Sixty Defendants Charged in Nationwide Takedown of Sinaloa Cartel Methamphetamine Network

SAN DIEGO – An indictment was unsealed today in federal court charging 60 members of a San Diego-based international methamphetamine distribution network tied to the Sinaloa Cartel with drug trafficking, money laundering and firearms offenses.

During the last month, hundreds of federal, state, and local law enforcement agents and officers have arrested dozens of defendants and searched multiple locations throughout San Diego County and in five states. As of today, 44 of the 60 defendants are either in federal or state custody, and the search continues for 16 defendants. In addition to these arrests, law enforcement has seized more than 220 pounds of methamphetamine and other illegal drugs; 90 firearms; and more than $250,000 in cash. Law enforcement officials are also seeking the forfeit of residences, high-end vehicles, and bulk cash belonging to these defendants.

According to the indictment and other publicly filed documents, over the last several years, this complex San Diego-based network obtained thousands of kilograms of methamphetamine from the Sinaloa Cartel to smuggle across the international border concealed in hidden compartments in passenger cars and motorcycles. The defendants then used these cars and motorcycles, along with trains, commercial airlines, the U.S. Mail, and commercial delivery services like FedEx and UPS to distribute that methamphetamine to dozens of sub-distributors located throughout San Diego County, the United States, and the world, including Hawaii, Arizona, Texas, Kansas, Iowa, Indiana, Michigan, Minnesota, Missouri, Connecticut, New York, New Jersey, Massachusetts, Kentucky, as well as Australia and New Zealand.

In return, tens of thousands of dollars in narcotics proceeds were returned to the network’s leaders via shipments of bulk cash, structured cash deposits into bank accounts, and money transfer systems like MoneyGram, Western Union, PayPal, Zelle, Venmo, and Cash App. And to protect their illegal operations, the defendants allegedly possessed dozens of firearms and used encrypted communication providers to communicate with each other. This drug trafficking and money laundering continued unabated throughout the COVID-19 global pandemic.

Despite their sophisticated efforts, law enforcement successfully penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records and financial documents, undercover agents, search warrants, as well as a six-month federal wiretap to intercept the communications and track the locations of the defendants.

Today we have dealt a serious blow to this San Diego-based international drug trafficking network with ties to the Sinaloa Cartel,” said Acting U.S. Attorney Randy Grossman. “The intersection of drug dealing and gun possession inevitably leads to violence in our communities. By dismantling this network, the Department of Justice reaffirms its unwavering commitment to reducing violent crime and building a San Diego where all our citizens are safe.”

“DEA is enhancing its efforts to disrupt, dismantle and destroy the most violent drug trafficking organizations across the country under Operation Crystal Shield,” said DEA Special Agent in Charge John W. Callery. “By dismantling this sophisticated drug trafficking network, DEA and our law enforcement partners have prevented significant quantities of methamphetamine and numerous firearms from making their way to the streets of San Diego and other neighborhoods throughout the United States.  Drug trafficking is a violent crime, that impacts the safety and security of our communities – and the drug and firearm seizures made in this investigation are testament to that.”

“The primary motivation of drug traffickers is greed,” said Ryan L. Korner, Special Agent in Charge for IRS-Criminal Investigation’s Los Angeles Field Office.  “IRS-CI will continue to work tirelessly alongside our partner agencies to stop the flow of narcotics and narcotics proceeds that are killing innocent Americans, and to ensure that crime doesn’t pay—that those individuals, like the 60 defendants indicted and arrested in this case, are brought to justice.”

“The U.S. Postal Inspection Service is committed to preserving the integrity of the mail by ridding the mail of involvement in drug trafficking,” said US Postal Inspection Service Acting Inspector in Charge Eric Shen of the Los Angeles Division. “This operation clearly shows that by combining our strengths and resources with all the involved agencies which include, federal, state and local law enforcement agencies we can disrupt their drug trafficking organizations to protect our communities.”

Acting U.S. Attorney Grossman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF), the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department, the San Diego Police Department, the Escondido Police Department, the United States Border Patrol, and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, Homeland Security Investigations, Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Prisons, also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorneys Matthew J. Sutton, Nicole Bredariol, and Amy B. Wang of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialists Kathleen Jordano and Leticia Adams.

 

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.

 

DEFENDANTS                                            Case Number 21cr1559-H                           

(D1) Reyes Espinoza                                      Age: 35                                   San Ysidro, CA

(D2) David Villegas                                        Age: 49                                   San Diego, CA

(D3) John Bomenka                                        Age: 54                                   San Diego, CA

(D4) Dennis Jones                                          Age: 49                                   San Diego, CA

(D5) Darren Mosier                                        Age: 59                                   San Diego, CA

(D6) Frank Tucker                                          Age: 63                                   San Diego, CA

(D7) Charles Miller                                         Age: 52                                   San Diego, CA

*(D8) Carlos Espinoza                                    Age: 28                                   Tijuana, MX

(D9) Mario Espinoza                                      Age: 20                                   Tijuana, MX

(D10) Jaron Hillyer                                         Age: 30                                   San Diego, CA

(D11) Kristina Brown                                     Age: 32                                   San Diego, CA

(D12) Danny Miller                                        Age: 52                                   San Diego, CA

(D13) Shawn Morrill                                       Age: 49                                   San Diego, CA

*(D14) Hilleal Grant                                      Age: 51                                   San Diego, CA

*(D15) Lewis Rich                                         Age: 59                                   San Diego, CA

(D16) Cameron Graff                                     Age: 29                                   San Diego, CA

