Category: MIL-OSI

Source: US FBI

Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that James Read, age 44, and his wife, Crystal Payne, age 42, both of Mountain Home, Arkansas, pleaded guilty to charges stemming from their attempts to obtaining pandemic relief funds unlawfully.  The Honorable Judge P. K. Holmes III accepted the pleas in the U.S. District Court in Fort Smith.

According to the plea agreement in his case, Read applied to the Small Business Administration for Payment Protection Program (PPP) funds, which, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, are forgivable loans intended for businesses struggling with essential expenses, such as payroll, during the pandemic. In that application, Read provided inflated wage and employee data about his business, SnowbirdBob LLC, and provided falsified tax documents. He further admitted to laundering the PPP loan proceeds by purchasing a new vehicle.

Read also pleaded guilty to one count of wire fraud for attempting to obtain unemployment benefits for himself and others in Louisiana. He falsely represented that he lived and worked in Louisiana to Louisiana’s state unemployment administrator.

Payne pleaded guilty to a single count for false statements made in her own PPP loan application.

Read and Payne’s sentencings will be later determined by the court, following the U.S. Probation Office’s completion of a presentence investigation.Based on his guilty plea, the maximum penalties Read faces include imprisonment for up to 30 years and a fine of up to $1,000,000.  Payne faces up to five years imprisonment and a fine of up to $250,000.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. 

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The case was investigated by IRS-Criminal Investigations, the Federal Bureau of Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.

Source: US FBI

TUCSON, Ariz. – Devonte Okeith Mathis, 24, of Mesquite, Texas, was sentenced today by United States District Judge Rosemary Márquez to 10 years in prison (60 months on Count 2, consecutive to 60 months on Count 1), followed by 60 months of supervised release. Mathis pleaded guilty to Conspiracy to Possess with Intent to Distribute Marijuana, Using and Carrying a Firearm During and In Relation to a Drug Trafficking Crime, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.

On October 4, 2021, Mathis and his co-conspirator were traveling together aboard an Amtrak train in Tucson, Arizona, when his co-conspirator shot and killed Drug Enforcement Administration (DEA) Special Agent Michael Garbo aboard the train. His co-conspirator also shot and injured a second DEA Special Agent and a DEA Task Force Officer. The co-conspirator died on the scene after a shootout with a Tucson Police Department Sergeant. In pleading guilty, Mathis admitted that he knew that his co-conspirator possessed two handguns. He also admitted that it was reasonably foreseeable that his co-conspirator would possess the firearms in furtherance of their drug trafficking conspiracy, and that he would carry and use the two handguns during and in relation to their drug trafficking conspiracy.

“Today we honor resilience,” said United States Attorney Gary Restaino. “We commemorate the strength of a fallen hero’s family; the courage and recovery of a TPD officer and a DEA agent injured in the line of duty; the esprit de corps of our law enforcement partners at DEA and TPD; the dedication of the FBI in its investigation; and the renewed commitment by local, state, and federal law enforcement to uphold the rule of law and keep our communities safe. Most of all, we honor DEA Group Supervisor Michael G. Garbo for being an agent who made everyone around him better.”

“Every day, law enforcement officers face dangerous situations to keep our communities safe. Supervisory Special Agent Michael Garbo made the ultimate sacrifice to protect everyone on that train and prevent others from being harmed,” said Akil Davis, Special Agent in Charge of the FBI Phoenix Field Office. “Today is for Michael Garbo, and his loved ones and colleagues. We hope this sentence will bring a degree of comfort and closure knowing that Mr. Mathis has been held accountable for his criminal conduct.”

“Supervisory Special Agent Michael Garbo dedicated himself to DEA’s mission and gave his life in service to his country,” said DEA Administrator Anne Milgram. “Today, we remember him as a hero, mentor, and friend and, each and every day, we honor his legacy by continuing our fight to keep Americans safe. His daughter Alexis and wife Vida are in our thoughts, as well as our DEA Special Agent and Task Force Officer who were injured during the tragic events of October 4, 2021. We want to thank the FBI and the U.S. Attorney’s Office for the District of Arizona for their dedicated work on this case and pursuit of justice.”

