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10 April 2024
Janesville Man Sentenced to 7 Years for Possessing a Firearm as a FelonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kyle Richards, 35, Janesville, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing a firearm as a felon. This prison term will be followed by a 3-year term of supervised release. Richards pleaded guilty to this charge on January 18, 2024.
On May 4, 2023, officers with the Janesville Police Department executed a search warrant at Richard’s apartment in Janesville, as part of an on-going drug investigation. In the living room, officers found cocaine, drug scales, and tools for cooking crack cocaine. Inside a bathroom closet, officers located four firearms and ammunition. In addition, on Richards’s phone, officers found a video showing Richards with several firearms inside of that same bathroom.
Richards is prohibited from legally possessing a firearm as a result of several felony convictions, including a 2015 conviction for possessing a firearm as a felon. Richards was on state supervision for that conviction at the time of the conduct in this case. The sentence imposed in this case will run concurrently with a five-year prison sentence Richards received for violating that supervision.
At sentencing, Judge Peterson noted that Richards’s drug distribution undercut any suggestion that he was merely an addict supporting an addiction. Judge Peterson also noted how the combination of drugs and firearms created a risk of violence.
The charge against Richards was the result of an investigation conducted by the Janesville Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Irondale, Alabama Man Charged with Detonating an Explosive Device Outside of the Alabama Attorney General’s OfficeRead the Press Release
Montgomery, Alabama – An Irondale, Alabama, man is facing federal charges for his alleged role in detonating an explosive device in downtown Montgomery, Alabama. On April 10, law enforcement arrested Kyle Benjamin Douglas Calvert, 26, on charges of malicious use of an explosive and possession of an unregistered destructive device.
“Thanks to the work of the FBI and our state and local law enforcement partners, this defendant is being held accountable for allegedly detonating an explosive device outside of the Alabama Attorney General’s Office,” said Attorney General Merrick B. Garland. “The Justice Department has no tolerance for acts of violence targeting those who serve the public.”
“Federal, state, and local law enforcement agents worked tirelessly to investigate this matter,” stated Acting United States Attorney Jonathan S. Ross. “The arrest today is a reflection of the way in which close cooperation among law enforcement agencies facilitates the pursuit of justice. I am grateful for the efforts of all involved.”
According to the indictment and other court documents, an explosive device was detonated on Feb. 24 at approximately 3:42 a.m. outside of the Alabama Attorney General's Office near the intersection of Washington Avenue and South Bainbridge Street. No injuries or major damage to nearby buildings were reported. Agents and Troopers with the Alabama Law Enforcement Agency, along with special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers from the Montgomery Police Department, responded to the scene when remnants of the device were discovered.
The case was unsealed today by the United States District Court for the Middle District of Alabama. Calvert is scheduled for his initial appearance in federal court today in Montgomery at 1:30pm. If convicted, Calvert faces a minimum penalty of five years in prison and a maximum of 20 years in prison with no possibility of parole. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Mobile Field Office, Montgomery Resident Agency Office, Alabama Law Enforcement Agency, and Alabama Attorney General’s Office investigated the case.
Assistant U.S. Attorneys Russell T. Duraski and Brett J. Talley for the Middle District of Alabama are prosecuting the case.
Hopkins County Man Sentenced to 18 Years for Distribution of Child PornographyRead the Press Release
COVINGTON, Ky. – A Hanson, Ky., man, Michael Earl Huey, 66, was sentenced on Wednesday, by U.S. District Judge David Bunning, to 18 years in prison, for distribution of child pornography.
According to his plea agreement, on October 17, 2022, an online covert employee with law enforcement posted a message on a chat thread asking, “Any pervs in Kentucky.” Huey responded by sending direct messages to the covert employee. Huey eventually shifted their conversation to another messaging platform. There, Huey sent the covert employee several depictions of child pornography. Huey admitted that he knowingly distributed these visual depictions, knowing they contained minors engaged in sexually explicit conduct.
On November 16, 2022, law enforcement searched Huey’s residence and found his phone, which contained approximately 65 images and 16 videos of child pornography. At sentencing, Huey did not oppose a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.
Under federal law, Huey 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 Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Kyle Winslow is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
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Honduran National Indicted for Illegal Re-Entry, Faces Enhanced Sentence for Prior Felony ConvictionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that ALVARO LUIS ALCERRO-BANEGAS (“ALCERRO-BANEGAS”), age 37, was indicted on April 4, 2024 for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and Title 8, United States Code, Section 1326(b)(1).
According to the indictment, ALCERRO-BANEGAS, reentered the United States after being previously deported on September 2, 2022. If convicted, ALCERRO-BANEGAS faces up to two years imprisonment, up to a $250,000 fine, up to one year of supervised release, and a mandatory $100 special assessment fee. However, because of his prior felony conviction, ALCERRO-BANEGAS also faces a sentencing enhancement of up to 10 years imprisonment.
U.S. Attorney Duane Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
Highs Gang Member Sentenced to 19.5 Years in Prison for RICO ConspiracyRead the Press Release
MINNEAPOLIS – Montez Brown, aka “Tez Blood,” was sentenced to 235 months in prison for his criminal conduct, including attempted murder, narcotics trafficking, and possession of a machine gun, as a member of the Minneapolis Highs gang, announced United States Attorney Andrew M. Luger.
“We are addressing gang violence for what it is: organized criminal activity,” said U.S. Attorney Andrew Luger. “Minneapolis gangs have caused a staggering amount of damage to the community through retaliatory shootings, narcotics trafficking, and other illicit activity. Individuals who choose to fuel violence and destruction on behalf of a criminal enterprise such as this will be held accountable under federal law.”
According to court documents, Brown, 32, was a well-respected member and high-level fentanyl trafficker for the Highs gang, a criminal enterprise engaged in a years-long pattern of racketeering activity, including murder, robbery, and trafficking and distribution of controlled substances. Operating on the north side of Minneapolis since 2004, the Highs congregate at businesses and residences located at or near the West Broadway Avenue and Lyndale Avenue North intersection. The Highs have a stranglehold on this area and members do not hesitate to flaunt their illegal activities openly.
Prospective Highs members prove their loyalty to the gang by “putting in work,” i.e., committing acts of violence for the benefit of the gang or offering other benefits such as introducing a source for drugs or firearms. Members of the Highs are expected to “hunt” rival gang members: an express directive to locate and kill rivals. Highs members frequently take to social media to taunt rivals, glorify gang life, and post images of themselves with cash, drugs, and firearms.
To date, thirteen members and associates of the Highs have pleaded guilty and five have been sentenced in U.S. District Court by Judge Nancy E. Brasel.
- Montez Brown, aka “Tez Blood,” 32, of Minneapolis, pleaded guilty on November 6, 2023, to one count of RICO conspiracy and one count of conspiracy to distribute controlled substances. He was sentenced on April 10, 2024, to 235 months in prison followed by five years of supervised release.
- Chase Robertson, aka “Chase Loco,” 25, of St. Paul, pleaded guilty on September 11, 2023, to one count of RICO conspiracy. He was sentenced on February 22, 2024, to 75 months in prison followed by three years of supervised release.
- Douglas Mobley, aka “Nut,” 36, of St. Paul, pleaded guilty on October 11, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Christopher Finch, aka “Twin,” 23, of Minneapolis, pleaded guilty on December 12, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Tony Jelks, aka “BD,” 30, of Minneapolis, pleaded guilty on November 1, 2023, to one count of RICO conspiracy. He was sentenced on April 10, 2024, to 156 months in prison followed by five years of supervised release.
- Randy Tate, 32, of Minneapolis, pleaded guilty on December 4, 2023, to one count of RICO conspiracy. He was sentenced on April 4, 2024, to 115 months in prison followed by three years of supervised release.
- Isaac Hodge, aka “Ike,” 47, of Minneapolis, pleaded guilty on November 2, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Trevoneia Felton, aka “Tre,” 22, of St. Paul, pleaded guilty on November 9, 2023, to one count of RICO conspiracy. He was sentenced on April 3, 2024, to 82 months in prison followed by three years of supervised release.
- Malcolm Samuels, aka “Reggie,” 25, of Minneapolis, pleaded guilty on December 18, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Ronald Washington, aka Black, 37, of Minneapolis, pleaded guilty on November 21, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Dashaun Morris, aka “Mush,” 22, of Minneapolis, pleaded guilty on November 14, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Maron Bailey, aka “Boonie,” 26, of Minneapolis, pleaded guilty on October 5, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
- Isaiah Bell, 21, of St. Paul, pleaded guilty on December 7, 2023, to one count of RICO conspiracy. A sentencing hearing will be scheduled at a later date.
These cases are the result of an investigation conducted by the ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, DEA, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation.
Assistant U.S. Attorneys Samantha H. Bates, Justin A. Wesley, Jordan L. Sing, and Albania Concepcion for the District of Minnesota and Trial Attorney Brian W. Lynch of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the cases.
Green Bay Man Sentenced to 25 Years in Prison for Dealing Fentanyl Resulting in Death and Possessing a Firearm as a Convicted FelonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 9, 2024, U.S. Senior District Judge William C. Griesbach sentenced a Green Bay man, Keenan J. Denruyter (age: 32), to 25 years in prison after he pled guilty to Distributing Fentanyl Resulting in Death, Possessing Fentanyl With Intent to Distribute, and Possessing a Firearm and Ammunition as a convicted felon, in violation of Title 21, United States Code, Section 841, and Title 18, United States Code, Section 922.
Court records indicate that in June and July 2023, Denruyter repeatedly distributed counterfeit Percocet® “M30” pills containing fentanyl, resulting in the overdose deaths of two Green Bay females aged 17 and 18. Denruyter was on extended supervision at the time, having been released from state prison for felony cocaine delivery. As part of an ongoing investigation, the Brown County Drug Task Force (BCDTF) made controlled buys during which Denruyter sold fentanyl pills to an informant. BCDTF arrested Denruyter, finding hundreds of additional M30 pills and a loaded pistol. BCDTF’s investigation continued, leading to evidence connecting Denruyter to the two overdose deaths.
In sentencing Denruyter, Judge Griesbach emphasized that trafficking fentanyl is distributing “poison.” The judge considered nationwide data that 7 in 10 counterfeit pills tested at Drug Enforcement Administration (DEA) Crime Labs contain a lethal dose of fentanyl, that fentanyl is the leading cause of death for 18- to 45-year-olds, and that synthetic opiates like fentanyl cause over 73,000 deaths annually in the U.S.—equal to 200 deaths per day.
“Fentanyl continues to cut a devastating swath through families and communities across the country,” said U.S. Attorney Haanstad. “Individuals who distribute this deadly poison choose to gamble with the lives of others simply to put a few extra dollars in their own pockets. I commend the hard work of the Brown County Drug Task Force and all of our federal, state, local, and tribal partners who remain committed to working together to hold individuals like Mr. Denruyter accountable for their deadly and callous actions.”
“This long federal prison sentence sends a strong message that law enforcement will not tolerate firearm violence or drug trafficking in our community,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “I commend the United States Attorney for the Eastern District of Wisconsin, the DEA and the Brown County Drug Task Force for their commitment in investigating and prosecuting this important case.”
“Far too many lives have been lost across Wisconsin from fentanyl poisonings, and the DEA will continue working with our state, local and federal partners to hold drug traffickers accountable for the harm they inflict upon our communities,” said DEA Special Agent, Sheila Lyons Chicago Field Office.
Brown County Sheriff Todd J. Delain said, “The Brown County Drug Task Force is grateful for our ongoing partnership and collaboration with the United States Attorney’s Office – Eastern District of Wisconsin, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives to hold those who distribute dangerous drugs accountable for their actions. The distribution of dangerous drugs, like fentanyl, has led to an overall decay of society and all too often death of people who are addicted or using these dangerous drugs. We will continue to work hard for the people of Northeast Wisconsin by relentlessly pursuing and arresting those that present a serious threat to our community!”