*(D17) Terry Haith                                         Age: 60                                   San Diego, CA

(D18) Tansy Steinhauer                                  Age: 51                                   San Diego, CA

*(D19) Jessica Pomeroy                                 Age: 30                                   San Diego, CA

*(D20) Shadow Segura                                   Age: 23                                   Houston, TX

(D21) Jasmine Lucas                                      Age: 50                                   San Diego, CA

(D22) Philip Abbas                                         Age: 42                                   San Diego, CA

*(D23) Peter Fuller                                         Age: 63                                   San Diego, CA

(D24) Eduardo Osuna                                     Age: 41                                   San Diego, CA

(D25) Frank Carrillo                                       Age: 45                                   San Diego, CA

(D26) Stephen Myrick                                    Age: 45                                   San Diego, CA

(D27) Gloria Sandoval                                   Age: 40                                   San Diego, CA

*(D28) Ashley Hilton                                     Age: 42                                   Houston, TX

(D29) Joseph Occhiogrosso                            Age: 44                                   Brooklyn, NY

(D30) Gary Beasley                                        Age: 39                                   San Diego, CA

*(D31) Arnulfo Rodriguez                             Age: 38                                   San Diego, CA

(D32) Alexandro Larios-Flores                       Age: 24                                   San Diego, CA

*(D33) Jose Vargas                                        Age: 31                                   San Diego, CA

(D34) Michael Nagle                                      Age: 50                                   San Diego, CA

*(D35) Raymond Sterling                               Age: 51                                   San Diego, CA

(D36) Terry Tyler                                           Age: 49                                   San Diego, CA

(D37) Victor Yamasaki                                   Age: 59                                   San Diego, CA

(D38) Chris Paschke                                       Age: 57                                   San Diego, CA

(D39) Charles Gerardi                                                Age: 57                                   Houston, TX

(D40) Christian Lopez-Villegas                      Age: 34                                   San Ysidro, CA

(D41) David Santa Maria                                Age: 49                                   San Diego, CA

(D42) Melvin Johnson                                    Age: 44                                   San Diego, CA

(D43) Daniel Babuata                                     Age: 34                                   San Diego, CA

*(D44) Garrett Steele                                     Age: 40                                   San Diego, CA

(D45) Vien Trinh                                            Age: 62                                   San Diego, CA

*(D46) Troy Prater                                         Age: 46                                   San Diego, CA

*(D47) Sharon Landhan                                 Age: 44                                   San Diego, CA

(D48) Gabriel Askay                                      Age: 44                                   San Diego, CA

(D49) Patrick Lane                                         Age: 57                                   San Diego, CA

(D50) Kevin Tobin                                          Age: 65                                   San Diego, CA

(D51) James Ellerbe                                        Age: 68                                   San Diego, CA

(D52) Hope Stoneking                                    Age: 35                                   San Diego, CA

(D53) Tasha Almanza                                     Age: 42                                   San Diego, CA

*(D54) Jason Ferguson                                   Age: 48                                   San Diego, CA

(D55) Kelle Ferguson                                     Age: 52                                   San Diego, CA

*(D56) Roger Desroche                                  Age: 74                                   San Diego, CA

(D57) Steven Brandt                                      Age: 57                                   San Diego, CA

(D58) Esteban Gastelum-Sanchez                  Age: 42                                   San Diego, CA

(D59) Tara Scroggins                                     Age: 45                                   San Diego, CA

(D60) Debbie Hill                                           Age: 59                                   San Diego, CA

 

*Fugitives

 

SUMMARY OF CHARGES

 

Conspiracy to Distribute Methamphetamine (21 U.S.C. §§ 841(a)(1) and 846)

Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))

Possession with Intent to Distribute Methamphetamine (21 U.S.C., § 841(a)(1))

Importation of Methamphetamine (21 U.S.C. §§ 952 and 960)

Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1)

 

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release. For the firearms charges, term of custody up to 10 years imprisonment, and a $250,000 fine.

 

AGENCIES

 

Drug Enforcement Administration, Narcotics Task Force

Internal Revenue Service - Criminal Investigation

United States Postal Inspection Service

San Diego County Sheriff’s Department

San Diego Police Department

Escondido Police Department

United States Border Patrol

San Diego County Probation Office

United States Marshals Service

Homeland Security Investigations

Bureau of Alcohol, Tobacco, Firearms & Explosives

Federal Bureau of Prisons

San Diego County District Attorney’s Office

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit

U.S. Attorney’s Office for the District of Massachusetts

U.S. Attorney’s Office for the Southern District of New York

U.S. Attorney’s Office for the Eastern District of Kentucky

U.S. Attorney’s Office for the Western District of Texas

U.S. Attorney’s Office for the Central District of California

U.S. Attorney’s Office for the District of Minnesota

U.S. Attorney’s Office for the Northern District of Iowa

U.S. Attorney’s Office for the Western District of Michigan

U.S. Attorney’s Office for the Eastern District of Michigan

McKean County Man Pleads Guilty to Purchasing Meth on the Dark Web for Distribution

 ERIE, Pa. - A resident of Kane, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.

Michael Carter, Anderson, 43 of Kane, Pennsylvania, pleaded guilty to one count before Senior United States District Judge David S. Cercone.

In connection with the guilty plea, the court was advised that Anderson attempted to possess with intent to distribute more than fifty grams of a mixture or substance containing a detectable amount of methamphetamine. Anderson purchased the methamphetamine on the Dark Web for the purpose of selling and redistributing those drugs in the Western District of Pennsylvania.

