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Friday 1 March 2024
Le Défendeur Accusé Pour Une Escroquerie Ciblant La Ommunauté Haïtienne-Américaine A Été Condamné À Une Peine De 24 Mois De PrisonRead the Press Release
Plus tôt dans la journée, au palais de justice fédéral de Brooklyn, Frantz Simeon a été condamné par le juge de district américain Brian M. Cogan à 24 mois de prison pour avoir mis en place une escroquerie en utilisant sa société, First Black Enterprises, Inc. et cibler des membres de la communauté haïtienne-américaine de Brooklyn et du Queens. Dans le cadre de la sentence, Simeon a été condamné à payer plus de 200 000 $ de dédommagement. L'accusé a plaidé coupable de fraude postale en février 2023.
Breon Peace, procureur des États-Unis pour le district est de New York, et Daniel B. Brubaker, inspecteur en charge, Service d'inspection postale des États-Unis (USPIS), ont annoncé la sentence.
« Aujourd'hui, Frantz Simeon a mesuré les conséquences de l'exploitation de sa réputation de personne de confiance au sein de la communauté haïtienne-américaine », a déclaré le procureur des États-Unis Peace. « Siméon a attiré ses victimes avec de fausses promesses de retours sur investissements substantiels pour détourner les sommes à son propre bénéfice, jusqu'à ce que son stratagème s'effondre. Ce bureau poursuivra sans relâche les auteurs d’escroquerie par affinité et cette affaire est un signal fort pour ceux qui veulent investir, de se méfier des membres de leur propre communauté qui proposeraient des investissements trop beaux pour être vrais. »
« Les inspecteurs des postes se consacrent à enquêter sur les stratagèmes d’escroquerie de victimes innocentes tout en profitant du la poste officielle U.S. Mail. L'USPIS s'engage à protéger et à informer en permanence le public sur la manière d'éviter ce type de stratagèmes », a déclaré l'inspecteur Brubaker en charge de l'USPIS. « Simeon a ciblé des individus de sa propre communauté à son propre bénéfice financier. Si une opportunité apparait trop belle pour être vraie, c'est probablement le cas ! »
Entre février 2019 et décembre 2020, Simeon a orchestré une escroquerie dans lequel il a faussement vanté son expérience dans les affaires et son sens du commerce, incitant les investisseurs à investir avec lui sur la base de promesses prétendument sans risque et qui généreraient des rendements mensuels de 10 %. Simeon s'est spécifiquement adressé aux haïtiens-américains résidant à Brooklyn et dans le Queens, tirant parti de ses relations dans la communauté pour générer plus de 350 000 $ d'investissements liés à ses fausses assurances. Contrairement à ses promesses, Simeon n’a mené que peu ou pas d'activités commerciales ou d'investissement réels, utilisant l'argent des nouveaux investisseurs pour simuler les paiements des intérêts mensuels aux investisseurs précédents dans ce qu’on appelle communément une pyramide de Ponzi. Ces prétendus paiements d'intérêts étaient conçus pour dissimuler la fraude et drainer de nouveaux investissements, dont Siméon avait besoin pour poursuivre le stratagème. De plus, Simeon a détourné des milliers de dollars de fonds d'investisseurs à son profit personnel, y compris l'achat d'une voiture pour sa fille et des retraits en espèces de plus de 60 000 $. Les victimes de Simeon, qui étaient en grande partie des immigrants, ont finalement subi des pertes de plus de 200 000 $ à la suite de cette escroquerie.
Le cas poursuivi par le gouvernement est traité par la section des fraudes commerciales et aux valeurs mobilières du Bureau. Le procureur adjoint des États-Unis, Dylan A. Stern, est chargé des poursuites.
Le Défendeur:
Frantz Siméon
Âge: 67
Brooklyn, New YorkEDNY Numéro de dossier 21-CR-479 (BMC)
Laurel Man Sentenced to 53 Months in Federal Prison for Unemployment Insurance Fraud Scheme Involving More Than $1.5 Million in LossesRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype”, age 29, of Laurel, Maryland, yesterday to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and for aggravated identity theft, related to a Maryland and California unemployment insurance (“UI”) fraud scheme totaling more than $1.5 million. Judge Hurson also ordered Makoge to forfeit over $297,400 and to pay restitution of $2,094,319.
Co-defendant Christian Malik Adrea, a/k/a “Leak,” “Lil Leak,” age 26, of Mitchellville, Maryland, pleaded guilty on February 26, 2024, to conspiracy to commit wire fraud, wire fraud, and aggravated identity theft for his role in the fraud scheme.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Postal Inspector in Charge Ajay Lall of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Chief Amal E. Awad of the Anne Arundel County Police Department; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his plea agreement, from March 2020 to October 2021, Makoge and his co-conspirators impersonated victims to submit fraudulent claims for pandemic-related UI benefits in Maryland and California. As part of the scheme, Makoge and his co-conspirators obtained the birthdates, social security numbers, and other personal identifying information (“PII”) of numerous victims which they used to prepare and submit fraudulent applications for UI benefits. The applications contained false information, including the victims’ contact information, states of residence, and availability for work. These fraudulent applications caused financial institutions to load UI benefits onto debit cards and mail the cards to physical addresses provided and monitored by Makoge and his co-conspirators. Once Makoge and his co-conspirators received the fraudulently obtained benefits on the debit cards, they used them for cash withdrawals and other transactions for their own financial benefit.
A search at Makoge’s residence on February 16, 2021, recovered 11 UI debit cards in the names of six victims from the bedroom. Makoge, Adrea, and another co-conspirator were present at the time of the search. The investigation also revealed numerous text messages between Makoge and his co-conspirators, including Adrea, exchanging the PII of victims and discussing the execution of the UI fraud scheme.
Adrea’s phone was also seized during the search and in the notes section, he had the name, date of birth, and social security number of 22 victims. The total loss of funds tied to these victims in the notes as well as those sent via text message totaled $195,556 and involved over 45 different fraudulent UI claims.
Further, Makoge made numerous ATM withdrawals using the identities of victims, personally obtaining at least $35,540 as a result of his participation in the scheme. UI records revealed that the Adrea and his co-conspirators are connected to multiple UI profiles of actual victims whose identities were used to open accounts and obtain benefits without their permission. These victims are also tied to texts and calls between Adrea and his co-conspirators over several months. In all, Makoge, Adrea, and their co-conspirators submitted more than 200 fraudulent UI claims using the names and PII of victims, resulting in more than $1.6 million in losses.
Of the 11 defendants charged in this fraud scheme, five, including Makoge and Adrea, have now pleaded guilty and two, Makoge and Dementrous Smith, have been sentenced.
Adrea and the government have agreed that, if the Court accepts his plea, Adrea will be sentenced to 65 months in federal prison. U.S. District Judge Brendan A. Hurson has scheduled sentencing for May 30, 2024
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the USPIS, DOL-OIG, the Anne Arundel County Police Department, HSI, MSP, and ATF, for their work in the investigation. Mr. Barron thanked the United States Marshals Service, the Prince George’s County Police Department, the Montgomery County Police Department, the Washington, D.C. Metropolitan Police Department, and the Charles County Sheriff’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn, who is prosecuting 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Last-minute plea entered in cocaine conspiracyRead the Press Release
BROWNSVILLE, Texas – A 45-year-old Brownsville resident has admitted to his role in the distribution of dozens of kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Raul Dominguez-Vega, 45, was set to begin trial March 4. He has now entered a plea of guilty to possession with intent to distribute cocaine and conspiracy to do so.
Dominguez-Vega was part of an on-going drug conspiracy involving several individuals packaging and distributing cocaine coming from Mexico. Cocaine would arrive from Mexico and be stored, re-packaged and wrapped in “shrink-wrap” in a shed located in Dominguez-Vega’s residence. It was then distributed to northern locations such as Houston, Ohio and Louisiana.
Law enforcement conducted surveillance and made several seizures during the course of the investigation. Two of those occurred Jan. 25 and 31, 2020, when they successfully seized nearly 10 and 23 kilograms of cocaine, respectively. Prior to the second seizure, bags of cocaine had been loaded into a vehicle at Dominguez-Vega’s residence. It was on its way to Houston before authorities at the Sarita Border Patrol (BP) checkpoint discovered the bundles inside a tractor trailer.
U.S. District Judge Rolando Olvera will impose sentencing May 22. At that time, Dominguez-Vega faces a minimum of 10 years and up to life in prison as well as a possible $5 million fine.
He was permitted to remain on bond pending that hearing.
T0 date, six others have been convicted in relation to the conspiracy.
Homeland Security Investigations, Cameron County District Attorney’s Investigation Unit and Drug Enforcement Administration conducted the investigation with the assistance of BP, Combes and Brownsville Police Departments and the Victoria County Sheriff’s Office. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
Keshena Man Indicted for Aggravated Assault and Domestic Violence Offenses on the Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 27, 2024, a federal grand jury returned a two-count indictment charging Arrelio R. Escalante (age 36) of Keshena, Wisconsin, with aggravated assault and domestic violence on the Menominee Indian Reservation.
The indictment charged Escalante as follows:
COUNT
DATE
CHARGE
PENALTY
One
On or about February 8, 2024
Assault Resulting in Serious Bodily Injury, 18 U.S.C. §§ 113(a)(6) and 1153(a)
Up to 10 years in prison, up to $250,000 fine
Two
On or about February 8, 2024
Domestic Assault by Strangulation, 18 U.S.C. § 113(a)(8) and 1153(a)
Up to 10 years in prison, up to $250,000 fine.
Escalante also faces terms of supervised release and special assessments of $100 per count if convicted.
According to filed court documents, on or about February 8, 2024, Escalante allegedly assaulted a woman with whom he had a domestic relationship by punching her, attempting to strangle her, and strangling her to the point of unconsciousness. The woman suffered serious bodily injuries including severe bruising and a broken nose as a result of the assault, which occurred at a residence on the Menominee Indian Reservation.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorney Andrew J. Maier will prosecute the case in the U.S. District Court in Green Bay.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Keokuk Man Sentenced to 720 Months for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – A Keokuk man was sentenced on February 27, 2024 to 720 months in federal prison for Producing, Receiving, and Possessing Child Pornography.
According to public court documents and evidence presented at sentencing, on or about December 21, 2021, a minor was reported missing from the Keokuk area. Law enforcement identified Christopher Douglas Black, 45, as an individual with knowledge relating to the missing minor. The missing minor was found with Black in Minnesota. Following Black’s arrest, a forensic review of Black’s cell phone was conducted and revealed child sexual assault materials.
Following his term of imprisonment, Black will be required to serve ten years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Kenton County Man Sentenced to 181 Months for Armed Trafficking of a Fentanyl AnalogueRead the Press Release
COVINGTON, Ky. – A Latonia, Ky., man, Marcos A. Garcia, 25, was sentenced on Friday, to 181 months in federal prison, by U.S. District Judge David Bunning, for conspiracy to distribute 10 grams or more of a fentanyl analogue, possession of 10 grams or more of a fentanyl analogue, and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, from February 1, 2021 through March 1, 2023, Garcia conspired with Kayla Vance, his co-defendant, to distribute controlled substances, including marijuana and more than 10 grams of a fentanyl analogue. On February 2, 2023, law enforcement used an informant to purchase pressed tablets from Garcia. Those tablets contained flurofentanyl, a powerful analogue of fentanyl. After making a second purchase of pressed tablets, on March 1, 2023, law enforcement executed a search warrant on a house shared by Garcia and Vance, where they found a handgun, 67 tablets of fentanyl, a pound of marijuana, other tablets, cash, and 11 uninstalled machinegun conversion devices.
Garcia admitted to law enforcement that he and Vance had been robbed of drugs and money on a prior occasion, so the handgun was for protection of his family and the drugs located in the residence.
Kayla Vance was previously sentenced to 51 months in prison, followed by four years of supervised release.
Under federal law, Garcia must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division, jointly announced the sentences.
The investigation was conducted by ATF and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.
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KC Man Sentenced to 25 Years for Illegal Sex with a Minor, Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for illegally enticing a child victim to engage in illicit sexual activity and for receiving child pornography.
Anthony Byron Marshall, 31, was sentenced by U.S. District Judge Roseann A. Ketchmark on Wednesday, Feb. 28, to 25 years in federal prison without parole. The court also sentenced Marshall to spend the rest of his life on supervised release following incarceration. Marshall will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On July 25, 2023, Marshall pleaded guilty to one count of enticing a minor to engage in illegal sexual activity and four counts of receiving child pornography.
