Environmental Crimes Bulletin April 2023

In this issue:

• United States v. Michael M. Beans, No. 3:23-CR-00034 (D. Alaska), AUSAs Ainsley McNerney and Steve Skrocki
• United States v. Travis Larson, et al., No. 3:23-CR-00036 (D. Alaska), AUSA Seth Brickey
• United States v. Edward A. Bundy, No. 3:23-CR-00029 (D. Alaska), AUSA Steve Skrocki
• United States v. Alain Armando Guevara Hernandez, et al., No. 22-CR-20535 (S.D. Fla.), AUSA Tom Watts – FitzGerald
• United States v. Jose Parra-Villalobos, No. 5:23-CR-00036 (E.D. Ky.), AUSA James Chapman
• United States v. Stanlee Fazi, No. 1:23-CR-00046 (E.D. Va.), ECS Senior Trial Attorney Ryan Connors and AUSA Gordon Kromberg
• United States v. Polina L. Perelman, No. 1:23-CR-00055 (E.D. Va.), AUSAs Gordon Kromberg and Cristina Stam
• United States v. Anthony S. Gilstrap, No. 1:21-CR-00134 (D. Hi.), ECS Senior Counsel Kris Dighe, AUSA Gregg Yates, and ECS Paralegal Samantha Goins
• United States v. Connell S. Stukes, et al., No. 3:22-CR-00132 (E.D. Va.), ECS Senior Trial Attorney Banu Rangarajan, ECS Trial Attorney William Shapiro, AUSA Stephen Anthony, and ECS Law Clerk Amanda Backer
• United States v. Michael J. Collins, et al., No. 1:23-CR-00008 (D.R.I.), AUSA John P. McAdams
• United States v. Robert Jensen, et al., No. 2:22-CR-00013 (W.D. Mich.); United States v. Garden Bay Fisheries, et al., No. 2:22-CR-00014 (W.D. Mich.), ECS Trial Attorney Joel La Bissonniere, AUSA Paul Lochner, and ECS Paralegal Sam Goins
• United States v. Mario Maldonado, No. 2:22-po-08319 (D.N.J.), ECS Senior Trial Attorney Ethan Eddy and AUSA Kathleen O’Leary
• United States v. Jaron Coleman, No. 7:21-CR-00041 (M.D. Ga.), AUSA Robert McCullers
• United States v. Jason Perkins, No. 1:23-CR-10060 (W.D. Tenn.), AUSA Christie Hopper 
• United States v. E.I du Pont De Nemours and Company Inc., et al., No. 4:21-CR-00016 (S.D. Tex.), AUSAs John R. Lewis and Belinda Beek and SAUSA Kristina Gonzales, with assistance from ECS Chief Deborah Harris, Deputy Chief Joseph Poux, Senior Trial Attorney Cassie Barnum, and Trial Attorney Erica Pencak
• United States v. Paul Andrecola, No. 22-CR-00397 (D.N.J.), ECS Senior Trial Attorney Adam Cullman, ECS Trial Attorney Matt Evans, and ECS Law Clerk Maria Wallace
• United States v. Badru Abdul Aziz Saleh, et al., No. 1:19-CR-00338 (S.D.N.Y.), AUSAs Sagar K. Ravi and Jarrod L. Schaeffer
• United States v. Bruce Evans, Sr., et al., No. 3:19-CR-00009 (M.D. Pa.), AUSA Michelle Olsheksi and SAUSAs Martin Harrell and Patricia Miller
• United States v. Joshua Andrell Armanta, No. 3:22-CR-00511 (S.D. Calif.), ECS Senior Trial Attorney Stephen DaPonte and AUSA Melanie Pierson
• United States v. Horacio Ortega-Martinez, et al., Nos. 1:22-CR-00130, 00132 (E.D. Calif.), AUSA Karen Escobar
• United States v. SNAP Office Supplies, No. 3:23-mj-00005 (E.D. Va.), AUSA Michael C. Moore
• United States v. Klean Waters, Inc., et al., No. 8:21-CR-00060 (C.D. Calif.), AUSA Rosalind Wang

• United States v. Jerrard McVey, et al., No. 5:22-CR-00021 (E.D. Ky.) AUSAs Kate Smith and Andrea Mattingly-Williams

• United States v. Lev A. Dermen, et al., No. 2:18-CR-00365 (D. Utah), Tax Division Senior Litigation Counsel John E. Sullivan, Trial Attorney Richard M. Rolwing, and former Trial Attorney Leslie A. Goemaat, with assistance from Senior Policy Advisor Darrin L. McCullough of the Justice Department’s Money Laundering and Asset Recovery Section
• United States v. Veleriy V. Gorbounov, et al., Nos. 3:22-CR-00003, 00005, 00029-31,00036-00040 (D. Alaska), AUSA Steve Skrocki
• United States v. Adrian Ferrer-Rodriguez, No. 3:23-CR-00076 (D.P.R.), ECS Trial Attorney Christopher Hale, AUSA Seth Erbe, and ECS Paralegal Chloe Harris
• United States v. Renaissance Aquatics, Inc., et al., No. 2:17-CR-00585 (C.D. Calif.), AUSAs Heather Gorman and Dennis Mitchell

United States v. Michael M. Beans, No. 3:23-CR-00034 (D. Alaska), AUSAs Ainsley McNerney and Steve Skrocki

United States v. Travis Larson, et al., No. 3:23-CR-00036 (D. Alaska), AUSA Seth Brickey

On April 21, 2023, prosecutors charged Travis Larson and his company, Alaska Premier Sportfishing, LLC, (APS) with violating the Lacey Act for illegally transporting four black bears and making false records (16 U.S.C. §§ 3372(a)(2)(A), 3373(d)(1)(B); (d)(3)(A)).