Judge Cercone scheduled sentencing for November 22, 2021 at 2:00 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued Anderson on bond.

Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.

The United States Postal Inspection Service, the Drug Enforcement Administration, the McKean County Detectives, and the McKean County Drug Taskforce conducted the investigation that led to the prosecution of Anderson.

Hendersonville Man Pleads Guilty To Federal Arson Charges In Connection To Metro Courthouse Fire

 NASHVILLE – A Hendersonville, Tennessee man charged last year with the malicious destruction of property at the Metro Courthouse pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.  Wesley Somers, 26, was charged in a criminal complaint on June 3, 2020, following protests which escalated to acts of violence and intimidation on the evening of May 30, 2020.  Somers was indicted by a federal grand jury on October 14, 2020. 

On the afternoon of May 30, 2020, protesters gathered in downtown Nashville following the death of George Floyd in Minneapolis, Minnesota.  Later in the evening, several persons gathered in front of the Nashville City Hall, also known as the Metro Courthouse, and began smashing the windows of the premises and spraying graffiti on the Courthouse facade. One or more fires were also set inside of the Courthouse at this time.

Numerous video clips and photographs of the destruction at the Courthouse were posted on social media websites, on the websites for news outlets, and on other Internet sites. Somers is depicted in video clips and photographs from that evening attempting to smash windows of the Courthouse.  One photograph depicted Somers holding an unknown accelerant, which had been set on fire, and placing the accelerant through the window of the Courthouse.

Somers was quickly identified by the Metropolitan Nashville Police Department – Specialized Investigation Division, after receiving numerous tips from citizens.

Somers will be sentenced on December 1, 2021, and faces a mandatory minimum of five years and up to 20 years in prison.

This case was investigated by the Metropolitan Nashville Police Department; the FBI; and the Bureau of Alcohol, Tobacco, Firearms & Explosives; Assistant U.S. Attorney Ben Schrader; and Trial Attorney Justin Sher of the Department’s Counterterrorism Section are prosecuting the case.

Pharmacist Sentenced to 3 Years in Prison for Forging Prescriptions to Acquire Oxycodone and Alprazolam

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ERIC TINGLEY, 45, formerly of Lebanon, Connecticut, and currently residing in Hopkinton, Rhode Island, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 36 months of imprisonment, followed by three years of supervised release, for forging prescriptions to acquire thousands of oxycodone and alprazolam tablets from the Connecticut pharmacy where he was employed.

According to court documents and statements made in court, Tingley was a licensed pharmacist employed at a pharmacy in Norwich.  Between approximately October 2016 and July 2017, Tingley forged approximately 183 prescriptions for oxycodone and approximately 26 prescriptions for alprazolam, and filled the forged prescriptions at the pharmacy where he worked.  Through these forged prescriptions, Tingley unlawfully obtained more than 35,000 oxycodone tablets and more than 2,000 alprazolam tablets.  He then distributed the drugs for his own benefit.

After Tingley’s Norwich employer fired him for performance issues, Tingley moved to Las Vegas, began working at a pharmacy there, and stole an additional 6,445 oxycodone pills.  Tingley was arrested in Las Vegas on June 27, 2018.

On October 22, 2019, Tingley pleaded guilty to one count of possession with intent to distribute oxycodone and alprazolam.

Tingley, who is released on a $50,000 bond, is required to report to prison on August 20, 2021.

This investigation was conducted by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

Pharmacist Sentenced to 3 Years in Prison for Forging Prescriptions to Acquire Oxycodone and Alprazolam

 Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ERIC TINGLEY, 45, formerly of Lebanon, Connecticut, and currently residing in Hopkinton, Rhode Island, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 36 months of imprisonment, followed by three years of supervised release, for forging prescriptions to acquire thousands of oxycodone and alprazolam tablets from the Connecticut pharmacy where he was employed.

According to court documents and statements made in court, Tingley was a licensed pharmacist employed at a pharmacy in Norwich.  Between approximately October 2016 and July 2017, Tingley forged approximately 183 prescriptions for oxycodone and approximately 26 prescriptions for alprazolam, and filled the forged prescriptions at the pharmacy where he worked.  Through these forged prescriptions, Tingley unlawfully obtained more than 35,000 oxycodone tablets and more than 2,000 alprazolam tablets.  He then distributed the drugs for his own benefit.

After Tingley’s Norwich employer fired him for performance issues, Tingley moved to Las Vegas, began working at a pharmacy there, and stole an additional 6,445 oxycodone pills.  Tingley was arrested in Las Vegas on June 27, 2018.

On October 22, 2019, Tingley pleaded guilty to one count of possession with intent to distribute oxycodone and alprazolam.

Tingley, who is released on a $50,000 bond, is required to report to prison on August 20, 2021.

This investigation was conducted by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

Jackson Man Pleads Guilty to Possession with Intent to Distribute Methamphetamine

 Jackson, Miss. –  A Jackson man pled guilty today to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.   

According to court documents, Jeffery Rivers, Jr., 39, of Jackson, sold almost a half kilogram of methamphetamine on March 2, 2020.  The drugs were analyzed by the Drug Enforcement Administration Laboratory and confirmed to be 437.5 grams of pure methamphetamine.

Rivers pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.  He is scheduled to be sentenced on October 6, 2021 and faces a mandatory minimum of 10 years and a maximum penalty of life in prison.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The FBI Jackson Safe Streets Task Force investigated the case.

Assistant U.S. Attorney Keesha D. Middleton is prosecuting the case.

The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal methamphetamine distribution in central Mississippi. 