In May 2021, FBI agents learned Marshall had been texting with the subject of another child pornography investigation. In one text, Marshall requested images of child pornography, and received a MEGA link. FBI investigators located the MEGA link, which contained 15 images and 89 videos of known child pornography and 70 images and 1,401 videos of suspected child pornography.
On Oc.t 19, 2021, federal agents executed a search warrant at Marshall’s residence. Agents seized a number of electronics, including Marshall’s iPhone. Investigators found sexually explicit communications between Marshall and two juvenile females, ages 13 and 17, as well as sexually explicit videos that each of the victims had sent to Marshall. Investigators interviewed the child victims, who reported several instances of illegal sexual activity with Marshall.
According to court documents, Marshall called one of the child victims after he had been contacted by law enforcement. He told her not to say anything to the police. Marshall also contacted her through his Facebook page after she had been contacted by law enforcement.
This case prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Informs City of Lexington and Lexington Police Department That Automatically Jailing People for Unpaid Fines Violates ConstitutionRead the Press Release
WASHINGTON – The Justice Department sent a letter today to the City of Lexington, Mississippi, and the Lexington Police Department (LPD) raising significant concerns regarding their practice of jailing people for unpaid fines without first assessing whether they can afford to pay them.
Specifically, the department informed the City and LPD that their practice violates the Constitution’s prohibition on wealth-based detention in two ways: first, by requiring people who are arrested to pay down outstanding fines before they can be released from jail, and second, by issuing and arresting people on warrants for outstanding fines.
Today’s letter is a part of the Justice Department’s ongoing civil pattern or practice investigation into the City of Lexington and LPD. The investigation, opened on Nov. 8, 2023, seeks to determine whether there are systemic violations of the Constitution and federal law related to use of force; stops, searches and arrests; discriminatory policing and the right to free speech. Although the investigation continues, the Justice Department determined that it was critically important to identify these violations now rather than waiting until the conclusion of the inquiry.
“It’s time to bring an end to a two-tiered system of justice in our country in which a person’s income determines whether they walk free or whether they go to jail,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Unjust enforcement of fines and fees is unlawful, and it traps people and their families in a vicious cycle of poverty and punishment. There is great urgency underlying the issues we have uncovered in Mississippi, and we stand ready to work with officials to end these harmful practices and ensure the civil and constitutional rights of Lexington residents are protected.”
“One third of Lexington’s residents live below the poverty line. The burden of unjust fines and fees undermines the goals of rehabilitation and erodes the community’s trust in the justice system,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “Each step we take towards fair and just policing rebuilds that trust. Lexington and LPD can take those steps now, while our investigation is ongoing.”
Justice Department officials met with city and police leaders earlier today about their unlawful practice, which investigators identified during its ongoing investigation. Lexington officials have pledged to work with the Justice Department to ensure that the collection of fines and fees complies with legal requirements.
On April 20, 2023, the Justice Department issued a Dear Colleague Letter on Fines and Fees explaining that before a person can be imprisoned for failure to pay a fine or fee, the Constitution requires courts to first determine whether the person lacks the resources to pay. In most circumstances, if a person cannot afford to pay, imprisonment for unpaid fines or fees is unlawful.
Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt. Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/file/922421/download.
Judge Sentences District Man to 32 Years in Prison for 2018 Stabbing in SoutheastRead the Press Release
WASHINGTON – Marquette Jordan, 32, of Washington, D.C., was sentenced today to 32 years in prison and five years of supervised release for the April 2018 fatal stabbing of 48-year-old Ivan Lynch in Southeast D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). A jury returned guilty verdicts, in December 2023, on charges of second-degree murder while armed, carrying a dangerous weapon, and assault.
According to the government’s evidence, on April 30, 2018, the victim, Ivan Lynch, who had just attended a birthday celebration for himself, left the party and was going to meet up with a friend at his apartment. On the way to the friend’s apartment, Mr. Lynch picked up the defendant Marquette Jordan, the defendant’s girlfriend, the girlfriend’s two young children, and a childhood friend of the defendant.
Once inside the apartment, a verbal altercation occurred between Jordan and his girlfriend in front of her two young children. Mr. Lynch intervened and reportedly told the defendant that that is not how we treat women. Jordan and Mr. Lynch then engaged in a verbal dispute resulting in a physical fight between the two men inside the apartment. During the fight, Jordan grabbed a butcher knife from the kitchen and stabbed Mr. Lynch once in the shoulder, twice in the heart, and three times in the back. After stabbing Mr. Lynch, Jordan then continued to physically assault his girlfriend, threatened to kill her, and charged at her with a knife. The girlfriend grabbed a pillow and fled the apartment without her shoes, and leaving behind her minor children until she returned later that day.
The defendant went through the victim’s pockets before leaving the apartment. School surveillance captured Jordan walking with the two children after the homicide. He was stopped outside by MPD officers shortly after leaving the apartment and law enforcement officers found Mr. Lynch’s keys and his blood on Jordan’s pants and shirt. The murder weapon, the butcher knife, was never recovered. Officers also found Mr. Lynch’s cell phone discarded in an area where the defendant was observed walking, according to surveillance footage in the area. Mr. Lynch’s wallet was mailed from a nearby school to the address on his driver’s license.
In sentencing the defendant, Superior Court Judge Rainey Brandt agreed with the government that the circumstances warranted a departure above the D.C. Superior Court Voluntary Sentencing Guidelines.
This case was investigated by the Metropolitan Police Department.
This case was prosecuted by Assistant U.S. Attorneys Natalie M. Hynum and Omeed A. Assefi of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Assistant U.S. Attorneys Emma McArthur, Marybeth Manfreda, and Richard Barker as well as Grazy Rivera, Kelly Blakeney, Meridith McGarrity, Charlie Bruce, Tracy Owusu, Zachary McMenamin, Karina Hernandez, Katina Adams Washington, Maenylie Watson, and Robert Cephas.
Ithaca Man Sentenced to 156 Months on Drug ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Odell, Tindley, age 31, of Ithaca, New York was sentenced yesterday to serve 156 months (13 years) in federal prison for conspiring to distribute and possess with intent to distribute controlled substances (methamphetamine and cocaine) in Watertown, New York.
United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office; and Jefferson County District Attorney Kristyna S. Mills made the announcement.
As part of his previous guilty plea, Tindley admitted that he distributed 83 grams (over two ounces) of cocaine in Watertown on May 25, 2021, and arranged for delivery of a large quantity of methamphetamine later the same day. Investigators of the Metro-Jefferson Drug Task Force interdicted a car driven by a coconspirator of Tindley as it entered Watertown late in the evening of May 25, 2021. A search of this vehicle resulted in the recovery of 904 grams (just under 32 ounces) of methamphetamine and approximately a pound of marijuana.
Tindley was also sentenced to a 5-year term of supervised release following completion of his federal prison sentence.
At the time of his arrest on his federal drug charges, Tindley was residing in Watertown as part of a mandated pre-sentence drug rehabilitation program stemming from his guilty plea to a New York State felony drug charge in Tompkins County Court. On October 6, 2022, Tindley was sentenced to serve two-years in state prison for that offense.
The case was investigated by the Metro-Jefferson Drug Task Force, consisting of Special Agents from U.S. Homeland Security Investigations (HSI), U.S. Border Patrol Agents, Detectives from the Watertown Police Department, Detectives from the Jefferson County Sheriff’s Department, and Investigators from the Jefferson County District Attorney’s Office. Assistant U.S. Attorney Richard Southwick and Special Assistant U.S. Attorney Paul Tuck prosecuted the case.
Iowa Man Sentenced for Firearm SmugglingRead the Press Release
PECOS – Victor Alfonso Magana-Ahumada, 37, from Denison, Iowa was sentenced in federal court in Pecos this week to 46 months in prison for attempting to illegally cause guns to be smuggled from the U.S. to Mexico.
According to court documents, Customs and Border Protection Officers at the Presidio Port of Entry referred a Ford 450 travelling towards Mexico, to secondary inspection. The truck was pulling a trailer filled with packages destined for Mexico. The packages were part of a shipment being transported by a transnational shipping company. During the inspection, officers found six pistols, pistol magazines, one semi-automatic rifle and rifle magazines concealed in packages amongst the cargo.
Further investigation by Special Agents with Homeland Security Investigations (HSI) revealed Magana arranged with the transnational shipping company for the transport of the packages that contained the concealed firearms to Mexico. Investigation also revealed Magana had purchased two of the firearms found secreted in the shipment packages.
On November 29, 2023, Magana pleaded guilty to one count of smuggling goods from the United States. Magana has remained in federal custody since his arrest on September 28, 2023.
U.S. Attorney Jaime Esparza of the Western District of Texas and HSI Special Agent in Charge Francisco B. Burrola, El Paso Division, made the announcement.
HSI, with assistance from HSI–Sioux City Division and Spencer, Iowa Police Department, investigated the case.
Assistant U.S. Attorney Amy Greenbaum prosecuted the case.
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Internal Revenue Service Special Agent Indicted in Shooting Death of Fellow AgentRead the Press Release
TUCSON, Ariz. – On Wednesday, a federal grand jury indicted Larry Edward Brown, Jr., 42, of Peoria, on one count of Involuntary Manslaughter of an Officer of the United States.
The indictment alleges that on August 17, 2023, Special Agents of the Internal Revenue Service Criminal Investigation (IRS-CI) used the firearm range at the Federal Correctional Institution – Phoenix for standard pistol qualifications and classroom training. Brown, who has served as a special agent for IRS-CI for over 12 years, is a trained Use of Force Instructor.
After all training had concluded for the day, Brown entered a building known as the “Tower,” a small, one-room structure with an interior measuring approximately eight feet by nine feet, located on the range where firearms instructors can observe and command live-fire trainings. The only other occupant inside the Tower was Special Agent Patrick Bauer, a 15-year veteran of IRS-CI and a trained Use of Force Instructor, who had led the live-fire pistol qualifications that day. As alleged in the indictment, while inside the Tower, Brown handled his firearm without due caution and with reckless disregard for human life, striking Special Agent Bauer in the torso with a single gunshot.
Despite life-saving efforts by agents at the scene, EMTs, and hospital staff, Special Agent Bauer died as a result of the penetrating gunshot wound.
Brown had his initial court appearance today and has been released. The matter has been set for trial on April 2, 2024.
Involuntary Manslaughter of an Officer of the United States carries a maximum penalty of eight years in prison and a fine of up to $250,000.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case, with assistance from the Treasury Inspector General for Tax Administration. The United States Attorney’s Office for the District of Arizona, Tucson, is handling the prosecution.
Indictment - BrownCASE NUMBER: CR-24-00355-PHX-SPL
RELEASE NUMBER: 2024-024_Brown# # #
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 X @USAO_AZ for the latest news.Indictment Charges Bridgeport Man with Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Bridgeport Police Chief Roderick Porter today announced that a federal grand jury in Hartford has returned an indictment charging LAMAR DWIGHT BLAKE, 46, of Bridgeport, with unlawful possession of a firearm by a felon.
The indictment was returned on January 31, 2023, and Blake was arrested on February 26, 2023. He appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and entered a plea of not guilty to the charge.
As alleged in the indictment, on August 6, 2023, Blake possessed a loaded Glock .40 caliber handgun with an extended magazine.
It is further alleged that Blake’s criminal history includes felony convictions in Connecticut for possession of narcotics with intent to sell, attempted assault in the second degree, possession of narcotics, and criminal possession of a firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
If convicted of the charge, Blake faces a maximum term of imprisonment of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Blake is released on a $100,000 bond pending trial.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Sean P. Mahard.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hyannis Woman Sentenced to Three Years in Prison for Fentanyl Conspiracy Operating Across Southeastern MassachusettsRead the Press Release
BOSTON – A Hyannis woman was sentenced yesterday in federal court in Boston for her involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island.
Rebecca Bartholomew, 37, was sentenced by U.S. District Court Judge Allison D. Burroughs to three years in prison and three years of supervised release. In October 2023, Bartholomew pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl. Bartholomew was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy.
In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. The investigation identified Bartholomew as a distributor for the DTO. Between April and June 2022, Bartholomew redistributed fentanyl she had obtained from Ortiz-Alcantara and allegedly other DTO members. During a traffic stop in April 2022, Bartholomew was found in possession of approximately 90 grams of fentanyl.