In May 2018, Larson and APS transported four black bears illegally harvested by Norwegian hunters. The hunters killed the animals in violation of Alaska laws governing  hunting by non-residents. They also had not contracted with a registered guide as required under  Alaska statute. Additionally, the Norwegians took two of the bears from Alaska Native Corporation land without obtaining permission to hunt there. The two other bears were likely taken below the mean high-tide line near Alaska Native Corporation land, which is managed by the state and is a legal hunting area. Larson and APS made and submitted false records, claiming they transported the four animals from Nuka Island, when in truth they had been transported from Beauty Bay and Surprise Bay on the Kenai Peninsula. Nuka Island is wholly owned and managed by the state and is open for hunting both below and above the tide-line.

The U.S. Fish Wildlife Service Office of Law Enfrorcement, the National Park Service, the National Oceanic and Atmospheric Administration, and Alaska State Troopers conducted the investigation.

United States v. Edward A. Bundy, No. 3:23-CR-00029 (D. Alaska), AUSA Steve Skrocki

On April 11, 2023, prosecutors charged Edward A. Bundy with violating the Lacey Act for unlawfully transporting illegally taken wildlife from Alaska to his residence in Arkansas (16 U.S.C. §§ 3372(A)(2)(a), 3373(d)(2)).

In August 2017, Bundy submitted falsified paperwork claiming Alaska residency. He then illegally killed a bull caribou as a non-resident. In April 2018, Bundy arranged to ship the hide of the caribou he had killed illegally from a tannery in Alaska to his home in Arkansas.

The U.S. Fish and Wildlife Service Office of Law Enforcement, conducted the investigation, with assistance from the Alaska Wildlife Troopers.

United States v. Alain Armando Guevara Hernandez, et al., No. 22-CR-20535 (S.D. Fla.), AUSA Tom Watts – FitzGerald

On April 6, 2023, a court unsealed indictments brought against 10 defendants in 10 separate cases for trafficking migratory birds.

Following the conclusion of  Operation Ornery Birds II, prosecutors charged the following defendants with violating the Migratory Bird Treaty Act (16 U.S.C. §§ 703, 706, 707(b)(2),(d)):

Alain Armando Hernandez, Daniel Hernandez Matos, Alejandro Hernandez Valero, Julio Cesar Santana Menduina, Andres Hernandez Rivera, Felix Yoan Diaz Montesinos, Yoander Cruz Sardina, Conrado Torres Aleman, Armando Espino Gonzalez, and Onelio Rene Hernandez, Jr.,

From approximately May 2020 through October 2022, the defendants acquired the birds through a variety of means, including using baited bird traps throughout the Miami region. They then collected, bartered, purchased, and sold a variety of birds to people throughout the United States using internet sites frequented by traffickers. The defendants also unlawfully transported the captured wildlife between buyers and sellers.

Among the species collected and sold were Indigo Buntings, Blue Grosbeaks, Rose-breasted Grosbeaks, Painted Buntings, Northern Cardinals, and Lazuli Buntings, all of which are highly prized for their colorful plumage and singing abilities.

Federal and state agents recovered more than 500 illegally taken birds as a result of the operation. They successfully released the majority into the wild, although some of the birds perished.

The U.S. United States Fish and Wildlife Service Office of Law Enforcement, Homeland Security Investigations, and the Florida Fish and Wildlife Conservation Commission conducted the investigation.

United States v. Jose Parra-Villalobos, No. 5:23-CR-00036 (E.D. Ky.), AUSA James Chapman

On April 6, 2023, a grand jury indicted Jose Parra-Villalobos, charging him on a 22-count indictment with participating in an animal fighting venture and distributing misbranded prescription animal drugs (7 U.S.C. § 2156(d); 21 U.S.C. §§ 331, 333; 841, 843).

The defendant resides in California. Investigators with the Food and Drug Administration received a tip that Parra-Villalobos sold Wormal tablets and Zeromite packets (unregistered pesticides used in connection with cockfighting events) via online sales. Further investigation revealed Facebook pages where he advertised and sold a wide variety of unapproved animal drugs, including Schedule III anabolic steroids. Parra-Villalobos also advertised various kinds of cockfighting instruments (e.g., knives or “gaffs”) for sale on  Facebook. Between April 2018 and February 2019, agents initiated several undercover online buys from the defendant of adulterated and/or misbranded drugs and Schedule III controlled substances. The defendant shipped these items from California to the Eastern District of Kentucky.

This case arose out of a prior investigation, in which Parra-Villalobos was identified as a supplier for two defendants prosecuted in 2019 and 2020.

United States v. Stanlee Fazi, No. 1:23-CR-00046 (E.D. Va.), ECS Senior Trial Attorney Ryan Connors and AUSA Gordon Kromberg

United States v. Polina L. Perelman, No. 1:23-CR-00055 (E.D. Va.), AUSAs Gordon Kromberg and Cristina Stam

United States v. Anthony S. Gilstrap, No. 1:21-CR-00134 (D. Hi.), ECS Senior Counsel Kris Dighe, AUSA Gregg Yates, and ECS Paralegal Samantha Goins

On April 19, 2023, Anthony S. Gilstrap pleaded guilty to violating the Resource Conservation and Recovery Act (RCRA) for transporting hazardous waste without a manifest, falsifying a hazardous waste manifest, and illegally storing hazardous waste (42 U.S.C. §§ 6928(d)(5), (d)(3), (d)(2)(A)). Gilstrap also pleaded guilty to possessing a stolen firearm (18 U.S.C. § 922(j)).

In January of 2017, Gilstrap agreed to remove drums of the RCRA-listed hazardous waste perchloroethylene (perc) from Young’s Laundry & Dry Cleaning (YLD), owned by U.S. Dry Cleaning Corporation (USDC). YLD’s Regional Manager hired Gilstrap to remove the drums for less than half of what legitimate hazardous waste disposal companies quoted. Gilstrap took the drums to his warehouse (which was not a permitted storage or treatment site) without properly manifesting the waste. Both Gilstrap and USDC produced false manifests to conceal their activities from the Hawaii Department of Health (HDOH). When questioned by an HDOH inspector about the missing drums, Gilstrap lied about their whereabouts.