According to the DEA, illicit fentanyl remains the deadliest drug threat facing this country. It is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams of fentanyl—the amount that fits on the tip of a pencil—is considered a potentially deadly dose. The Sinaloa Cartel and Jalisco Cartel in Mexico, using chemicals largely sourced from China, are primarily responsible for most of the fentanyl that is being trafficked in communities across the United States.
This case was investigated by the Brown County Drug Task Force, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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Green Bay Man Sentenced to 25 Years in Prison for Dealing Fentanyl Resulting in Death and Possessing a Firearm as a Convicted FelonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 9, 2024, U.S. Senior District Judge William C. Griesbach sentenced a Green Bay man, Keenan J. Denruyter (age: 32), to 25 years in prison after he pled guilty to Distributing Fentanyl Resulting in Death, Possessing Fentanyl With Intent to Distribute, and Possessing a Firearm and Ammunition as a convicted felon, in violation of Title 21, United States Code, Section 841, and Title 18, United States Code, Section 922.
Court records indicate that in June and July 2023, Denruyter repeatedly distributed counterfeit Percocet® “M30” pills containing fentanyl, resulting in the overdose deaths of two Green Bay females aged 17 and 18. Denruyter was on extended supervision at the time, having been released from state prison for felony cocaine delivery. As part of an ongoing investigation, the Brown County Drug Task Force (BCDTF) made controlled buys during which Denruyter sold fentanyl pills to an informant. BCDTF arrested Denruyter, finding hundreds of additional M30 pills and a loaded pistol. BCDTF’s investigation continued, leading to evidence connecting Denruyter to the two overdose deaths.
In sentencing Denruyter, Judge Griesbach emphasized that trafficking fentanyl is distributing “poison.” The judge considered nationwide data that 7 in 10 counterfeit pills tested at DEA Crime Labs contain a lethal dose of fentanyl, that fentanyl is the leading cause of death for 18- to 45-year-olds, and that synthetic opiates like fentanyl cause over 73,000 deaths annually in the U.S.—equal to 200 deaths per day.
“Fentanyl continues to cut a devastating swath through families and communities across the country,” said U.S. Attorney Haanstad. “Individuals who distribute this deadly poison choose to gamble with the lives of others simply to put a few extra dollars in their own pockets. I commend the hard work of the Brown County Drug Task Force and all of our federal, state, local, and tribal partners who remain committed to working together to hold individuals like Mr. Denruyter accountable for their deadly and callous actions.”
“This long federal prison sentence sends a strong message that law enforcement will not tolerate firearm violence or drug trafficking in our community,” said ATF Special Agent in Charge Christpher Amon of the Chicago Field Division. “I commend the United States Attorney for the Eastern District of Wisconsin, the DEA and the Brown County Drug Task Force for their commitment in investigating and prosecuting this important case.”
Brown County Sheriff Todd J. Delain said, “The Brown County Drug Task Force is grateful for our ongoing partnership and collaboration with the United States Attorney’s Office – Eastern District of Wisconsin, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives to hold those who distribute dangerous drugs accountable for their actions. The distribution of dangerous drugs, like fentanyl, has led to an overall decay of society and all too often death of people who are addicted or using these dangerous drugs. We will continue to work hard for the people of Northeast Wisconsin by relentlessly pursuing and arresting those that present a serious threat to our community!”
According to the DEA, illicit fentanyl remains the deadliest drug threat facing this country. It is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Just two milligrams of fentanyl—the amount that fits on the tip of a pencil—is considered a potentially deadly dose. The Sinaloa Cartel and Jalisco Cartel in Mexico, using chemicals largely sourced from China, are primarily responsible for most of the fentanyl that is being trafficked in communities across the United States.
This case was investigated by the Brown County Drug Task Force, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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(414) 297-1700
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Grandview Man Sentenced to Prison for Starting Destructive Fires Causing Millions in Property DamageRead the Press Release
Yakima, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Christopher Vaughn Schlax, age 48, of Grandview, Washington has been sentenced after pleading guilty to three counts of Damage by Fire to a Building or Personal Property Used in Interstate and Foreign Commerce. Chief United States District Judge Stanley A. Bastian imposed a sentence of 60 months imprisonment to be followed by 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, Schlax was involved in a series of burglaries on June 27, 2022. A short time later, Schlax and an alleged accomplice traveled to the Lineage Logistics warehouse in Grandview, Washington. To distract first responders from the burglaries, Schlax set fire to a pallet storage area at the warehouse. The fire caused $423,654 in property damage to the warehouse and presented a significant danger to firefighters called to fight the fire.
Early in the morning of July 4, 2022, Schlax and the alleged accomplice made plans to burglarize the Dollar Tree store in Grandview. To distract from the burglary, Schlax and the alleged accomplice first drove to the fruit bin lot of River Valley Fruit. Schlax got out of the vehicle and lit a fire. The fire caused more than $1.5 million in damage to River Valley Fruit’s property.
A short time later, Schlax and the alleged accomplice attempted to carry out their plan to burglarize the Dollar Tree. Schlax used a cutting torch to cut into a safe in the office of the Dollar Tree store. As a result, Schlax started a fire inside the Dollar Tree. The arson caused more than $1.8 million in damage to the Dollar Tree building and property.
“Mr. Schlax not only committed burglaries, but then, to cover up his crimes, he started fires that endangered firefighters, law enforcement and members of the community. The fires started by Mr. Schlax also caused millions of dollars in property damage,” stated U.S. Attorney Waldref. “I am grateful for our first responders who keep our community safe. I also want to commend the excellent work of our law enforcement partners and federal prosecutors involved in this case.”
“ATF is the only U.S. Government agency with fire and arson investigation as part of its core mission,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “For Mr. Schlax to intentionally start fires to distract first responders from his burglaries is especially cruel. Because of the destruction and danger he caused to the community, this sentence is clearly warranted.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Courtney Pratten and former AUSA Frances Walker, who indicted the case.
The alleged accomplice has been indicted on charges of Damage by Fire to a Building or Personal Property Used in Interstate and Foreign Commerce. The accomplice, who has entered a not guilty plea, was arraigned on November 14, 2022, and is currently awaiting trial. The indictment against the accomplice contains mere allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand jury indicts Cincinnati man who allegedly served as straw purchaser for at least 21 firearmsRead the Press Release
CINCINNATI – A grand jury has indicted a Cincinnati man with crimes related to illegal straw purchases of at least 21 firearms.
Timothy Moorman, Jr., 32, made his initial appearance in federal court in Cincinnati today. He is charged with one conspiracy count and 10 counts of making false statements on federal firearm forms.
According to the indictment, which was returned on March 12 and unsealed today, Moorman bought firearms at Cincinnati-area federal firearms licensees and then provided those firearms to co-conspirators the same day or within a few days. Those co-conspirators would then traffic the firearms outside of Ohio.
For example, it is alleged that at least nine firearms were recovered in connection with a crime in Canada less than two weeks after Moorman bought them. Two others were traced to crimes in Canada and Detroit within two months of purchase.
The charging document details that the firearms were purchased at Bass Pro Shops, Range USA – Cincy West, Range USA – Blue Ash, Target World and North College Hill Gun Store.
Moorman allegedly indicated on the required firearms forms that the firearms were for himself and no one else, despite actually acting as a straw purchaser.
Making a false statement during the purchase of a firearm is a federal crime punishable by up to 10 years in prison. The conspiracy charge carries a potential penalty of up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Former Owner of Latitude 360 Sentenced to 30 Months in Prison for Failing to Pay over Payroll Taxes to the IRSRead the Press Release
Jacksonville, Florida – U.S. District Judge Wendy Berger has sentenced Brent Brown to 30 months in federal prison for willfully failing to pay over to the Internal Revenue Service (IRS) employment taxes that were withheld from employees’ paychecks. Brown was further ordered to pay more than $3.8 million in restitution to the IRS. Brown entered a guilty plea on January 11, 2024.
According to court documents, Brown established the initial version of the Latitude entities in June 2010 with a location in Jacksonville, doing business under the name Latitude 360. The Latitude entities operated restaurant and entertainment complexes and expanded to include locations in Indianapolis, Indiana; Pittsburgh, Pennsylvania; and Albany, New York – although this location never opened to the public. As part of its business operations, the Latitude entities withheld payroll taxes from employees in trust, which taxes were legally required to be paid over to the IRS. Instead of paying these amounts over to the IRS, for multiple years Brown instead directed the monies be paid elsewhere. Additionally, the Latitude entities – at Brown’s direction – failed to pay over to the IRS the employer’s portion of the payroll taxes. Between tax years 2013 and 2016, Brown willfully failed to pay over to the IRS more than $5.3 million in payroll taxes. During the same time period, Brown diverted hundreds of thousands of dollars from the Latitude entities to pay personal expenses – including rent on a luxury Manhattan apartment and tuition at a Manhattan preparatory school.
“With this sentencing, Brent Brown was reminded that the responsibility to pay federal taxes is a legal obligation and not a game,” said IRS–Criminal Investigation Acting Special Agent in Charge Lani I. Rosado-Espinal. “We will continue to investigate payroll tax fraud to ensure cheats are not rewarded for their actions and other law-abiding employers are not placed at a competitive disadvantage.”
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Arnold B. Corsmeier.
Former Omaha Police Officer Sentenced for Fraud ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Johnny Palermo, 48, of Omaha, Nebraska, was sentenced on April 11, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit wire fraud. Senior United States District Judge John M. Gerrard sentenced Palermo to 24 months’ imprisonment. There is no parole in the federal system. After Palermo’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Palermo to pay $65,014.67 in restitution.
From 2017 to April 1, 2023, Johnny Palermo conspired to defraud donors of the Latino Peace Officers Association (LPOA), the LPOA Board, and Police Athletics for Community Engagement (PACE) for his own personal benefit. Johnny Palermo, a former police officer with the Omaha Police Department and LPOA Board member, without having full LPOA Board authority, conducted financial transactions for his personal benefit using LPOA funds. LPOA funds were misused by Johnny Palermo for trips, meals, and gambling. Johnny Palermo also misused LPOA funds to purchase trips for friends and co-defendant Vincent Palermo. Benefits provided to Vincent Palermo paid for by LPOA were intended to influence Vincent Palermo’s actions as an Omaha City Councilman to benefit PACE and the LPOA.
FBI Omaha Special Agent in Charge Eugene Kowel said, “This former law enforcement officer violated his oath of office by using his trusted position for personal gain. Public corruption is a top criminal investigative priority for the FBI. We are committed to working with our state, local, federal, and tribal law enforcement partners to aggressively investigate, pursue, and hold accountable those who violate their oath of office to enrich themselves. The FBI encourages everyone in our community to continue to come forward and report abuses of public office.”
Co-defendants Vincent J. Palermo, 50, of Omaha, and Richard Gonzalez, 55, of Papillion, Nebraska, were sentenced on January 16, 2024, for conspiracy to commit honest services fraud. Vincent Palermo was sentenced to 18 months’ imprisonment for the conspiracy charge and a consecutive 9-month term of imprisonment for a violation of supervised release. Gonzalez was to 18 months’ imprisonment for the conspiracy charge. Vincent Palermo will serve two years of supervised release and Gonzalez will serve three years of supervised release. Both were ordered to pay restitution: $10,292.28 for Vincent Palermo; and $66,749.35 for Gonzalez.
Co-defendant Jack Olson’s trial is scheduled for June 24, 2024, before Senior Judge Gerrard in Lincoln. Olson is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation.
