(a)(2).  WEBRE pled guilty to all three charges on October 23, 2019.  WEBRE’S sentencing has been postponed numerous times because of the COVID-19 pandemic. 

These charges stemmed from an investigation by both the St. John the Baptist Sheriff’s Office and the United States Drug Enforcement Administration into the illegal activities of WEBRE over the last two years.

At his sentencing on June 16, 2021, Federal District Court Judge Lance Africk sentenced WEBRE to serve 168 months (14 years) for the two drug charges, Counts 1 and 2, and to serve 120 months (10 years) for Count 3, the federal firearms violation.  All sentences were ordered to be served concurrently.

U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration (D.E.A.), the St. John The Baptist Parish Sheriff’s Office, and the St. John the Baptist District Attorney’s Office.  Assistant United States Attorney Maurice Landrieu prosecuted the case.

Dominican National Arrested for Illegal Reentry

 BOSTON – A Dominican national was arrested yesterday for illegally reentering the United States after deportation.

Melvin Baez Peguero, 46, a Dominican national residing in Boston, was indicted on one count of unlawful reentry of a deported alien. Peguero was detained following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein.

According to the charging documents, Peguero was previously removed from the United States in April 2013, and subsequently found in Boston in November 2020.

The charge of illegal reentry provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. Peguero will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathanial R. Mendell and William S. Walker, Acting Special Agent in Charge of the Homeland Security Investigations made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

Hunterdon County Man Admits Receipt and Possession of Child Pornography

 TRENTON, N.J. – A Hunterdon County, New Jersey, man today admitted receiving and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Daniel Murphy, 48, of Lebanon, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography

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

From Jan. 1, 2017, through Nov. 20, 2019, Murphy received and possessed images of minors being sexually abused.

The charge of receipt of child pornography carries a statutory mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $250,000. The charge of possession of child pornography carries a maximum sentence of 20 years and a fine of up to $250,000. Sentencing is scheduled for Nov. 3, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark.

Judge sentences man studying abroad from China for possessing child pornography

 ST. LOUIS – United States District Court Judge Stephen R. Clark sentenced Zetian Liu to 60 months in prison today. In March of this year, the 25-year-old St. Louis, Missouri resident pleaded guilty to one count of possession of child pornography. 

On August 11, 2019, a detective with the St. Louis Metropolitan Police Department’s City Cyber Crimes Unit identified a specific IP address from a computer being used to extend an offer to participate in the distribution of child pornography through the use of a file sharing network. An investigation ensued which led to the discovery of computer files containing numerous depictions of child pornography and the arrest of Liu.

The investigation developed in the following manner: officers were able to determine that the IP address was connected to Liu’s residence in St. Louis. On September 12, 2019, officers executed a federal search warrant at this residence. Liu, a Chinese citizen, who was attending school here, was interviewed with the help of an interpreter. Liu told investigators that although he initially downloaded child pornography inadvertently, he later began to download it intentionally.  He told investigators the child pornography could be found on his laptop and a flash drive.  Officers were able to download files from the laptop and flash drive containing numerous videos and pictures depicting child pornography.

The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated the case. Assistant United States Attorney Rob Livergood is handling the case.

 

Justice Department to Provide Funding for Body-Worn Cameras to Small, Rural and Tribal Law Enforcement Agencies

 The Justice Department announced today that the Bureau of Justice Assistance (BJA) is releasing $7.65 million in a competitive microgrant grant solicitation that will fund body-worn cameras (BWCs) to any law enforcement department with 50 or fewer full-time sworn personnel, rural agencies (those agencies within non-urban or non-metro counties); and federally-recognized Tribal agencies.

“The Justice Department is committed to providing law enforcement with valuable resources to increase accountability and build trust with the communities they serve,” said Attorney General Merrick B. Garland. “Today we encourage all small, rural and Tribal law enforcement agencies to apply for funding for this important tool that will enhance protection for both officers and citizens.”

“The grant solicitation today will help law enforcement agencies and their communities improve evidentiary outcomes, and enhance the safety of, and improve interactions between, officers and the public,” said Acting Director Kristen Mahoney of BJA. “Importantly, this grant program will make it easier for small, rural and Tribal law enforcement agencies to apply for funding. It’s an online application that will streamline the grant process for these agencies.”

Funds must be used to purchase or lease body-worn cameras and may include expenses reasonably related to BWC program implementation. Funding can be used to support pilot BWC programs, establish new BWC implementation or expand existing programs.

BJA has selected Justice & Security Strategies Inc. to administer the grant program through a cooperative agreement. For more information and to apply, please visit https://www.srtbwc.com. All applications are due by August 31, 2021.

Agencies interested in body-worn camera funding that do not meet the eligibility criteria for small, rural and Tribal as described in the microgrant solicitation should note that the FY 2021 Body-Worn Camera Policy and Implementation Program to Support Law Enforcement Agencies grant solicitation is currently open. That solicitation will close on July 12, 2021. The anticipated total amount to be awarded under that solicitation is $27.5 million.

Today’s announcement follows Deputy Attorney General Lisa O. Monaco’s recent memo  to the department’s law enforcement components directing them to develop and submit for review their plans for BWC policies that require agents to wear and activate BWC recording equipment for purposes of recording their actions during: (1) a pre-planned attempt to serve an arrest warrant or other pre-planned arrest, including the apprehension of fugitives sought on state and local warrants; or (2) the execution of a search or seizure warrant or order. The Deputy Attorney General will work with the department’s law enforcement components in the coming weeks to review their policies and finalize implementation plans. 

For resources to support the development and implementation of body-worn camera programs, the Department of Justice has created a Body-Worn Camera Tool Kit.

The Bureau of Justice Assistance helps to make American communities safer by strengthening the nation’s criminal justice system. BJA’s grants, cooperative agreements, training and technical assistance and policy development services provide state, local and Tribal governments with the cutting-edge tools and best practices they need to reduce violent and drug-related crime, support law enforcement and combat victimization.