In May 2022, a court sentenced USDC to complete a three-year term of probation and to publish two apologies. Ruth Ann Newby, the YLD regional manager, was sentenced in 2020 to pay a $2,000 fine and complete a one-year term of probation

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

United States v. Connell S. Stukes, et al., No. 3:22-CR-00132 (E.D. Va.), ECS Senior Trial Attorney Banu Rangarajan, ECS Trial Attorney William Shapiro, AUSA Stephen Anthony, and ECS Law Clerk Amanda Backer

On April 13, 2023, Connell S. Stukes pleaded guilty to charges arising from his involvement in dog fighting across states lines (18 U.S.C § 49; 7 U.S.C. §§ 2156 (a)(1), (b)). Sentencing is scheduled for July 13, 2023.

In September 2022, a grand jury returned a 39-count indictment charging Stukes, Herman T. Washington, Smith, Jerome D. Smith, and Antonio Ruffin with conspiracy and violating the Animal Welfare Act for taking part in dog fighting ventures (18 U.S.C §§ 371, 49; 7 U.S.C. §§ 2156 (a)(1), (a)(2), (b)).

Between December 2017 and August 2021, the defendants travelled to North Carolina, South Carolina, and other states to fight dogs. Authorities rescued 91 pit-bull-type dogs as a result of this drug and dog fighting investigation.

The Federal Bureau of Investigation conducted the investigation, with assistance from the Office of the Attorney General for the Commonwealth of Virginia.

United States v. Michael J. Collins, et al., No. 1:23-CR-00008 (D.R.I.), AUSA John P. McAdams

On April 3, 2023, Michael J. Collins, M&D Transportation, Inc. (M&D), and Diesel Tune-Ups of RI, Inc., pleaded guilty to conspiring to violate the Clean Air Act by selling and installing software that tampered with vehicle on-board computers and altered emission control systems (18 U.S.C. § 371; 42 U.S.C. § 7413(c)(2)(C)). Sentencing is scheduled for July 10, 2023.

Between September 2014 and August 2019, Collins, the two corporate defendants, and a foreign national (FN) worked with several diesel vehicle sales and repair companies throughout the United States to alter or disable functions of the Electronic Control Modules (ECM) and On-Board Diagnostic (OBD) monitoring systems of heavy-duty diesel vehicles (or “big rigs.” These alterations are also known as “tunes.” The defendants marketed their “tuning business” for “big rigs” on Facebook, claiming their service enhanced power and improved fuel mileage. The Facebook page listed a Rhode Island telephone number associated with Collins, M & D and Diesel Tune-Ups.

The defendants shipped laptops to companies that purchased the tuning service. The companies then contacted the FN to remotely download the tunes into each vehicle’s ECM. This enabled the vehicles to operate without proper emission controls, and with increased horsepower and torque. Often, installation of the “tunes” was undertaken by diesel sales and service centers that were making other changes to trucks’ pollution control systems. Collins also employed the same techniques to circumvent emission controls on some of M & D-owned diesel vehicles.

From approximately March  2017 through June 2018, Collins either deposited or caused to be deposited into the Diesel Tune-Ups bank account fees received from approximately 25 different diesel trucking and repair shops throughout the United States. Customers paid Collins’ companies between $1,700 and $3,650 for each vehicle tuned. Collins and his companies kept $818,000 and wired a portion of the funds (approximately $637,000) overseas to the foreign co-conspirator.

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

United States v. Robert Jensen, et al., No. 2:22-CR-00013 (W.D. Mich.); United States v. Garden Bay Fisheries, et al., No. 2:22-CR-00014 (W.D. Mich.), ECS Trial Attorney Joel La Bissonniere, AUSA Paul Lochner, and ECS Paralegal Sam Goins

On April 28, 2023, a court sentenced James and Michael Hermes, along with their company Garden Bay Fisheries, for selling illegally possessed fish in interstate commerce and making and submitting false records in violation of the Lacey Act (16 U.S.C. §§ 3372(d)(2), 3373(d)(2)). As sentenced, all three defendants are jointly and severally responsible for $180,000 in restitution to be paid to the U. S. Fish and Wildlife Service National Fish Hatchery System (with James and Michael Hermes each paying $90,000). All three defendants will pay $8,500 fines. The company will complete a four-year term of probation. James and Michael Hermes will each complete two-year terms’ of probation to include six-months’ home confinement.

On May 2, 2023, Robert and Joseph Jensen pleaded guilty to a three-count misdemeanor information charging them with making and submitting (and causing to be submitted) false records in violation of the Lacey Act (16 U.S.C. §§ 3372(d)(2), 3373(d)(3)(A)(ii), (d)(3)(B)).

Robert Jensen, and his son, Joseph, are enrolled members of the Sault Ste. Marie Tribe, who commercially fish Lake Michigan pursuant to licenses issued by their tribe. James and Michael Hermes are non-tribal fish wholesalers doing business as Garden Bay Fisheries, located in Michigan’s Upper Peninsula. During 2017, the Jensens repeatedly harvested lake trout in excess of established daily trip limits. These fish were purchased by Big Bay de Noc Fisheries (the predecessor to Garden Bay Fisheries), which sold them in interstate commerce. To conceal the illegal nature of the fish, Robert Jensen falsified monthly catch reports filed with the tribe, and Big Bay de Noc Fisheries falsified wholesale reports filed with the State of Michigan.

The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

United States v. Mario Maldonado, No. 2:22-po-08319 (D.N.J.), ECS Senior Trial Attorney Ethan Eddy and AUSA Kathleen O’Leary

On April 26, 2023, a court sentenced Mario Maldonado to pay a $3,000 fine, complete a three-year term of probation, perform 500 hours of community service, and forfeit bird traps in his possession. Maldonado pleaded guilty to violating the Migratory Bird Treaty Act for killing a Red-Tailed Hawk (16 U.S.C. §§ 703, 707(a)).

Maldonado shot and injured the hawk in the back yard of his residence. After injuring the bird, Maldonado boiled it in a large pot on his stove, likely while the bird was still alive. Evidence in the case indicated that the defendant routinely live-trapped and tortured small animals.