Bartholomew is the fourth defendant to be sentenced in case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sheriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Husband and Wife Sentenced for Defrauding TRICARE and Medicare out of $75 MillionRead the Press Release
NEWS RELEASE SUMMARY – March 1, 2024
SAN DIEGO – Charles Ronald Green Jr. and his wife, Melinda Elizabeth Green, were sentenced in federal court today to 27 months each for fraudulently billing government healthcare programs more than $125 million for medically unnecessary treatments.
According to court filings, the Greens engaged in a scheme to defraud two major federal health care programs: TRICARE, the medical benefits program for military servicemembers and their families, and Medicare, the program that provides benefits to elderly or disabled Americans.
Chief U.S. District Judge Dana M. Sabraw also ordered $4.5 million in restitution to TRICARE and $69,915,909.69 to Medicare.
Between May 12, 2014, and June 29, 2015, the Greens conspired to submit false and fraudulent claims to TRICARE for expensive and medically unnecessary pain creams, scar creams and multi-vitamins (collectively, “compounded medications”), which were billed through various pharmacies. During this period, the Greens owned or were officers of several companies they used in furtherance of their scheme. The pharmacies paid these companies millions of dollars in illegal kickbacks and other remuneration in exchange for the referral of the false and fraudulent prescriptions for compounded medications to TRICARE beneficiaries.
In turn, the Greens and others paid a portion of their profits as kickbacks to so-called “marketing” organizations in exchange for more prescriptions for compounded medications. TRICARE and other payers often reimbursed compounding pharmacies thousands of dollars for a 30-day supply of a compounded pain or scar cream for one beneficiary. In just one example, on May 8, 2015, a false and fraudulent claim was submitted to TRICARE in the amount of $14,178 for Baclofen Powder.
In furtherance of the compounding fraud scheme, the Greens and others developed compounded medication formulations for the primary purpose of inflating the amount of money TRICARE would reimburse, and to correspondingly increase the amount of kickbacks and remuneration that affiliated marketers would receive.
The Greens’ knowing participation in the compounding fraud scheme resulted in the submission of false and fraudulent claims by one pharmacy in the approximate amount of $8,107,816, of which TRICARE paid at least $6,776,222.
Between June 1, 2018, and April 2019, the Greens also conspired to defraud Medicare by submitting false and fraudulent claims for expensive durable medical equipment, or “DME,” similarly induced through a system of illegal kickbacks. The Greens and others executed the DME fraud scheme by purchasing “completed doctors’ orders” from various “marketers” for Medicare beneficiaries, which included a prescription signed by a doctor certifying the beneficiary received an exam that met Medicare’s requirements and that the DME was medically necessary.
In an attempt to disguise the DME fraud scheme from detection, the Greens and their co-conspirators entered into sham “marketing” and other contracts that concealed the pay-per-order arrangement. For example, on March 14, 2019, Charles Ronald Green prepared and submitted an invoice from the Greens’ company, NHS Pharma, concealing that NHS Pharma was being paid a per-brace kickback for selling completed doctors’ orders, but claimed instead to be charging for a $35,000 “TV Campaign,” a quantity of 716 website “Landing Pages,” and $6,928.71 for processing hours.
In addition to purchasing doctors’ orders in furtherance of making false and fraudulent claims on behalf of DME companies they owned or controlled, in some instances the Greens brokered the doctors’ orders by re-selling them at a markup to other DME companies.
“Fraud schemes like this one drive up health care costs for everyone,” said U.S. Attorney Tara McGrath. “We will continue to investigate and bring to justice those who scam taxpayers and place their own financial interests ahead of patient care. Diverting resources from service members and the elderly is especially heinous.”
“The Greens’ greed cost American taxpayers tens of millions of dollars by defrauding federal healthcare programs, including the Department of Defense’s TRICARE program,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and its partners will always aggressively investigate those who conspire to defraud TRICARE, because those deceptive actions ultimately harm those defending our country and their families.”
“It is disheartening when people like the Greens go to great lengths to plan elaborate schemes that ultimately have negative effects on innocent citizens,” said FBI San Diego Special Agent in Charge Stacey Moy. “The FBI and its law enforcement partners will ensure that those who defraud the United States Government will be thoroughly investigated and prosecuted for their actions.”
The Court set a hearing for May 24, 2024, to resolve additional claims for restitution.
This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu.
DEFENDANTS Case Number 20cr1566-DMS
Melinda Elizabeth Green Age: 63 Windermere, FL
Charles Ronald Green, Jr. Age: 67 Windermere, FL
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Health Care Fraud – Title 18, U.S.C., Section 1347
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Health and Human Services Office of the Inspector General
Department of Defense Office of the Inspector General
Gunvor S.A. Pleads Guilty to Scheme to Bribe Ecuadorian Officials and Ordered to Pay over $600 Million in Criminal PenaltiesRead the Press Release
Today, in federal court in Brooklyn, Gunvor S.A. (Gunvor), a part of the Gunvor Group, one of the largest commodities trading firms in the world, pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). The charge arises out of a scheme to bribe officials of the Ecuadorian Ministry of Hydrocarbons and Petroecuador, the Ecuadorian state-owned oil company, in order to obtain contracts to purchase oil products. The proceeding was held before United States District Judge Eric N. Vitaliano. As part of the company’s sentence, Gunvor was ordered to pay a criminal penalty of approximately $661 million.
Breon Peace, United States Attorney for the Eastern District of New York, Brent S. Wible, Acting Senior Counselor of the Justice Department’s Criminal Division, and Jeffrey B. Veltri, Special Agent-in-Charge, Federal Bureau of Investigation, Miami Field Office (FBI), announced the guilty plea and sentence.
“Today’s guilty plea and sentencing marks yet another example of this office’s efforts to combat widespread corruption,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Corruption erodes the public’s trust in their government, prevents government officials from acting in the best interests of the people they represent and harms businesses that play by the rules, driving up prices for consumers. The Justice Department, including my Office, will not tolerate bribes being paid by American companies or foreign companies misusing the U.S. financial system.”
“Over nearly a decade, Gunvor representatives bribed high-level government officials at Ecuador’s state-owned oil company to enter into business transactions with other state-owned entities that ultimately benefited Gunvor. As a result of this complex bribery scheme, Gunvor obtained hundreds of millions of dollars in illicit profits,” said Acting Senior Counselor Wible. “Foreign bribery emboldens corrupt officials and undermines the rule of law. Gunvor’s guilty plea demonstrates that the Criminal Division remains resolute in our efforts to root out bribery and official corruption. We will continue to hold both corporations and individuals who bribe foreign officials to account, in coordination with our international partners.”
“Gunvor’s years long bribery scheme involving high-level Ecuadoran officials was both detrimental to the business environment and eroded the public’s trust and confidence in their government,” stated FBI Special Agent-in-Charge Veltri. “This guilty plea and significant fine would not have been possible without significant cooperation from our international partners in the Cayman Islands, Colombia, Curacao, Ecuador, Panama, Portugal, Singapore, and Switzerland. This truly was an international effort.”
In connection with the resolution, Gunvor entered into a plea agreement with the government and pleaded guilty to an information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Following the plea, Judge Vitaliano sentenced Gunvor to pay a criminal monetary penalty of more than $374 million and to forfeit more than $287 million in ill-gotten gains. The sentence includes credits of up to $93 million each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorian authorities into the same misconduct so long as the payments are made within 12 months of today’s date.
According to the company’s admissions and court documents, between 2012 and 2020, Gunvor and its co-conspirators paid more than $97 million to intermediaries understanding that some of the money would be and in fact was used to bribe numerous Ecuadorian officials, including Nilsen Arias, a then-high ranking official at Petroecuador. The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor’s co-conspirators. A Gunvor employee directed one of the intermediaries to use the bribe money to purchase an 18-karat gold Patek Philippe wristwatch for Arias.
In exchange for these bribe payments, high-level Ecuadorian officials helped Gunvor win contracts to provide a series of oil-backed loans to Petroecuador. The oil-backed loans were made through other state-owned entities, which acted as “fronts” for Gunvor. Because the contracts were with other state-owned entities, Petroecuador rules did not require a competitive bidding process, allowing Gunvor and co-conspirators to obtain contracts it would not have been able to obtain directly. Gunvor also received confidential Petroecaudor information.
In total, Gunvor earned more than $384 million in profits from the business it corruptly obtained related to Petroecuador.
The department reached this resolution with Gunvor based on a number of factors including the nature and seriousness of the offense, which involved a multi-year scheme to bribe numerous senior Ecuadorian government officials in order to obtain lucrative business resulting in more than $384 million in profits to Gunvor; and that Gunvor has a history of misconduct. In October 2019, Gunvor reached a resolution with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and Côte d’Ivoire to secure oil contracts. The conduct that is the subject of today’s guilty plea occurred, in part, at the same time as the prior Swiss investigation and resolution. Accordingly, taking into account these and other factors, including Gunvor’s cooperation and remediation, the total criminal penalty reflects a 25% reduction off the 30th percentile of the applicable U.S. sentencing guidelines fine range.
The department previously secured convictions in the Eastern District of New York of four individuals who were implicated in Gunvor’s bribery scheme, including:
- Antonio Pere Ycaza, a former consultant for Gunvor, pleaded guilty on Oct. 7, 2020, to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
- Enrique Pere Ycaza, a former consultant for Gunvor, also pleaded guilty on Oct. 7, 2020, to one count of conspiracy to commit money laundering and to violate the FCPA.
- Raymond Kohut, a former Gunvor employee and agent, pleaded guilty on April 6, 2021, to one count of conspiracy to commit money laundering.
- Nilsen Arias Sandoval, a former senior Petroecuador official, pleaded guilty on Jan. 19, 2022, to one count of conspiracy to commit money laundering.
The investigation was conducted by FBI Miami’s International Corruption Squad. The government’s case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section and the Money Laundering and Asset Recovery Section (MLARS) Special Financial Investigations Unit. Assistant United States Attorneys Jonathan P. Lax, Nick M. Axelrod and Matthew R. Galeotti of the Eastern District of New York are prosecuting the case with Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell and Trial Attorney Clayton P. Solomon of the Fraud Section, Deputy Chief Adam J. Schwartz and Trial Attorney D. Hunter Smith of MLARS. Assistant United States Attorneys Laura Mantell and Brendan King of the Eastern District of New York’s Asset Recovery Section are handling forfeiture matters.
The Justice Department’s Office of International Affairs and authorities in the Cayman Islands, Colombia, Curacao, Ecuador, Panama Portugal, Singapore and Switzerland provided valuable assistance in this matter.
The Defendant:
GUNVOR S.A.
SwitzerlandE.D.N.Y. Docket No. 24-CR-85 (ENV)
Greenville Man Pleads Guilty to Threatening a Federal JudgeRead the Press Release
GREENVILLE, S.C. —Alvin Bernard Parks, 42, has pleaded guilty to sending a threatening letter to a federal judge through the mail.
According to court documents, Parks is alleged to have sent a letter to a specifically named United States District Court Judge for the District of South Carolina. The handwritten letter contained threats to harm the judge. An excerpt from the letter reads: “I have watched you leave the courthouse numerous times and plotted to get my revenge.” The letter goes on to say, “you best to make sure they lock me away for good cause I’m going to kill you or blow that courthouse up.” The return address on the letter was listed as Alvin Parks with the address to the Greenville County Detention Center, where Parks is detained.
The presiding judge accepted Parks’ plea and will sentence him after receiving and reviewing a sentencing report from the U.S. Probation Office. Parks faces a maximum penalty of 20 years in federal prison. He also faces a fine of up to $250,000 and three years of supervision to follow the term of imprisonment.
The case is being investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Max Cauthen is prosecuting the case.
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Four Missouri Men Accused of Stealing Mail and Committing Fraud with Stolen ChecksRead the Press Release
ST. LOUIS – Four Franklin County, Missouri men have been indicted on charges accusing them of stealing mail and using stolen checks to commit bank fraud.
Matthew Cahill, 39, of Franklin County, Donald Anderson, 35, Harvey Hale, 47, and Joshua Hopkins, 34, Franklin County, were each indicted February 21 in U.S. District Court in St. Louis on charges of conspiracy to commit bank fraud, multiple counts of bank fraud and aggravated identity theft. Cahill was also indicted on one count of possession of stolen mail. He and Hopkins also face multiple counts of aggravated identity theft.