BJA is a component of the Office of Justice Programs, U.S. Department of Justice. The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov

Davenport Man Sentenced to Federal Prison for Drug Charge

 DAVENPORT, IOWA – A Davenport man, Donell Jamar Hines, age 32, was sentenced on Monday, June 28, 2021, by United States District Court Judge Stephanie M. Rose to 57 months in prison for Possession with Intent to Distribute a Mixture and Substance Containing Cocaine Base, Cocaine, and Heroin. This sentence is to be served consecutively with a supervised release revocation sentence of 24 months for a prior offense that Hines had been sentenced to in 2016. The total sentence impose was 81 months in prison. Hines was ordered to serve a three-year term of supervised release to follow his prison term as well as pay $100.00 to the Crime Victims’ Fund.

According to court documents, Hines was identified by law enforcement as a participant in drug activities. On September 25, 2019, members of the Davenport Police Department executed a search warrant on the known residence of Hines in the area of Betsy Ross Place in Davenport. During the search, officers located a large amount of United States currency, multiple plastic baggies of drugs including cocaine and heroin, and a digital scale. Following laboratory testing, the controlled substances recovered were determined to be approximately 166 grams of cocaine, 12 grams of cocaine base, and 4 grams of heroin. On February 19, 2021, Hines admitted that on or about September 25, 2019, he was knowingly and intentionally in possession of the controlled substances mentioned above and had the intention to distribute some of all the controlled substances to another person. Hines, furthermore, admitted to the currency found being proceeds from his activity in distributing controlled substances.

Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.

The Davenport Police Department investigated the case.

Defendants Charged With The Murder Of Maurice Spagnoletti Are Now Charged With Being Members Of An Enterprise Engaged In Murder

 SAN JUAN, Puerto Rico – Yesterday, a federal grand jury issued a fourth superseding indictment charging Luis Carmona-Bernacet, Yadiel Serrano-Canales, Rolando Rivera-Solis, Alex Burgos-Amaro, Alan Lugo-Montalvo, and Fabiany Almestica-Monge with being members of an enterprise engaged in murder and drug trafficking. Moreover, Carmona-Bernacet, Serrano-Canales, Rivera-Solis, and Burgos-Amaro are now charged with committing murder in aid of that enterprise. Among these murders is that of Maurice Spagnoletti, who was killed on June 15, 2011, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.

The defendants were previously charged with committing murder in furtherance of drug trafficking. The new superseding indictment charges the defendants with murdering in aid of an enterprise engaged in drug trafficking and murder. 

If convicted, the defendants face up to life in prison.  Indictments contain only charges and are not evidence of guilt.  Defendants are presumed to be innocent until and unless proven guilty.

Alberto López-Rocafort, Chief of the Gangs Section and Assistant U.S. Attorneys Kelly Zenón and Victor O. Acevedo-Hernández oversee the prosecution of the case. The Federal Bureau of Investigation collaborated during the investigation.

Man Sentenced To Life In Prison For Carjacking Murder

 SAN JUAN, Puerto Rico – U.S. District Court Judge Francisco A. Besosa sentenced Argenis Bruzón-Velázquez to life in prison for the carjacking murder of David Dubique on April 14, 2017, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.

According to the facts admitted during the change of plea hearing, on the evening of April 14, 2017, Argenis Bruzón-Velázquez, Candy Cedeño-González, Tatiana Yari Giusti Saldaña, Ariel González-Almestica, and an adult male whose alias is “Cachete” were socializing at the El Prado Public Housing Project, and discussed the possibility of committing a robbery.  Giusti-Saldaña mentioned that she knew people in Condado could have money.  Bruzón-Velázquez, his co-defendants and Cachete then traveled to Condado in González-Almestica’s vehicle, a red Dodge Caliber. Upon arriving in Condado, Cedeño-González and Giusti-Saldaña exited the Dodge Caliber and went to the Stop and Go bar located on Magdalena Avenue.

At the Stop and Go bar, Cachete and Bruzón-Velázquez remained in the vicinity, observing as Cedeño-Gonzalez and Giusti-Saldaña spoke to several men. At one point, Cedeño-Gonzalez and Giusti-Saldaña walked with one of the men with whom they had been speaking—David Dubique—across the street from the Stop and Go bar. Bruzón-Velázquez followed Giusti-Saldaña and Dubique.  Once Giusti-Saldaña and Dubique arrived at Dubique’s vehicle, a Ford Transit, Bruzón-Velázquez and Cachete forced Dubique into his vehicle at gunpoint, departed the area in the Ford Transit and drove to a desolate area in Aguas Buenas.  There, Bruzón-Velázquez forced Dubique to exit the Ford Transit and shot him multiple times with a .40 caliber Glock pistol.            

After shooting and killing Dubique, Bruzón-Velázquez drove the Ford Transit to a location a short distance away; Cachete rode in the Ford Transit with Bruzón-Velázquez.  González-Almestica, Giusti-Saldaña, and Cedeño-González followed the Ford Transit inside the Dodge Caliber; then abandoned the Ford Transit and returned to the El Prado Public Housing Project in the Dodge Caliber.

In a separate incident, on June 21, 2017, Bruzón-Velázquez brandished a rifle and another individual brandished a handgun while attempting to dispossess an adult male of his Mercedes Benz in Barrio San Antonio de Caguas.  When confronted with an armed individual who attempted to intervene, Bruzón-Velázquez discharged the rifle he was carrying.  Bruzón-Velázquez and the individual he was with then fled the scene. Judge Besosa imposed a 15-year sentence to be served consecutively to the life sentence he imposed in connection with the incident involving the murder of Dubique.

The Federal Bureau of Investigation was in charge of the investigation.  Assistant United States Attorneys Alexander Alum and Jenifer Y. Hernández prosecuted the case.

Fifth Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan Scheme

 NEWARK, N.J. – A New York man today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, Acting U.S. Attorney Rachael A. Honig announced.

Cesar Mendez, 49, of New York City, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud.

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

Between March 2016 and September 2019, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Mendez and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.

Four of Mendez’s conspirators, Edward Espinal, Gladys Collins, Jennie Frias, and Raymundo Torres, have previously pleaded guilty to charges relating to their role in the Cash Flow bank fraud conspiracy and are awaiting sentencing.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 1, 2021.

Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).

Acting U.S. Attorney Honig credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the U.S. Attorney’s Office’s Special Prosecutions Division and J. Stephen Ferketic of the Health Care Fraud Unit in Newark.