The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

United States v. Jaron Coleman, No. 7:21-CR-00041 (M.D. Ga.), AUSA Robert McCullers

On April 26, 2023, a court sentenced Jaron Coleman to time-served, followed by one year of supervised release, and to pay a $5,000 fine. Coleman pleaded guilty to violating the Clean Water Act and Oil Pollution Act for knowingly discharging 3,000 gallons of diesel fuel into a water of the United States (33 U.S.C. §§ 1319(c)(2)(A), 1321(b)(3)).

A court previously sentenced Coleman in December 2019 to 18 months’ incarceration, and to pay a $5,000 fine. In December 2020, Coleman appealed to the Eleventh Circuit. The Court vacated and remanded the case, citing a lack of factual basis demonstrating impact to navigable waters of the United States. Prosecutors refiled the indictment in September 2021.

On April 19, 2018, Coleman, working for Eco Energy, dumped diesel fuel on the ground near a gas station in Thomasville, Georgia, after he realized he had loaded the wrong product for delivery. The fuel migrated to an adjacent storm water drainage system that flows directly into a creek. The unnamed creek is a tributary of Good Water Creek, which flows into Oquina Creek and the Ochlockonee River, a traditionally navigable water of the United States. Officials evacuated a nearby elementary school after discovering large amounts of diesel fuel nearby.

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

United States v. Jason Perkins, No. 1:23-CR-10060 (W.D. Tenn.), AUSA Christie Hopper

On April 26, 2023, a court sentenced Jason Perkins to 24 months’ incarceration, followed by three years’ supervised release for violating the Bald and Golden Eagle Protection Act and possessing a firearm as a convicted felon (16 U.S.C. § 668; 18 U.S.C. §922, 924).

On March 21, 2021, federal and state wildlife agents received a report of a bald eagle carcass in Tiptonville, Tennessee. By conducting witness interviews and executing search warrants on the homes of Perkins’s and his father, officials determined that Perkins shot the bald eagle as a previously convicted felon. They recovered Perkins’s firearms, a 12-gauge shotgun and .357 handgun.

The U.S. Fish and Wildlife Service Office of Law Enforcement, the Tennessee Wildlife Resource Agency, and the Lake County Sheriff’s Office conducted the investigation.

United States v. E.I du Pont De Nemours and Company Inc., et al., No. 4:21-CR-00016 (S.D. Tex.), AUSAs John R. Lewis and Belinda Beek and SAUSA Kristina Gonzales, with assistance from ECS Chief Deborah Harris, Deputy Chief Joseph Poux, Senior Trial Attorney Cassie Barnum, and Trial Attorney Erica Pencak

On April 25, 2023, a court ordered E. I. du Pont de Nemours and Company Inc. (DuPont) to pay a $12 million criminal fine and complete a two-year term of probation. The company pleaded guilty to violating the Clean Air Act for causing a negligent release of an extremely hazardous substance (42 U.S.C. §7413(c)(4)). As part of sentencing, DuPont also will make a $4 million community service payment to the National Fish and Wildlife Foundation, funding projects that benefit air quality in and around areas adjacent to the western shores of Galveston Bay. While under supervision, DuPont must give the U.S. Probation Office full access to all its operating locations. Operations Manager Kenneth Sandel pleaded guilty to the same charge and was sentenced to a one-year term of probation.

Dupont, headquartered in Wilmington, Delaware, owns chemical manufacturing plants around the world including a facility in La Porte, Texas. As part of its operations, the facility produces pesticides called Lannate and Vydate among other products.

On November 15, 2014, DuPont released approximately 24,000 pounds of a highly toxic, flammable gas called methyl mercaptan (MeSH) into the air, killing four employees at its plant in LaPorte. The chemical release injured additional DuPont employees and travelled downwind into surrounding communities.

At the time of the release, an employee inadvertently left open a piping valve which caused a slushy material to block the flow of liquid MeSH into the Lannate process. To melt it, DuPont day shift employees began applying hot water to the outside of the blocked piping and opened other valves to vent MeSH gas into a waste gas system. However, the MeSH piping was still blocked at the end of the day.

As the unit operations leader of the Insecticide Business Unit (IBU), Kenneth Sandel was responsible for ensuring shift supervisors, operators, and engineers understood and complied with government safety, health, and environmental regulations. In particular, Sandel was responsible for implementing a safety procedure at the IBU to ensure employees understood and followed the procedure’s requirements and did not release toxic chemicals to the environment  inappropriately .

Sandel and other employees failed to provide the incoming shift sufficient instructions on how to safely clear remaining blockage. When the blockage finally cleared early the next morning, a large volume of liquid MeSH began flowing into the waste gas system. An employee mistakenly believed the waste gas system only contained materials present during normal operations and opened valves that resulted in the release of the toxic gas.

As a result of this case and other related civil cases tied to the explosion, DuPont will pay a total of $19.26 million.

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation, with assistance from the Texas Environmental Enforcement Task Force and the Texas Commission on Environmental Quality.

United States v. Paul Andrecola, No. 22-CR-00397 (D.N.J.), ECS Senior Trial Attorney Adam Cullman, ECS Trial Attorney Matt Evans, and ECS Law Clerk Maria Wallace

On April 25, 2023, a court sentenced Paul Andrecola to pay restitution in the amount of $227,043, which is to be divided among seven victims. This is in addition to 60 months' incarceration and three-years’ supervised release ordered in December 2022, for his illegal manufacture and sale of  various disinfectant products.

During the pandemic, Andrecola sold disinfectants, claiming he registered them with the U.S. Environmental Protection Agency (EPA) and that they were approved for use against COVID-19. None of this was true, however. Andrecola stole another company’s EPA registration numbers, created dozens of false documents to support his claims, and used the misbranding and fraudulent statements to induce more than 150 sales worth more than $2.7million.