Hopkins was arrested Wednesday, appeared in court and pleaded not guilty. Cahill was arrested Feb. 23 and pleaded not guilty. Hale and Anderson are already in custody but have yet to appear in court.
The indictment alleges that beginning in at least February of 2020, the men obtained checks, bank account information and personal identifying information by stealing incoming or outgoing mail from mailboxes or from homes and vehicles. They would then use that information to alter the stolen checks or create counterfeit checks and use those checks to pay for merchandise at local retailers, the indictment says. They also cashed the checks and on at least one occasion opened a bank account, the indictment says.
Each conspiracy to commit bank fraud and bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both prison and a fine. The aggravated identity theft charges carry a penalty of two years in prison, consecutive to any other charge, a fine of up $250,000, or both. The stolen mail charge is punishable by up to five years in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Postal Inspection Service, the U.S. Secret Service, the Franklin County Sheriff’s Office, and the police departments in the cities of Washington, Union, Eureka, St. Clair and St. Charles investigated the case. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
Four Californians Collectively Sentenced to Serve More Than 53 Years in Federal Prison for Fentanyl ConspiracyRead the Press Release
Defendants Were Charged After Troopers Found more than 55,000 Fentanyl-Laced Pills from I-40 Traffic Stop
OKLAHOMA CITY – Yesterday, AMBROCIO ARROYO, 30, of California, was sentenced to serve 200 months in federal prison for possession of fentanyl with intent to distribute, announced U.S. Attorney Robert J. Troester.
On June 21, 2022, a federal grand jury returned a two-count Indictment against Arroyo and three other co-defendants, DESTINY RUBY LOPEZ, 20, DANIEL OCHOA, 32, and KEVIN EARL TOOKS, 38, all of California, charging the four with drug conspiracy and possession of fentanyl with intent to distribute. According to an affidavit in a previously filed criminal complaint, in May 2022 Oklahoma Highway Patrol troopers pulled over two vehicles for speeding violations on I-40 traveling through Beckham County. The vehicles were being driven by Arroyo and Ochoa, with Lopez and Tooks riding as passengers. The Indictment alleges that troopers could smell marijuana coming from both vehicles, which ultimately led OHP troopers to finding approximately 15 pounds of fentanyl-laced pills hidden inside a rear door panel of the car driven by Arroyo.
On November 30, 2022, Arroyo pleaded guilty and admitted to driving through the Western District of Oklahoma with the intention of distributing pills that contained at least 400 grams of fentanyl.
At the sentencing hearing yesterday, U.S. District Judge Jodi W. Dishman sentenced Arroyo to serve 200 months in federal prison, followed by five years of supervised release. In announcing her sentence, Judge Dishman noted the amount of fentanyl seized, stating that the 55,614 fentanyl-laced pills found in the car driven by Arroyo was a significant amount of fentanyl.
The other three defendants have already been sentenced in this case, each pleading guilty to drug conspiracy, with Lopez sentenced to 36 months, Tooks sentenced to 188 months, and Ochoa sentenced to 218 months in federal prison.
This case is the result of an investigation by the Drug Enforcement Agency (DEA) and the Oklahoma Highway Patrol. Assistant U.S. Attorneys Wilson D. McGarry and Travis Leverett prosecuted the case.
Reference is made to public filings for additional information.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Ronald Holley, 41years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Holley was sentenced to 120 months in prison followed by 5 years of supervised release.
According to documents in the case, on August 4, 2022, Holley distributed 50 grams or more of methamphetamine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Youth Softball Coach Sentenced to Federal Prison for Possessing and Transporting Child PornographyRead the Press Release
ALPINE, Texas – A Marfa man was sentenced in a federal court in Pecos to 97 months in prison for one count of possession of child pornography and one count of transportation of child pornography.
According to court documents, FBI agents executed a search warrant and discovered Patricio Javier Serrano, 36, was in possession of multiple photos and videos depicting child sexual abuse material stored on his cell phone and in his phone’s web browser. Serrano, who had been a volunteer youth softball coach, was arrested May 11, 2023 and has since remained in federal custody. He pleaded guilty to both charges in the indictment without a written plea agreement in October.
U.S. District Judge David Counts sentenced Serrano to 37 months in prison for the possession charge and 60 months for the transportation charge. Serrano will serve both sentences consecutively.
“This case demonstrates that predators cannot transmit or receive child sexual abuse material and hide behind their screens without risk of prosecution,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our local, state and federal law enforcement partners for their collaboration to help make this community and our children safer.”
“It’s unsettling when you learn that someone working so closely with our children and in our communities can possess such predatory tendencies,” said John Morales, FBI El Paso Special Agent in Charge. “The FBI special agents in the Alpine Resident Agency, along with our Homeland Security Investigations, Texas Department of Public Safety, and Marfa Police Department make it a top priority to protect children from victimization by working to investigate predators involved with the production, distribution and possession of child sexual abuse material and ensure they are held accountable for their heinous actions. FBI will continue to dedicate our resources to identify these individuals and bring them to justice.”
The FBI, Texas Department of Public Safety and Marfa Police Department investigated the case.
Assistant U.S. Attorney Amy Greenbaum and Kevin Cayton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Richmond Postal Carrier Pleads Guilty to Stealing MailRead the Press Release
RICHMOND, Va. – A former postal carrier with the U.S. Postal Service (USPS) in Richmond pleaded guilty yesterday to theft of mail.
According to court documents, Wendy Lawrence, 40, stole mail, removing gift cards, checks, and other items of value for her own use. Law enforcement recovered stolen mail from Lawrence’s residence belonging to over 180 victims.
After stealing checks from the mail, Lawrence used the bank account and routing information on those checks to initiate electronic payments, which she used for such expenses as her tax bill, pest control bill, and rent. On at least one occasion, to prolong and conceal the fraud scheme, Lawrence initiated a fraudulent address change with the USPS on behalf of a victim, rerouting the victim’s mail to Lawrence’s address. Law enforcement also recovered checks from Lawrence’s residence that she forged for her own benefit, including checks in the name of at least 30 other individuals.
Lawrence faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jeff Krafels, Special Agent in Charge of the Mid Atlantic Area Field Office for the U.S. Postal Service Office of Inspector General; Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Bradford W. Nunnally, Sheriff for Powhatan County, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. The Powhatan County Commonwealth’s Attorney’s Office provided substantial assistance.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-17.
Former Metropolitan Police Officer Sentenced for Federal Civil Rights ViolationsRead the Press Release
WASHINGTON – Mark Lamont Clark, 57, a former officer with the Metropolitan Police Department, was sentenced today to six months in prison for two counts of deprivation of civil rights under color of law, announced by U.S. Attorney Matthew M Graves and Chief Pamela Smith, of the Metropolitan Police Department. Clark was convicted in May of 2023.
According to evidence presented in court, on July 13, 2018, while acting under color of law and fully dressed in his MPD uniform, Clark applied a prohibited chokehold to victim D.T., causing bodily injury through an unlawful use of excessive force, outside a McDonald’s restaurant, following a confrontation Clark had with a friend of D.T. Just five days later, on July 18, 2018, while acting under color of law and again fully dressed in his MPD uniform, Clark similarly escalated a verbal confrontation with a McDonald’s patron, victim K.C., and then applied a prohibited chokehold and a prohibited carotid artery hold to K.C., causing bodily injury. Both offenses were captured on Clark’s MPD body-worn camera (BWC).
U.S. District Judge Carl J. Nichols, who presided over Clark’s trial, also ordered the defendant to serve two years of supervised release.
This case was investigated by the Internal Affairs Division of the Metropolitan Police Department.
The case was prosecuted by Assistant U.S. Attorneys Michael Truscott and George Eliopoulos of the U.S. Attorney’s Office for the District of Columbia.
Former Marine Corps Private from Kingston Pleads Guilty to Gun Trafficking ChargesRead the Press Release
ALBANY, NEW YORK – Rylan Peterson, age 22, of Kingston, New York, pled guilty on Wednesday to conspiring with others to unlawfully obtain firearms from a licensed dealer by making false statements, also known as “straw purchasing” firearms, and to unlawfully transferring firearms to an out-of-state resident.
United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Peterson, a native of Kingston then serving as a private first class in the Marine Corps at a base in North Carolina, admitted that he entered into an agreement with Oryn McLeod, for Peterson to acquire six semi-automatic handguns on behalf of McLeod and others. Peterson then obtained the guns from North Carolina resident Mitchell Locke, who purchased them from a licensed dealer in North Carolina, falsely representing at the time of the purchase that he was acquiring the firearms for himself. McLeod paid Peterson for the guns, which Peterson transported to New York from North Carolina. McLeod was subsequently arrested for unlawful possession of two of the handguns.
Sentencing is scheduled for July 10, 2024, before Senior United States District Judge Lawrence E. Kahn. Peterson faces up to 25 years in prison, a fine of up to $250,000, and a term of supervised release of 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
McLeod has pled guilty to conspiracy to make false representations in connection with purchasing firearms. Locke is pending trial on the same charge. The charges against Locke are merely accusations, and he is presumed innocent unless and until proven guilty.
ATF and the Kingston Police Department are investigating this case. Assistant U.S. Attorneys Dustin C. Segovia and Emmet O’Hanlon are prosecuting the case.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
Former Head of MCLB-Albany’s Environmental Division Convicted of Lying to Federal Agents Investigating Clean Water Act ViolationsRead the Press Release
ALBANY, Ga. – A federal contractor who served as the Head of the Environmental Services and Public Works Division at the Marine Corps Logistics Base (MCLB) in Albany was found guilty by a federal jury this week of making false statements about his knowledge of whether a hazardous waste was pumped into the local community’s sewer system.
Brain J. Wallace, 59, of Leesburg, Georgia, was found guilty of one count of making a false statement to a federal agency on Feb. 28, following a three day jury trial that began on Feb. 26. Wallace faces a maximum sentence of five years in prison to be followed by three years of supervised release and a $250,000 fine. A sentencing date will be scheduled by the Court.
Co-defendant Horizon Environmental Services, LLC, pleaded guilty to reckless conduct on May 11, 2023, and was sentenced to two years of probation, 100 hours of community service, $900 in restitution to MCLB-Albany (Horizon’s profit for the contract work) and a $10,000 fine on Aug. 3, 2023.
U.S. District Judge Leslie A. Gardner is presiding over the case.
“Thankfully no hazardous waste made its way into the Flint River—a stunning ecosystem central to Southwest Georgia life—as a result of this gross deviation from the standard of care required by all industries disposing waste into our shared environment,” said U.S. Attorney Peter D. Leary. “Federal prosecutors and our law enforcement partners will hold individuals and businesses accountable when their unlawful and reckless choices put people and our environment at risk.”
“Providing false statements to EPA Special Agents while investigating the illegal dumping of hazardous waste into the City of Albany’s sewer system and subsequent illegal transportation of the waste is a crime,” said EPA-CID Acting Special Agent in Charge Kristopher Martel. “This guilty verdict demonstrates the agency’s commitment to protect communities and their water resources and to hold those who materially falsify information accountable for their actions.”
According to court documents and evidence submitted at trial, MCLB-Albany provides facilities, infrastructure and tailored installation support services for operational forces worldwide. There is a production plant on base which disassembles old equipment—this includes stripping paint containing hazardous materials requiring proper disposal by federal law—and rebuilds the equipment. The production plant’s waste is processed by the industrial wastewater treatment plant (IWTP), which is also located on MCLB-Albany. The IWTP discharges the treated wastewater to the City of Albany, which is permitted to properly handle this waste and does so for other large-scale industries in the community.
On May 10, 2021, the rake on the clarifier (a settling tank that separates liquids from solids) at MCLB-Albany’s IWTP broke down, halting operations and impacting MCLB-Albany’s production plant, which relied upon the IWTP to properly process its waste. An emergency work order was issued to repair the rake. Before the clarifier’s rake could be repaired, the contents of the clarifier’s tank had to be removed. Horizon employees came to the base to meet with other base employees and contractors, including Wallace who was the Head of the Installation and Environment Division, Environmental Services and Public Works Division for MCLB-Albany. Horizon was subcontracted to vacuum the contents of the clarifier tank into sludge boxes, which can contain RCRA (Resource Conservation and Recovery Act) hazardous waste and is to be handled with particular care. Horizon was not permitted by the EPA to transport or store hazardous waste. Horizon also admitted in court documents to acting recklessly and moving 40,000 gallons of sludge to and from the Base multiple times without properly documenting the contents of the containers. This type of manifest is critical; had some sort of spill occurred, first responders might have been unable to properly remediate, due to the lack of a manifest indicating the nature of the contents.