Members of Drug Trafficking Organization Sentenced to Over Nine Years in Federal Prison for Baltimore County Cocaine Distribution Conspiracy

 Baltimore, Maryland – U.S. District Judge George L. Russell,III sentenced Tony Lee Bauer age 39, of Baltimore, Maryland to 110 months in federal prison followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine as well as possession of a firearm in furtherance of drug trafficking.

U.S. District Judge George L. Russell, III also sentenced co-defendant Rondell Ronald Hackett, age 43, of Middle River, Maryland to 138 months in federal prison for the same charge.

The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.

According to Bauer and Hackett’s plea agreements, in December 2017 HSI and the Baltimore County Police Department were investigating a drug trafficking organization in Baltimore County, Maryland.  Bauer was identified as a member of the organization, along with Rondell Ronald Hackett, Aaron Kenith Waller, Gary Gaines-Hidalgo, Adrian Gilberto Herrera-Diaz, and Carlos Alejandro Castro-Castro.

 In December 2017, Gaines arranged to purchase kilograms of cocaine for $26,500/kilogram from a confidential source (CS), who was working with law enforcement.  Thereafter, Gaines arranged to resell the cocaine to Herrera for $28,000/kilogram. Gaines and Castro arranged to have 10 kilograms of cocaine delivered to them in Baltimore.

As detailed in their plea, on January 26, 2018, Gaines and Castro entered the United States from Mexico, then traveled to Baltimore.  Gaines and Castro agreed to sell three kilograms of cocaine to Herrera, Bauer, and Waller, with additional sales of kilograms of cocaine to follow the initial purchase.  Gaines agreed to meet the CS in the parking lot of a Baltimore hotel, and told Herrera, Bauer, and Waller to also meet him there. 

Three cars arrived at the agreed-upon location, one driven by the CS.  Hackett drove one vehicle with Herrera in the front passenger seat and Gaines in the driver’s side rear passenger seat.  Waller drove the third vehicle, with Bauer in the front seat and Castro in the rear passenger seat.  Bauer, Herrera, and Gaines exited their vehicles and met with the CS.  The CS then opened the trunk of his car, which contained two kilogram-shaped packages, one of powder cocaine and one kilogram of “sham,” or fake narcotics.  Gaines placed his hand in the bag containing the packages and members of HSI and the MSP Tactical Team approached.  Hackett and Waller attempted to drive away, but were stopped.  In Hackett’s car, a loaded 9mm semi-automatic pistol was recovered from the center console and a loaded .45-caliber semi-automatic pistol was recovered from the rear passenger-side floor of the vehicle.  On the rear seat was a vinyl bank bag containing bank-banded cash and a white bag containing cash.  A search of Bauer also recovered banded-up amounts of cash.  Bauer and Hackett knowingly possessed the .45 caliber firearm to advance the objectives of the conspiracy.  In all, law enforcement recovered $129,583 in cash from the defendants, their vehicles, and their residence.

Gary Gaines-Hidalgo, age 28, and Carlos A. Castro-Castro, age 36, both of Baja California, Mexico, pleaded guilty to the drug conspiracy and was sentenced to 37 months in federal prison.

Aaron Kenith Waller, age 52, of Crofton, Maryland, previously pleaded guilty to the drug conspiracy and was sentenced to 51 months in federal prison.

Adrian Herrera-Diaz, age 29, of Baltimore County, Maryland is scheduled to be sentenced before U.S. District Judge George L. Russell, III on July 20, 2021 at 10 a.m.

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.

Acting United States Attorney Jonathan F. Lenzner praised the HSI, Baltimore County Police Department, the Maryland State Police Department, and the Harford County State’s Attorney’s Office for their work in the investigation.  Mr. Lenzner thanked Special Assistant U.S. Attorney Christopher J. Romano who prosecuted the case.

Previous Drug Offender and Cocaine Supplier Pleads Guilty to Conspiracy to Distribute Controlled Substances and Possession with Intent to Distribute Cocaine

 Baltimore, Maryland – Mark Williams, a/k/a Swanny, age 52, of Elkton, Maryland, pleaded guilty yesterday to conspiracy to distribute controlled substances and possession with the intent to distribute cocaine.  Williams has prior criminal convictions including a 2001 drug felony offense for the distribution of cocaine. Two other defendants, Kevin Johnson and Troy Neal, were indicted with Williams in 2020 and are pending trial September 27, 2021.  An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; and Cecil County Sheriff Scott Adams.

According to his guilty plea, the Maryland State Police, Cecil County Sheriff’s Office, and the Department of Homeland Security identified Williams and two co-conspirators as suppliers of cocaine after an extended investigation dating back to 2019.  The conspiracy members distributed crack cocaine to multiple customers in Elkton, Maryland.

During the investigation, the Cecil County Circuit Court issued an order to authorize the interception of wire and electronic communications of Williams and his co-conspirators.  Intercepted text and telephone communications revealed Williams as a member of the drug distribution conspiracy.

Law enforcement intercepted at least eight instances in which Williams, or his co-conspirators, conversed in coded conversations about drug activity. For example, on May 27, 2020, after a series of calls between a co-conspirator and a customer, police observed Williams and a co-conspirator visit a customer’s residence. Shortly after their arrival, two male customers entered the co-conspirator’s residence.  After one of the two male customers left the residence, police conducted a traffic stop and seized 3.6 grams of crack cocaine.

As stated in his plea agreement, after a series of coded calls among Williams and two co-conspirators law enforcement covertly surveilled the three men depart Neal’s residence and travel to the Bronx in New York, a known source area for cocaine.  The next day, on June 14, 2020, law enforcement observed the three men travel back to a Maryland residence.  Law enforcement executed a search warrant at a co-conspirator’s residence and recovered 497 grams of compressed suspected cocaine, several bags of suspected marijuana, a digital scale, and several cell phones.

Police arrested Williams, Neal and Johnson. Each were charged in Cecil County with various drug-related crimes.

Other evidence corroborates Williams’s involvement in drug trafficking including a lack of legitimate employment to support his life expenses.  According to the IRS, Williams had reportable wages of approximately $6,000 in 2019 and less than $5,000 in 2020. Additionally, two witnesses would advise that they regularly purchased crack cocaine from Williams and a co-conspirator from February 2020 to May 2020.           

Williams and the government have agreed that, if the Court accepts the plea agreement, Williams will be sentenced to seven years in federal prison.  U.S. District Judge Richard D. Bennett has scheduled sentencing for October 5, 2021 at 11 a.m. 

Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police Department, and the Cecil County Sheriff’s Office for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorneys Sandra Wilkinson and Kim Y. Oldham, who are prosecuting the case.

Essex County Man Sentenced to 82 Months in Prison for Carjacking and Assaulting U.S. Postal Service Employee

 NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 82 months in prison for assaulting and carjacking at knifepoint a U.S. Postal Service employee, Acting U.S. Attorney Rachael A. Honig announced.

Wallace Johnson, 32, of Newark, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with carjacking and assaulting a federal employee. Judge Vazquez imposed the sentence by videoconference today.

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

Johnson admitted that on June 6, 2020, he walked up to a postal employee who was sitting in the car’s driver seat while on a break from delivering mail in Newark. Johnson held a box cutter against the postal employee’s neck and the box cutter’s blade pierced the postal employee’s skin, causing a small laceration. While Johnson held the box cutter against the postal employee’s neck, he demanded that the postal employee get out of the car and leave everything inside of the car. After the postal employee got out of the car, Johnson entered the car and drove away.

Shortly thereafter, law enforcement officers saw the carjacked car driving at a very high rate of speed and attempted to conduct a car stop, not knowing at that time about the carjacking.  During a subsequent car chase, Johnson crashed the car and fled on foot. Several minutes later, during a canvass of the nearby neighborhood, law enforcement officers found Johnson as he hid behind a parked car and then arrested him following a foot pursuit. Law enforcement officers recovered the postal employee’s cellular telephone and the boxcutter that Johnson used during the assault and carjacking.

In addition to the prison term, Judge Vazquez sentenced Johnson to three years of supervised release.

Acting U.S. Attorney Rachael A. Honig credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

New Haven Man Charged with Production of Child Pornography

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in Hartford returned an indictment yesterday charging EDWARD WALKER, 48, of New Haven, with two counts of production of child pornography.

According to indictment, in June and July 2019, Walker knowingly employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing two videos of that conduct.

Walker is currently in federal custody awaiting trial on sex trafficking charges in the Southern District of Florida.

If convicted of the new charges in the District of Connecticut, Walker faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, on each count.

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

This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Angel M. Krull.

Las Vegas Man Pleads Guilty To Distributing Hundreds Of Child Pornography Images And Videos Via Instant Messaging App

 LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to trading over 600 child pornography images and videos using Kik Messenger, an instant messaging application on mobile devices.

According to court documents and admissions made in court, Cyrus Orlando Ortega, 27, distributed those child pornography images and videos to other Kik Messenger users, in exchange for child pornography from those users. The images and videos depicted underage victims — some as young as toddlers — being sexually exploited.

Ortega pleaded guilty to one count of distribution of child pornography. He faces a mandatory minimum statutory penalty of five years in prison, and a statutory maximum penalty of 20 years in prison and a $250,000 fine. U.S. District Judge Jennifer A. Dorsey scheduled sentencing for October 4, 2021.

Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.

This case was investigated by the Las Vegas Metropolitan Police Department and FBI. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.

Philadelphia Man Admits Years-Long Sexual Abuse of Eight-Year-Old Victim, Including Manufacturing Pornography

 PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Herbert Smith, 33, of Philadelphia, PA, pleaded guilty in federal court to seven counts of manufacturing child pornography. Smith was indicted as a result of his extended sexual abuse for more than two years of a child who was just eight years old when Smith began molesting her.  

The defendant’s sexual abuse of this child victim came to light when Philadelphia Police served an arrest warrant for Smith for his sexual assault of a different nine-year-old victim. When Police arrested the defendant, officers discovered him lying in bed with that victim. Police seized Smith’s electronic equipment, and the subsequent forensic analysis by the Federal Bureau of Investigation revealed hundreds of images of Smith’s horrific sexual assaults against an eight-year-old child, including rape and other sexual abuse of the child after she was given medication to make her sleep. Smith recorded his abuse of the child victim, saved the images and videos on his electronic equipment, and in some cases, uploaded the images to his online storage account.

Smith was taken into custody by Philadelphia Police in August 2019. He has been detained in federal custody since he was indicted federally in September 2019. As a result of his conviction on seven counts of manufacturing child pornography, he faces up to 210 years in prison, which includes a mandatory minimum 15 years, five years up to a lifetime of supervised release, a fine of up to $1,750,000, and special assessments of up to $35,700. Smith must also register as a convicted child sex offender under state law.

“Smith is a predator of young children and has been for years,” said Acting Assistant U.S. Attorney Williams. “With this conviction, and Smith now facing up to 210 years in prison, his victimization of our most vulnerable citizens has finally come to an end. Thank you to all of our agency partners who remain determined to identify, prosecute and convict child predators like this defendant.”

“Herbert Smith admits inflicting repeated horrific sexual assaults on a little girl, and recording the abuse so he could savor it whenever he wanted,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “His actions are unconscionable and the harm he’s done, immeasurable. It’s cases like this that drive the FBI and our partners, as we work to protect our community’s children from depraved predators like Smith.”   

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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.

Murrysville Felon Charged with Illegally Possessing Fentanyl, a Firearm and Ammunition

 PITTSBURGH - A resident of Murrysville, Pennsylvania has been indicted by a federal grand jury on charges of violating federal firearms and narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.

The two-count Indictment named Rory Elliot Ashby, age 45, as the sole defendant.

According to the Indictment, on June 3, 2021, Ashby was found to be in possession with the intent to distribute 40 grams or more of fentanyl. The Indictment further alleges that Ashby possessed a firearm and ammunition after having been convicted of a felony. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.

The law provides for a maximum total sentence of not less than five years in prison, a fine of not more than $5,000,000.00, a term of supervised release of at least four years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.

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

Pittsburgh Man Charged with Federal Drug Law Violation

 PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.

The one-count Indictment named Randy Cross, age 38, as the sole defendant.

According to the Indictment presented to the court, on March 10, 2021, the defendant was found to be in possession of a mixture containing heroin and fentanyl.

The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.

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

Two Men Charged With Conspiring To Steal Guns From Suburban Chicago Firearms Dealer

CHICAGO — Two men have been charged in federal court with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.

RONEAL NIGHTENGALE and ERIC ROWE conspired to steal the guns from Shoot Point Blank, a firearms dealer and shooting range in Naperville, Ill., on June 1, 2020, according to an indictment returned in U.S. District Court in Chicago.  The indictment alleges that Nightengale drove Rowe and an unindicted co-conspirator to Shoot Point Blank around 9:00 p.m., and that Rowe and the co-conspirator burglarized the facility and stole the guns.

In addition to the conspiracy charge, the indictment charges Nightengale and Rowe with stealing the firearms, possessing the stolen firearms, and illegally possessing the firearms as previously convicted felons. 

Nightengale, 34, of Glendale Heights, Ill., was arrested earlier this month in Arizona.  He pleaded not guilty Tuesday during his arraignment before U.S. Magistrate Judge Sunil R. Harjani in Chicago.  A detention hearing is set for Thursday at 9:15 a.m.

Rowe, 36, of Bellwood, Ill., is not in custody and a warrant has been issued for his arrest.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Robert Marshall, Chief of the Naperville Police Department.  Substantial assistance was provided by the DuPage County Sheriff’s Office.  The government is represented by Assistant U.S. Attorney Jared C. Jodrey.

Each count of stealing firearms from a licensed firearms dealer, illegally possessing stolen firearms, and illegally possessing firearms as a convicted felon carries a maximum sentence of ten years in federal prison, while the conspiracy charge is punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.  The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Watertown Man Pleads Guilty to Federal Drug and Firearms Charges

 Daniel J. Borg Admits to Possessing Heroin/Fentanyl and Sawed-Off Shotgun

SYRACUSE, NEW YORK – Daniel J. Borg, 43, of Watertown, New York, pled guilty yesterday to possession of controlled substances (heroin/fentanyl and eutylone) with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, possession of a sawed-off shotgun, and possession of a firearm by a convicted felon, announced Acting United States Attorney Antoinette T. Bacon,  John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Jefferson County District Attorney Kristyna Mills.

As part of his guilty plea, Daniel J. Borg admitted that on January 21, 2021 he was in possession of 305 grams of eutylone as well as 30 separate bags of a heroin/fentanyl mixture in an Audi automobile that he parked at a self-storage area in Watertown where he leased a unit. Detectives from the Metro-Jefferson Drug Task Force (Met-Jeff) surveilled Borg as he was about to enter his locked storage unit. After taking Borg into custody and recovering the drugs from the Audi, Met-Jeff Detectives obtained Borg’s consent to search his locked storage unit. Inside the storage unit Met-Jeff Detectives located a safe containing 500 separate small plastic bags, each holding a small quantity of a heroin/fentanyl mixture. Also recovered from the storage unit was a sawed-off .410-gauge shotgun illegally possessed by Borg, who was previously convicted of five (5) prior felony offenses.    

Sentencing is scheduled October 19, 2021, at which time Borg faces a maximum sentence of up to 20-years imprisonment, and a fine of up to $1,000,000.00, and a minimum term of supervised release of 5 years and up to life for his conviction for possession with intent to distribute controlled substances. He faces a mandatory consecutive sentence of 5-years,  and up to life for his conviction for possession of a firearm in furtherance of a drug trafficking crime, and up to 10-years imprisonment for possession of a sawed-off shotgun, and possession of a firearm by a previously convicted felon. 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 is being investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, and Special Agents from the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Richard Southwick.

Texas Man Pleads Guilty to a Violation of the Federal Controlled Substances Act

 NEW ORLEANS, LOUISIANA –GUSTAVO BALDERAS, age 34, a resident of Texas, pled guilty on June 30, 2021 before United States District Court Judge Martin L. C. Feldman to a one-count superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute five hundred grams or more of cocaine hydrochloride, announced U.S. Attorney Duane A. Evans.

On February 9, 2018, a Drug Enforcement Administration (DEA) Task Force learned that Rafael Molina, an upper lever narcotics trafficker, was in route to Thibodaux, Louisiana to deliver two kilograms of cocaine hydrochloride the following day.  Task Force officers established surveillance in Thibodaux and observed Molina, riding in a white pickup truck, and BALDERAS and an individual identified as Michael Garza, riding in a black Chrysler 300, registered to Garza, at a motel in Thibodaux.  BALDERAS and Garza entered the truck with Molina, and they drove from the motel.  Officers conducted a traffic stop on the truck, searched both vehicles, and located an ice chest in the Chrysler 300.  Inside the ice chest were two kilograms of cocaine hydrochloride. 

BALDERAS faces a mandatory minimum term of imprisonment of five years and a maximum term of forty years, a fine of up to $5,000,000.00, at least four years of supervised release following any term of imprisonment and a $100 special assessment fee. 

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. 

This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney André Jones.

Former Customs and Border Protection Officer Sentenced on Child Exploitation Charge

 Miami, Florida -- Defendant Fabio Lopez, 62, of Weston, Florida was sentenced last week by a federal district judge in Fort Lauderdale to 10 years in federal prison and a lifetime of supervised release for enticing a minor to engage in sexual activity.

According to court documents, Fabio Lopez, a former officer with Customs and Border Protection, enticed a 16-year-old child into attempting to produce child pornography.   Lopez met the child after befriending her mother while on duty in his official capacity at Miami International Airport. From July 2019 through March 2020, Lopez had a relationship with the child and texted her frequently.  According the factual proffer filed, Lopez fondled the child and offered her money in exchange for letting him take pornographic images of her.  Lopez was arrested in Davie when he arrived to meet with the child.  Prior to his arrival, Lopez had rented a local hotel room for the two and left a bag with lingerie for the child to wear.

Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the sentence.

HSI Miami investigated the case, with assistance from U.S. Customs and Border Protection Office of Professional Responsibility and Pembroke Pines Police Department.  The case was investigated as part of the South Florida Internet Crimes Against Children Task Force.  Assistant U.S. Attorney Jodi L. Anton prosecuted the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 20-cr-60081.