“That day is seared in our collective memory as an agency and as a law enforcement community,” said Tucson Chief of Police Chad Kasmar. “We will never forget our fallen colleague, DEA Group Supervisor Mike Garbo, and we are thankful that more lives were not lost that day – due to the heroic actions of many of our TPD members. Two others were seriously injured, a DEA agent and a TPD officer. I remain extremely proud of TPD’s response and I hope that today’s decision brings closure and peace to the family of GS Garbo, and to all who were affected by this event.”

The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER:           CR-21-2714-TUC-RM-MSA
RELEASE NUMBER:    2023-096_Mathis

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Source: US FBI

      LITTLE ROCK—A Little Rock woman was sentenced to 41 months in federal prison after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentence of Ganell Tubbs, 41.

      Tubbs pleaded guilty to bank fraud in December 2020 and admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.

      On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.

      Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.

      The indictment, which was returned by a grand jury on July 7, 2020, charged Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs’ earlier guilty plea to one count of bank fraud was received in exchange for dismissal of the remaining charges.

      United States District Judge Brian S. Miller imposed the sentence, which included two years of supervised release in addition to the 41 month prison sentence. Judge Miller also ordered Tubbs to pay $14,000 restitution, as the rest of the nearly $2 million was able to be recovered previously. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey prosecuted the case.

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This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS

Source: US FBI

Texarkana, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Gerson Eduardo Magana, 25, of Texarkana, Arkansas, was sentenced today to 70 months in federal prison, followed by five years of supervised release, for the Distribution of more than 50 grams or more of pure methamphetamine.  The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, in the United States District Court’s Texarkana Division.

According to court records, the Federal Bureau of Investigation (FBI) and the Bi-State Narcotics Task Force conducted a controlled purchase of methamphetamine from Magana in June of 2018.  The substance purchased from Magana was submitted to the Arkansas State Crime Laboratory, which found it to contain at least 70.8 grams of pure methamphetamine.

Magana was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2019. 

This case was investigated by the FBI and the Bi-State Narcotics Drug Task Force.  Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.

Source: US FBI

Texarkana, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Andre Scoggins, 50, of Mineral Springs, Arkansas, was sentenced today to 120 months in federal prison, followed by five years of supervised release, for Distributing more than 50 grams of methamphetamine.  The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court’s Texarkana Division.

According to court records, Detectives with the Hempstead County Sheriff’s Department conducted a controlled purchase of methamphetamine from Scoggins in November 2018.  The substance purchased from Scoggins was submitted to the DEA Crime Laboratory, which found to contain 69.7 grams of pure methamphetamine.

Scoggins was indicted by a federal grand jury in June of 2019 and entered a guilty plea in October of 2020. 

This case was investigated by the Hempstead County Sheriff’s Department, the Federal Bureau of Investigation, and the Drug Enforcement Administration.  Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.

Source: US FBI

      LITTLE ROCK—A Sherwood man will remain in custody to await trial after being indicted on federal firearm charges. Noah Shoemaker, 37, appeared for a bond hearing on Monday afternoon before United States Magistrate Judge Patricia S. Harris.

      Shoemaker was charged in January 2021 with one count of being a felon in possession of a firearm and one count of possessing a machine gun. When FBI agents arrested Shoemaker on January 30, 2021, they discovered he had fled to Pinnacle Mountain State Park. Upon locating Shoemaker, agents found a firearm on his person and another firearm in his vehicle as well as numerous rounds of ammunition. Additionally, Shoemaker was equipped with camping gear, bottled water, cash, fire supplies, and other survival gear.

      Judge Harris determined that Shoemaker poses a risk of flight as well as a risk of danger to the community and remanded him to the custody of the United States Marshals. He will remain in custody until his trial, which is currently scheduled for March 29, 2021, but is expected to be continued due to the Court’s Administrative Order 11.

      Shoemaker was initially charged in January on a federal complaint, and subsequently indicted on three charges—two counts of being a felon in possession of a firearm and one count of possessing a machine gun—on Feb. 3, 2021. Being a felon in possession of a firearm and possessing a machine gun are both punishable by up to 10 years’ imprisonment, a fine of not more than $250,000, and up to three years of supervised release. This case is being investigated by the FBI and prosecuted by Assistant United States Attorney Stacy Williams.

      An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.

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This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS