Month: May 2023

Source: United States Department of Justice News

PECOS, Texas – A California man pleaded guilty Tuesday in a federal court in Pecos to possession with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.

According to court documents, the Texas Department of Public Safety’s (DPS) Criminal Investigations Division (CID) intercepted a known drug conspiracy occurring in the Pecos area.  DPS CID requested U.S. Border Patrol’s assistance to seize suspected fentanyl in a controlled environment.  On Feb. 23 at the USBP checkpoint in Sierra Blanca, a USBP canine alerted agents to search the vehicle driven by Edgar Jesus Castillo, 26, of Palmdale, California.  During an inspection, agents located an unmarked envelope in the trunk of the vehicle containing a vacuum-sealed bag full of a compressed white powder.  The powder tested positive for fentanyl.  Castillo had obtained the 1.005 kilograms of fentanyl in California and was transporting it to Pecos, where he intended to rent a hotel room and meet with a customer traveling from Houston. 

Castillo faces a penalty of 10 years to life in prison with a maximum fine of $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.

The Texas Department of Public Safety, USBP and Homeland Security Investigations are investigating the case.

Assistant U.S. Attorney Matthew Ellis is prosecuting the case.

###

Source: United States Department of Justice News

FAIRBANKS – A federal grand jury in Alaska returned an indictment charging a husband and wife from Delta Junction, Alaska, with conspiracy and wire fraud for perpetrating a years’ long scheme that defrauded nearly two-dozen investors out of over $700,000 dollars.

According to court documents, from 2017 until 2020, Brian Keith Corty, 52, and his wife Candy Corty, 47, used false and fraudulent claims to solicit investors to buy shares of stock in Ice Fog Holdings, LLC, a company purportedly established to grow, extract, develop, manufacture, and sell products in the medical and recreational marijuana markets in Alaska and other future markets. The defendants purchased the Midway Lodge along the Richardson Highway near Delta Junction, Alaska, and represented to investors that their money would be used to turn it into a “Bud and Breakfast” that would be a “marijuana theme park” and include glass ceilings so Ice Fog’s customers could lie in bed and watch the northern lights. Defendants also represented that they would grow, cultivate, and sell marijuana from the location.

The defendants and their co-conspirators made numerous material misrepresentations to Ice Fog investors, including that Ice Fog was already generating income via contracts for security services, that Ice Fog would make over $3.85 million in annual sales by year one; over $13.05 million in annual sales by year two; and over $23.24 million by year three with an expected return to investors of 30 times their initial investment. The defendants also represented that inspectors from the Alaska Marijuana Control Office had performed inspections on the Midway Lodge to create the impression that their application to become a licensed marijuana grow and dispensary was in the final stages of approval. Defendants made these representations while knowing that Ice Fog had no meaningful current or prospective revenue stream and little to no prospect to obtain a license from the Alaska Marijuana Control Office.

Over the course of the scheme, the defendants caused at least 22 individuals to invest in Ice Fog, and raised approximately $722,000 dollars through the sale of “shares” in Ice Fog Holdings, the majority of which the defendants misappropriated for their own personal use.

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The Federal Bureau of Investigation is investigating this case with assistance from investigators at the Alaska Department of Law. Assistant U.S. Attorneys Ryan Tansey and Tom Bradley for the District of Alaska are prosecuting the case.

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

Source: United States Department of Justice News

CINCINNATI – Markeith Ford, 32, of Cincinnati, was sentenced in U.S. District Court to 66 months in prison for illegally possessing a firearm.

As a previously convicted felon, Ford is prohibited from possessing firearms or ammunition.

According to court documents, on March 4, 2022, plain clothes officers from the Crime Gun Information Center (CGIC) identified Ford at the rear of a property on Race Street. Ford was wearing a black outfit, camouflage mask and latex gloves.

When a patrol vehicle arrived, Ford immediately fled on foot, carrying a firearm in his left hand. He threw the gun toward a fire escape on a building. Ford was eventually caught and placed into custody, and the firearm – which was loaded with 15 rounds of ammunition – was recovered. Ford also had a black magazine with 10 rounds of ammunition in a front pants pocket.

Ford pleaded guilty in June 2022 to illegally possessing a firearm after being convicted of a felony crime.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Cincinnati Police Chief Teresa A. Theetge announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Anthony Springer is representing the United States in this case.

# # #

Source: United States Department of Justice Criminal Division

The Justice Department’s Office on Violence Against Women (OVW) published a regulation governing the Special Tribal Criminal Jurisdiction (STCJ) Reimbursement Program, a new program authorized under the Violence Against Women Act Reauthorization Act of 2022 (VAWA 2022) to reimburse Tribal governments for expenses incurred in exercising STCJ over non-Native individuals who commit certain covered crimes on Tribal lands. VAWA 2013 included a historic provision recognizing Tribes’ authority to exercise STCJ over non-Indian offenders who committed domestic violence or dating violence or violated certain protection orders in Indian country. Last year’s VAWA reauthorization built on the success of VAWA 2013 by expanding the covered crimes under STCJ, enabling Tribes to hold accountable non-Native perpetrators of sexual violence, sex trafficking, stalking, child violence, assault of Tribal justice personnel and obstruction of justice.