Medical Imaging Companies CEO Found Guilty of Running Massive Health Care Fraud Through the State Workers’ Comp System

           SAN DIEGO – The CEO of several Southern California-based medical imaging companies was found guilty by a federal jury today of running a scheme in which more than $250 million in claims were fraudulently submitted through the state workers’ compensation system for medical services procured through bribes and kickbacks to physicians and others.

          Sam Sarkis Solakyan, 40, of Glendale, was found guilty of one count of conspiracy to commit honest services mail fraud and health care fraud, and 11 counts of honest services mail fraud.

          Solakyan was the CEO of several medical-imaging companies, including the Glendale-based Vital Imaging Inc., and San Diego MRI Institute. Solakyan operated diagnostic imaging facilities throughout California, including the Bay Area, Los Angeles and Orange counties, and San Diego.

          According to the evidence presented at the eight-day trial, from no later than mid-2013 to November 2016, Solakyan conspired with Steven Rigler, a Solana Beach-based chiropractor; Fermin Iglesias, the former CEO of MedEx Solutions, a patient-scheduling company; and others to perpetrate a scheme in which physicians were paid bribes and kickbacks in exchange for the referral of workers’ compensation patients. The compensation offered to the corrupt doctors consisted of either cash or referrals of new patients in what is known as a “cross-referral” scheme.

          The conspirators obscured the true nature of their financial relationships in order to conceal the bribes and kickbacks, including by entering into various sham agreements such as contracts for “marketing,” “administrative services,” and “scheduling,” when in fact the money Solakyan paid amounted to volume-based, per- magnetic resonance imaging (MRI) scan bribes and kickbacks to induce physicians to refer and continue referring patients to Solakyan’s companies.

          Solakyan’s recruiters required physicians to refer a minimum number of patients to receive “cross-referrals,” and those referrals stopped if the physicians failed to meet the minimum quota. Solakyan’s recruiters – Fermin Iglesias, 41 of Glendale, and Carlos Arguello, 39, of Bonita – were paid more than $8.6 million for obtaining MRI referrals, payments which were concealed from patients and health insurers.

          Solakyan concealed his cash payments to Rigler for patient referrals by calling them “reports,” and in March 2015 he asked Rigler if Solakyan could “send my driver with your reports,” then stated, “I’ll have him contact you then I’ll just send him with your reports, buddy,” according to a September 2018 federal grand jury indictment.

          In total, Solakyan submitted and caused to be submitted more than $250 million in claims for medical services procured through the payment of bribes and kickbacks.

          Rigler pleaded guilty in November 2015 to one count of conspiracy to commit honest services mail fraud and was sentenced to six months in federal prison.

          Iglesias pleaded guilty in December 2016 to conspiracy to commit honest services mail fraud and health care fraud and was sentenced in February 2019 to five years in federal prison.

          Arguello pleaded guilty in August 2016 to conspiracy to commit honest services mail fraud and health care fraud and was sentenced in April 2019 to four years in federal prison.

          United States District Judge Cynthia A. Bashant has scheduled an October 4 sentencing hearing, at which time Solakyan will face a statutory maximum sentence of 240 years in federal prison.

          The FBI and the California Department of Insurance, Fraud Division, investigated this matter.

          Assistant United States Attorney Faraz R. Mohammadi of the Santa Ana Branch Office and Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section are prosecuting this case.

Texas Man Sentenced in Federal Court for Failure to Register as a Sex Offender

 Acting United States Attorney Dennis R. Holmes announced that a Texas man convicted of failure to register as a sex offender was sentenced on June 28, 2021, by U.S. District Judge Charles B. Kornmann.

Rene Alvarez DeLeon, Jr., age 45, was sentenced to 30 months in federal prison, followed by five years of supervised release.  He was also ordered to pay $100 to the Federal Crime Victims Fund.

DeLeon was indicted for failure to register as a sex offender by a federal grand jury on March 2, 2021.  He pled guilty to on May 11, 2021.

According to court documents, in April 2020, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration.  He is a sex offender by reason of a conviction for sexual assault of a child under the laws of the State of Texas, and he traveled in interstate commerce, and having entered, left, and resided in Indian country, while failing to register or update his registration.

This case was investigated by the U.S. Marshals Service.  Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.

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

Mexican National Sentenced to Federal Prison for Attempting to Smuggle Drugs and a Firearm into Mexico

 ALPINE – A federal judge today sentenced 37-year-old Mexican national Jose Miguel Lazarin-Zurita to 60 months in federal prison for attempting to smuggle methamphetamine and a firearm into Mexico earlier this year.

On March 5, 2021, Lazarin-Zurita pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of attempting to export to Mexico a rifle and several firearm-related accessories without a license. 

According to court records, Lazarin-Zurita attempted to cross into Mexico on January 27, 2021, at the U.S. Port of Entry in Presidio.  While inspecting the defendant’s vehicle, U.S. Customs and Border Protection officers discovered two plastic bags hidden in the engine compartment.  One bag contained 26 grams of methamphetamine; the other, 26 grams of cocaine.  Inside the vehicle’s seats, agents found a Kel-Tec PLR-16 rifle, a 60-round capacity drum magazine for 5.56mm ammunition and two empty 30-round 5.56mm magazines.

“This case represents the commitment of our law enforcement partners and our prosecutors to thwart smugglers’ attempts to pedal dangerous narcotics and firearms in and out of the country,” said U.S. Attorney Ashley C. Hoff. “We have and will continue to prosecute these important cases with full force.”

Along with USA Hoff, Erick P. Breitzke, Special Agent in Charge, Homeland Security Investigations (HSI), El Paso Division made today’s announcement.

HSI conducted this investigation.  Assistant U.S. Attorneys Eduardo R. Mendoza and Fidel Esparza III prosecuted this case.

Jury convicts Cuban national for assaulting federal officers

 CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a Cuban woman for assaulting two Border Patrol (BP) agents at the Javier Vega Checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.

The jury deliberated for approximately 25 minutes before convicting Yaniuska Ordaz-Echevarria, 31, following a one-day trial.