Brownsville, PA Man Gets Lengthy Sentence for Producing and Possessing Sexually Exploitive Visuals of Minors

 PITTSBURGH - A former resident of Washington County, Pennsylvania, has been sentenced in federal court to 28 years’ incarceration, consecutive to any state court sentence, and lifetime supervised release on his conviction of Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.

United States District Judge Cathy Bissoon imposed the sentence on Sean Houston, age 48, of Brownsville, Pennsylvania.  As part of his sentence, the Court ordered Houston to pay $13,709.60 in restitution and a $15,000 special assessment under the Justice for Victims of Trafficking Act of 2015 (JVTA).

According to information presented to the court, on May 20, 2016 and from July 22, 2017 through October 2018, Houston produced and attempted to produce visual depictions of the sexual exploitation of a minor. Additionally, on October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.

Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Kaufman commended the Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department, and the Washington County District Attorney’s Office for the investigation leading to the successful prosecution of Houston.

Traffic Stop Leads to Man Pleading Guilty to Meth Charges

 Naberhaus, who was convicted of conspiring to distribute meth in 2000, was caught again with nearly a half-pound of meth in his car.

A man who possessed nearly a half-pound of methamphetamine with the intent to distribute pled guilty June 22, 2021, in federal court in Sioux City.

David Naberhaus, 57, Deloit, Iowa, was convicted of possessing with intent to distribute methamphetamine.  In 2000, Naberhaus was convicted in the United States District Court for the Northern District of Iowa of conspiracy to distribute methamphetamine.

At the plea hearing, evidence showed that on November 18, 2020, Naberhaus was stopped by law enforcement for traffic violations in Woodbury County, Iowa. Due to Naberhaus’ nervous behavior, a K-9 was deployed and indicated the presence of controlled substances from within the car.  Law enforcement then searched the car and discovered 222 grams (nearly a half-pound) of pure methamphetamine in 5 separate baggies, 12 grams of marijuana, 3 grams of cocaine, and $6,501 in 4 bundles.  On February 15, 2021, while on routine patrol, Iowa State Patrol noticed a disabled vehicle on the shoulder of Highway 20.  A check of the license of the registered owner revealed the owner to be Naberhaus, who had a federal warrant for his arrest.  A later search of Naberhaus’ car revealed bags of meth, bags of marijuana, lidocaine patches, a pipe a lighter, and Ziploc baggies.  

Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared.  Naberhaus remains in custody of the United States Marshal pending sentencing.  Naberhaus faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.

The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Ida County Sheriff’s Department, Sioux City Police Department, Woodbury County Sheriff’s Department, and Iowa DCI Laboratory.

Possessing Five Grams of Fentanyl Near Playgrounds Sends Dubuque Man to Federal Prison

 A man who was found in possession of more than five grams of fentanyl that he intended to distribute was sentenced June 28, 2021, to more than a year in federal prison.  Jonathan Matthew Duffey, age 42, from Dubuque, Iowa, received the prison term after a January 11, 2021 guilty plea to one count of possession with intent to distribute a controlled substance.

In a plea agreement, Duffey admitted that during early 2020 he sold heroin and fentanyl in the Dubuque area.  In February 2020, Duffey was a passenger in a vehicle stopped by Dubuque police.  During the traffic stop, Duffey swallowed three or four baggies of heroin that also contained fentanyl.  The next day, law enforcement searched Duffey’s home.  During the search, officers seized digital scales, vials of naloxone, drug packaging, and a little over five grams of a substance that tested positive for heroin and fentanyl.  Duffey’s residence was within 1,000 feet of Orange Park and Madison Park in Dubuque.

Duffey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Duffey was sentenced to 12 months’ and one day imprisonment.  He must also serve a six-year term of supervised release after the prison term.  There is no parole in the federal system.

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

The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.

Mount Pleasant Man Sentenced to Federal Prison for Child Pornography Offense

 DAVENPORT, IOWA – A Mount Pleasant man was sentenced on June 28, 2021, by United States District Court Judge Stephanie M. Rose to 132 months in prison for Receiving and Distributing Child Pornography. Alanis was ordered to serve five years of supervised release to follow his prison term, pay $100.00 to the Crime Victims’ Fund and $6,000 in restitution.  

 

According to court documents, Jacob Hugo Alanis, age 21, was identified by the Mount Pleasant Police Department when they received a cyber tip from Dropbox alleging the presence of child pornography related to a particular email address. On October 15, 2019, law enforcement executed a search warrant at the residence associated with the email address. At the residence, Alanis admitted the email address belonged to him. Alanis also admitted downloading, watching, and trading child pornography. Law enforcement seized multiple electronic devices, on which law enforcement located hundreds of images and videos of child pornography.

 

Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.

 

The Mount Pleasant Police Department and the Federal Bureau of Investigation investigated this matter. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

Two Men from Hope, Idaho, Sentenced for Conspiracy to Distribute Methamphetamine

 COEUR D’ALENE – Morgan Kenney, 35, and Zachary Craig Carlson, 30, of Hope, Idaho, were sentenced to federal prison for conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr., today. Senior United States Ninth Circuit Judge Richard C. Tallman sentenced Kenney to 52 months and Carlson to 37 months. Kenney and Carlson, upon completion of their time, were ordered to serve an additional three years of supervised release.