Andrecola pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act, wire fraud, and making or presenting a false, fictitious, or fraudulent claim to the United States (7 U.S.C. § 136j(a)(1)(A); 18 U.S.C. §§ 1343, 287).

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation, with assistance from EPA Office of Inspector General, Homeland Security Investigations, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Mount Laurel Police Department.

United States v. Badru Abdul Aziz Saleh, et al., No. 1:19-CR-00338 (S.D.N.Y.), AUSAs Sagar K. Ravi and Jarrod L. Schaeffer

On April 24, 2023, a court sentenced Badru Abdul Aziz Saleh to 24 months’ incarceration. Saleh pleaded guilty to a narcotics conspiracy charge for his role in an international wildlife and drug smuggling ring (21 U.S.C. § 846; 18 U.S.C. § 3238).

Between December 2012 and May 2019, Moazu Kromah, Amara Cherif, Mansur Mohamed Surur, and Abdi Hussein Ahmed conspired to transport, distribute, sell, and smuggle approximately 190 kilograms of rhinoceros horns and 10 tons of elephant ivory from countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia. Authorities estimate the combined total retail value of trafficked rhinoceros horn and elephant ivory at close to $8 million.

The defendants poached approximately 35 rhinoceros and more than 100 elephants. They exported the horns and ivory in packaging that deliberately concealed the contents, hiding it among pieces of art such as African masks and statues. They received and deposited wire transfer payments as well as cash from foreign customers.

The court previously sentenced three defendants: Kromah will serve 63 months’ incarceration, and forfeit one black and two white rhino horns, after pleading guilty to conspiracy and Lacey Act wildlife trafficking (18 U.S.C. § 371; 16 U.S.C. §§ 3372(a)(2)(A) and 3373 (d)(1)(B)). Surur will serve 54 months’ incarceration, and forfeit a black rhinoceros horn, two white rhinoceros horns, and $1,000 in cash, after pleading guilty to conspiracy and distributing heroin (18 U.S.C. §§ 371, 841, 846.) Cherif was sentenced on December 13, 2022, to 57 months’ incarceration.

Between August 2018 and May 2019, Abdi Hussein Ahmed (working with Surer) distributed more than 10 grams of heroin to a buyer in New York. Ahmed remains in custody following his recent arrest.

The U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, conducted the investigation, with assistance from: the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions.

United States v. Bruce Evans, Sr., et al., No. 3:19-CR-00009 (M.D. Pa.), AUSA Michelle Olsheksi and SAUSAs Martin Harrell and Patricia Miller

On April 21, 2023, a court sentenced Bruce Evans, Jr., to 12 months and one day of incarceration, followed by one year of supervised release. Evans also will pay $678 in restitution to the Greenfield Township Sewer Authority Board (GTSAB).

In December 2021, a jury convicted Bruce Evans, Sr., and his son, Bruce Evans, Jr.,  on 29 of 36 counts involving Clean Water Act (CWA), wire fraud, and obstruction of correspondence offenses (33 U.S.C. §§ 1319(c)(2)(A), 1311, 1342; 18 U.S.C. §§ 1343, 1702). The charges arose from conduct occurring at the Greenfield Township, Pennsylvania, wastewater treatment plant (WWTP) between 2013 and 2017  The jury convicted Evans, Jr., on all five CWA counts for failure to operate and maintain the plant in violation of the CWA permit, discharge in violation of a permit, and making a CWA false statement for lying on a WWTP job application (33 U.S.C. §§ 1319(c)(2)(A), 1319(c)(4), 1311, 1342).

In addition to serving on the GTSAB and managing the plant for more than 20 years, Evans, Sr., spent more than 30 years as the Township Supervisor in the small rural town. He continued to hold the Township Supervisor position during trial, after refusing to resign following his indictment. He supervised his son at both the WWTP and the township, controlled all correspondence and payroll for each, and operated a small public drinking water system. Evans, Jr., worked as an “assistant” WWTP operator beginning in late 2017, a scheme orchestrated by his father in defiance of the four other board members. The obstruction of correspondence charges stemmed from his failure to deliver Notices of Violation to board members sent in late 2015 by the Pennsylvania Department of Environmental Protection (PADEP).

Evans, Sr., testified to some financial wrongdoings, but blamed them on oversights and his desire to help his son. Regarding the environmental charges, he blamed the contract operators, stating that overseeing the plant’s environmental operations was “not my job.” Despite being paid $25,000 a year as a part-time plant manager, Evans, Sr., testified he never bothered to read the National Pollution Discharge Elimination System permit during his entire tenure as plant manager.

The CWA counts involved violations of the Authority’s CWA permit, including both numerical limits and several different narrative permit conditions, bypassing a pump station that resulted in the routing of raw sewage into a marshy area adjacent to a stream, and failing to notify PADEP about bypasses, sanitary sewer overflows, and hauled wastes.

Following years of noncompliance at the WWTP, federal environmental authorities initiated an investigation in 2013, using covert cameras positioned to surveil activity at the facility and a nearby pump station. Additional investigation revealed PADEP issued repeated warnings to Evans, Sr., (as the facility’s responsible corporate officer) regarding deficient facility inspections, permit non-compliance, community complaints about foul odors, and visible raw sewage routinely overflowing from a pump station.

The U.S. Environmental Protection Agency Criminal Investigation Division, the Federal Bureau of Investigation, and the Pennsylvania Department of Environmental Protection conducted the investigation.

United States v. Joshua Andrell Armanta, No. 3:22-CR-00511 (S.D. Calif.), ECS Senior Trial Attorney Stephen DaPonte and AUSA Melanie Pierson

On April 20, 2023, a court sentenced Joshua Andrell Armenta to complete a three-year term of probation and pay $1,200 in restitution. Armenta pleaded guilty to conspiring to violate the Federal Insecticide, Fungicide, and Rodenticide Act (18 U.S.C. § 371).

Authorities apprehended Armenta in February 2022 as he entered the United States from Mexico at the Calexico Port of Entry with 30 one-liter bottles of Taktic an undeclared Mexican pesticide in his vehicle.

Those involved in clandestine marijuana grows use illegal pesticides to cultivate unregulated marijuana on both public and private land in the United States.

The U.S. Environmental Protection Agency Criminal Investigation Division and Homeland Security Investigations conducted the investigation.

United States v. Horacio Ortega-Martinez, et al., Nos. 1:22-CR-00130, 00132 (E.D. Calif.), AUSA Karen Escobar

On April 17, 2023, a court sentenced Mexican national Horacio Ortega-Martinez to 18 months’ incarceration, followed by three years’ supervised release. Ortega-Martinez pleaded guilty to unlawfully possessing roosters to use in an animal fighting venture (7 U.S.C. § 2156(b), 18 U.S.C. § 49(a)). The court also ordered the forfeiture of the birds.

In January 2022, law enforcement agents received information about Ortega-Martinez’s involvement in breeding, fighting, and selling roosters through recorded conversations obtained from a court-authorized wiretap of a phone used by co-defendant Jorge Calderon-Campos. Ortega-Martinez and Calderon conversed multiple times about buying, selling, and fighting roosters. In April 2022, agents executed a search warrant at Ortega-Martinez’s property, discovering approximately 250 fighting roosters, the same number of “gaffs” (razor-sharp steel blades that are tied to the birds’ legs), mitts commonly used for training and fighting roosters, and miscellaneous antibiotics and supplements commonly used for breeding and training roosters for fighting. Calderon is charged with drug trafficking and animal fighting offenses.

Homeland Security Investigations, the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Kern County High Intensity Drug Trafficking Area, the U.S. Marshals Service, U.S. Customs and Border Protection, the Bakersfield Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the U.S. Secret Service, the U.S. Department of Agriculture Office of Inspector General and the California Highway Patrol conducted the investigation.

United States v. SNAP Office Supplies, No. 3:23-mj-00005 (E.D. Va.), AUSA Michael C. Moore

On April 17, 2023, a court sentenced SNAP Office Supplies, LLC, to complete a three-year term of probation and to pay a total of $60,878 in restitution to be divided between  six victim companies. The company pleaded guilty to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) for selling unregistered pesticides (7 U.S.C. §§ 136j(a)(1)(A), 136l(b)(1)(B)).

SNAP’s customers consisted principally of state and local government agencies, as well as health clubs and janitorial and cleaning firms. From June 2020 through September 2020, the company began selling two types of "disinfectant" wipes that supposedly protected users from COVID-19. The company had not registered its product under FIFRA. When questioned about the product, the company directed customers to review a Safety Data Sheet belonging to a liquid disinfectant manufactured by a different company (which was approved in liquid form) for use against viruses similar to COVID-19.

In July 2020, a customer contacted federal officials when mold started growing on wipes purchased from SNAP. The Environmental Protection Agency notified SNAP that the regulations required the company to properly register its product. Despite this notice, the company continued to sell the wipes and, falsely advertised their efficacy against viruses, including COVID-19.

The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

United States v. Klean Waters, Inc., et al., No. 8:21-CR-00060 (C.D. Calif.), AUSA Rosalind Wang

On April 14, 2023, a court sentenced Klean Waters, Inc., a wastewater treatment facility, and company owner Tim Miller, for violating the Clean Water Act by discharging untreated industrial wastewater into publicly-owned treatment works (POTW) (18 U.S.C. § 371; 33 U.S.C. § 1319 (c)(2)(A)). Both will complete three-year terms’ of probation and are jointly and severally responsible for a $50,000 fine.

Authorities permitted Klean Waters to receive non-hazardous industrial wastewater, treat it for pollutants as necessary, and discharge the water into the Orange County Sanitation District’s POTW. Between 2012 and 2015, the defendants discharged untreated wastewater that contained pollutants, including firefighting foam and a variety of metals. Additionally, they failed to perform self-monitoring, made false statements regarding the discharges, tampered with monitoring devices, and prevented inspectors from reviewing company documents or collecting samples from the facility.

The Federal Bureau of Investigation and the U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

United States v. Jerrard McVey, et al., No. 5:22-CR-00021 (E.D. Ky.) AUSAs Kate Smith and Andrea Mattingly-Williams

On April 12, 2023, a court sentenced Jerrard McVey and Linda McVey to 12 months and one day of incarceration, followed by three years of supervised release, for conspiring to sponsor and exhibit animals in an animal fighting venture (18 U.S.C. § 371).

The McVeys and others, including Walter Mitchell, organized multiple animal fighting ventures in the form of cock fights at “The Valley,” a venue located on the border of Nicholas and Fleming Counties. On July 30, 2021, the McVeys and others organized and managed an animal fighting event that included more than a dozen entries in a 5-cock fight, with approximately 100 attendees. Mitchell was sentenced to six months’ incarceration and one year of supervised release. The court has now sentenced 11 defendants for participating in cock fights. Four other individuals were sentenced to home detention or terms of probation.

In March 2023, Cruz Alejandro Mercado-Vazquez was sentenced to 15 months’ incarceration, three years of supervised release, and to pay a $10,000 fine, for attempting to bribe the Mason County Sheriff in connection with a planned animal fighting venture.

Timothy Sizemore was sentenced to 26 months’ incarceration, two years of  supervised release, and a $1,000 fine, for his role in running an animal fighting venture in Manchester, Ky, called Riverside, and an animal fighting venture in Pike County, Ky, called Blackberry. His Riverside partner, Millard Oscar Hubbard, was sentenced to 12 months and one day of incarceration, two years of supervised release, and a $95,000 fine. A referee at Riverside, Justin Smith, was sentenced to one month of incarceration, 18 months of supervised release, and a fine of $250. The owner of the property on which Blackberry operated, Perry Hatfield, was sentenced to eight months of home detention and two years’ supervised release. Individuals who worked at Riverside (Beachel Collett and Lester Collett ) were sentenced to four months of home detention and 18 months’ of supervised release. 

In another case involving an animal fighting operation in London, Kentucky, called Bald Rock, Rickie Johnson was sentenced to two months’ incarceration, followed by eight months of home detention, two years of supervised release, and a $1,000 fine, for his role in running Bald Rock. Several individuals who fought roosters at Bald Rock were also sentenced: Joshua Westerfield was sentenced to three months’ incarceration, six months of home detention, and two years of supervised release. Dallas Cope and Bradley Cye Rose, were each sentenced to 14 days in prison, nine months of home detention, and 18 months of supervised release. Hiram B. Creech, Jr., was sentenced to a year of probation and a $2,000 fine for causing a minor to attend the animal fighting venture at Bald Rock. 

The U.S. Department of Agriculture Office of Inspector General, the Federal Bureau of Investigation, the Kentucky State Police, and the Indiana Gaming Commission conducted the investigation.

United States v. Lev A. Dermen, et al., No. 2:18-CR-00365 (D. Utah), Tax Division Senior Litigation Counsel John E. Sullivan, Trial Attorney Richard M. Rolwing, and former Trial Attorney Leslie A. Goemaat, with assistance from Senior Policy Advisor Darrin L. McCullough of the Justice Department’s Money Laundering and Asset Recovery Section

On April 6, 2023, a court sentenced five individuals to prison for their roles in a $1 billion biofuel tax conspiracy: Lev Aslan Dermen, aka Levon Termendzhyan, was sentenced to 40 years; Jacob Kingston was sentenced to 18 years; Isaiah Kingston was sentenced to 12 years; Rachel Kingston was sentenced to seven years; and Sally Kingston was sentenced to six years.

Between 2010 and 2018, Dermen conspired with Jacob and Isaiah Kingston, their mother, Rachel Kingston, Jacob Kingston’s wife, Sally Kingston, and others, to fraudulently claim more than $1 billion in refundable renewable fuel tax credits. The Internal Revenue Service ultimately paid out more than $500 million in credits to Washakie Renewable Energy (Washakie), a Utah biodiesel company owned by Jacob and Isaiah Kingston. The Kingstons distributed the fraud proceeds among themselves and Dermen.

A jury convicted Dermen in March 2020 following a seven-week trial on charges of conspiracy to commit mail fraud, conspiracy to commit money laundering, and substantive money laundering violations (18 U.S.C. §§ 1349, 1956(h); (a)(1)(B)(i)). Dermen will also pay $442,615,520 in restitution to the IRS in addition to a money judgment of more than $181 million.

Jacob Kingston was ordered to pay $511 million in restitution to the IRS. The court also imposed a $338 million money judgment against him. Jacob Kingston was co-owner and CEO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, filing false claims with the IRS, money laundering and conspiracy to commit the same, obstruction by concealing and destroying records and conspiracy to commit the same and witness tampering (18 U.S.C. §§ 1349, 1956(h); (a)(1)(B)(i))1512(k); 1957). 

Isaiah Kingston was also ordered to pay $511 million in restitution to the IRS. Isaiah Kingston, Jacob Kingston’s brother, was co-owner and CFO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, aiding and assisting in the filing of false partnership tax returns, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records and conspiracy to commit the same.

Rachel Kingston worked as the “special projects manager” at Washakie and participated in the scheme by backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records. Sally Kingston also worked at Washakie and participated in the scheme by similarly backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering.

The conspiracy, which began in 2010 and continued through 2018, was perpetrated through multiple fraudulent schemes. One involved purchasing biodiesel from the U.S. East Coast (that was produced by others who had already claimed the renewable fuel tax credit) and exporting it to foreign countries, including Panama, then doctoring transport documents to disguise and import the biodiesel as “feedstock.” Washakie used this false paperwork to claim it had produced biodiesel from the feedstock to support its filing of fraudulent claims for IRS biofuel tax credits. Washakie also fraudulently obtained millions of EPA renewable identification numbers (RINs) that were then sold for approximately $65 million. Later, Dermen and the Kingstons conspired to purchase millions of gallons of biodiesel and rotate it though the U.S. shipping system to create the appearance that qualifying fuel was being produced and sold by Washakie. Washakie applied for and was paid more than $300 million by the IRS for its claimed 2013 production and over $164 million for its claimed 2014 production. Evidence at Dermen’s trial demonstrated that, to further create the appearance of legitimate business transactions, Dermen and the Kingstons conspired to  launder more than $3 billion in financial transactions through multiple bank accounts.

Throughout the scheme, Dermen falsely assured Jacob Kingston that Kingston and his family would be protected by Dermen’s “umbrella” of corrupt law enforcement and immune from criminal prosecution. In exchange, Jacob and Isaiah Kingston transferred more than $134 million in fraudulent proceeds to companies in Turkey and Luxembourg that were subsequently laundered internationally and through the U.S. financial system.

Money from the fraudulent claims was distributed to Dermen and the Kingstons and used to make lavish purchases in the United States, Turkey, and Belize. Dermen’s associates in Turkey bought and rebuilt a 150-foot yacht named “Queen Anne.” The Queen Anne was seized by the government in Beirut, Lebanon, in 2021, and then sold in Cyprus for $10.1 million. Dermen also caused Jacob Kingston to send more than $700,000 on behalf of Dermen to purchase land in Belize for a planned casino, which the government is seeking to forfeit. The government is also seeking to forfeit other assets in Turkey related to fraudulent proceeds sent there. Jacob and Isaiah Kingston sent more than $21 million in fraud proceeds to SBK Holdings USA, Inc., Dermen’s California-based company. Jacob Kingston used $1.8 million of the fraud proceeds to buy a 2010 Bugatti Veyron for Dermen as a “gift,” and Dermen gifted a chrome Lamborghini and a gold Ferrari to Jacob Kingston. Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, NOIL Energy Group, to purchase a mansion in Sandy, Utah, for Jacob and Sally Kingston.

The Kingston defendants sent over $35 million of their share of the fraud proceeds to their extended family and companies they owned. Dermen also laundered $3.5 million through SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California. The government now seeks forfeiture of this residence as well as dozens of other parcels of real property purchased with the Kingstons’ share of the proceeds.

The Internal Revenue Service Criminal Investigation, the U.S. Environmental Protection Agency Criminal Investigation Division, and the Defense Criminal Investigative Service of the Inspector General investigated the case. The Justice Department’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg, Austria, Belize, Ireland, Lebanon and Cyprus provided substantial assistance.

United States v. Veleriy V. Gorbounov, et al., Nos. 3:22-CR-00003, 00005, 00029-31,00036-00040 (D. Alaska), AUSA Steve Skrocki

On April 4, 2023, a court sentenced Veleriy V. Gorbounov for conspiring to smuggle protected marine corals from the Philippines into the United States, in violation of the Lacey Act (18 U.S.C. § 371; 16 U.S.C. § 3373(d)(2)).

Gorbounov will complete a two-year term of probation and make a community service payment of $4,000 to a Philippines-based organization dedicated to coral reef restoration. The court further banned him from engaging in marine coral sales.

In April 2022, prosecutors charged Jerome Anthony Stringfield, Albert B. Correira, and Allen William Ockey, with conspiracy, smuggling and felony Lacey Act violations for smuggling corals from the Philippines. Ockey was sentenced to complete a two-year term of probation and will make a $5,000 community service payment to an organization in the  Philippines dedicated to coral reef restoration. Stringfield and Correira’s cases are pending.

In addition, prosecutors charged Derek M. Kelley, James Knight, Nathan C. Meisner, and Ricky A. Sprires with misdemeanor Lacey Act violations. They have already been sentenced to two-year terms’ of probation, as well as community service payments ranging from $2,000 to $4,000. All are banned from marine coral sales while under supervision.

Between July 2017 and August 2018, the defendants paid a Philippine national to dive for and collect protected marine corals, which they then sold online to coral collectors and hobbyists. Many of these corals are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Additionally, Philippine law prohibits any person to gather, possess, commercially transport, sell or commercially export corals regardless of CITES status.

The Republic of the Philippines is one of six countries straddling the Coral Triangle, a 5.4 million-square-kilometer stretch of ocean that contains 75% of the world’s coral species, one-third of the Earth’s coral reefs and more than 3,000 species of fish. Poaching for corals and other factors have left only 5% of coral reefs in the Philippines in “excellent” condition, with only 1% in a “pristine” state.

The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

United States v. Adrian Ferrer-Rodriguez, No. 3:23-CR-00076 (D.P.R.), ECS Trial Attorney Christopher Hale, AUSA Seth Erbe, and ECS Paralegal Chloe Harris

On April 3, 2023, a court sentenced Adrian Ferrer-Rodriguez to pay a $10,000 fine (to be divided between the Lacey Act Reward Fund and the NOAA Asset Forfeiture Fund), and complete a five-year term of probation to include the following conditions while under supervision: the defendant may not own any marine aquarium business, may not collect or possess any marine organisms, may not snorkel or scuba dive within 200 miles of Puerto Rico, and must relinquish all of his fishing and aquarium licenses. Ferrer-Rodriguez will also perform 300 hours of community service.

The defendant violated the Lacey Act and the Endangered Species Act by trafficking in coral and exporting undeclared fish (16 U.S.C. §§ 3372(a)(2)(A), 3373(d)(2), 1538(d), 1540(b)(1)).

From early 2014 through January 2019, Ferrer-Rodriguez operated an aquarium business known as “Fish Outlet” in Rio Piedras, Puerto Rico. His business primarily sold equipment and freshwater fish to Puerto Rican customers. He also sold marine species, including saltwater fish and invertebrates such as the coralliform reef organisms from the genus Ricordea, off island.

Ricordea (also known as rics,” “polyps,” or “mushrooms”) are very popular in the aquarium industry. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights typically used in high-end saltwater aquariums. Both zoanthids and Ricordea exhibit this glowing property. Over this five-year period, the defendant sold and shipped live Ricordea and zoanthids to customers in Illinois, New Jersey, and other U.S. states. It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are shipped off-island or otherwise sold commercially, and there is no permit available to do so. As an aquarium shop owner, Ferrer-Rodriguez knew he was breaking the law.

The U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration conducted the investigation.

United States v. Renaissance Aquatics, Inc., et al., No. 2:17-CR-00585 (C.D. Calif.), AUSAs Heather Gorman and Dennis Mitchell

On March 30, 2023, a court sentenced Renaissance Aquatics, Inc. (Renaissance), and Lim Aqua-Nautic Specialist Inc., after both pleaded guilty to illegally importing wildlife (18 U.S.C. § 545). The companies will each pay a $50,000 fine, complete a five-year term of probation, and implement an environmental compliance program.

Between 2007 and March 2013, Renaissance operated as a retailer of live marine specimens, representing Lim Aqua-Nautic Specialist, a marine wildlife wholesaler. The companies imported marine life from foreign suppliers, then sold and shipped it within and outside the United States.

Renaissance employees placed orders with foreign suppliers to purchase a variety of saltwater species, including live corals. Aqua-Nautic provided Renaissance with the funds to pay for the orders, provided trucks and drivers to pick-up them up at Los Angeles International Airport, and arranged for warehouse space and employees to unpack and store the marine life upon delivery. Aqua-Nautic received most of the proceeds after Renaissance customers purchased the wildlife.

Renaissance imported live stony corals, also known as “hard corals,” from a supplier in Vietnam. Many of these species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Renaissance failed to provide the proper paperwork for these shipments. The customs broker subsequently submitted documentation provided by Renaissance that omitted the live stony corals and listed inaccurate prices. Renaissance employees also concealed the stony corals beneath other properly declared wildlife.

Between May 2012 and March 2013, Renaissance, acting as Aqua-Nautic’s agent, imported at least eight shipments from Vietnam containing stony corals that were not declared to the U.S. Fish and Wildlife Service and were not accompanied by the required CITES documentation.

The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the

Environmental Crimes Bulletin