The jury heard that just before midnight on Jan. 31, Ordaz-Echevarria arrived at the checkpoint in Sarita as a passenger on a commercial bus. Law enforcement removed her in order to inquire more about her citizenship status. Ordaz-Echevarria possessed no identification or other documents indicating she was in the United States lawfully. Authorities then escorted her into the checkpoint building for further processing.

Once inside, Ordaz-Echevarria became irate with authorities, refusing to answer their questions. When law enforcement attempted to peaceably escort her into a holding cell, she swung her fists violently. Her aggressive behavior required multiple agents to attempt to restrain her, during which time she continued to kick and punch them.

Two of the BP agents injured at the checkpoint testified and described attempting to subdue Ordaz-Echevarria while she swung and kicked wildly at agents. The jury also saw exhibits documenting their injuries as well as a video depicting Ordaz-Echevarria’s belligerent acts.

The defense attempted to convince the jury that Ordaz-Echevarria’s actions were unintentional and that Ordaz-Echevarria was just angry about possibly being deported for the fourth time. They were not persuaded and found Ordaz-Echevarria guilty as charged.

U.S. District Judge David Morales presided over the trial and set sentencing for Sept. 28. At that time, Ordaz-Echevarria faces up to eight years imprisonment and a possible $250,000 maximum fine.

She has been and will remain in custody pending that hearing.

The FBI conducted the investigation. Assistant U.S. Attorneys Yifei Zheng and Dennis Robinson are prosecuting the case.

West Union Methamphetamine Dealer Who Sexually Assaulted a Woman Sentenced to More Than Sixteen Years in Prison

 A man who sexually assaulted a woman after he distributed methamphetamine to her was sentenced on June 25, 2021, to more than sixteen years in federal prison.

Herman Lee Ronnfeldt, age 56, from West Union, Iowa, received the prison term after a January 15, 2021 guilty plea to possession with intent to distribute methamphetamine.

Information from sentencing showed that Ronnfeldt, a convicted sex offender, was living in West Union, Iowa, in late 2018.  In December 2018, law enforcement officers searched his apartment and located more than eighty grams of methamphetamine.  Witnesses testified at sentencing that Ronnfeldt regularly distributed methamphetamine to people at his apartment.  On one such occasion, Ronnfeldt distributed methamphetamine to a woman that caused her to feel ill.  He then sexually assaulted her.     

Ronnfeldt was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  In sentencing Ronnfeldt, Judge Williams noted that Ronnfeldt’s criminal conduct had not slowed down with age, and that Ronnfeldt had continued to distribute dangerous drugs and commit sexual assaults.  Judge Williams found that the appropriate sentence was 224 months’ imprisonment.  Judge Williams adjusted the sentence to account for time Ronnfeldt had spent in custody for related offenses to 194 months and 20 days’ imprisonment.  Ronnfeldt must also serve a 10-year term of supervised release after the prison term.  There is no parole in the federal system.

Ronnfeldt 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 Kyndra Lundquist and investigated by the Iowa Division of Narcotics Enforcement, the West Union Police Department, and the Fayette County Sheriff’s Office.

Mexican Native Pleads Guilty to Damaging National Forest Through an Illegal Marijuana Cultivation Operation

 FRESNO, Calif. — Luis Madrigal-Reyes, 37, a native and citizen of Mexico, pleaded guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $45,057 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.

According to court documents, the cultivation operation contained 2,307 marijuana plants and was located in the Basin Creek drainage in the Dutch Oven Creek area of the Sierra National Forest. U.S. Forest Service agents saw Madrigal carrying fertilizers and bags of groceries into the grow site and later apprehended him after they chased him down the side of a mountain.

The cultivation operation caused extensive environmental damage to the area, which serves as the 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 toxic banned pesticides, which appeared to have been applied to the marijuana plants. The water from Dutch Oven Creek had also been diverted to irrigate the plants. Dutch Oven Creek is part of the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River.

This case is 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. Assistance was provided by the 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 is scheduled for sentencing on Sept. 20. 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.

Charges are pending against co-defendant, Lester Eduardo Cardenas Flores, 24, also a citizen of Mexico. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Man Sentenced for Drug Conspiracy Case

 Acting U.S Attorney Clint Johnson announced that Devin Hartzell, 26, of Catoosa, was sentenced to 108 months after pleading guilty to drug conspiracy. 

In his written plea, Hartzell stated that he conspired with others to possess with intent to distribute and to distribute heroin beginning in January 2018 and continuing until June 2019.  During that time, he admitted to purchasing up to one kilogram of heroin multiple times a week from Jose Garcia and Edson Garcia-Velasquez. He would then redistribute the heroin to third parties who redistributed the drug to others.

Devin Hartzell was among 29 individuals indicted for drug conspiracy and other crimes in the 2019 Operation Smack Dragon, an Organized Crime Drug Enforcement Task Force investigation.

The Court sentenced Hartzell to 108 months in federal custody and five years supervised release. Judge Claire V. Eagan presided over the case. Assistant U.S. Attorney Joel-lyn McCormick prosecuted this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.

The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department.

Santa Barbara Man Who Allegedly Ran $12 Million Ponzi Scheme Indicted on Federal Fraud and Money Laundering Charges

             LOS ANGELES – A federal grand jury today returned an 11-count indictment that alleges a Santa Barbara man stole approximately $12 million from victims who were promised their money would be used to purchase annuities from Swiss insurance companies.

            Darrell Arnold Aviss, 63, of Santa Barbara, was charged today with five counts of wire fraud and six counts of money laundering. Aviss was arrested June 18 pursuant to a criminal complaint, and he was subsequently ordered held without bond.

            According to the indictment filed this afternoon in United States District Court, Aviss ran the scheme from at least 2012 through last summer, soliciting money from people who wanted to purchase annuities from insurance companies based in Switzerland. Aviss claimed the Swiss annuities he offered were safe and secure, and, in some instances, he allegedly told victims the annuities would pay interest rates ranging from 5 to 7 percent.

            But, the indictment alleges, Aviss did not use the victims’ money to purchase annuities, even though he arranged for the victims to receive statements showing the purported value of the annuities, which the false documents showed were increasing over time.

            Victims, most of whom were over the age of 60, gave Aviss more than $12 million, with most of that money coming from just one victim, according to court documents. Some money was paid back to victims to keep the scheme running.

            Instead of purchasing annuities, Aviss allegedly used the victims’ money for his own purposes and to support his lavish lifestyle. Court documents indicate that he used the money for, among other things, Ponzi payments to victims, mortgage payments, luxury car leases, expensive watches, trips to Monaco, more than $100,000 in purchases at a Santa Barbara nightclub, and 20 tickets to a U2 concert and after-party.

            An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

            Aviss is scheduled to be arraigned in this case on July 9.

            The indictment charges Aviss with five counts of wire fraud, each of which carries a statutory maximum sentence of 20 years in federal prison; one count of concealment money laundering, which has a maximum sentence of 20 years; and five counts of laundering criminal proceeds in excess of $10,000, each of which carries a potential sentence of 10 years.

            The FBI and IRS Criminal Investigation are conducting the investigation in this matter.

            Assistant United States Attorney Monica E. Tait of the Major Frauds Section is prosecuting this case.

            If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed from 10 a.m. until 6 p.m. Eastern Time, Monday through Friday. In addition to English, Spanish and other languages are available to callers.  

Charleston Woman Pleads Guilty to Federal Drug Charge

 CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to a federal drug charge.

According to court documents and statements made in court, on December 10, 2017, Drema Setliff, 37, sold a fentanyl and heroin mixture to an individual in South Charleston which resulted in the individual dying from a drug overdose.    

Setliff pleaded guilty to distribution of heroin and fentanyl and faces up to 20 years in prison when she is sentenced on September 29, 2021.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.

Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing.  Assistant United States Attorney Monica Coleman is handling the prosecution.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00077.

Caldwell Man Pleads Guilty to Sexual Exploitation of a Child

 BOISE – Conrad Hull, 30, of Caldwell, pleaded guilty to two counts of sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Hull was indicted by a Boise federal grand jury on November 10, 2020.

According to court records, in October 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force received a Cybertip from Kik Messenger. According to the Cybertip, child pornography had been uploaded to a Kik account that was later identified as belonging to Hull.

A state magistrate judge issued a search warrant for Hull’s residence in Caldwell. Law enforcement executed the search warrant and seized a cellphone belonging to Hull. A forensic examination of the cellphone revealed several files of child pornography, including files depicting a 5-year-old child and a 7-year-old child that Hull admitted producing. Hull told law enforcement that he used his cellphone to take explicit images of the two children so that he would have more files to trade on Kik. Hull admitted to distributing the images of the two children to obtain additional files of child pornography.

Hull is scheduled to be sentenced on September 16 and faces a mandatory minimum of 15 years and up to 30 years in federal prison. U.S. District Judge B. Lynn Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of his plea agreement, Hull agreed to forfeit the cellphone he used in the commission of the offense.

Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Idaho ICAC Task Force, Caldwell Police Department, and the Canyon County Prosecutor’s Office, which led to charges.

Jury Convicts Cedar Park Man for Impersonating an FBI Agent

 WACO – A federal jury yesterday convicted 52-year-old Jonathan Jefferson Ferris on two counts of impersonating a federal agent.

Evidence presented during trial revealed that on multiple occasions in July and August 2019, Ferris entered a pharmacy in Temple looking to fill an out-of-state prescription for Fentanyl patches.  Ferris always identified himself to the pharmacy employee as an out-of-town FBI agent on temporary assignment.  Ferris wore a lanyard with a fake FBI identification card attached and used fraudulent documentation purportedly from the FBI to support his request for filling the Fentanyl prescriptions.

U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.

Ferris faces up to three years in federal prison.  Sentencing is scheduled for September 29, 2021, before U.S. District Judge Alan Albright.

The FBI conducted this investigation together with investigators from DEA Diversion and the Cedar Park Police Department.  Assistant U.S. Attorney Mark Frazier is prosecuting this case.

Killeen Couple Admit to Multi-Million Dollar Fraud Scheme Involving Mass Transportation Benefit Program at Fort Hood

 WACO – Today, 42-year-old Kevin Romulus Pelayo and 37-year-old Cristine Furio Fredericks admitted to conducting a multi-million-dollar scheme to defraud the U.S. Army with respect to a mass transportation benefit program at Fort Hood.

On April 21, 2000, Presidential Executive Order 13150, subject Federal Workforce Transportation, directed all federal agencies to implement a Mass Transportation Benefit Program to qualified federal employees for individual employee commuting costs incurred through the use of mass transportation and van pools. On January 1, 2001, the Department of the Army (DA) implemented a mass transportation benefit program for Army soldiers and civilian employees.

Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pelayo and Fredericks pleaded guilty to two counts of engaging in monetary transactions with criminally derived property.  Pelayo also pleaded guilty to one count of conspiracy to commit wire fraud.  By pleading guilty, Pelayo and Fredericks admitted that from January 2014 to June 2020, they provided false documentation regarding their ride-share program on Fort Hood called Soldiers Vanpools, LLC, including names and other personal information of over 1,000 unsuspecting active-duty soldiers, in order to fraudulently collect Department of Transportation Mass Transportation Benefit Program funds.

U.S. Attorney Ashley C. Hoff; Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (Army CIC-MPFU); and Special Agent in Charge Richard D. Goss of the IRS Criminal Investigation’s Houston Field Office made today’s announcement.

The defendants face up to 10 years in federal prison for each money laundering charge.  Pelayo faces up to 20 years in federal prison for the conspiracy charge.  The defendants have agreed to forfeit to the government proceeds of their fraudulent scheme to include a dozen real estate properties in Killeen, Harker Heights, Copperas Cove and Kempner; 43 automobiles, SUVs, ATVs and a 5^th-wheel trailer; over 120 designer tote bags, handbags and wallets; and, over $600,000 in cash.  Sentencing has yet to be scheduled.

The Army CIC-MPFU’s Southwestern Fraud Field Office and IRS Criminal Investigation are conducting this ongoing investigation with valuable assistance from the Texas Department of Public Safety’s Criminal Investigations Division.  Assistant U.S. Attorneys Greg Gloff and Robert Almonte are prosecuting this case.