Month: July 2022

Source: United States Department of Justice News

McALLEN, Texas – An Edinburg man has been ordered to federal prison for receipt of child pornography, announced U.S. Attorney Jennifer B. Lowery.

James Archie Wells III, 63, pleaded guilty Dec. 2, 2021.

Today, U.S. District Judge Randy Crane ordered Wells to serve a 180-month sentence to be immediately followed by a lifetime of supervised release. At the hearing, the court heard and considered Wells’ previous convictions in Texas state court for indecency with a child and possession of child pornography. In handing down the sentence, Judge Crane noted that Wells had just finished serving his previous sentences a few months before he began re-offending. The court assessed sentencing enhancements for the number of videos, age of the victims and the sado-masochistic nature of the videos.

The investigation began when Wells resided at halfway house in Edinburg. Authorities learned that he had been viewing child sexual abuse videos and images on his phone.

Soon after, they seized Wells’ electronic devices. At that time, Wells admitted to using the dark web to download child sexual abuse materials on his phone and other multiple devices. Wells downloaded 371 videos of child pornography which included images of the sexual assault and rape of pre-pubescent children.  

Wells will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

FBI conducted the investigation with the assistance of the Edinburg Police Department.

Assistant U.S. Attorney Michael Mitchell prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.

Source: United States Department of Justice News

             CONCORD – Intertech Trading Corporation, an Atkinson, New Hampshire-based laboratory equipment distributor, pleaded guilty in federal court to 14 felony counts of failure to file export information on shipments to Russia and Ukraine, United States Attorney Jane E. Young announced today.

             According to court documents and statements made in court, between 2015 and 2019, Intertech exported laboratory equipment to Russia, Ukraine, and elsewhere, falsely describing the nature and value of the exported items on the commercial invoices and shipping forms. In its plea agreement, Intertech admitted that it used false, innocuous descriptions such as “lamp for aquarium” or “spares for welding system,” rather than accurately identifying the sophisticated scientific equipment actually contained in the shipments. Intertech admitted that it drastically undervalued the shipments, thereby evading the requirement to file Electronic Export Information, which would have been reported to the Departments of Commerce and Homeland Security.

            Intertech is scheduled to be sentenced on October 17, 2022. If the court accepts the terms of the binding plea agreement, Intertech will pay the maximum allowable fine of $10,000 per count and be subject to a two-year term of corporate probation and monitoring.

            This matter was investigated by the Federal Bureau of Investigation, Boston Division, and the Department of Commerce, Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section.

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Source: United States Department of Justice News

Seattle – A 43-year-old former bank manager from Battle Ground, Washington, was arrested Friday in Yakima, Washington, on charges of Bank Fraud and Aggravated Identify Theft, announced U.S. Attorney Nick Brown. Brian Davie, a former branch manager at Wells Fargo, allegedly used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million.  Davie allegedly targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $546,000 stolen from her retirement accounts. Davie will appear in U.S. District Court in Yakima at 1:30 today.

Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to the criminal complaint, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances, as well as examples of customer signatures. Davie allegedly used this knowledge to forge signatures on cashier’s checks, withdrawal slips and other bank forms. Davie allegedly hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements.

The complaint alleges that Davie continued undetected because he stole from  elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia, or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts.  That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions.

Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash.

Wells Fargo reimbursed victims for their losses.

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

This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Wells Fargo investigation team.

This case is being prosecuted by Assistant United States Attorney Zachary Dillon.

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Source: United States Department of Justice News

FLORENCE, SOUTH CAROLINA — Dan Howard Spivey, Jr., 42, of Conway, was sentenced to 10 years in federal prison, and Jasmine McKenith, 32, of Nichols, was sentenced to 4 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute controlled substances. 

Evidence presented to the Court showed that Spivey and McKenith were involved in a multi-year conspiracy to distribute drugs in and around Horry County.  Spivey and McKenith both served as distributors for their co-defendant in the case, Darryl Lamont McKenith.  During the course of the conspiracy, Spivey was held accountable for more than one kilogram of heroin and a quantity of fentanyl.  Jasmine McKenith was attributable to more than six kilograms of heroin during the conspiracy. 

Chief United States District Judge R. Bryan Harwell sentenced Spivey to 120 months imprisonment, to be followed by a 5-year term of court-ordered supervision.  Judge Harwell sentenced Jasmine McKenith to 48 months imprisonment, to be followed by a 5-year term of court-ordered supervision.  Judge Harwell previously sentenced McKenith and Spivey’s co-conspirators.  Darryl Lamont McKenith, 33, of Aynor, received a sentence of 132 months in federal prison, Scorpio Teriell Tisdale, 28, of Gallivants Ferry, received a sentence of 120 months in federal prison, Michael Keith McKenith, 32, of Aynor, received a sentence of 84 months in federal prison and Donna McKenith, 77, of Aynor, received a sentence of time served.  There is no parole in the federal system.

This case was investigated by Conway Police Department, Horry County Police Department, and the Drug Enforcement Administration (DEA).  Assistant U.S. Attorney Katherine Flynn prosecuted the case.

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Source: United States Department of Justice News

HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles W. Johnston, age 75, of Fairfax County, VA, was sentenced on July 8, 2022, to 12 months’ probation and a $50,000 fine by United States District Court Judge Jennifer P. Wilson.  Following a 4-day trial, Johnston was previously convicted in November 2021 of obstructing a United States Department of Labor (DOL) investigation regarding the administration of the Plumbers and Pipefitters Local 520 Pension Plan.

According to United States Attorney Gerard M. Karam, Johnston maintained a law practice in Camp Hill, PA for over 40 years and served as legal counsel to the Plumbers and Pipefitters Local 520 Health and Welfare, Pension, and Annuity Plans since 1972.  In 2014, as the attorney for the Local 520 pension plan, Johnston handled the plan’s response to a federal subpoena for records in connection with the DOL’s investigation into the pension plan’s financial activities.

During trial, the government presented evidence that Johnson intentionally concealed and withheld from DOL investigators emails, documents, and an internal audit concerning miscalculations of the Local 520’s pension and health and welfare benefits.  These incriminating documents, which the government established Johnston possessed and was aware of, revealed significant and material mismanagement of the pension fund, and their disclosure would have exposed the pension plan to further investigation.  However, when asked by investigators whether all the requested documents had been produced, Johnson lied and stated he had done so. 

“Like all attorneys, Charles Johnston began his career by swearing an oath to uphold the law. He ended that career decades later, by breaking it,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Interfering with a federal investigation is an attempt to subvert the course of justice. It’s a serious crime, and doubly so for an officer of the court. The FBI and our partners don’t allow people to work to undermine our cases. As this prosecution shows, doing so is an incredibly bad idea.”

“As the attorney for the Plumbers and Pipefitters Local 520 Health and Welfare, Pension and Annuity Plans, Charles W. Johnston Esq., unlawfully obstructed a U.S. Department of Labor, Employee Benefits Security Administration (EBSA) investigation by deliberately concealing subpoenaed documents.  The U.S. Department of Labor, Office of Inspector General will continue to work with EBSA and our law enforcement partners to investigate those who attempt to obstruct the U.S. Department of Labor from protecting the integrity of labor unions and their affiliated benefit plans,” said Syreeta Scott, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.

“The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and prosecuting those who fail to comply with its investigative authority by obstructing an investigation,” said Cristina O’Brien, Acting Regional Director of EBSA’s Philadelphia Regional Office.

The case was investigated by the U.S Department of Labor Office of Inspector General (DOL-OIG) and Employee Benefits Security Administration (DOL-EBSA), along with the Federal Bureau of Investigation (FBI).  Assistant U.S. Attorneys Joseph Terz and Samuel Dalke prosecuted the case.

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