According to court records, in 2015 and 2016, Kenney and Carlson conspired with Larry Junior Hillbroom, 37, and Sean Robert Wathen, 49, to smuggle methamphetamine through international airports between North Idaho and the Pacific islands of Guam and Palau. Kenney and Carlson used several different methods to smuggle the drugs, including shampoo containers and carrying the substance on their person. Once in Guam or Palau, Kenney and Carlson would coordinate with locals to sell the methamphetamine. Law enforcement officers learned of the conspiracy and were able to investigate and ultimately arrest Kenney, Carlson, and their coconspirators.

The two remaining defendants, Hillbroom and Wathen, are currently scheduled for trial in November at the federal courthouse in Coeur d’Alene.

Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Drug Enforcement Administration, Bonner County Sheriff's Office, Bureau of Indian Affairs, Coeur d'Alene Police Department, Idaho State Police, U.S. Border Patrol, and the U.S. Marshals Service, which led to charges.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Romanian National Pleads Guilty for His Role in a Conspiracy to Steal Over 2,000 Checks Intended for Religious Institutions

 Greenbelt, Maryland – Nicolae Gindac, age 52, of Dania Beach, Florida, pleaded guilty today to conspiracy to commit bank fraud and wire fraud.  The plea comes in relation to a conspiracy to steal and deposit checks intended for religious institutions.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.

According to his plea agreement, from at least June 2018 to January 2021, Gindac conspired with six co-conspirators and others to steal and negotiate checks from the U.S. mail intended for religious institutions. Gindac’s co-conspirators executed the thefts by driving to roadside mailboxes and directly removing the mail from the religious institutions’ mailboxes.

As part of the scheme to defraud, Gindac and other co-conspirators opened fraudulent bank accounts at several victim financial institutions under false identities and negotiated stolen checks by way of ATMs. Gindac deposited stolen checks into fraudulent bank accounts held in the names of his family members, including a minor family member who had not yet attained 18 years of age, and others. Gindac and his co-conspirators subsequently withdrew the stolen funds and spent them using debit cards associated with fraudulently opened bank accounts and other bank accounts.

As detailed in his plea agreement, Gindac deposited or was present for the depositing of at least $64,811.03 into 13 fraudulent accounts.  The accounts that Gindac deposited into received at least approximately $139,057.58 from 143 stolen checks.

On February 6, 2021, law enforcement arrested Gindac and recovered approximately $7,930.38 in U.S. currency as well as a yellow-gold and diamond-encrusted Rolex gentleman’s watch. Over the course of the conspiracy, Gindac used stolen proceeds to purchase a BMW 745i Sport sedan.

In total, the conspiracy received at least approximately $1,065,282.53 from 2,477 stolen checks.

Co-defendant Daniel Velcu, age 43, of Baltimore, Maryland, is scheduled for a guilty plea on July 2, 2021 at 9 a.m.

Gindac faces a maximum sentence of 30 years in prison followed by five years of supervised release for conspiracy to commit bank fraud and wire fraud.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for August 31, 2021 at 2 p.m.

Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.

North Bay Accountant Charged With Bank Fraud And Embezzlement In Connection With Alleged Schemes To Defraud Cavallo Point Lodge And Redwood Credit Union

 Charges also include tax evasion for failure to report in excess of $800,000 in income from alleged crimes

SAN FRANCISCO – A federal grand jury has indicted Stephanie Simontacchi on charges of bank fraud, embezzlement, and tax evasion in connection with schemes to use her access as an accountant to enrich herself at the expense of two former employers.  The announcement was made by Acting U.S. Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and IRS Criminal Investigation Division (IRS-CI) Acting Special Agent in Charge Michael Daniels.

Simontacchi, 48, of Petaluma, was employed as a bookkeeper and assistant controller with Cavallo Point Lodge, a hotel near Sausalito, Calif., from December 2009 through April 2016.  While employed at Cavallo Point Lodge, Simontacchi had access to her employer’s accounting records and accounting systems.  Simontacchi also had signatory authority over Cavallo Point Lodge’s bank accounts which gave her authority to create and sign checks from the hotel’s bank accounts and to pay the hotel’s legitimate payments and obligations.  The indictment alleges that Simontacchi embezzled funds from her employer by stealing accounts receivable checks that had been sent to Cavallo Point Lodge from third parties and depositing the checks into her personal bank accounts. Further, the indictment alleges Simontacchi embezzled accounts payable checks that were drawn from Cavallo Point Lodge’s bank accounts and made payable to third party vendors.  Instead of sending these checks to the intended third parties, Simontacchi allegedly deposited them in her own bank accounts.  Simontacchi allegedly embezzled at least $384,363.28 from, or owed to, Cavallo Point Lodge and deposited these stolen funds into her own accounts.

In addition, the indictment alleges Simontacchi was employed by Redwood Credit Union from April 2016 through April 2019, during which time she embezzled over $437,000 from the credit union.  The financial institution employed Simontacchi as a senior accountant and accounting manager.  According to the indictment, Simontacchi’s responsibilities included processing voided official checks (also known as cashier’s checks) and communicating with Redwood Credit Union’s official check vendor regarding issues pertaining to the funding and voiding of these checks.  Simontacchi also had access to checks intended for and made payable to Redwood Credit Union that were sent to the accounting department for processing, including reimbursement checks from the official check vendor and reimbursement checks from the United States Treasury Department and the State of California.   The indictment alleges Simontacchi embezzled some of these checks, as well as official checks that had been returned to Redwood Credit Union by members and were supposed to have been voided, then deposited the checks into her personal bank accounts.  She used the embezzled proceeds for personal expenses, including to make a payment towards her home equity line of credit.

Further, the indictment alleges Simontacchi evaded taxes by failing to pay taxes on additional, unreported income received in years 2015, 2017, 2018, and 2019. 