“Tribes know best what their communities need, so I encourage tribal leaders, community members, and survivors to review this regulation for the Tribal Jurisdiction Reimbursement Program – it is critical that  programs serving Tribal communities are informed by tribal voices,” said OVW Acting Director Allison Randall. “We are dedicated to removing barriers to access, and it is a victory that VAWA 2022 allows us to continue the Tribal Jurisdiction Program as well as reimburse expenses incurred as a result of implementation.”

OVW published the regulation on April 11. The regulation is available at Regulations.gov and the public is able to review the rule and submit comments no later than June 12. This regulation is an interim final rule, which means that it takes effect on the day of publication. OVW will take into consideration the comments received during the 60-day comment period as well as Tribes’ reaction to the implementation of the first year of the program before issuing a final rule.

Federally recognized Tribes that exercise STCJ are eligible for reimbursement funding under the STCJ Reimbursement Program. For Fiscal Year 2023, the combined appropriation for this program and the STCJ Grant Program is $11 million. Of that amount, OVW may allocate up to $4.4 million for the STCJ Reimbursement Program. Through this program, and as outlined in the interim final rule, Tribes may receive reimbursement for costs that are associated with exercising STCJ, such as law enforcement expenses, incarceration expenses, offender medical and dental expenses not otherwise covered by insurance, prosecution expenses, and defense counsel expenses. During the first quarter of Fiscal Year 2024, OVW plans to post a Notice of Reimbursement Opportunity on justice.gov/ovw with instructions on how to apply for the maximum allowable reimbursement. Later in calendar year 2024, OVW plans to provide instructions on how to apply for waivers of the annual maximum.

OVW administers  grant programs designed to develop the nation’s capacity to reduce sexual assault, domestic and dating violence, and stalking, and tribal entities are generally eligible to apply for any OVW grant program where a comparable non-Tribal entity is eligible. OVW’s Tribal Affairs Division manages grant programs that are specifically targeted to Native American populations and tribes including the aforementioned STCJ Grant Program, Tribal Governments Program, Tribal Coalitions Program and Tribal Sexual Assault Services Program.

Recently, OVW announced that the 18th Annual Government-to-Government Violence Against Women Tribal Consultation will be held Aug. 8-10, 2023, in Tulsa, Oklahoma, to solicit recommendations from Tribal leaders on: administering Tribal funds and programs; enhancing the safety of Indian women from domestic violence, dating violence, sexual assault, homicide, stalking, and sex trafficking; strengthening the federal response to such crimes; and improving access to local, regional, state, and federal crime information databases and criminal justice information systems. Additional information is available at www.ovwconsultation.org. A report of proceedings from last year’s consultation is available on OVW’s website.

Source: United States Department of Justice News

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Leroy Holmes, age 62, of Baltimore, Maryland, to 57 months in federal prison, followed by three years of supervised release, for bank fraud in connection with a scheme to re-encode credit cards, debit cards and gift cards with the stolen financial information of multiple victims to make fraudulent purchases in the victims’ names and without their knowledge or permission.  Holmes used the cards to purchase fuel for truckers at half price, in exchange for cash.  Judge Russell also ordered that Holmes must pay restitution in the full amount of the victims’ losses, which is at least $212,000 and must forfeit electronic equipment including several cell phones, laptop computers and hard drives, as well as pay a money judgment of $106,032.  The sentence was imposed on May 1, 2023.

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service – Washington Division; Special Agent in Charge Ross Luciano of the United States Secret Service – Baltimore Field Office; Acting Special Agent in Charge Troy W. Springer of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); Chief Robert McCullough of the Baltimore County Police Department; and Anne Arundel County Police Chief Amal E. Awad.

According to his plea agreement, from October 2019 to March 2022, Holmes defrauded financial institutions by creating and using counterfeit credit and debit cards by making unauthorized copies of the cards and reprogramming them, using the real banking information of victims, to fraudulently register as the victims’ credit or debit cards when used.  Holmes then used the re-encoded cards to make fraudulent purchases without authority from cardholders or financial institutions, specifically to purchase gas for truckers at a discount at gas stations in Maryland and Pennsylvania in exchange for cash, typically half the total price of the fuel.

Some of the counterfeited credit and debit cards created and used by Holmes contained unemployment insurance benefits provided to victims from the state of California and were used without each victim’s knowledge or permission.  Holmes created or used at least 594 counterfeit credit and debit cards, resulting in a loss of at least $212,000 to financial institutions, businesses and cardholders.

United States Attorney Erek L. Barron commended HSI, USPIS, the Secret Service, the DOL-OIG, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Evelyn L. Cusson and Joyce K. McDonald, who prosecuted the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.  For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.

# # #