Court evidence showed that approximately 30,000 gallons of liquid layer from the clarifier was pumped into the City of Albany’s sewer system on May 10, 2021, through a manhole at the MCLB-Albany’s IWTP and that the City of Albany was not properly notified, as required by law. Wallace told EPA investigators that he was unaware of anyone pumping the liquid layer from the clarifier into the sewer system through the IWTP manhole; it was proven in court that he did know and therefore lied to EPA investigators.
There is no evidence of a spill or harm to the community. However, on May 12, 2021, there was a rainstorm in Albany which could have led to a resulting overflow before the liquid reached the City of Albany’s water treatment facility. When there is an overflow during a significant storm, the overflow runs into the Flint River before being treated. EPA has no reason to believe that the overflow from the May 12, 2021, storm ultimately drained into the Flint River, but this potential hazard would have been avoided had the City of Albany been properly notified so that they could have accepted the hazardous liquid from MCLB in a safe manner, as they are permitted to do.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division (EPA CID).
Criminal Chief Leah McEwen and Assistant U.S. Attorney Elicia Hargrove are prosecuting the case for the Government.
Former Alamogordo Firefighter Sentenced to 45 Years in Prison for Production of Child PornographyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric McLoughlin, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced that Jason Ross-Lattion Fleming was sentenced to 45 years in prison. Fleming, 37, of Pinon, pleaded guilty to production of a visual depiction of a minor engaging in sexually explicit conduct and providing child pornography to a minor on April 6, 2023.
A federal grand jury indicted Fleming on Sept. 21, 2022. According to publicly available court records, on April 12, 2022, Homeland Security Investigations received information from New Mexico State Police regarding an incident that occurred involving a 10-year-old minor in Pinon, New Mexico. The 10-year-old minor, identified in court documents as Jane Doe 2, reported that Fleming molested her while she was visiting her dad in New Mexico. Fleming was an Alamogordo firefighter at the time.
During a subsequent interview, Jane Doe 2 disclosed that Fleming began molesting her when she was nine years old and that it occurred multiple times. Jane Doe 2 disclosed that Fleming showed her videos of child sexual exploitation materials and told her she had to do the things to him that occurred in the videos. Jane Doe 2 also disclosed that Fleming gave her Reese’s candy when he molested her.
Based on the information from Jane Doe 2, New Mexico State Police obtained a state district court search warrant for Fleming’s residence, cellphones, and buccal swabs containing Fleming’s DNA.
On April 18, 2022, Homeland Security Investigations obtained and executed a follow-up federal search warrant on Fleming’s cellphone and identified hundreds of videos and photographs of child sexual exploitation materials, including child sexual exploitation materials images involving infants and toddlers. The identified child sexual exploitation materials were contained within the thumbnail cache of a “GalleryVault” application.
While reviewing the extraction of Fleming’s cellphone, Homeland Security Investigations located sexually explicit videos and photographs that Fleming produced of Fleming and a teenage minor, identified in court documents as Jane Doe 1.
Upon his release from prison, Fleming will be subject to 5 years of supervised release and must register as a sex offender.
Homeland Security Investigations investigated this case with assistance from New Mexico State Police, U.S. Marshals Service, and the Drug Enforcement Administration. Assistant United States Attorneys Marisa A. Ong and Matilda McCarthy Villalobos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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Former Accounting Director for Corona Company Sentenced to Nearly 5 Years in Federal Prison for Embezzling Almost $1 MillionRead the Press Release
RIVERSIDE, California – A Riverside County woman was sentenced today to 57 months in federal prison for embezzling nearly $1 million from her employer, which managed the financial affairs for homeowner associations, primarily in the Inland Empire.
Jenev Boyd, 60, of Corona, was sentenced by United States District Judge Sunshine S. Sykes, who also ordered her to pay $780,810 in restitution.
Boyd pleaded guilty in December 2023 to one count of wire fraud and one count of aggravated identity theft.
Boyd was a long-time employee of and the director of accounting for Encore Property Management, a Corona-based company that provided property management services to its homeowner association clients.
From January 2012 to August 2020, Boyd reactivated retired or non-active client accounts in a software program Encore used to falsely reflect that these were still active clients. She then changed the selected vendor’s information to reflect her own name and address. Through manipulation of Encore's internal accounting software, Boyd was able to mask payments to herself from client accounts as vendor payments. Boyd kept the monthly amounts in line with other vendor payments therefore hiding the embezzlement.
Boyd also forged signatures, including that of Encore’s president, on each check she fraudulently issued to herself. She also misled the company’s clients about the checks she wrote to herself out of their accounts, including by describing the transactions as being for operating expenses rather than as a payment to her based on a bogus invoice.
In total, Boyd defrauded her employer and its clients out of $931,077.
“[Boyd] abused the trust of her friends and co-workers and convinced them they did not need to look more carefully at reports from banks, which she doctored before providing an accounting to each client she had embezzled from,” prosecutors argued in a sentencing memorandum. “As a result of her fraud, employees left the business, and those who considered her a friend, like a sister, felt blindsided and betrayed.”
The FBI investigated this matter.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office prosecuted this case.
Florida Man Admits over $3.6 Million Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – A Florida man admitted his role in a durable medical equipment kickback scheme, U.S. Attorney Philip R. Sellinger announced today.
Steve Chicoye, 55, of Orlando, Florida, pleaded guilty on Feb. 29, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in the case and statements made in court:
Chicoye and his conspirators solicited and received kickbacks and bribes in exchange for providing durable medical equipment (DME) companies with completed doctors’ orders for medically unnecessary DME, such as orthotic braces. Chicoye and his conspirators utilized the service of telemedicine companies to obtain these prescriptions for DME, and the DME orders were subsequently fraudulently billed to Medicare and other health care benefit programs.
Chicoye and his conspirators were paid approximately $2.1 million in kickbacks for these DME orders and caused losses to Medicare and other health care benefit programs of at least $3.6 million.
The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Aug. 6, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.
chicoye.information.pdfFive Passaic County Residents Charged with Armed RobberyRead the Press Release
NEWARK, N.J. – Five Passaic County, New Jersey, residents were charged with the armed robbery of a residence in Saddle Brook, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Jamere Dixon, aka “Rebels,” 23; Jahad Foxworth, aka “Hadie,” 25; Tyra Jones, 24; Jancarlos Rodriguez, aka “M’s,” 23; and Lanasia Smith, aka “Lay,” 24, all of Paterson, New Jersey, are charged by complaint with one count of conspiracy to commit Hobbs Act robbery and one count of conspiracy to use and carry a firearm during and in relation to a crime of violence. The defendants appeared on Feb. 28, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court. Dixon, Foxworth, and Rodriguez were detained. Jones and Smith were each released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In the early morning hours of June 28, 2022, Foxworth, Rodriguez, and Dixon entered a residence in Saddle Brook and held two victims at gunpoint. The three defendants stole money, credit cards, and suspected controlled substances, among other items. Prior to the robbery, Smith was a guest at the residence and provided Foxworth, Rodriguez, and Dixon with access to the home by leaving the front door unlocked. The investigation revealed that hours before the robbery Smith sent to Rodriguez a picture of a safe located in the residence. After the robbery, the suspects fled in a vehicle driven by Jones. Rodriguez, Jones, and Smith were later seen on surveillance footage attempting to use the stolen credit cards at gas stations and a convenience store in Paterson.
The conspiracy to commit Hobbs Act robbery and conspiracy to use and carry a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of 20 years in prison, a fine of up to $250,000, or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; the Bergen County Prosecutor’s Office, under the direction of Acting Chief Matthew Finck, the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Saddle Brook Police Department, under the direction of Officer in Charge Captain John A. Zotollo Jr.; and with the investigation leading to the charges.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorneys Jake A. Nasar of the Organized Crime and Gangs Unit and Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
rodriguezetal.complaint.pdfFederal jury convicts Washington man of meth and fentanyl trafficking in Hill County, Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A federal jury on Feb. 29 convicted a Washington man accused of trafficking methamphetamine and fentanyl in communities in Hill County and on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said today.
After a three-day trial that began on Feb. 27, a jury found the defendant, Antonio Ledesma Rodriguez, aka Uncle, 53, of Yakima, Washington, guilty of conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute controlled substance and distribution of fentanyl as charged in an indictment. Rodriguez faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release on each count.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 20. Rodriguez was detained pending further proceedings.
“Due to outstanding law enforcement work, we are, yet again, holding someone accountable for poisoning our communities. Here, Rodriguez brought meth and fentanyl pills to the Rocky Boy’s Indian Reservation and surrounding towns for local distribution. Together with our law enforcement partners, we remain relentless in our efforts to shut down drug traffickers. I thank Assistant U.S. Attorneys Stephanie D. Robles and Amanda L. Myers, our office support staff and the FBI, Tri Agency Task Force and Rocky Boy’s Police Department for their work investigating and prosecuting this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that Rodriguez was involved in drug trafficking from about January 2021 to December 2021 in the Hill County communities of Havre, Laredo and Box Elder, and on the Rocky Boy’s Indian Reservation. In May 2021, law enforcement seized fentanyl pills from an individual at his residence. The individual admitted he was involved in distributing controlled substances and identified his suppliers as a group of men, including Rodriguez, from Yakima, Washington. The pills sized from the residence had been provided by Rodriguez. The individual also sold fentanyl and meth for Rodriguez. In a controlled purchase, law enforcement obtained 350 fentanyl pills from Rodriguez for $8,000.
Assistant U.S. Attorneys Stephanie D. Robles and Amanda L. Myers are prosecuting the case. The FBI, Tri Agency Task Force and Rocky Boy’s Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Jury Finds St. Paul Felon Guilty of Illegally Possessing AmmunitionRead the Press Release
ST. PAUL, Minn. – A federal jury found a St. Paul man guilty of possessing ammunition as an armed career criminal, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, on July 12, 2022, law enforcement located Markhel D’John Harris-Franklin, 28 at a supermarket and placed him under arrest. Inside his vehicle, officers found a loaded 9mm privately made handgun with an extended magazine on the floor behind the driver’s seat.
Because Harris-Franklin has multiple prior felony convictions in Ramsey, Dakota, and Anoka Counties, including aggravated robbery, theft, assault, and domestic violence, he is prohibited under federal law from possessing firearms or ammunition at any time.
Following a three-day trial before Judge Katherine M. Menendez in U.S. District Court, Harris-Franklin was found guilty yesterday on one count of possession of ammunition as an armed career criminal. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Paul Police Department, the Minnesota Bureau of Criminal Apprehension, and the United States Marshal Service.
Assistant U.S. Attorneys LeeAnn K. Bell and Emily A. Polachek tried the case.
East St. Louis Man Gets Life Plus 15 Years in Prison for Fentanyl Dealing, Drug-Linked Shooting Death in University CityRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Friday sentenced a man convicted of charges related to fentanyl dealing and a fatal shooting in University City to life in prison plus 15 years.
A jury in September found Deoman Reeves, 32, of East St. Louis, guilty of 11 felony charges: one count of conspiracy to distribute and possess with the intent to distribute in excess of 40 grams of fentanyl, four counts of possession with the intent to distribute fentanyl, three counts of possession of firearms in furtherance of a drug trafficking crime, two counts of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of drug trafficking, resulting in death.
The death resulting charge stems from the Oct. 21, 2019, fatal shooting of David Anderson in the 1100 block of Kingsland Avenue. Evidence and testimony presented at trial showed that Reeves and others fired multiple shots at Anderson in retaliation for a shooting in St. Louis County the day before. Anderson was not involved in the St. Louis County shooting.
“This is a dangerous individual who has a callous disregard for human life,” said Special Agent in Charge Bernard G. Hansen of the Kansas City Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “There is no higher priority for ATF than keeping our communities safe and we will use all available resources to identify and investigate those who commit violent acts. This sentence should send a message to others that violent behavior in our communities will not be tolerated.”
Judge Schelp sentenced Reeves’ co-defendant, Franklin Bell, now 32, on February 12 to 20 years in prison. Bell pleaded guilty on the eve of his trial in September to a fentanyl distribution conspiracy charge, five counts of possession with the intent to distribute fentanyl and two counts of possession of firearms in furtherance of a drug trafficking crime.
Bell admitted in his plea that he, Reeves and Arrion Jones were involved in selling fentanyl in the St. Louis area. After a September 2019 non-fatal shooting, the University City Police Department requested the assistance of the ATF. An ATF confidential informant and undercover agents began buying fentanyl from Reeves and others, who were armed while selling the fentanyl. Reeves also sold firearms to a confidential informant.
Judge Matthew T. Schelp sentenced Deronte McDaniels, now 26, in October to 150 months in prison. He pleaded guilty to one count of conspiracy to possess a firearm in furtherance of drug trafficking and admitted being the target of a shooting on Oct. 20, 2019, that wounded Jones. McDaniels took Jones’ firearm and returned fire and was one of the men who shot at Anderson the next day, his plea says.
Jones is serving a 40-month sentence.
The ATF and the University City Police Department investigated the case. Assistant U.S. Attorneys Paul D’Agrosa and Erin Granger are prosecuting the case.
Dulce Man Charged with Aggravated Sexual AbuseRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Cisco Cruzito Pinto appeared in federal court on a criminal complaint charging him with aggravated sexual abuse in Indian Country. Pinto, 37, of Dulce, NM, will remain on conditions of release in the third-party custody of a halfway house pending trial, which has not yet been scheduled.
According to the criminal complaint, on Sept. 13, 2023, Pinto went out drinking in Pagosa Springs, CO with his wife before returning home. After his wife fell asleep, Pinto allegedly went into a bedroom where their 14-year-old niece, Jane Doe, was sleeping and sexually assaulted her. Jane Doe began to cry, and Pinto allegedly told her not to tell anyone otherwise he would hit her. When Pinto went to take a shower, Jane Doe told her aunt that Pinto had assaulted her. Jane Doe’s aunt called 911, and Jicarilla Apache Police Officers removed Pinto from the home.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charges, Pinto faces up to a mandatory minimum of 30 years and up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Assistant U.S. Attorney Meg Tomlinson is prosecuting the case.
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Dual Resident Doctor Sentenced to 52 Months in Federal Prison for Tax EvasionRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced that U.S. District Judge Brian A. Jackson sentenced Dr. Melissa Rose Barrett, age 49, of Baton Rouge, Louisiana, and Clive, Iowa, to 52 months in federal prison following her conviction for tax evasion. In addition to the term of imprisonment, the Court imposed a fine of $200,000 and ordered Barrett to serve one year of supervised release.
On October 31, 2023, after a seven-day trial before U.S. District Judge Brian A. Jackson, the jury unanimously convicted Barrett of tax evasion. Barrett, a physician, owned and operated an urgent care clinic known as Stat Care Clinics, L.L.C. d/b/a Central Stat Care. As the evidence at trial demonstrated, for tax years 2007 through 2017, Barrett owed significant taxes totaling approximately $1.6 million, excluding interest and penalties. For more than a decade, the IRS notified Barrett that she owed taxes multiple times and through various means.
Barrett undertook various steps to evade the payment of her outstanding tax liability, including preparing and filing a false IRS form, underreporting income, inaccurately detailing her assets, and concealing cash in a safe instead of depositing it in the bank. While owing a substantial tax debt, Barrett purchased millions of dollars of real estate and personal property in the names of nominees. These assets included a personal residence, boats, airplanes, and thousands of acres of farmland and hunting land.
U.S. Attorney Ronald Gathe said, “ The United States Attorney’s Office is committed to prosecuting individuals and businesses alike that refuse to perform their civic duty of tax payment. Paying taxes is a responsibility that we all bear as United States citizens in order to enjoy the freedoms they provide. This intelligent individual developed a sophisticated scheme and took advantage of our system; however, her actions were inevitably discovered by our federal partners. I commend the collaborative work between our federal partners and my office in holding this defendant accountable and issuing justice for the citizens of the Middle District of Louisiana.”
This case was investigated by the Internal Revenue Service, Criminal Investigations and was prosecuted by Deputy Criminal Chief Edward H. Warner, Assistant United States Attorney Elizabeth White, and Trial Attorney Wilson Stamm of the Department of Justice Tax Division.
District Man Sentenced to Nine Years in Prison for Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Tyrone Hawkins, 22, of Washington, D.C., was sentenced today to a nine-year prison term for shooting a man outside of the man’s home in Northeast Washington, U.S. Attorney Matthew M. Graves announced.
Hawkins pleaded guilty in September, 2023, in the Superior Court of the District of Columbia, to assault with intent to kill and possession of a firearm during a crime of violence. The sentencing guidelines called for a range of five to nine years, and the Honorable Michael O’Keefe sentenced Hawkins to the maximum of nine years on March 1, 2024. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 23, 2021, Hawkins’ co-defendant, Clint Broadus, was driving a car that belonged to Hawkins’s mother, and pulled up beside the victim, who was speaking on a cellphone outside of his home. Hawkins was riding as a passenger in the front seat of the car. Hawkins asked the victim, “where's the weed at?” The victim replied that he didn't have any marijuana, and Broadus drove the vehicle down the street and parked. Hawkins and Broadus exited the vehicle, had a conversation over the hood of the car, and then approached the victim from different directions. Broadus ran across the street towards the victim, reaching for a firearm in his waistband, while Hawkins approached the victim from the same side of the road as where the victim was standing. The victim saw Broadus running towards him, produced a personal pepper spray container and sprayed Broadus with it. Broadus ducked and ran away from the scene. At nearly the same time that the victim deployed pepper spray, Hawkins, who was standing to the victim’s left, pointed a silver-barreled pistol at him and fired multiple times. The victim attempted to flee behind vehicles parked on the street in front of his home, while the defendant fired at him 7 to 11 times. The victim sustained an injury to his upper arm from bullet fragments; multiple vehicles parked along the street were damaged as a result of the gunfire.
Hawkins was arrested the same day and has been in custody ever since. The co-defendant, Clint Broadus, was sentenced on February 16, 2024, to a five-year prison sentence for assault with a dangerous weapon and possession of a firearm during a crime of violence pursuant to a plea agreement that was accepted by the Court.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Abubaker Alaway, and Assistant U.S. Attorney Sarah Folse, who investigated and prosecuted the case. He also acknowledged the efforts of others who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Erin DeRiso and Jessica Ans, Paralegal Specialist Debra McPherson, and Victim/Witness Services Coordinator Katina Adams-Washington.
District Man Sentenced to 10 Years in Prison for Drug Distribution and Possession of a MachinegunRead the Press Release
WASHINGTON – Daniel Jahleel Thomas, aka “Dandue,” 22, of Washington, D.C., was sentenced to 120 months in prison today, for conspiracy to distribute 100 kilograms or more of marijuana, as well as a detectable amount of oxycodone, unlawful possession of a machinegun, and using, carrying, and possessing a firearm during, in relation to, and in furtherance of drug trafficking, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
In addition to the 10-year prison term, U.S. District Court Judge Beryl A. Howell ordered Thomas to serve four years of supervised release.
Thomas pleaded guilty on April 13, 2023, in the U.S. District Court for the District of Columbia. According to court documents, Thomas – who used the nickname “Dandue” in rap videos published on YouTube – advertised marijuana and oxycodone for sale on his social media accounts, and published pictures of himself in holding firearms, including fully automatic machine guns.
February 25, 2022, MPD officers saw Thomas’ Instagram story advertising that he had marijuana for sale at the Fort Chaplin Park Apartments in Northeast D.C., and knew that Thomas had a court-ordered stay-away from the complex as a condition of a prior gun arrest. The officers found Thomas standing outside the apartments and, as they approached him, Thomas jumped into the back seat of a parked vehicle. When officers ordered Thomas out of the vehicle to speak with him about the stay-away order, he resisted and pulled away. During the subsequent struggle, officers discovered a firearm in Thomas’ waistband. The firearm was later determined to be a Glock, Model 19, 9mm handgun loaded with one round in the chamber and 14 rounds in the magazine. The handgun was also fitted with a “giggle switch,” which made the handgun capable of fully automatic fire. After placing Thomas under arrest, officers recovered a duffel bag from inside the vehicle and subsequently recovered four one-pound bags of marijuana as well as 81 pills, each of which contained 30mg of oxycodone. Thomas has been detained without bond since his arrest.
At the time of his arrest, Thomas was under investigation by the FBI for his role in a variety of federal offenses related to firearms and narcotic trafficking. Coordination between the FBI and MPD led to an indictment charging Thomas and two of his co-conspirators with numerous federal offenses. Five days before his arrest, Thomas exchanged text messages with a co-conspirator about Thomas’ plan to carry out a drive-by shooting in retaliation for a perceived slight.
In announcing the sentencing, U.S. Attorney Graves, Special Agent in Charge Scott, and Chief Smith commended the work of those who investigated the case from the U.S. Attorney’s Office, the FBI Washington Field Office, and MPD.
The case was prosecuted by Assistant U.S. Attorney James B. Nelson with valuable help from Paralegal Specialist Genevieve de Guzman.
Defendant Convicted of Fraudulent Scheme That Targeted the Haitian American Community Sentenced to 24 Months in PrisonRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Frantz Simeon was sentenced by United States District Judge Brian M. Cogan to 24 months in prison for his operation of a fraudulent scheme that used his company, First Black Enterprises, Inc., to target members of the Haitian American community in Brooklyn and Queens. As part of the sentence, Simeon was ordered to pay over $200,000 in restitution. The defendant pleaded guilty to mail fraud in February 2023.
Breon Peace, United States Attorney for the Eastern District of New York, and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service (USPIS), announced the sentence.
“Today, Frantz Simeon learned the consequences for exploiting his position of trust in the Haitian American community,” stated United States Attorney Peace. “Simeon lured his victims with false promises of substantial returns on investments so that he could fleece them for his own benefit, until his scheme collapsed. This Office will aggressively prosecute perpetrators of affinity fraud schemes, and this case alerts investors to be wary of community members touting investments that sound too good to be true.”
“Postal Inspectors are dedicated to investigating schemes designed to defraud innocent victims while taking advantage of the U.S. Mail. USPIS vows to continuously protect and educate the public on how to avoid these types of schemes,” stated USPIS Inspector-in-Charge Brubaker. “Simeon targeted individuals from his own community for his personal financial gain. If something sounds too good to be true, it probably is!”
Between February 2019 and December 2020, Simeon orchestrated a fraudulent scheme in which he falsely advertised his business experience and acumen, enticing investors to invest with him based on promises that their investments were risk-free and would generate 10% monthly returns. Simeon specifically preyed on Haitian Americans residing in Brooklyn and Queens, leveraging his relationships in the community to induce over $350,000 in investments with his false assurances. Contrary to his promises, Simeon conducted little or no actual business or investment activities, instead using the money from new investors to mail monthly interest payments to them and earlier investors in a Ponzi-like scheme. These purported interest payments were designed to conceal the fraud and to induce further investments, which Simeon needed to continue the scheme. In addition, Simeon misappropriated thousands of dollars of investor funds for his own personal benefit, including the purchase of a car for his daughter and making over $60,000 in cash withdrawals. Simeon’s victims, who were largely immigrants, ultimately sustained over $200,000 in losses as a result of the scheme.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Dylan A. Stern is in charge of the prosecution.
The Defendant:
Frantz Simeon
Age: 67
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-479 (BMC)
Davenport Man Sentenced to 84 Months in Federal Prison for Firearms ChargeRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced on February 28, 2024, to 84 months in federal prison for possessing a firearm as a felon.
According to public court documents and evidence presented at sentencing, Deandre Miller, 36, was found in possession of a loaded firearm. Law enforcement received a report of a stolen vehicle out of the Atlanta, Georgia area. The stolen vehicle was located at a gas station in Davenport. Law enforcement determined Miller was the passenger of the stolen vehicle and had entered the gas station. As officers investigated, Miller attempted to flee out of the store and was taken into custody. Officers determined that prior to fleeing, Miller had been in a walk-in cooler. Inside this walk-in cooler, officers found a loaded firearm. Miller had been previously convicted of a felony offense and was prohibited from possessing any firearms.
After completing his term of imprisonment, Miller will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Court Finds That Arizona Voter Registration Provisions Violate Federal LawRead the Press Release
The U.S. District Court for the District of Arizona struck down an Arizona requirement that individuals seeking to register to vote must list their birthplace as a prerequisite to registering to vote. The court ruled that the birthplace requirement of House Bill 2492 violated a federal law that prevents election officials from rejecting voting materials for errors or omissions that are not material to determining a registrant’s qualifications to vote. The court previously ruled that Arizona may not require documentary proof citizenship to vote in a federal election.
“This ruling provides a cautionary note that should discourage officials from considering imposition of restrictive or burdensome proof of citizenship demands or requests for unnecessary information from voters before registering them to vote in federal elections,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the National Voter Registration Act (NVRA) and other federal laws to ensure that eligible voters are able to register and vote in federal elections.”
“Arizona passed legislation in 2022 that violates the Civil Rights Act of 1964 and other federal safeguards,” said U.S. Attorney Gary Restaino for the District of Arizona. “The District Court’s order helps level the playing field and it removes formidable barriers to Arizonans’ exercise of their right to vote. We appreciate the advocacy work of so many non-profit organizations and the Civil Rights Division in seeking a fairer and more just America.”
The court’s ruling comes following a bench trial late last year in a set of consolidated cases challenging various aspects of voting laws adopted by the State of Arizona. The Justice Department’s lawsuit, filed in July 2022, challenged voting restrictions imposed by House Bill 2492 (2022), alleging violations under Section 6 of the NVRA and Section 101 of the Civil Rights Act of 1964. Specifically, the United States’ complaint contended that House Bill 2492 violates the NVRA by requiring that applicants produce documentary proof of citizenship before they can vote in presidential elections or vote by mail in any federal election when they register to vote using the uniform federal registration form created by the NVRA. This requirement flouts the 2013 U.S. Supreme Court decision in Arizona v. Inter Tribal Council of Ariz., Inc., which rejected an earlier attempt by Arizona to impose a similar documentary proof of citizenship mandate on applicants seeking to vote in federal elections.
The United States’ complaint also contended that House Bill 2492 violates Section 101 of the Civil Rights Act by requiring election officials to reject voter registration forms based on errors or omissions that are not material to establishing a voter’s eligibility to cast a ballot. Several private plaintiffs filed related cases and yesterday’s ruling also addresses additional claims brought by those parties.
More information about the Voting Rights Act and other federal voting laws is available on the Justice Department’s website at www.justice.gov/crt/voting-section. Complaints about discriminatory voting practices can be reported to the Civil Rights Division through the internet reporting portal at civilrights.justice.gov or by telephone at 1-800-253-3931.
Commodities Trading Company Will Pay over $661M to Resolve Foreign Bribery CaseRead the Press Release
Gunvor S.A. (Gunvor), an international commodities trading company based in Switzerland, has pleaded guilty and will pay over $661 million to resolve an investigation by the U.S. Justice Department into violations of the Foreign Corrupt Practices Act (FCPA).
Gunvor’s guilty plea stemmed from the company’s corrupt scheme to pay substantial bribes to Ecuadorean government officials to secure business with Ecuador’s state-owned and state-controlled oil company, Petroecuador.
In connection with the resolution, Gunvor entered into a plea agreement with the government and pleaded guilty to an information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Following the plea, the court sentenced Gunvor to pay a criminal monetary penalty of $374,560,071 and to forfeit $287,138,444 in ill-gotten gains. The sentence includes credits of up to one-quarter of the criminal fine each for amounts Gunvor pays to resolve investigations by Swiss and Ecuadorean authorities into the same misconduct so long as the payments are made within one year of today’s date.
The Office of the Attorney General of Switzerland announced today a parallel resolution of its investigation into Gunvor’s misconduct that involved payment of approximately $98 million by Gunvor to Swiss authorities.
“Over nearly a decade, Gunvor representatives bribed high-level government officials at Ecuador’s state-owned oil company to enter into business transactions with other state-owned entities that ultimately benefited Gunvor. As a result of this complex bribery scheme, Gunvor obtained hundreds of millions of dollars in illicit profits,” said Acting Senior Counselor Brent S. Wible of the Justice Department’s Criminal Division. “Foreign bribery emboldens corrupt officials and undermines the rule of law. Gunvor’s guilty plea demonstrates that the Criminal Division remains resolute in our efforts to root out bribery and official corruption. We will continue to hold both corporations and individuals who bribe foreign officials to account, in coordination with our international partners.”
“Today’s guilty plea and sentencing marks yet another example of this office’s efforts to combat widespread corruption,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Corruption erodes the public’s trust in their government, prevents government officials from acting in the best interests of the people they represent and harms businesses that play by the rules, driving up prices for consumers. The Justice Department, including my office, will not tolerate bribes being paid by American companies or foreign companies misusing the U.S. financial system.”
“Gunvor’s years-long bribery scheme involving high-level Ecuadoran officials was both detrimental to the business environment and eroded the public’s trust and confidence in their government,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “This guilty plea and significant fine would not have been possible without significant cooperation from our international partners in the Cayman Islands, Colombia, Curacao, Ecuador, Panama, Portugal, Singapore, and Switzerland. This truly was an international effort.”
According to the company’s admissions and court documents, between 2012 and 2020, Gunvor and its co-conspirators paid more than $97 million to intermediaries knowing that some of the money would be and in fact was used to bribe Ecuadorean officials, including Nilsen Arias Sandoval, a then-high ranking official at Petroecuador. As part of the scheme, Gunvor managers and agents attended meetings in the United States and elsewhere. The bribe payments were routed through banks in the United States using shell companies in Panama and the British Virgin Islands controlled by Gunvor’s co-conspirators. Among other things, a Gunvor employee also directed one of the intermediaries to use the money to purchase an 18-karat gold Patek Philippe watch for Arias.
In exchange for these bribe payments, high-level Ecuadorian officials helped various state-owned entities, which were acting as front companies for Gunvor, win the rights to a series of oil-backed loan contracts with Petroecuador. This structure allowed Gunvor and its co-conspirators to avoid a competitive bidding process and to obtain contractual terms that it could not have obtained otherwise. Gunvor also received confidential Petroecuador information in exchange for the bribes. In total, Gunvor earned more than $384 million in profits from the contracts it obtained corruptly from Petroecuador.
The department reached this resolution with Gunvor based on a number of factors, including, among others, the nature and seriousness of the offense. Gunvor received credit for its cooperation with the department’s investigation, which included: (i) producing documents to the department from multiple foreign countries expeditiously while navigating foreign data privacy and criminal laws; (ii) providing information obtained through its own internal investigation to the department, which allowed the department to preserve and obtain evidence as part of the department’s investigation; (iii) making detailed, factual presentations to the department; (iv) arranging for the interview of an employee based outside the United States; (v) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department, and producing an analysis of trading activity conducted by multiple outside forensic accounting firms retained by Gunvor; (vi) translating foreign language documents to facilitate and expedite review by the department; and (vii) imaging the phones of relevant custodians at the beginning of Gunvor’s internal investigation, thus preserving business communications sent on mobile messaging applications.
Gunvor also engaged in timely and appropriate remedial measures, including: (i) eliminating the use of third-party business origination agents; (ii) enhancing its third party due-diligence process; (iii) developing and implementing a control framework for internal business developers and additional layers of review and approval for counterparty payments; (iv) enhancing the independent compliance committee with responsibility for reviewing high-risk transactions; (v) engaging resources to review its compliance program and test the effectiveness of its overall reporting process, its reporting hotline and the effectiveness of the investigation of reports made through the hotline; (vi) evaluating and updating its compensation policy to better incentivize compliance with the law and corporate policies; (vii) hiring additional compliance personnel; (viii) testing and enhancing its compliance program, including by conducting compliance culture reviews, testing new third party due diligence process and payment controls, and evaluating controls around business development activities; and (ix) developing and implementing a risk-based business communications policy that addresses the use of ephemeral and encrypted messaging applications.
The department also considered Gunvor’s history of misconduct. In October 2019, Gunvor reached a resolution with the Office of the Attorney General of Switzerland concerning a corrupt scheme to bribe officials in Congo-Brazzaville and Côte d’Ivoire to secure oil contracts obtained between approximately 2009 and 2012. As part of the 2019 Swiss resolution, Gunvor admitted that it lacked sufficient controls to prevent the underlying misconduct and failed to take “all the reasonable organizational measures” required to prevent Gunvor’s employees and agents from engaging in bribery. The conduct that is the subject of today’s guilty plea occurred, in part, at the same time as the prior Swiss investigation and resolution.
In light of these considerations, the department determined that the appropriate resolution in this case was for Gunvor to plead guilty to one count of conspiracy to violate the FCPA. The criminal fine calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the 30th percentile of the applicable guidelines fine range, taking into account Gunvor’s cooperation and remediation, as well as its prior history.
The department previously secured convictions in the Eastern District of New York of four individuals who were implicated in Gunvor’s bribery scheme, including:
- Antonio Pere Ycaza, a former consultant for Gunvor, pleaded guilty on Oct. 7, 2020, to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
- Enrique Pere Ycaza, a former consultant for Gunvor, also pleaded guilty on Oct. 7, 2020, to one count of conspiracy to commit money laundering and to violate the FCPA.
- Raymond Kohut, a former Gunvor employee and agent, pleaded guilty on April 6, 2021, to one count of conspiracy to commit money laundering.
- Nilsen Arias Sandoval, a former senior Petroecuador official, pleaded guilty on Jan. 19, 2022, to one count of conspiracy to commit money laundering.
The FBI Miami Field Office is investigating the case, with assistance from the FBI’s International Corruption Unit.
Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Nick M. Axelrod, Jonathan P. Lax, and Matthew R. Galeotti for the Eastern District of New York are prosecuting the case. Assistant U.S. Attorneys Laura Mantell and Brendan King for the Eastern District of New York are handling forfeiture matters.
The Justice Department’s Office of International Affairs and authorities in the Cayman Islands, Colombia, Ecuador, Panama, Portugal, Singapore, and Switzerland provided valuable assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.
Information Plea AgreementColombian National Pleads Guilty to Producing and Trafficking over 1,400 Kilograms of CocaineRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Juan Carlos Perlaza Caicedo (45, Colombia), a/k/a “Olindo Perlaza Caicedo” and “Gafas,” has pleaded guilty to conspiring to possess with the intent to distribute 5 or more kilograms of cocaine on a vessel subject to the jurisdiction of the United States. Perlaza Caicedo faces a minimum mandatory sentence of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
Perlaza Caicedo was arrested in Tumaco, Colombia on May 4, 2019, pursuant to a provisional arrest warrant. He was extradited to the United States on November 22, 2023.
According to the plea agreement, Perlaza Caicedo was responsible for the production and transportation of several tons of cocaine from Colombia to Central America from at least 2002 through 2017. In addition to transportation logistics, Perlaza Caicedo managed and operated cocaine-production laboratories in Colombia, where he manufactured large amounts of cocaine on a per-order basis. In addition to production of cocaine at laboratories, Perlaza Caicedo helped coordinate multiple maritime cocaine transportation trips, including recruitment and payment of mariners and determination of maritime routes to avoid law enforcement.
The cocaine Perlaza Caicedo produced was ultimately destined for importation to the United States. In August 2011, March 2012, and September 2014, the U.S. Coast Guard interdicted drug smuggling vessels associated with Perlaza Caicedo’s efforts. During those three interdictions alone, Perlaza Caicedo played a role in conspiring to transport at least 1,422 kilograms of cocaine. Following his arrest in Colombia, Perlaza Caicedo admitted his involvement in cocaine-smuggling along the Pacific coast of South and Central America.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi- jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the OCDETF Panama Express Strike Force is to disrupt and dismantle Transnational Criminal Organizations involved in large scale drug trafficking, money laundering, and related activities. The OCDETF Panama Express Strike Force is comprised of agents and officers from the Coast Guard Investigative Service, Drug Enforcement Administration, Federal Bureau of Investigation, and Homeland Security Investigations. The Department of Justice’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office at the U.S. Embassy in Bogota, the U.S. Marshals Service, and Colombian law enforcement authorities provided significant assistance in securing the arrest and extradition from Colombia of Perlaza Caicedo.
The prosecution is being led by the Office of the United States Attorney for the Middle District of Florida. It is being prosecuted by Special Assistant United States Attorney Benjamin Krebs.
Cincinnati man pleads guilty to armed robbery of postal carrierRead the Press Release
CINCINNATI – Lamarion Gray, 19, of Cincinnati, pleaded guilty in U.S. District Court today to armed robbery of a United States postal carrier.
The agreement calls for a sentence of 80 to 100 months in prison.
Gray is one of at least a dozen defendants charged in the Southern District of Ohio since 2022 with crimes related to postal robberies.
According to court documents, on July 12, 2023, Gray used a handgun and robbed a postal carrier for the carrier’s arrow key and vehicle key.
At approximately 4:30pm, Gray approached the mail carrier who was delivering mail by foot near Cliffside Drive in Cincinnati. Gray displayed a firearm and demanded the keys.
Video surveillance of the armed robbery was obtained by nearby residences.
When federal agents executed a search warrant on Gray’s vehicle, they discovered a postal arrow key and vehicle key, the gloves consistent to those used during the robbery, and a gold-colored barrel for a handgun consistent with the firearm used during the robbery.
Sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Colerain Township Police Chief Edwin C. Cordie III announced the guilty plea entered today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Chipley “Sovereign Citizen” Convicted at Trial of $3.4 Million Tax Fraud Scheme, Filing A False Lien, and Absconding While on BondRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury today found Judy Grace Sellers guilty of conspiracy to submit false tax returns and defraud the U.S. Treasury, substantive counts of aiding in the preparation of false tax returns, filing a false lien against the U.S. Attorney for the Northern District of Florida, and failure to appear. Sellers faces a maximum penalty of 23 years in federal prison. Her sentencing hearing is scheduled for May 22, 2024.
Sellers originally was indicted in December 2014. Her indictment was superseded to add a charge for absconding while on bond in February 2024.
According to evidence presented at trial, in 2008 and 2009, Sellers operated a website called commercialredemption.com on which she promoted the use of IRS form 1099-OID to commit tax fraud. Sellers identified as a so-called “sovereign citizen” and perpetuated the false premise that the U.S Treasury maintains secret accounts attributed to every U.S. citizen that can be drawn on by filing a series of bogus documents with the U.S. Treasury and other government entities.
As part of this fraud scheme, Sellers also promoted the use of IRS form 1099-OID to fraudulently report to the IRS debts – including mortgages, student loans, credit card debts, and court judgments – as income, along with 100% withholdings of that “income” in informational returns in order to overcome the IRS’s internal controls and induce the IRS to issue refunds that were not owed. The proper use of the 1099-OID form is for companies such as brokers to report to the IRS income received by the purchaser of a discounted security. Sellers personally created and submitted to the IRS 1099-OID forms that were fraudulent on their face.
After submitting the fraudulent 1099-OID forms, Sellers’s co-conspirators would prepare and submit fraudulent returns seeking massive refunds, in one case exceeding half a million dollars on a single return. All of these refunds were based on non-existent 1099-OID “income” and withholdings. The conspiracy resulted in the submission of at least 22 returns requesting fraudulent refunds totaling at least $3.4 million from the IRS.
In 2011, the U.S. Attorney’s Office in the Northern District of Florida filed a civil action in federal court to enjoin Sellers from promoting her fraudulent scheme on her commercialredemption.com website. In retaliation, Sellers filed a false lien against the then-U.S. Attorney and a Department of Justice tax attorney who was leading the civil action.
In 2014, Sellers was indicted on charges of tax fraud and for filing a false lien and arrested. In January 2015, Sellers was placed on house arrest with a GPS ankle monitor pending trial. In May 2015, Sellers was granted permission by her probation officer to leave her home to get her hair done in preparation for her pretrial hearing a few days later. The next day, Sellers cut off her GPS ankle monitor, flung it on the side of the highway, and absconded.
Cut GPS Ankle Monitor
Sellers was not found until more than eight and a half years later in New Mexico. Prior to this, Sellers had pleaded guilty to failing to appear for her sentencing in her previous federal counterfeiting case in 2002. In her previous case, Sellers was apprehended living under a false name in Mississippi.
This case was investigated by IRS – Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration, with assistance from the U.S. Marshals Service. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Milliron.
Chicago Man Sentenced to 96 Months in Federal Prison for His Nationwide Snapchat Phishing Scheme Targeting College-Aged WomenRead the Press Release
TALLAHASSEE, FLORIDA – Joseph Alexander Valdez, 30, Chicago, Illinois, was sentenced to 96 months in federal prison after previously pleading guilty to one count of wire fraud, one count of aggravated identity theft, and one count of stalking in connection with his phishing scheme. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The defendant’s calculated invasion of the victims’ privacy is both despicable and illegal,” said U.S. Attorney Coody. “Moreover, his attempts to shame, taunt, and in some instances extort his victims, demonstrate his predatory nature and desire to inflict harm. This sentence rightly punishes the defendant and should serve as a significant deterrent to others. With our law enforcement partners, we remain committed to identify and aggressively prosecute acts of online exploitation.”
Court documents reflect that between June 2021, and December 2022, Valdez identified college-aged females located throughout the United States—including two students at Florida State University and one student at the University of Florida—to deceive them into providing their Snapchat passwords.
Once he accessed the victims’ Snapchat accounts, Valdez took screenshots of the victims’ subscriber information—such as their name, phone number, email address—and downloaded their saved photographs, including private, nude photographs. In other instances, Valdez communicated in online chatrooms and forums with other individuals who used a similar scheme to unlawfully obtain the victims’ private, nude photographs stored on the victims’ Snapchat accounts and other social media platforms. These other individuals traded and shared photographs with Valdez.
“These types of crimes are often difficult to trace and challenging to prosecute,” said Tallahassee Police Chief Lawrence Revell. “However, this sentencing reinforces our commitment. Together with our local, state, and federal law enforcement partners, we will relentlessly pursue justice for the victims and send a resounding message to others that predatory behavior of this nature will not be tolerated in Tallahassee.”
After obtaining the victims’ private photographs, Valdez contacted the victims to taunt them by bragging that he obtained their private photographs and by commenting on their bodies. In total, Valdez victimized and attempted to victimize over 700 women.
"Every day, thousands of unsuspecting social media users fall victim to online scammers, who are using a variety of sophisticated guises and techniques to collect personal information about their victims," said Acting Special Agent in Charge Mark Dargis of the FBI Jacksonville Division. "This sentencing exemplifies the commitment of the FBI to protect Americans and investigate and pursue those who seek to exploit them. We encourage anyone who believes they are a victim of an online scam or fraud to immediately report the incident to the FBI's Internet Crime Complaint Center at www.ic3.gov."
Valdez’s prison sentence will be followed by three years of supervised release, and he was ordered to pay restitution to the victims.
This case was investigated by the Federal Bureau of Investigation and the Tallahassee Police Department. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Carl Junction Man Sentenced for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Carl Junction, Mo., man has been sentenced in federal court for methamphetamine trafficking and illegally possessing a firearm.
Chet Edwin Mercer, 35, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, Feb. 29, to 12 years in federal prison without parole.
On Oct. 12, 2023, Mercer pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime. Mercer admitted that he was in possession of methamphetamine and a Springfield Armory 9mm firearm on Nov. 30, 2021.
According to Mercer’s plea agreement, law enforcement officers utilized a confidential source to conduct a controlled purchase of 106 grams of methamphetamine from Mercer on Nov. 19, 2021, at Mercer’s home in Carl Junction. On Nov. 30, 2021, officers executed a search warrant at Mercer’s residence. Officers searched the two-bay garage on the property and discovered a camper inside. Officers found a plastic baggie inside the camper that contained 363 grams of methamphetamine with a purity of 97 percent. Mercer admitted that he possessed the methamphetamine with the intent to distribute some or all of it.
While searching the bedroom of the camper, officers found the Springfield Armory 9mm firearm on the bed. Officers also found drug trafficking paraphernalia inside the camper, where Mercer apparently was living.
According to court documents, Mercer distributed a total of at least 10 kilograms of methamphetamine. Mercer admitted he traveled to Oklahoma City, Oklahoma, to pick up multiple pounds of methamphetamine. He had been engaging in this type of criminal behavior since 2013, when he began utilizing his dump truck business to meet with men who would load one or two duffle bags into his truck.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ozarks Drug Enforcement Team.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
California Woman Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A California woman was sentenced yesterday for traveling to Boston and distributing more than five kilograms of fentanyl.
Brenda Hernandez, 25, of Stockton, Cali., was sentenced by U.S. District Court Judge Denise J. Casper to 22 months in prison and two years of supervised release. In October 2023, Hernandez plead guilty to one count of distribution of 400 grams or more of fentanyl.On May 24, 2022, Hernandez took a flight from California to Boston. After checking into a hotel, Hernandez went to a nearby mail retrieval store, where she picked up a package containing more than five kilograms of fentanyl that had been mailed there from out-of-state. Later that day, Hernandez distributed the drugs to others in Boston.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Burlington Man Sentenced to 200 Months for Drug ChargesRead the Press Release
DAVENPORT, Iowa –A Burlington man was sentenced on February 28, 2024 to 200 months in federal prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine.
According to public court documents and evidence presented at sentencing, between January and October 2022, Hardy Pegues III, 62, conspired with others to distribute large amounts of methamphetamine in the Burlington, Iowa area. One of the other subjects was Larry Keith Knotts III.
Larry Keith Knotts III, 36, was sentenced on January 23, 2024, to 25 years in federal prison for Conspiracy to Distribute 50 grams or more of Methamphetamine. The press release for Knotts’ sentencing can be found at Knotts Press Release.
After completing his term of imprisonment, Pegues will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Task Force.
Buffalo man arrested, charged with selling methamphetamineRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Chemere Barclay, 32, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and to distribute, a controlled substance. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Donna M. Duncan, who is handling the case, stated that according to the complaint, between August 17 and September 11, 2023, New York State Police investigators conducted four controlled purchases of methamphetamine from Barclay. Independent of the investigation initiated by the New York State Police, the Lackawanna Police Department conducted their own investigation into the drug trafficking activities of Barclay. Between December 21, 2023, and January 5, 2024, Lackawanna Police investigators conducted three controlled purchases of methamphetamine from Barclay.
Barclay made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained pending a detention hearing.
The complaint is the result of an investigation by the Lackawanna Police Department, under the direction of Chief Mark Packard, the New York State Police, under the direction of Major Eugene Staniszewski, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo man arrested, accused of threatening to blow up the VARead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Demont Coston, 56, of Buffalo, NY, was arrested and charged by criminal complaint with threatening to blow up the VA Medical Centers in Buffalo, NY, and Washington, D.C. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Andrew J. Henning and Charles M. Kruly, who are handling the case, stated that according to the complaint, on September 12, 2023, Coston called the Veterans Crisis Line and made threats to blow up VA Medical Center in Buffalo. Coston made statements such as “If I can not get any help from the VA, no one can,” and “The VA won’t be here anymore.” Coston also stated, “he finally found the person that he wants to kill, and he planned to kill him tomorrow.” After investigators were unable to contact Coston, he was located at a family member’s house in Maryland. Subsequently, Coston made similar threats to blow up the VA Medical Center in Washington D.C.
The complaint is the result of an investigation by the VA Medical Center Police, under the direction of Chief Richard King and the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo man arrested, accused of attacking two VA police officersRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Steven Iverson, 26, of Buffalo, NY, was arrested and charged by criminal complaint with resisting arrest causing bodily injury to a federal police officer. The charge carries a maximum penalty of eight years in prison.
Assistant U.S. Attorney Andrew J. Henning, who is handling the case, stated that according to the complaint, on February 7, 2024, Iverson assaulted two V.A. Medical Center Police Officers as they attempted to place him under arrest. Iverson was approached by the officers in the V.A. parking garage because of suspected smell of marijuana coming from his vehicle. Iverson became verbally resistant to officer commands and rolled up his window and locked himself inside the vehicle. He was ordered out of the vehicle multiple times and was told to open the vehicle door, or the window would be broken. Iverson eventually rolled down his window and an officer was able to get the vehicle door open. But as officers attempted to remove him, Iverson grabbed the steering wheel with both hands. He then turned his body and began kicking one officer in the right wrist and left knee. Iverson was eventually removed from the vehicle and taken into custody. One officer suffered right wrist and left knee sprains, while another officer suffered a chipped tooth.
The complaint is the result of an investigation by the VA Medical Center Police, under the direction of Chief Richard King and the VA Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Christopher Algieri.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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