Former Louisiana Sheriff’s Deputy Pleads Guilty to Federal Civil Rights Violation for Assaulting DetaineeRead the Press Release
A former DeSoto Parish, Louisiana, Sheriff’s Office deputy, Javarrea Pouncy, 30, pleaded guilty to depriving a detainee of his civil rights under color of law by willfully using unreasonable force against the detainee.
“Like any law enforcement officer, the defendant had a duty to protect people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead of fulfilling his duty, the defendant abused his authority by beating a detainee who posed no threat to him, leaving the victim broken, bloodied and bruised. The Justice Department is committed to investigating and prosecuting officers who violate the civil and constitutional rights of those in their care.”
“This defendant was an officer of the law who took an oath to serve and protect others, but he did the exact opposite of that,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This incident was unnecessary and a result of this defendant’s abuse of the law. We take these violations of civil rights of others very seriously and will continue to prosecute those who violate these laws in the Western District of Louisiana.”
“There is never any excuse for a man or woman who takes the oath to serve and protect to do what Pouncy did in this case,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office. “The FBI is committed to uncovering cowards who attempt to hide their acts of violence behind the badge. Justice is finally served in this case.”
According to court documents, on Sept. 27, 2019, Pouncy was working as a deputy at the DeSoto Parish jail when he and another deputy strip searched a detainee as part of the booking process. During the search, Pouncy and the other deputy, DeMarkes Grant, repeatedly punched the detainee, even though the detainee did not pose a threat to either officer. The officers threw approximately 50 punches at the detainee, including in the head and face. As a result of the assault, the detainee was hospitalized and diagnosed with a broken eye socket and broken nose, among other injuries.
Grant previously pleaded guilty to an obstruction offense for filing a false report about the assault, which he did knowingly and purposefully in order to prevent authorities from learning about the unreasonable use of force.
A sentencing hearing is scheduled for Aug. 7. Under the terms of his plea agreement, Pouncy faces a penalty of 30 to 37 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New Orleans Field Office investigated the case.
Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Seth Reeg for the Western District of Louisiana are prosecuting the case.
Former Lame Deer pastor sentenced to 30 years in prison for sexually abusing children on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A former Lame Deer pastor, who was convicted in a jury trial of sexually abusing children on the Northern Cheyenne Indian Reservation, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, U.S. Attorney Jesse Laslovich said.
A federal jury on Dec. 11, 2023 found the defendant, Dean Alan Smith, 67, guilty of aggravated sexual abuse, abusive sexual contact by force and two counts of abusive sexual contact by force and of a child. The jury acquitted Smith of one count of abusive sexual contact of a child.
U.S. District Judge Susan P. Watters presided.
“Pastor Smith’s prison sentence, while significant, does not come close to the lifetime of trauma his victims will have to endure. But I hope knowing that Smith will likely spend the rest of his life in federal prison gives them some peace of mind that he won’t be able to abuse others. Far too often, and unacceptably so, we are unable to obtain justice for children sexually abused in Indian Country. But justice was achieved here, and it would not have occurred without the bravery of our victims or the tenacity of our federal partners and prosecutors, for which I am grateful,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that Smith was the pastor of a local church in Lame Deer, on the Northern Cheyenne Indian Reservation, and that during his time on the reservation, he and his wife housed several foster children and temporarily hosted other children from the community. In approximately 2021 and 2022, four girls, identified as Jane Does 1, 2, 3 and 4, disclosed being sexually abused by Smith between 2017 and 2020 when they were staying or living at Smith’s home. The government alleged that Smith abused each of them, separately and in private, on multiple occasions. All of the victims were under the age of 12 at the time.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Former Kearney Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Susan Lehr announced that Paul J. Gray, age 49, formerly of Kearney, Nebraska, was sentenced on April 10, 2024, in federal court in Omaha, Nebraska for failing to register as a sex offender pursuant to the Sex Offender Registration and Notification Act. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Gray to 12 months’ imprisonment. Additionally, Gray was sentenced to 6 months’ imprisonment for violating his supervised release. The two sentences were ordered to run consecutively. There is no parole in the federal system. After Gray’s release from prison, he will begin a 10-year term of supervised release.
Gray, who is required to register as a sex offender as the result of a 1996 third degree sexual sssault conviction out of Lincoln County, Nebraska, as well as a federal 2008 production of child pornography conviction out of the District of Nebraska, was released from prison in 2022. After his release, he was ordered to reside at the Dismas Charities Reentry Center in Kearney. Gray registered that address with the Nebraska Sex Offender Registry.
On July 17, 2023, Gray was dismissed from Dismas Charities. After dismissal from Dismas Charities, Gray failed to update his Nebraska Sex Offender Registration and did not advise his United States Probation Officer of his whereabouts.
On September 14, 2023, Gray was located at an apartment in Kearney where he had been staying since being dismissed from Dismas Charities.
This case was investigated by the United States Marshals Service.
Former Desoto Parish Sheriff’s Deputy Pleads Guilty to Federal Civil Rights Violation for Assaulting DetaineeRead the Press Release
SHREVEPORT, La. – A former DeSoto Parish Sheriff’s Office deputy, Javarrea Pouncy, 30, pleaded guilty to depriving a detainee of his civil rights under color of law by willfully using unreasonable force against the detainee.
“Like any law enforcement officer, the defendant had a duty to protect people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead of fulfilling his duty, the defendant abused his authority by beating a detainee who posed no threat to him, leaving the victim broken, bloodied and bruised. The Justice Department is committed to investigating and prosecuting officers who violate the civil and constitutional rights of those in their care.”
“This defendant was an officer of the law who took an oath to serve and protect others, but he did the exact opposite of that,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “This incident was unnecessary and a result of this defendant’s abuse of the law. We take these violations of civil rights of others very seriously and will continue to prosecute those who violate these laws in the Western District of Louisiana.”
“There is never any excuse for a man or woman who takes the oath to serve and protect to do what Pouncy did in this case,” said Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office. “The FBI is committed to uncovering cowards who attempt to hide their acts of violence behind the badge. Justice is finally served in this case.”
According to court documents, on September 27, 2019, Pouncy was working as a deputy at the DeSoto Parish jail when he and another deputy strip searched a detainee as part of the booking process. During the search, Pouncy and the other deputy, DeMarkes Grant, repeatedly punched the detainee, even though the detainee did not pose a threat to either officer. The officers threw approximately 50 punches at the detainee, including in the head and face. As a result of the assault, the detainee was hospitalized and diagnosed with a broken eye socket and broken nose, among other injuries.
Grant previously pleaded guilty to an obstruction offense for filing a false report about the assault, which he did knowingly and purposefully in order to prevent authorities from learning about the unreasonable use of force.
A sentencing hearing is scheduled for August 7, 2024. Under the terms of his plea agreement, Pouncy faces a penalty of 30 to 37 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New Orleans Field Office investigated the case. Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Seth Reeg for the Western District of Louisiana are prosecuting the case.
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Former Cornell Student Pleads Guilty to Posting Online Threats Against Jewish Students on CampusRead the Press Release
WASHINGTON – Patrick Dai, age 21, formerly a junior at Cornell University and originally from Pittsford, New York, pled guilty today to posting threats to kill or injure another person using interstate communications.
“This defendant is being held accountable for vile, abhorrent, antisemitic threats of violence levied against members of the Cornell University Jewish community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In the elevated threat environment that we have seen since Oct. 7th, we have been vigilant and stand ready to hold perpetrators of hate crimes accountable. Antisemitic threats of violence are unacceptable in our society, and we will not tolerate this conduct. Particularly at institutions of higher learning, people should feel safe to pursue educational opportunities. The Justice Department takes seriously our obligation to protect students from hatred and harassment and will continue to use every tool available to ensure that students are able to feel safe and secure.”
“Patrick Dai used the internet to make horrific threats to kill and injure Jewish students attending Cornell University. The federal felony conviction he sustains today underscores that those who break the law by making violent threats will be found and prosecuted, even if they attempt to hide by posting anonymously,” said U.S. Attorney Carla Freedman for the Northern District of New York. “The rapid and coordinated investigation by the FBI, New York State Police and Cornell University Police led to Dai’s identification and arrest in a matter of days, bringing relief to both his classmates and the community he terrorized by his actions. His guilty plea today means he will be held accountable for his threats against members of his own Cornell University community.”
“Patrick Dai’s disturbingly violent threats caused widespread panic and fear throughout Cornell University’s Jewish community,” said Special Agent in Charge Craig L. Tremaroli of the FBI Albany Field Office. “I want to commend our Joint Terrorism Task Force and our outstanding partners from New York State Police and Cornell University Police Department for their swift coordination in identifying and arresting Dai. The FBI will not tolerate any individual who terrorizes our communities and will work closely with our partners at the U.S. Attorney’s Office to ensure our college campuses remain a safe space for students to continue their education free of fear and hate.”
New York State Police Superintendent Steven G. James said, “New York takes pride in its’ diversity. Mr. Dai committed a heinous bias related crime, rooted in hate that is not welcome. We will not tolerate the illegal behavior brought on by these acts. I thank the United States Attorney’s Office and our partners in law enforcement for their collaboration in obstructing these crimes.”
Chief Anthony G. Bellamy, Cornell University Police said, “We are grateful for the diligent work of our law enforcement partners involved in the investigation and legal process. The swift response and investigative efforts illustrate the commitment of Cornell Police and the Division of Public Safety to keep our community safe from threats of targeted violence. We are thankful this matter has come to a just conclusion without further impact and hope this plea and conviction provide some comfort to the affected members of our community.”
As part of his guilty plea, Dai admitted that, on Oct. 28 and 29, 2023, he posted threatening messages to the Cornell section of an online discussion forum, including posts that said “gonna shoot up 104 west” (a dining hall at Cornell University that caters predominantly to Kosher diets and is next to the Cornell Jewish Center that provides residential accommodations for students) and “gonna bomb jewish house.” In another post, Dai threatened to “stab” and “slit the throat” of any Jewish man he saw on campus, to rape and throw off a cliff any Jewish women he saw, and to behead any Jewish babies. In that same post, Dai threatened to “bring an assault rifle to campus and shoot all you pig jews.”
A sentencing hearing is scheduled for Aug. 12, 2024 in Syracuse. Dai faces a maximum penalty of five years in prison, a fine of up to $250,000, restitution to victims and a maximum of three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, which includes the New York State Police, is investigating this case, with assistance from the FBI Albany Field Office, Cornell University Police Department and Ithaca Police Department.
Assistant U.S. Attorneys Geoffrey J. L. Brown, Stephen C. Green and Michael D. Gadarian for the Northern District of New York are prosecuting the case, with assistance from the Justice Department’s National Security Division’s Counterterrorism Section and with assistance from the Civil Rights Division’s Criminal Section.
Former Cornell Student Pleads Guilty to Posting Online Threats Against Jewish Students on CampusRead the Press Release
Patrick Dai, 21, formerly a junior at Cornell University and originally from Pittsford, New York, pleaded guilty today to posting threats to kill or injure another person using interstate communications.
“This defendant is being held accountable for vile, abhorrent, antisemitic threats of violence levied against members of the Cornell University Jewish community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In the elevated threat environment that we have seen since Oct. 7th, we have been vigilant and stand ready to hold perpetrators of hate crimes accountable. Antisemitic threats of violence are unacceptable in our society, and we will not tolerate this conduct. Particularly at institutions of higher learning, people should feel safe to pursue educational opportunities. The Justice Department takes seriously our obligation to protect students from hatred and harassment and will continue to use every tool available to ensure that students are able to feel safe and secure.”