In sum, the indictment charges Simontacchi with seven counts of bank fraud, in violation of 18 U.S.C. § 1344(2); seven counts of misapplication and embezzlement of credit union funds, in violation of 18 U.S.C. § 657; and four counts of tax evasion, in violation of 26 U.S.C. § 7201. 

Simontacchi was arrested on June 25, 2021.  She made her initial federal court appearance before U.S. Magistrate Judge Tse this morning and was arraigned on the charges.  Her next appearance is scheduled for July 15, 2021 before U.S. Federal District Court Judge Orrick.

An indictment contains allegations only. Simontacchi is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  If convicted, the maximum statutory penalties for each violation of 18 U.S.C. § 1344(2) and 18 U.S.C. § 657 is 30 years’ imprisonment and a $1,000,000 fine.  The maximum statutory penalty for each violation of 26 U.S.C. § 7201 is 5 years’ imprisonment and a $250,000 fine.  The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Assistant U.S. Attorneys Kristina Green and Amani S. Floyd are prosecuting this case.  The case was investigated by the FBI and IRS-CI.

Houston Man Pleads Guilty to Violating the Federal Controlled Substances Act

 NEW ORLEANS, LOUISIANA – RAYMOND ZEPEDA age 48, of Houston, Texas, pleaded guilty on June 29, 2021 before the Honorable Jay C. Zainey to an indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.

According to the court records, ZEPEDA conspired to possess with the intent to distribute and to distribute a kilogram or more of a mixture or substance containing a detectable amount of heroin and five kilograms or more of a mixture or substance containing a detectable amount of cocaine.  ZEPEDA admitted to being captured on recorded calls as part of a lengthy Title III wire intercept. 

Sentencing is scheduled for September 28, 2021.  ZEPEDA faces a mandatory minimum term of imprisonment of at least ten years up to a maximum of life, a fine of $10,000,000, at least five years of supervised release following any term of imprisonment, and a $100 special assessment.

This case was investigated by Special Agents of the Drug Enforcement Administration (DEA).  The prosecution is being handled by Assistant United States Attorney David Haller.

36th Street Bang Squad Member Sentenced for Gang-Related Murders and Shootings

 NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to four life sentences in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.

According to court documents, Xavier Greene, 26, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between March and August 2015. On March 8, 2015, Greene and two other gang members shot and killed Dwayne Parker, 18, in Newport News. On April 6, 2015, Greene and three other members of the 36^th Street Bang Squad drew firearms and began shooting at people outside a residence in Newport News. Two teenagers were killed during this incident.

On August 1, 2015, Greene, who was armed with a firearm, and two other people ran to a convenience store in Newport News to help gang members who were being jumped by a rival gang. When Greene did not fire at the rival gang, another gang member grabbed the gun and fired eight rounds at the store. A customer was grazed by bullets striking the storefront. Less than a week later, Greene and three other individuals stole more than 30 firearms from a federally licensed firearms dealer outside Richmond. Greene distributed some of the firearms to members of the gang immediately upon returning to the Tidewater area.

On December 10, 2019, after a seven-week jury trial, Greene was convicted on eight counts of crimes in aid of racketeering, including racketeering conspiracy, three murders, using a firearm in each murder, and an attempted murder.

Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28.

Three additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.

Assistant U.S. Attorneys Brian Samuels and Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.

Hollygrove Man Sentenced For Drug Charges

 NEW ORLEANS, LOUISIANA –  BRIAN TILLMAN, a/k/a “Cosca,” a/k/a “Costa,” a/k/a “Speedy,” age 34, was sentenced in federal court on June 30, 2021, to twenty-eight (28) months before U.S. District Court Judge Jane Triche Milazzo to conspiracy to distribute and possess with the intent to distribute over 100 grams of heroin and over 28 grams of cocaine base and a quantity of marijuana in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846. TILLMAN was also sentenced to four (4) years of supervised release following imprisonment and payment of a mandatory $100 special assessment fee.

According to court documents, TILLMAN and his co-conspirators sold drugs in the Hollygrove neighborhood in and around a corner-store in 2017 and 2018. TILLMAN was intercepted on a Title III wiretap arranging to purchase and/or sell heroin and cocaine base during multiple days in March and April of 2018. 

U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force.  The prosecution was handled by Assistant United States Attorneys Myles Ranier and Kathryn McHugh.

Jury Convicts Arizona Man of Methamphetamine Trafficking and Possession of a Firearm

 Davonte Williams-Dorsey Found Guilty of Possessing 20 Kilograms of Methamphetamine and a Loaded 9 mm Pistol

SYRACUSE, NEW YORK – A federal court jury in Syracuse today convicted Davonte Williams-Dorsey, age 24, of Phoenix, Arizona, of Conspiracy to Possess with Intent to Distribute a Controlled Substance (methamphetamine), Possession with Intent to Distribute a Controlled Substance (methamphetamine), and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, announced Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division. The guilty verdict today followed a four-day jury trial during which Davonte Williams-Dorsey represented himself with the assistance of standby counsel.

The evidence at trial established that Williams-Dorsey and Tyshawn Logan, 24, of Cleveland, Ohio, conspired together to bring 20 kilograms (approximately 44 pounds) of methamphetamine from Arizona to Syracuse, where it was to be sold. DEA Special Agents and other law enforcement officers arrested Davonte Williams-Dorsey in Syracuse on January 8, 2020 in possession of 20 kilograms of methamphetamine in an automobile. At the time of his arrest Davonte Williams Dorsey was carrying a loaded Taurus 9mm semiautomatic handgun in the waistband of his trousers. Tyshawn Logan was arrested in a building in Syracuse where he was staying after transporting the methamphetamine from California by car.

Davonte Williams-Dorsey is scheduled to be sentenced on November 29, 2021, at which time he faces a minimum sentence of 10-years and a maximum sentence of life imprisonment, a fine of up to $10,000,000.00, and a term of supervised release of at least 5-years and up to life, for his convictions for Conspiracy to Possess with Intent to Distribute a Controlled Substance (methamphetamine), and Possession with Intent to Distribute a Controlled Substance (methamphetamine). For his conviction for Possession of a Firearm in Furtherance of a Drug Trafficking Crime he faces a mandatory consecutive sentence of at least 5-years and up to life imprisonment, and a fine of up to $250,000.00.

Tyshawn Logan pled guilty previously to Conspiracy to Possess with Intent to Distribute a Controlled Substance (methamphetamine), and Possession with Intent to Distribute a Controlled Substance (methamphetamine). He is scheduled to be sentenced August 24, 2021, and faces a minimum sentence of 10-years and a maximum sentence of life imprisonment, a fine of up to $10,000,000.00, and a term of supervised release of at least 5-years and up to life, for his convictions for Conspiracy to Possess with Intent to Distribute a Controlled Substance (methamphetamine), and Possession with Intent to Distribute a Controlled Substance (methamphetamine).

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 The United States Drug Enforcement Administration (DEA), with the assistance of the Syracuse Police Department-Special Investigations Division, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and DEA Task Force Officers from the New York State Police, U.S. Department of Homeland Security ICE-ERO, the Oneida County Sheriff’s Department, and the City of Rome Police Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.

Man Pleads Guilty to Violating Federal Controlled Substances Act

 NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Wednesday June 30, 2021, JEFFREY GITTE, age 24, a resident of New York, pled guilty to two counts of the Indictment filed against him, in which he was charged with participating in a conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and with attempting to escape from federal custody, in violation of Title 18, United States Code, Section 751.

According to court documents, GITTE and his co-conspirators transported approximately 10 kilograms of suspected cocaine from New York to New Orleans in an effort to sell the drugs to an individual, who happened to be a DEA informant, in return for $350,000.00.  As it turned out, most of the drugs were fake, and GITTE and his co-conspirators tried to rip off the informant by supplying him with fake drugs in return for the $350,000.00 dollars.  After being arrested by DEA agents, GITTE and one of his co-conspirators were able to get out of their cells and tried to escape.  They were re-captured a short time later.      

United States District Court Judge Sarah Vance will sentence GITTE on November 17, 2021. For the drug trafficking violation, GITTE faces a term of imprisonment of not less than 5 years and not more than 40 years in prison, a fine of up to $5,000,000.00, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.00.  For the escape violation he faces a sentence of not more than 5 years, a fine of not more than $250,000.00, a period of supervised release of not more than 3 years and a mandatory $100 special assessment fee.

The case was investigated by the Drug Enforcement Administration.  This case is being prosecuted by United States Attorney Maurice Landrieu of the U.S. Attorney’s Office.

Tangipahoa Parish Man Indicted for Violating the Federal Controlled Substances Act

 NEW ORLEANS, LOUISIANA – JAMES WATTS, age 49, a resident of Amite, Louisiana, was charged June 11, 2021 in a one-count indictment by a Federal Grand Jury with possession with intent to distribute fifty grams or more of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.

The defendant had his initial court appearance on June 23, 2021, before U.S. Magistrate Judge Karen Wells Roby of the U.S. District Court for the Eastern District of Louisiana. If convicted, WATTS faces a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee. 

U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.

This case was investigated by the Drug Enforcement Administration and Tangipahoa Parish Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney Ben Myers.

New Orleans Man Pleads Guilty to Conspiracy to Distribute Drugs and Possession of Firearm

 NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that NATHAN BALLANSAW III, age 69, of New Orleans, pled guilty to conspiracy to distribute cocaine, cocaine base and heroin, and firearms-related charges.  

Specifically, on June 24, 2021, BALLANSAW pled guilty to one count of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine hydrochloride, cocaine base, and heroin in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 846.  BALLANSAW also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime. 

On the drug conspiracy, BALLANSAW faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release and a mandatory $100 special assessment.  On the firearm charge, BALLANSAW faces a mandatory minimum of 5 years of imprisonment, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a mandatory $100 special assessment. 

According to court documents, BALLANSAW conspired to sell cocaine, cocaine base and heroin between September 12, 2015 and May 4, 2017.  In furtherance of that drug-trafficking conspiracy, he possessed a Smith and Wesson Model 638-2 .38 caliber revolver on March 28, 2017.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.

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.

Lehigh Acres Man Sentenced To 29 Years In Federal Prison For Using A Child To Produce Images Depicting Sexual Abuse

 Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced John Michael Breen (33, Lehigh Acres) to 29 years in federal prison for sexually abusing a child and taking photos of this abuse. Breen was also sentenced to a lifetime of supervised release and ordered to register as a sex offender.

Breen had pleaded guilty on August 19, 2020.

According to court documents, between April 28 and July 20, 2018, Breen used a child to engage in sexually explicit conduct for the purpose of producing images of this abuse. Breen subsequently uploaded these photos over the internet to a cloud-based storage service. On December 13, 2019, law enforcement officers executed a search warrant at Breen’s residence. During an interview with law enforcement, Breen admitted that he had sexually abused a 7-year-old child at his home and took pictures of the abuse using his cellphone.

This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.

Used Car Dealer Sentenced to 60 Months in Prison for Odometer Tampering Scheme

BROOKLYN, NY – Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by United States District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme, and ordered to pay $3,936,000 in restitution.  The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General of the Justice Department’s Civil Division, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the sentence.

“The sentence sends a warning that this Office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” stated Acting U.S. Attorney Kasulis. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.”

“An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Boynton. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.”

“Automobile sales stand as one of the pillars of the American economy requiring transparency and integrity,” stated Acting IRS-CI Special Agent-in-Charge Fattorusso.  “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.”

Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high mileage, used motor vehicles from a national vehicle leasing company, altered the odometers of the vehicles to reflect false, lower mileages, and then sold the vehicles at wholesale automobile auctions. On average, the odometers on the vehicles were rolled back by close to 70,000 miles.  Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices. 

This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation, and the Internal Revenue Service-Criminal Investigation.

Assistant United States Attorney Catherine M. Mirabile of the Eastern District of New York and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch prosecuted the case.

The Defendant:

SHMUEL GALI (also known as “Sam Gali”)
Age:  48
Brooklyn, New York; Israel

E.D.N.Y. Docket No. 14-CR-652 (KAM)

Jacksonville Man Sentenced To More Than 10 Years For Leading Cocaine Trafficking Conspiracy

 Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Paublo “Chandito” Rondon Quinones (30, Jacksonville) to 10 years and 1 month in federal prison for conspiring to possess with the intent to distribute and to distribute five or more kilograms of cocaine. 

Quinones had pleaded guilty on January 24, 2019. As part of his plea agreement, Quinones agreed to the administrative forfeiture of an assortment of jewelry and numerous vehicles, including two jet skis, four motorcycles, two sport utility vehicles, a Porsche Panamera luxury sedan, and a Ferrari F430 sports car.

According to court documents, Quinones led a drug trafficking organization that supplied kilo-quantities of cocaine to drug dealers in Jacksonville. His organization had multiple sources of supply and obtained shipments of cocaine via couriers and through the U.S. Mail from suppliers in Puerto Rico and Orlando.

This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

James A. Dawson Named Special Agent in Charge of the Little Rock Field Office

 Director Christopher Wray has named James A. Dawson as the special agent in charge of the Little Rock Field Office in Arkansas. Mr. Dawson most recently served as the SAC of Criminal and Cyber Division of the Washington Field Office.

Mr. Dawson joined the FBI as a special agent in 1999 and first worked on the Organized Crime and Drug Squad in the Milwaukee Field Office. He transferred in 2001 to the Kenosha Resident Agency, a satellite of the Milwaukee office, to cover multiple types of crimes. In 2003, he moved to the McAlester Resident Agency of the Oklahoma City Field Office, where he focused on public corruption. Mr. Dawson was named supervisory senior resident agency of the Muskogee Resident Agency in 2011, overseeing four offices in eastern Oklahoma.

In 2015, Mr. Dawson was promoted to assistant section chief of the Surveillance and Aviation Section in the Critical Incident Response Group. As assistant section chief, Mr. Dawson served as the national program manager of the FBI’s ground surveillance program. In 2016, he was appointed to lead CIRG’s front office—in charge of intelligence, finance, security, facilities, and technical units.

Mr. Dawson was promoted to assistant special agent in charge in the Criminal Division of the Washington Field Office in 2017. He supervised 12 squads, including those that worked public corruption, civil rights, and complex financial crimes. He returned to CIRG in 2018 as the section chief for the Counter Improvised Explosive Devices Section.

He was promoted to SAC of the Mission Services Division of the Washington Field Office in 2019, then transferred to SAC of the Criminal and Cyber Division in the office in 2020.

Mr. Dawson graduated from the U.S. Naval Academy and served as a surface warfare officer before joining the FBI.

Executive Assistant Director Brian Turner Remarks on New Department of Justice Effort to Reduce Violent Crime

 Brian Turner, executive assistant director of the FBI's Criminal, Cyber, Response, and Services Branch, provided the following statement on a new Department of Justice effort to help protect our communities from the recent increase in major violent crimes:

"Violent crime impacts citizens all across the country, and today's announcement shows that we are not only committed to combating these crimes but also preventing them before they begin. The FBI will work closely with our federal, state, and local partners to provide resources and support efforts to identify violent offenders and protect the American people."

NEW! The Fiscal Year 2021 OVW National Service Line for Incarcerated Survivors of Sexual Abuse Solicitation is now available!

 NEW! The Fiscal Year 2021 OVW National Service Line for Incarcerated Survivors of Sexual Abuse Solicitation is now available!

Apply by: September 1st

The FY 2021 OVW National Service Line for Incarcerated Survivors of Sexual Abuse Solicitation is now available.

There are thousands of victims of sexual abuse in prisons and jails across the country, and insufficient services to meet their needs. This one-time funding opportunity, issued through a partnership between OVW and BJA, seeks to explore the development of a National Service Line to ensure quality services to previously or currently incarcerated survivors of sexual abuse.

Eligible applicants are nonprofit organizations, victim service providers, and universities/institutions of higher education. Eligible applicants, including partners, must have expertise and experience working at the national level on projects related to corrections, the provision of services for survivors of sexual abuse, and implementation of the PREA Standards.

 

The project period is 24 months and $600K is available in funding.

 

The application deadline is September 1, 2021.

 

OVW and BJA will host a pre-application webinar on July 21, 2021 to answer questions about this unique funding opportunity. To register, email: Lucille.Moran@usdoj.gov