“Patrick Dai used the internet to make horrific threats to kill and injure Jewish students attending Cornell University. The federal felony conviction he sustains today underscores that those who break the law by making violent threats will be found and prosecuted, even if they attempt to hide by posting anonymously,” said U.S. Attorney Carla Freedman for the Northern District of New York. “The rapid and coordinated investigation by the FBI, New York State Police and Cornell University Police led to Dai’s identification and arrest in a matter of days, bringing relief to both his classmates and the community he terrorized by his actions. His guilty plea today means he will be held accountable for his threats against members of his own Cornell University community.”
"The threats Patrick Dai made towards the Jewish community are graphic and disturbing,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “Unfortunately, the FBI continues to see antisemitic sentiments across the violent extremist ideological spectrum. We work every day to make sure no one fears for their safety while simply going about their life, practicing their religion or attending class.”
As part of his guilty plea, Dai admitted that, on Oct. 28 and 29, 2023, he posted threatening messages to the Cornell section of an online discussion forum, including posts that said “gonna shoot up 104 west” (a dining hall at Cornell University that caters predominantly to Kosher diets and is next to the Cornell Jewish Center that provides residential accommodations for students) and “gonna bomb jewish house.” In another post, Dai threatened to “stab” and “slit the throat” of any Jewish man he saw on campus, to rape and throw off a cliff any Jewish women he saw, and to behead any Jewish babies. In that same post, Dai threatened to “bring an assault rifle to campus and shoot all you pig jews.”
A sentencing hearing is scheduled for Aug. 12. Dai faces a maximum penalty of five years in prison, a fine of up to $250,000, restitution to victims and a maximum of three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, which includes the New York State Police, is investigating this case, with assistance from the FBI Albany Field Office, Cornell University Police Department and Ithaca Police Department.
Assistant U.S. Attorneys Geoffrey J. L. Brown, Stephen C. Green and Michael D. Gadarian for the Northern District of New York are prosecuting the case, with assistance from the Justice Department’s National Security Division’s Counterterrorism Section and with assistance from the Civil Rights Division’s Criminal Section.
Florida Attorney Sentenced to 8 years in Prison in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A Florida attorney was sentenced today to eight years in prison for conspiring to defraud the United States and tax evasion arising out of his promotion of an illegal tax shelter scheme involving false charitable deductions.
According to court documents and statements made in court, from at least 2013 through 2021, Michael L. Meyer, of Davie, Florida, used his skills as an attorney and certified public accountant to promote his fraudulent tax shelter called “The Ultimate Tax Plan.” Meyer and his co-conspirators, Rao Garuda and Cullen Fischel, marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that Meyer knew were fraudulent. Meyer prepared boilerplate transaction paperwork for his clients that made it appear they had donated valuable property to charities Meyer controlled. In fact, the clients retained complete control and use over the donated assets. Meyer wrongfully advised clients they could legally access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim purported donations on their prior years’ tax returns.
Over the years, Meyer ignored a chorus of people who advised him that his plan was illegal, including the IRS. Indeed, the IRS conducted several audits of Meyer’s charities, and found that the Ultimate Tax Plan was an economic sham. Meyer signed documents acknowledging that finding, and agreeing to close the bogus charities. However, Meyer simply created new “charities” and continued to promote his illegal shelter to wealthy taxpayers.
In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Meyer’s clients requesting records related to the Ultimate Tax Plan. In response, Meyer created false, backdated documents, and directed clients to submit them to the Justice Department. Meyer also provided false, backdated documents in response to document demands he directly received from the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan.
Meyer earned more than $10 million from selling the Ultimate Tax Plan. He used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.
In addition to his prison sentence, U.S. District Judge K. Michael Moore for the Southern District of Florida ordered Meyer to serve three years of supervised release. The court will determine restitution at a later date.
Rao Garuda and Cullen Fishel both pleaded guilty in the Northern District of Ohio to conspiracy to defraud the United States and are scheduled to be sentenced on April 16.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. The Tax Division thanks U.S. Attorney Markenzy Lapointe for the Southern District of Florida for his office’s assistance.
IRS Criminal Investigation investigated the case.
Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones of the Tax Division are prosecuting the case.
Note, an earlier version of the release incorrectly listed Judge Moore as serving in the U.S. District Court for the Southern District of Georgia. The release has been corrected to show that Judge Moore serves in the U.S. District Court for the Southern District of Florida.
Federal Jury Convicts South Portland Man of Possessing a Firearm After Conviction for Assaulting His WifeRead the Press Release
PORTLAND, Maine: A South Portland man was found guilty yesterday of possessing a firearm after being convicted of a misdemeanor crime of domestic violence following a two-day trial in U.S. District Court in Portland.
According to court records and evidence presented at trial, in June 2010, Willie Richard Minor, 63, formerly of Auburn, was convicted in Maine Superior Court of assaulting his then-wife. As a result of that conviction, Minor was prohibited by federal law from possessing firearms and ammunition. In November 2016, Minor admitted to having a gun in an interview with the Auburn Police Department. The police recovered the gun from his apartment in Auburn.
Minor was originally convicted and sentenced on the federal charge after a trial in December 2017. While the case was pending on appeal, the Supreme Court of the United States issued a decision, Rehaif v. United States, that changed what the government is required to prove in certain federal firearm possession cases. As a result, the parties agreed to have the original conviction vacated, and the case was remanded for a new trial. Minor was again convicted after a trial in February 2020, and in September 2020, he was sentenced to time served and three years of supervised release.
In March 2023, the U.S. Court of Appeals for the First Circuit found that the jury had been incorrectly instructed in Minor’s second trial. The Court of Appeals clarified what the government is required to prove under the Supreme Court’s Rehaif decision. The case then proceeded to trial for a third time.
“This case was particularly important because the new jury instructions given here provide clarity for our future pursuit of such prosecutions against former domestic abusers who illegally possess firearms across Maine,” said U.S. Attorney Darcie N. McElwee. “Those convicted of abusing their loved ones should understand that illegal gun possession will not be tolerated in Maine.”
Minor will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Auburn Police Department; the Maine State Police Crime Laboratory; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case. The Mechanic Falls Police Department investigated Minor’s earlier assault case.
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False Claims Act Complaint Filed Against Regeneron Pharmaceuticals for Fraudulent Drug Pricing ReportingRead the Press Release
The United States filed a complaint under the False Claims Act (FCA) against Regeneron Pharmaceuticals Inc. (Regeneron), a New York-based pharmaceutical company. Regeneron manufactures and sells Eylea, an anti-vascular endothelial growth factor inhibitor approved by the Food and Drug Administration to treat, among other conditions, neovascular Age-Related Macular Degeneration, a prevalent, usually age-related condition that impairs vision.
The complaint alleges that Regeneron fraudulently inflated Medicare reimbursement rates for Eylea by knowingly submitting false average sales price reports to the Centers for Medicare and Medicaid Services that excluded certain price concessions. In particular, the United States alleges that Regeneron knowingly failed to report price concessions in the form of credit card processing fees that Regeneron paid to specialty drug distributors to benefit its customers. According to the complaint, Regeneron paid these credit card fees so that distributors would accept credit cards for Eylea purchases while still charging a lower, cash price for the drug, and so that Regeneron’s customers — typically retina and ophthalmic practices — could receive credit card benefits for their purchases, such as “cash back” and other credit card rewards.
“We will not permit pharmaceutical companies to flout price reporting requirements to maintain high drug prices,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting federal health care programs from improper actions by drug companies or others that drive up the cost of those programs at the taxpayers’ expense.”
“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA. Under the FCA, private parties file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General and the FBI. The case is captioned United States ex rel. Does 1-2 et. al. v. Regeneron Pharmaceuticals, Inc. et al., No. 20-cv-1401-PBS.
Trial Attorneys Douglas Rosenthal, Asha Natarajan and Samuel R. Lehman of the Justice Department’s Civil Division and Assistant U.S. Attorneys Diane Seol and Lindsey Ross for the District of Massachusetts are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in the complaint are allegations only. There has been no determination of liability.
ComplaintElkhart Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Marcus Harris, 40 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Harris was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, in April 2023, Harris distributed methamphetamine on several occasions between December 2022 and May 2023. On one occasion, Harris and co-defendant Stephen Johnson sold approximately one pound of methamphetamine. At the time of their arrest in May 2023, Harris and Johnson brought more than three kilograms of methamphetamine and 250 grams of heroin to a deal planning to trade for ten kilograms of cocaine.
Co-defendant Stephen Johnson was sentenced in February 2024 to 288 months of imprisonment and 5 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Drug Enforcement Administration including the DEA North Central Laboratory with assistance from the Elkhart County Interdiction and Covert Enforcement Unit and the South Bend Police Department. The case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Katelan McKenzie Doyle.
East Lansing Man Sentenced to 30 Years for Child Exploitation OffensesRead the Press Release
Sexual exploitation of at least eight young boys
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Ian Jason Lipsky, age 51, of East Lansing, Michigan, was sentenced to 30 years in prison, followed by 10 years of supervised release, for sexually exploiting children.
“Lipsky is a serial offender whose sexual exploitation spanned years, from California to Michigan,” said U.S. Mark Attorney Totten. “Today’s sentence ensures he will never harm another child. Lipsky used the internet and social media to access minor boys. Parents, guardians, loved ones, and anyone online must understand that predators are trolling social media. Candid conversations with our kids are so important: educating them about the threats; keeping them out of harm’s way; and ensuring they have a safe space to share what happened if they are harmed.”
Between 2013 and 2020, Lipsky used Skype, Reddit, Snapchat, and Kik to communicate with at least eight minor boys. His sexual exploitation began in California and continued after he moved to Michigan. From his residence in Daly City, California, Lipsky encouraged minor victims ages 12 to 16 years old to perform sexual acts on camera or take sexually explicit photos of themselves. Lipsky would then screen record these interactions and save them to encrypted hard drives. In at least two separate instances, Lipsky escalated these interactions to in-person sexual exploitation. While living in California, Lipsky persuaded two boys, ages 14 and 17 at the time, to meet him at his residence to engage in sexual activities. In 2018, Lipsky moved from California to Michigan, where he continued to sexually exploit and solicit explicit content from minor victims, ages 15 to 16, online.
“For too long, Mr. Lipsky exploited and victimized young boys from as far away as California to right here in our great state of Michigan,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Today's sentencing is a testament to the FBI and our partners' daily work across the country to combat sexual exploitation, particularly against minors. Those who engage in such crimes will face justice.”
The FBI provides the following six tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and this person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. More information is available at https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/sextortion.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru and investigated by the FBI.
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Drug Manufacturer to Pay $2.25 Million to Settle Controlled Substances Act AllegationsRead the Press Release
NEWARK, N.J. – A pharmaceutical manufacturer agreed to pay $2.25 million to resolve allegations that it violated the Controlled Substances Act (CSA), U.S. Attorney Philip Sellinger announced today.
The manufacturer, Novel Laboratories Inc. (Novel), a subsidiary of Lupin Inc., also reached an administrative resolution with the Drug Enforcement Administration (DEA) by entering into a memorandum of agreement (MOA).
U.S. Attorney Philip R. Sellinger“Manufacturers that work with dangerous and addictive opioids must safeguard the drugs. My office is dedicated to holding every level of the opioid distribution chain accountable for failures to properly handle and account for controlled substances, including manufacturers, distributors, pharmacies, and medical providers to ensure that these drugs are used safely and for legal purposes.”
“Pharmaceutical companies are not exempt from their regulatory responsibilities especially when dealing with controlled substances and the dangerous effects they have when misused,” Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration’s New Jersey Field Division said. “This settlement reflects DEA’s commitment to making sure measures are in place to safeguard the community and hold DEA registrants accountable. I commend our Diversion Investigators for bringing this matter to a resolution”
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2019, to Aug. 31, 2021, Novel committed CSA violations involving its failure to account for approximately 3.1 kg oxycodone, 7.7 kg hydrocodone, and 30 kg Temazepam. DEA discovered these violations during on-site inspections of Novel beginning in the summer of 2021. The MOA requires Novel to improve its operations and remain in compliance with the law, and will remain in effect for three years.
U.S. Attorney Sellinger credited diversion investigators of DEA, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, with the investigation leading to the settlement agreement and MOA.
The government is represented by Assistant U.S. Attorney Jordann R. Conaboy of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by the agreement are allegations only, and there has been no determination of liability.
noveldea.moa_.pdf novel.settlement.pdfDistrict Man Indicted on Two Counts of Felony Murder and Other Related ChargesRead the Press Release
WASHINGTON – Corde Fitzhugh-Clingman, 23, of Washington, D.C., was indicted today on two counts of felony murder and other related charges stemming from the July 8, 2021 slaying of 24-year-old Muntsier Sharfi and the April 25, 2022 slaying of 26-year-old Zekariya Elmi, U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD) announced. Fitzhugh-Clingman was also indicted on charges involving the attempted armed robbery of Mr. Sharfi, Mr. Elmi, and another individual.
Fitzhugh-Clingman was indicted by a grand jury in the Superior Court of the District of Columbia, on multiple charges of first-degree murder while armed (felony murder), with aggravating circumstances, attempted armed robbery, possession of a firearm during a crime of violence, and carrying a pistol without a license.
Fitzhugh-Clingman is to be arraigned on April 12, 2024, at a hearing before the Honorable Anthony Epstein. He faces a maximum of life in prison if convicted of the charges.
This case is being investigated by the Metropolitan Police Department (MPD).
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Detroit Business Owner Charged with Possessing over 40 kilograms of Fentanyl in Basement Stash HouseRead the Press Release
DETROIT – A Detroit gas station owner has been charged with several federal crimes stemming from his involvement with a Detroit-based stash house that held over 40 kilograms of fentanyl, a pill press, and a variety of other materials used to manufacture fentanyl pills, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Orville Greene, Special Agent in Charge of the Drug Enforcement Administration and Chief Thomas Goralski, Livonia Police Department.
On March 28, 2024, law enforcement executed search warrants at three locations connected to Barry Willis, 55, a resident of Clinton Township and owner of a Detroit gas station. Officers searched Willis’s primary residence in Clinton Township, his gas station in Detroit, as well as his suspected stash house in Detroit. In the basement of the stash house, officers recovered over 40 kilograms of fentanyl in both pill and powder form, as well as a hoard of materials for manufacturing fentanyl pills such as a pill press, narcotics scales, and drug recipes. Officers further located two handguns at the stash house, one at Willis’s residence, and another at his gas station, as well as over $100,000 in cash from Willis’s Clinton Township residence.
“This case represents the largest law enforcement seizure of fentanyl in the state of Michigan to date. We are incredibly proud of our law enforcement partners who conducted this investigation and recovered these deadly substances before they could harm members of our community.,” U.S. Attorney Ison said.
“This amount of fentanyl has the potential to provide nearly two deadly doses to every man, woman and child living in the state of Michigan. We will continue to work with our partners to pursue anyone pushing poisons into our communities and bring them to justice,” said Special Agent in Charge Greene.
"This major seizure of fentanyl has saved lives. The great partnerships we have with law enforcement at the federal, state and local levels in southeast Michigan, enable us to make these types of investigations successful,” said Chief Goralski.
Willis has now been indicted for possession of over 400 grams of fentanyl with the intent to distribute it, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a convicted felon. He faces a mandatory minimum sentence of 20 years’ imprisonment if convicted of the charges in the indictment.
An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Livonia Police Department, including officers assigned to the Livonia Police Intelligence Bureau, and the Drug Enforcement Administration. The Michigan State Police and the Clinton Township Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Erin Ramamurthy.
DOJ Releases New “Overview of the Department of Justice Grant Process” to Aid Applicants of GrantsRead the Press Release
Jackson, Miss. – The U.S. Department of Justice (DOJ) has released a new document entitled “An Overview of the Department of Justice Grant Process” that provides a short, useable summary of the DOJ grant opportunities for fiscal year (FY) 2024 to assist law enforcement agencies, local governments, and other organizations interested in applying for DOJ grants.
“We want to make it as easy as possible for law enforcement agencies, local governments, community organizations, and others to apply for Department of Justice grants that can be used to help fight crime and improve lives in Mississippi,” said U.S. Attorney Todd W. Gee of the Southern District of Mississippi.
The 5-page document is available on the public website of the U.S. Attorney’s Office for the Southern District of Mississippi at https://www.justice.gov/usao-sdms/grant-information.
D.C. Man Charged with Aggravated Assault while ArmedRead the Press Release
WASHINGTON – Michael Owusu-Sakyi, 47, of Washington, D.C., was charged today in Superior Court with aggravated assault while armed for shooting a woman on April 5, 2024, in Southeast D.C., announced U.S. Attorney Matthew M. Graves. The defendant is held pending a preliminary hearing on Friday.
According to court documents, the victim was in the 1700 block of Fairlawn Avenue SE when Owusu-Sakyi approached her from behind and shot her once in the arm. After shooting the victim, the defendant said that he thought she was someone else, and told her to call 911 before he fled the scene. The victim was taken to the hospital to treat her gunshot wound. Police subsequently obtained a warrant for Owusu-Sakyi’s arrest.
These charges were brought as a result of the D.C. Council’s Secure DC Omnibus Emergency Amendment Act of 2024, that went into effect last month. The change in the law recognizes all gunshot wounds as serious bodily injury.
This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Michael Roberts.
Charges are merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Pleads Guilty to Attempting to Illegally Purchase A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces that Jason Harris (42, Palm Coast) has pleaded guilty to making a false statement to a federally licensed firearms dealer. Harris faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the court documents, Harris completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. On the required paperwork, Harris indicated that he was not a convicted felon. Harris later admitted this was a false statement and he was previously convicted of multiple prior felonies, including robbery, shooting, or throwing a deadly missile, felony battery, and sale of cocaine. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Colonial Oil to Pay $2.8 Million Penalty for Failure to Meet Clean Air Act Fuels RegulationsRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) reached a settlement today with Colonial Oil Industries Inc. that will require the company to pay a civil penalty of more than $2.8 million and spend an estimated $12.2 million to offset the detrimental human health and environmental impacts of Colonial’s alleged failure to meet obligations under the Clean Air Act’s Renewable Fuel Standard (RFS) program and gasoline volatility standards.
Between 2013 and 2019, Colonial excluded certain fuel it supplied to marine vessels from its renewable volume obligations calculations in violation of the RFS regulations. Fuel intended for use only in ocean-going vessels is not required to be included in renewable volume obligation calculations. But not all marine vessels are ocean-going vessels, and volumes supplied to other marine vessels must be included in such calculations. Colonial’s actions resulted in less renewable fuel being used in lieu of gasoline and diesel fuel, causing increased greenhouse gas emissions.
“The creation and use of renewable fuels reduces overall greenhouse gas emissions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This proposed settlement will hold Colonial to the same renewable fuel requirements that all importers and producers must adhere to.”
“Renewable fuels play a critical role in diversifying our country’s energy mix and reducing greenhouse gas emissions, all while providing good paying jobs and economic benefits to communities across the country,” said Assistant Administrator David M. Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “This settlement once more puts gasoline and diesel refiners and importers on notice that they must meet their obligations to reduce climate- and health-harming pollution and that there will be consequences if they do not.”
Under the RFS program, refiners or importers of gasoline or diesel fuel are required to either blend renewable fuels into transportation fuel or purchase credits known as Renewable Identification Numbers (RINs) to meet their renewable volume obligations. Between 2013 and 2019, Colonial failed to purchase and retire enough RINs. The settlement requires Colonial to purchase and retire over 9 million RINs within two years at an estimated cost of approximately $12.2 million. The RIN purchase and retirements is estimated to result in over 18,300 metric tons of carbon dioxide equivalent reductions which equates to powering 2,386 homes’ energy use or 4,355 gasoline cars for a year.
Colonial also sold over a million gallons of gasoline that failed to meet the applicable volatility standard which is intended to reduce evaporative emissions during the summer season from gasoline that contributes to smog and to reduce the effects of ozone-related health problems such as asthma, emphysema and chronic bronchitis.
Attorneys from the Justice Department’s Environmental Enforcement Section are handling the case.
The proposed settlement, lodged in the U.S. District Court for the Southern District of Georgia, is subject to a 30-day public comment period and final court approval. Information on submitting comments is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
Child Sex Trafficker Sentenced to 26 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Torey Franklin, 29, of Grand Rapids, was sentenced to 26 years in federal prison. In December 2023, Franklin pleaded guilty to sex trafficking a minor in 2022.
“Torey Franklin’s crime – trafficking a minor for sex – was heinous,” said U.S. Attorney Totten. “Human trafficking of any kind – for sex or for labor, of children and of adults – is a scourge. We are fully committed to protecting survivors and holding traffickers accountable for their crimes.”
Authorities arrested Franklin at a hotel in 2022, after he offered the “services” of an underaged girl to an undercover detective from the Kent County Sheriff’s Office. Hours before the arrest, investigators from the Federal Bureau of Investigation (FBI) had discovered an advertisement for the girl on an adult dating website.
FBI agents grew concerned that the girl was under the age of 18. They worked with Kent County officials to arrange a “date” with the victim as part of an interagency, undercover operation focused on combating human trafficking within the Western District of Michigan. That operation culminated in the arrest of Franklin. The girl was safely returned to the custody of her guardian.
Afterwards, investigators uncovered evidence that Franklin had been trafficking his victim for weeks. Franklin would post ads for his victim, negotiate prices and sexual acts with prospective customers, and then transport the minor to multiple locations for the “sex dates” he had arranged. Afterwards, he would receive payment, often through a popular money-sharing application.
“The FBI’s commitment to combatting child exploitation and human trafficking is unwavering, as shown in our nationwide initiatives such as Operation Cross Country,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The outcome of this investigation and sentencing would not be possible without partnerships with our local, state, and federal law enforcement partners, and the dedicated men and women of this office. For FBI Michigan, the work does not end here, and we will continue to focus our efforts on protecting our children.”
Preventing and deterring human trafficking remains a high priority for the U.S. Department of Justice. If you or someone you know is a victim of human trafficking, help is available 24 hours a day, 7 days a week via the National Human Trafficking Hotline by calling (888) 373-7888 or by texting “INFO” to 233733. Information is also available on the hotline website: https://humantraffickinghotline.org.
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Cedar Rapids Man Sentenced to Prison for Possessing Gun as a FelonRead the Press Release
A Cedar Rapids man who assaulted a woman and young child was sentenced April 9, 2024, to two years in prison.
Ryan Thomas Beattie, age 31, from Cedar Rapids, received the prison term after an October 30, 2023, guilty plea to possession of a firearm by a felon.
Information disclosed during the plea and sentencing hearings revealed that on December 14, 2022, Beattie was arrested after an incident where he assaulted a female and toddler. Beattie was arrested and later convicted of child endangerment, assault causing bodily injury, and interference with official acts. Officers located two loaded firearms near where the assault took place. Beattie admitted that the firearms were his and that he had his girlfriend at the time buy them for him since he could not buy firearms. In total, Beattie’s girlfriend bought four firearms, only two of which were recovered with Beattie. The third firearm was recovered during an incident in Iowa City. The fourth firearm has not been recovered.
At the time of the December incident, Beattie was a convicted felon. He has a lengthy criminal history and has previously been to prison for child endangerment resulting in bodily injury.
Beattie was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Beattie was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-52.
Follow us on Twitter @USAO_NDIA.
Brooklyn Man Pleads Guilty to Nationwide Marijuana Trafficking and Money Laundering ConspiraciesRead the Press Release
ALBANY, NEW YORK – Lateek White, age 53, of Brooklyn, New York, pled guilty today to conspiring to distribute marijuana and money laundering.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
White admitted that he was a member of a marijuana and THC trafficking organization that shipped thousands of kilograms of marijuana and THC from Fresno, California, to locations throughout the United States, including New York City and the Capital Region, between 2017 and June 2022. He also admitted to laundering marijuana proceeds for the organization.
The packages of marijuana were shipped through UPS and FedEx from a shipping store in Fresno, Fast Pack & Ship, by Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and McKenzie Merrialice Coles, aka “Kenzie.” White received the packages of marijuana at, among other locations, his residence in Brooklyn; his sister, Onisha Smith, also received packages of marijuana at her apartment and a neighboring apartment in Brooklyn. In total, White and Smith received 71 packages containing approximately 294 kilograms, or 648 pounds, of marijuana.
White also laundered marijuana proceeds for the organization by depositing cash into a bank account owned by Singletary in the name “Daddy Ds Boutique,” which was a purported clothing business. When he deposited the cash, White knew that Daddy Ds Boutique was not a real clothing business and deposited the cash to conceal the nature and source of the marijuana proceeds and to promote the marijuana trafficking conspiracy.
White faces at least 10 years and up to life in prison; up to $8.5 million in fines; and term of post-release supervision of between 8 years and life. 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.
White was charged in an indictment with Singletary, Coles, Smith and 20 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Singletary, Coles, and Smith have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to White, seven other defendants, Rosemary Coles, Latrice Mumphrey, Sammy Olague, Victor Turner, Kristle Walker, Ruby Ledesma, and Jazell Shuler, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Brockton Man Sentenced for Fraudulently Obtaining More Than $1.5 Million in COVID-Relief FundsRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) that were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Joao Mendes, 60, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 27 months in prison, followed by one year of supervised release. Mendes was also ordered to pay restitution in the amount of $1,542,759 and the forfeiture of assets totaling $1,751,694. In December 2023, Mendes pleaded guilty to one count of wire fraud.
Beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted fraudulent PPP and EIDL loan applications on behalf of several companies, many of which were defunct. Mendes submitted multiple applications for a single entity to successive lenders until a loan was ultimately approved. Those applications contained conflicting information. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various fictious businesses. Mendes also submitted false tax records in support of his loan applications. In his EIDL applications, Mendes misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and two of his relatives received over $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he spent them for his own personal benefit—including for the purchase of cryptocurrency.
The United States seized cryptocurrency and fiat currency from over 20 accounts that, with additional funds turned over by Mendes, resulted in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
Acting United States Attorney Joshua S. Levy; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Mehtab Syed, Assistant Director in Charge of the Federal Bureau of Investigation, Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Tyler Hatcher, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; Christopher J. Gust, Acting Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of the Criminal Division, and Carol E. Head, Chief of the Asset Recovery Unit, and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section prosecuted the case. Attorney Advisor Scott J. Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. 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.
Bradenton Drug Trafficker Convicted at TrialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Pierre C. Marc (37, Bradenton) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and 400 grams or more of fentanyl, marijuana, and heroin. The jury also found Marc guilty of possessing with the intent to distribute marijuana and 40 grams or more of fentanyl. Marc faces a minimum mandatory sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for June 14, 2024.
According to testimony and evidence presented at trial, Marc was a major drug distributer in the Middle District of Florida. During the trial, a witness testified that Marc supplied him with an ounce of fentanyl and 1 to 2 kilograms of cocaine every week between January and September 2019 for distribution in Pinellas County. In 2021, Marc arrived at a controlled delivery of fentanyl with more than 300 grams of fentanyl and a firearm. Another witness testified that in 2020 and 2021, Marc supplied him with 3 to 5 kilograms of fentanyl for distribution in Manatee County.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Manatee County Sheriff’s Office. 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. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
Boynton Beach Man Indicted for Distributing Child Sexual Abuse Material over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Timothy Burch Morris (45, Boynton Beach) with distributing child sexual abuse material over the internet. If convicted, Morris faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison, and a potential lifetime term of supervised release. Morris was arrested near his home by FBI agents on April 1, 2024.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with assistance from the Boynton Beach Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boise Man Sentenced to 80 Months in Federal Prison for Trafficking MethamphetamineRead the Press Release
BOISE – Michael McClain, 37, of Boise, was sentenced to 80 months in federal prison for distributing methamphetamine, U.S. Attorney Josh Hurwit announced today.
According to court records, in March 2023, McClain and his co-defendant, Sonya Trujillo, sold methamphetamine and fentanyl to another person. Firearms were also present during McClain’s course of drug trafficking. At the time of his arrest, McClain was on probation for a felony drug crime. Although McClain admitted to joining a gang in his youth, he contends he dropped out of the gang during his previous prison sentence.
“This case reflects the public safety results generated by the strong partnerships between our office and local law enforcement,” said U.S. Attorney Hurwit. “We will continue to leave no stone unturned in our pursuit of those who bring dangerous and deadly illicit drugs into Idaho.”
“It takes a strong collaborative approach to try and rid our communities of the dangerous drugs that endanger Idahoans’ lives every day,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “McClain’s sentencing highlights the dedication and tenacity of our Task Force and what can be achieved when we work together to dismantle drug trafficking organizations in our state."
“The Canyon County Sheriff’s Office remains firm in our commitment to hold those accountable who commit crimes in our communities,” said Canyon County Sheriff Kieran Donahue. “More, we affirm our commitment to the collaborative partnership with the United States Attorney’s Office for the District of Idaho and the FBI Metro Violent Crime and Gang Task Force team who work so hard to bring these cases to adjudication.”
“These investigations require teamwork, patience and a tremendous amount of time,” said Caldwell Police Chief Rex Ingram. “This is yet another victory for Idahoans in our relentless pursuit of justice in the Gem state. Caldwell is proud to be part of the team that continues to fight the war on drugs.”
U.S. District Judge Amanda K. Brailsford also ordered McClain to serve three years of supervised release following his prison sentence. McClain was indicted as part of a 25-defendant investigation in August 2023 and he was convicted by a federal jury in January 2024. Co-defendant Trujillo pleaded guilty, on November 16, 2023, to distributing fentanyl and was sentenced, on March 14, 2024, to 46 months in federal prison. Judge Brailsford ordered Trujillo to serve three years of supervised release following her prison sentence.
U.S. Attorney Hurwit commended the Treasure Valley Metro Violent Crimes Task Force for its efforts in this case. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation, the Caldwell Police Department, the Canyon County Sheriff’s Office, and the Idaho Department of Correction.
McClain was prosecuted by Assistant U.S. Attorney Christian Nafzger and Special Assistant U.S. Attorney, Kelsey Manweiler. The Special Assistant U.S. Attorney was hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Belton, Raymore Brothers Plead Guilty to Drug-Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Two Cass County, Mo., brothers pleaded guilty in federal court yesterday to their roles in a drug-trafficking conspiracy and to illegally possessing firearms.
Serjio Diaz, 39, of Belton, and Tony Diaz, 41, of Raymore, pleaded guilty in separate appearances before U.S. District Judge Greg Kays. Serjio and Tony Diaz each pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine; one count of possessing heroin with the intent to distribute; and one count of possessing firearms in furtherance of a drug-trafficking crime. Tony Diaz also pleaded guilty to one count of being a felon in possession of firearms. Serjio Diaz also pleaded guilty to one count of money laundering.
By pleading guilty today, Serjio and Tony Diaz both admitted to participating in a drug trafficking conspiracy with others that lasted from approximately January 1, 2019, until June 22, 2021.
On March 18, 2019, a federal agent interdicted and seized a package from Arizona that contained more than 4.5 kilograms of methamphetamine, which was addressed to Serjio Diaz’s residence. On the same day, a federal agent also interdicted and seized a package from Arizona that contained more than three kilograms of methamphetamine, which was addressed to Tony Diaz’s residence.
During the course of the investigation, investigators conducted 23 controlled transactions with Serjio and Tony Diaz. The transactions occurred between March 26, 2019, and May 26, 2021, and took place in Grandview, Belton, and Kansas City, Missouri. Over the course of these transactions, law enforcement purchased approximately 7,052.1 grams of methamphetamine, approximately 6,036.5 grams of heroin and approximately 468.6 grams of cocaine from Serjio DIAZ and/or his brother, Tony DIAZ, for approximately $243,900.
On June 22, 2021, law enforcement officers arrested Serjio and Tony Diaz. Following a search of Tony Diaz’s residence, officers found approximately 1,128 grams of heroin, approximately 28 grams of cocaine, a Zastava Arms 7.62x39mm semi-automatic rifle, a Romarm Cugir 7.62x39mm semi-automatic rifle, and $5,461 in cash in Tony Diaz’s bedroom. Officers also found a Remington Arms .22-caliber rifle in a shed. Following a search of Tony Diaz’s vehicles, officers located one pound of suspected marijuana in his Lincoln Navigator SUV, and a Ruger 9mm semi-automatic pistol and approximately 3.4 grams of marijuana in his BMW X5. Following a search of Serjio Diaz’s residence, officers found approximately 8,942 grams of heroin, approximately 166 grams of cocaine, 6 bags of round, blue “M 30” pills containing fentanyl, with an approximate, cumulative weight of 78 grams, a metal hydraulic press, also known as a “Big Red”, an electronic scale, a Glock 9mm semi-automatic pistol, and $82,250 in cash.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Tony Diaz has a prior felony conviction for possession of a controlled substance.
Co-defendant Maria Jasmin Lopez, 24, of Phoenix, Arizona, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 1, 2023, to 11 years and two months in federal prison without parole. Co-defendant Vicente Aguilera, 39, of Kansas City, Missouri pleaded guilty to use of a communication facility to facilitate a drug conspiracy and is awaiting sentencing.
Under federal statutes, Serjio and Tony Diaz are each subject to a mandatory minimum sentence of 15 years, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Robert Smith. It was investigated by the FBI, the Jackson County Drug Task Force and U.S. Postal Inspection Service.
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.
Armed Security Guard at Manhattan Federal Building Pleads Guilty in Connection with Sexual Assault of Asylum SeekerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of JIMMY SOLANO-ARIAS, an armed security guard at the Jacob K. Javits Federal Office Building located at 26 Federal Plaza in Manhattan, in connection with SOLANO-ARIAS’s sexual assault of an asylum seeker (the “Victim”) on May 4, 2023. SOLANO-ARIAS pled guilty to lying to federal law enforcement agents following his sexual abuse of the Victim. As part of his guilty plea, SOLANO-ARIAS admitted that while acting under color of law as an armed security guard at 26 Federal Plaza, he engaged in a non-consensual sexual act with the Victim. SOLANO-ARIAS was arrested on May 5, 2023, and pled guilty today before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “Jimmy Solano-Arias abused the trust and privileges bestowed on him as an armed security officer at a federal building. Instead of working to keep the many federal employees and visitors at 26 Federal Plaza safe, Solano-Arias exploited his position of authority to sexually abuse an individual seeking asylum protection in the United States. This Office is committed to holding all those in positions of public trust accountable when they abuse their power and violate the constitutional rights of others.”
According to the allegations in the Indictment, Superseding Information, other public court documents, and statements made during court proceedings:
On May 4, 2023, SOLANO-ARIAS was employed as a security guard by a company that contracts with the Federal Protective Service of the Department of Homeland Security to provide armed security services at 26 Federal Plaza. SOLANO-ARIAS wore a black and gray security guard uniform and carried his employer-issued firearm on his waistband.
Early in the morning on May 4, 2023, the Victim went to 26 Federal Plaza for the purpose of submitting an asylum application. Once there, SOLANO-ARIAS offered to assist the Victim with his asylum paperwork. Instead of providing assistance, however, SOLANO-ARIAS led the Victim through non-public areas of 26 Federal Plaza, eventually secluding the Victim in a locked office on the second floor. Inside the locked office, SOLANO-ARIAS demanded that the Victim perform oral sex on SOLANO-ARIAS. When the Victim attempted to resist SOLANO-ARIAS’s demands, SOLANO-ARIAS reached to the company-issued firearm on his person. Fearing that SOLANO-ARIAS would kill the Victim, the Victim performed oral sex on SOLANO-ARIAS, which caused physical pain and injury to the Victim. Following the assault, when the Victim was able to leave the office, he immediately reported the sexual assault to law enforcement.
The following morning, when SOLANO-ARIAS arrived at 26 Federal Plaza for his shift, law enforcement agents with the Federal Bureau of Investigation (“FBI”) approached SOLANO-ARIAS and asked to speak with him. SOLANO-ARIAS agreed to speak with the federal agents. During the interview that followed, SOLANO-ARIAS lied to the federal agents about his sexual abuse of the Victim, initially disclaiming entirely that he had engaged in a sexual act with the Victim and then falsely claiming that the sexual act was consensual when it was not. SOLANO-ARIAS was arrested after the interview.
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SOLANO-ARIAS, 42, of the Bronx, New York, pled guilty to one count of making false statements to federal law enforcement agents, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Elizabeth Espinosa and Mitzi Steiner are in charge of the prosecution.
Alabama Man Charged with Detonating an Explosive Device Outside of Alabama Attorney General’s OfficeRead the Press Release
An Alabama man was indicted for his alleged role in detonating an explosive device in downtown Montgomery, Alabama.
On April 10, law enforcement arrested Kyle Benjamin Douglas Calvert, 26, of Irondale, on charges of malicious use of an explosive and possession of an unregistered destructive device.
“Thanks to the work of the FBI and our state and local law enforcement partners, this defendant is being held accountable for allegedly detonating an explosive device outside of the Alabama Attorney General’s Office,” said Attorney General Merrick B. Garland. “The Justice Department has no tolerance for acts of violence targeting those who serve the public.”
“The FBI worked closely with our law enforcement partners to run down every lead and leverage our forensic capabilities to identify and arrest the person who is allegedly responsible for detonating this dangerous device,” said FBI Director Christopher Wray. “This explosion was very unsettling to the community and we hope today’s arrest provides reassurance that the FBI will investigate those who target public institutions and will hold them accountable for such illegal acts.”
“Federal, state, and local law enforcement agents worked tirelessly to investigate this matter,” said Acting U.S. Attorney Jonathan S. Ross for the Middle District of Alabama. “The arrest today is a reflection of the way in which close cooperation among law enforcement agencies facilitates the pursuit of justice. I am grateful for the efforts of all involved.”
According to the indictment and other court documents, an explosive device was detonated on Feb. 24 at approximately 3:42 a.m. outside of the Alabama Attorney General's Office near the intersection of Washington Avenue and South Bainbridge Street. No injuries or major damage to nearby buildings were reported. Agents and troopers with the Alabama Law Enforcement Agency, along with special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers from the Montgomery Police Department, responded to the scene when remnants of the device were discovered.
The case was unsealed today by the U.S. District Court for the Middle District of Alabama. If convicted, Calvert faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Mobile Field Office, Montgomery Resident Agency Office, Alabama Law Enforcement Agency, and Alabama Attorney General’s Office investigated the case.
Assistant U.S. Attorneys Russell T. Duraski and Brett J. Talley for the Middle District of Alabama are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
9 April 2024
Yakima Man Who Sold Pound Quantities of Methamphetamine and Fentanyl in the Yakima Valley Sentenced to 10 Years in Federal PrisonRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Jesse Lee Johnson, 36, of Yakima, Washington, was sentenced after pleading guilty to one count of Conspiracy to Distribute 500 Grams or More of Methamphetamine. United States District Judge Mary K. Dimke imposed a sentence of 120 months imprisonment to be followed by 5 years of supervised release.
Johnson’s codefendant, Ronald Lee Ralston, was sentenced on February 27, 2024, to 138 months in prison and 5 years supervised release.
According to court documents and information presented at trial and the sentencing hearing, the FBI developed information that Johnson and Ralston, were distributing large amounts of methamphetamine and fentanyl from Ralston’s home in Selah, Washington.
FBI Task Force members arranged for a confidential informant to set up a controlled buy at Ralston’s house. On May 4, 2023, the informant arrived at the home and tried to purchase methamphetamine from Ralston. However, Ralston said the methamphetamine he had on hand was spoken for and not for sale. While no sale took place that day, Ralston and Johnson were captured on video discussing future drug sales.
On May 16, the informant returned to Ralston’s home and purchased one pound of methamphetamine and 100 pills of fentanyl from Ralston and Johnson for $2,000. Ralston also told the informant he could get any amount of methamphetamine and fentanyl with 24-hour notice.
A search warrant was executed on June 7, 2023, at Ralston’s residence. In Ralston’s trailer, located on the property, law enforcement seized 1.5 pounds of methamphetamine, other controlled substances, and two firearms. In the main residence, law enforcement officers seized another firearm and an additional half-pound of methamphetamine.
“Mr. Johnson and Ralston were distributing large amounts of illicit drugs into our communities. Discovering and dismantling illegal drug supply chains is a main priority for my office,” stated U.S. Attorney Waldref. “I’m grateful for our federal, state and local law enforcement partners, who work closely with federal prosecutors to stop drug distributors and make Eastern Washington safer and stronger.”
“The FBI and our partners are committed to removing deadly drugs from Washington state, which are so often accompanied by violent crime and addiction,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “This sentence should serve as a reminder that we will hold drug traffickers accountable and that these crimes have consequences.”
This case was investigated by the Federal Bureau of Investigation, Yakima County Sheriff’s Office, Customs and Border Protection and the Selah Police Department. This case was prosecuted by Assistant United States Attorney Todd Swensen.
Woodbridge fentanyl dealer sentenced to a decade in prison after buyer’s fatal overdoseRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 10 years in prison for distribution of fentanyl.
According to court documents, on May 16, 2019, Eric Anthony Stokes II, 27, sold fentanyl that later caused the death of the buyer. Stokes and the buyer negotiated the sale via text message before the buyer travelled to Stokes’ residence and purchased two pills for $70. The buyer then returned to his family’s home.
When the buyer didn’t emerge from his bedroom the following morning, his father found him lying on his bed, cold and bleeding from his mouth, nose, eyes, and navel. He had foam around his mouth and nose. The family called 911, and a family member attempted CPR while waiting for first responders to arrive. He was pronounced dead at the scene at only 21 years old. In the victim’s clothing, investigators found a white envelope with a blue powder that lab tests confirmed contained fentanyl. An autopsy showed that the amount of fentanyl found in his system was approximately twice the amount typically considered fatal.
Stokes continued selling fentanyl despite knowing that the buyer had died after taking the pills.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Philip Alito prosecuted 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. 1:24-cr-6.
Woman Pleads Guilty to Theft and Misappropriation of COVID-19 FundsRead the Press Release
A Louisiana woman pleaded guilty today to theft of public money in connection with a scheme to misappropriate over $780,000 from the Provider Relief Fund (PRF), a COVID-19 pandemic relief program administered by the Health Resources and Services Administration.
According to court documents, Melissa J. Watson, of Slidell, operated a primary care clinic. Following the onset of the COVID-19 pandemic, Watson submitted false and fraudulent attestations on behalf of her clinic to obtain PRF funds to which she was not entitled. Watson’s attestations included falsely affirming that such funds would only be used by the clinic to prevent, prepare for, and respond to coronavirus, and to reimburse health care related expenses or lost revenues attributable to coronavirus. Despite the attestations, Watson used the PRF funds for personal purposes, including making numerous cash withdrawals and purchasing, among other items, hundreds of thousands of dollars in real estate, a luxury vehicle, a boat and trailer, and a time share condominium.
The government seized over $500,000 in bank accounts held by Watson, along with several assets, including a boat and trailer, and a Range Rover Sport vehicle.
Watson is scheduled to be sentenced on July 16 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office; and Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorney Kelly Z. Walters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney and Health Care Fraud Coordinator Nicholas D. Moses for the Eastern District of Louisiana are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Waynesburg Resident Sentenced to 10 Years in Prison for Transporting Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
PITTSBURGH, Pa. - A resident of Waynesburg, Pennsylvania, was sentenced in federal court on April 8, 2024, to 120 months of incarceration, to be followed by 15 years of supervised release, on his conviction of transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman imposed the sentence on James Jordan, 31.
According to information presented to the Court, from January 11, 2022, until January 12, 2022, Jordan transported a minor from Pennsylvania to West Virginia with the intent that the minor engage in criminal sexual activity.
Prior to imposing sentence, Judge Stickman stated that Jordan’s serious crimes were an abuse of trust and that Jordan had violated the youth and naivety of his child victim to cover the tracks of his crime.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Department of Homeland Security – Pittsburgh, Pennsylvania Office of Attorney General, Pennsylvania State Police, Waynesburg Police Department, and Lewisburg (WV) Police Department for the investigation leading to the successful prosecution of Jordan.
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.justice.gov/psc.
Uvalde Man Sentenced to More Than 12 Years in Federal Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
DEL RIO, Texas – A Uvalde man was sentenced in a federal court in Del Rio to 151 months in prison for distribution of child pornography.
According to court documents, Marco Jesus Perales, 27, distributed approximately 138 videos depicting child sexual abuse material between June 1, 2019 and June 30, 2020. In February 2020, Homeland Security Investigations in Eagle Pass received a report from a messaging application regarding the transmission of child pornography.
The report indicated that Perales sent three hyperlinks to multiple users within a group chat on Sept. 9, 2019. Analysis of the recovered hyperlinks revealed that they contained child pornography. One of the recovered hyperlinks distributed by Perales contained a folder with 62 videos visually depicting male and female minors engaged in sexually explicit conduct. In approximately 60 of the videos, the minors are clearly and obviously prepubescent. The other recovered hyperlink distributed by Perales contained a folder titled "Good Stuff,” which contained 76 additional videos depicting minors engaged in sexually explicit conduct.
Perales was arrested June 30, 2020 and pleaded guilty to one count of distribution of child pornography on June 24, 2021.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
HSI investigated the case.
Assistant U.S. Attorney Rex Beasley 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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Two District Men Arrested in Takedown Operation, Indicted in the February Kidnapping and Robbery of a Virginia ManRead the Press Release
WASHINGTON – An indictment was unsealed today in U.S. District Court for the District of Columbia charging Jaevonn Archer, 20, of Capitol Heights, Maryland, and Timothy Williams, 30, of Maryland, with conspiracy to commit kidnapping and kidnapping in the February 25, 2024, abduction of a Virginia-based man.
The indictment was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Agents with the FBI arrested Archer and Williams early this morning at two separate residences in Maryland. In addition, Malik Williams, 30, of Washington, D.C., a previously convicted felon, was arrested at a third location and faces a related firearms charge in U.S. District Court.
As part of the takedown operation, law enforcement searched five residences in and around the D.C., Maryland, and Virginia area. Numerous firearms, vehicles, narcotics, and proceeds from the February 25, 2024, kidnapping were recovered. The arrests follow a coordinated takedown operation led by the FBI Washington Field Office’s Violent Crimes Task Force with assistance from the FBI Baltimore Field Office, Metropolitan Police Department, Prince George’s County Police Department, and Arlington County Police Department. Assistance was also provided by the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland.
This case is being investigated by the FBI Washington Field Office’s Violent Crimes Task Force. Assistant U.S. Attorney Justin F. Song and Special Assistant U.S. Attorney Ryan Lipes are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Charged with Orchestrating $2 Million Loan Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Patrick J. Freaney, the Special Agent in Charge of the New York Field Office of the U.S. Secret Service (“USSS”), announced today the unsealing of an Indictment charging YISROEL HEBER, a/k/a “Scott Heber,” and YECHIEL MESHI-ZAHAV with running an advance-fee loan fraud scheme through which they defrauded dozens of victims of at least approximately $2 million. HEBER and MESHI-ZAHAV were arrested this morning and will be presented later today before U.S. District Judge Lewis A. Kaplan, to whom this case is assigned.
U.S. Attorney Damian Williams said: “Yisroel Heber and Yechiel Meshi-Zahav allegedly brazenly siphoned funds from the bank accounts of dozens of victims after fraudulently inducing them to provide their bank details. Herberand Meshi-Zahav’s victims thought they were securing loans, but instead they were robbed of large sums of cash. No matter the complexity of the scheme or size of the loss amount, this Office will relentlessly investigate fraudsters who dare to illicitly line their own pockets by victimizing others.”
USSS Special Agent in Charge Patrick J. Freaney said: “These individuals allegedly garnered the trust of victims by posing as lending companies, only to turn around and steal millions from them. This kind of fraudulent activity has a very real impact on people’s lives, and the Secret Service appreciates our partnership with the U.S. Attorney’s Office for the Southern District of New York as we work together to deliver justice for these victims.”
According to the allegations contained in the Indictment:[1]
From at least in or about March 2021 through at least in or about December 2021, YISROEL HEBER and YECHIEL MESHI-ZAHAV participated in an advance-fee loan fraud scheme that defrauded dozens of victims of at least approximately $2 million. HEBER and MESHI-ZAHAV operated this fraudulent scheme through purported lending companies called Blue Ribbon Funding, Tru Capital Funding, Fund Capital LLC, a/k/a “Fund Cap LLC,” and Ameriquest Capital (collectively, the “Fraudulent Lenders”). During the course of the scheme, HEBER and MESHI-ZAHAV, through their control of the Fraudulent Lenders, induced victims to provide their bank account information in order to make payments related to loans that the Fraudulent Lenders promised to issue to the victims. Instead, however, HEBER and MESHI-ZAHAV defrauded the victims by withdrawing thousands of dollars from each of the victims’ bank accounts without issuing the promised loans.
* * *
HEBER, 43, of Kings Point, New York, and MESHI-ZAHAV, 32, of Valley Stream, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the USSS.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Alexandra S. Messiter is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Trio Sentenced to Combined 43 Years in Federal Prison for Trafficking Methamphetamine from Arizona into EvansvilleRead the Press Release
EVANSVILLE- Marion Duane Taylor, 71, of Illinois, Ricardo Sodari, 49, of Arizona, and Christopher Utley, 52, of Evansville, have been sentenced for their roles in a conspiracy to distribute methamphetamine.
Marion Duane Taylor was convicted by federal jury in 2023 of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and was sentenced to 24 years in federal prison followed by ten years of supervised release. Taylor had a previous federal conviction for drug trafficking. In 1998, he was convicted of conspiracy to manufacture and possess with intent to distribute and to distribute methamphetamine in the United States District Court for the District of Oregon.
Ricardo Sodari was sentenced to 14 years in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine.
Christopher Utley was sentenced to five years in federal prison followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine.
According to court documents, on April 23, 2021, members of the Phoenix DEA observed Taylor meet with Sodari in the parking lot of Taylor’s hotel. Sodari placed a suitcase in the back of Taylor’s vehicle before eventually leaving the area. As Taylor passed through Kingman, Arizona, deputies with the Mohave County Sheriff’s Office conducted a traffic stop of Taylor’s vehicle. After a K-9 unit alerted on the vehicle, officers searched the vehicle and found a duffle bag that contained approximately 24.4 pounds of methamphetamine. The officers also searched Taylor’s pockets and found $24,900 in currency.
During an interview with DEA agents, Taylor identified Sodari as his methamphetamine source of supply. Taylor admitted that he had been distributing methamphetamine for approximately five or six months and paid Sodari approximately $2,000 per pound of methamphetamine when acquiring twenty or more pounds. Taylor admitted that he made numerous trips to the Arizona area to acquire methamphetamine and that he distributed that methamphetamine to one customer in Evansville identified as Christopher Utley. Taylor indicated that he usually “fronted” Utley methamphetamine for $5,000 a pound.
Law enforcement officer searched Taylor’s phone and found his drug ledger for Utley. According to the drug ledger, in early April 2021, Utley owed Taylor $82,500 for previously “fronted” methamphetamine.
On May 3, 2021, law enforcement officers executed a warrant to search Utley’s residence. During the search, officers located approximately 19.3 grams of methamphetamine, numerous digital scales, a pistol, a sawed-off shotgun, and $39,692 in currency.
“Drug trafficking organizations who push deadly drugs like methamphetamine into our communities seek profits without regard for the deaths and lasting trauma they cause,” said United States Attorney for the Southern District for Indiana, Zachary A. Myers. “Dismantling these criminal networks through comprehensive investigations and prosecutions is a top priority for federal, state, and local law enforcement. The convictions and sentences imposed here demonstrate that trafficking in these deadly drugs carries very serious consequences.”
The Drug Enforcement Administration, Evansville-Vanderburgh County Drug Task Force, Evansville Police Department, and Mohave County, Arizona Sheriff’s Office investigated this case. This case is part of the Indiana High Intensity Drug Trafficking Areas (HIDTA) program. The sentences were imposed by U.S. District Court Judge Matthew P. Brookman.
U.S. Attorney Myers thanked Assistant United States Attorneys Kristian Mukoski, Lauren Wheatley, and Matthew Miller, who prosecuted this case.
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Traffic Stop Leads to Discovery of Large Quantity of Meth and Federal Prison SentenceRead the Press Release
A woman who possessed over 50 grams of actual (pure) methamphetamine was sentenced today to more than seven years in federal prison. Rebecca Ann Rose, age 36, from La Porte City, Iowa, received the prison term after a November 6, 2023 guilty plea to possessing at least 50 grams of actual (pure) methamphetamine with the intent to distribute it.
Evidence at the sentencing hearing demonstrated that on December 27, 2022, Rose was driving a vehicle in Tipton, Iowa, when law enforcement officers stopped her. Officers searched her car and found thousands of dollars, over 50 grams of actual (pure) methamphetamine, and marijuana. Seven months later, on July 15, 2023, Rose was driving a vehicle in Jones County, Iowa, when law enforcement officers again stopped her. This time, officers found over 20 grams of actual (pure) methamphetamine in the car. Rose was transported to a local jail, where jail staff found over 50 grams of actual (pure) methamphetamine and a methamphetamine pipe hidden on Rose’s person.
Rose was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Rose was sentenced to 90 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rose is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Tipton Police Department, the Cedar County Sheriff’s Office, the Iowa State Patrol, and the Muscatine County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 23-CR-45. Follow us on Twitter @USAO_NDIA.
Three Members of Same Family Indicted for Allegedly Kidnapping Victim in Mexico then Traveling to U.S. to Collect Ransom PaymentRead the Press Release
LOS ANGELES – A federal grand jury today returned a four-count indictment against a father, his sister, and his son for an alleged kidnapping scheme in which the father pretended to act as an intermediary between the victim hostage’s family and the hostage takers while his son and sister crossed the border into the United States to collect the ransom money.
The following defendants – all from Rosarito, Mexico – are charged with one count of conspiracy to commit hostage taking and one count of conspiracy to demand a ransom payment:
- Mario Alex Medina, 53, a.k.a. “Shyboy;”
- Jose Salud Medina, 31, a.k.a. “Gordo,” who is Mario Medina’s son; and
- Maria Alejandra Medina, 50, who is Mario Medina’s sister and Jose Medina’s aunt.
Mario and Jose Medina also are each charged with one count of making a foreign communication with intent to extort.
Maria Medina has been in federal custody since March 26 is currently jailed without bond. Her arraignment is scheduled for April 16 in United States District Court in downtown Los Angeles. Mario Medina made his initial appearance on Monday in United States District Court in Bakersfield and has a detention hearing scheduled there for April 11. Jose Medina is incarcerated in Mexico.
According to the indictment, on November 5, 2022, Mario Medina directed and helped accomplices break into the house of a neighbor, identified in court documents as “R.V.,” kidnapping the victim at gunpoint, pistol whipping him and firing a gun near his head. The next day, one of the co-conspirators placed a ransom call to the victim’s family in Los Angeles County and demanded $70,000 for his release. The kidnappers, through WhatsApp, also sent a video of the victim being beaten.
On November 10, 2022, Jose Medina allegedly telephoned a relative of R.V.’s and threatened to kill the victim if R.V.’s family did not pay $30,000. Later that day, Mario Medina – pretending to be an intermediary between R.V.’s family and the hostage takers – allegedly told the victim’s family to meet at a McDonald’s restaurant in San Ysidro, located north of the U.S.-Mexico border, to make the ransom payment.
Jose and Maria Medina allegedly met the victim’s family the next day at the McDonald’s restaurant, where they collected the $30,000 ransom payment, which they took with them back to Mexico.
The hostage takers on November 11, 2022, then left R.V. tied up and alone in a small, subterranean trench, where Mexican law enforcement rescued him later that day.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, the defendants would face a statutory maximum sentence of life imprisonment.
The FBI is investigating this matter.
Assistant United States Attorneys Jena A. MacCabe and Derek R. Flores of the Violent and Organized Crime Section are prosecuting this case.
Thousands of Machine Guns and Sniper Rifles and over 500,000 Rounds of Ammunition Seized En Route from Iran to Yemen Transferred to Ukrainian Armed ForcesRead the Press Release
On April 4, the United States transferred over 5,000 AK-47s, machine guns, sniper rifles, and RPG-7s, and over 500,000 rounds of 7.62mm ammunition to the Ukrainian armed forces. These armaments were seized by U.S. Central Command and partner naval forces from four flagless vessels in the Arabian Sea enroute from Iran to Yemen, where sanctioned groups including Iran’s Islamic Revolutionary Guard Corps (IRGC) directly support the Houthi movement. The Department of Justice then filed a civil forfeiture action against the seized munitions, resulting in a Dec. 1, 2023, order by the U.S. District Court for the District of Columbia transferring title to the United States.
“With this weapons transfer, the United States government is both disrupting Iran’s destabilizing efforts and supporting Ukraine’s fight against Russia’s brutal, unprovoked invasion,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use our legal authorities, including forfeiture, to support the Ukrainian people in their fight for freedom, democracy, and the rule of law.”
“As we see Russia and Iran engaging in conduct to undermine global security, the Department of Justice is taking deadly weapons out of the hands of terrorists and putting them into the hands of Ukrainians defending their homeland,” said Assistant Attorney General for National Security Matthew G. Olsen. “We will continue to use the full reach of our authorities to disrupt the Iranian government’s efforts to undermine stability and to support the Ukrainian people’s stance against tyranny.”
“Civil forfeiture remains an important tool in our efforts to stop or disrupt terrorist organizations like the IRGC,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Its use in this case demonstrates the power of our counter-threat financing actions to strip legal control of assets from bad actors. We are proud to have been able to work with CENTCOM in this matter, and through them to further the efforts of partners like the Ukrainian armed forces in their fight to maintain freedom.”
According to court documents in the civil forfeiture action, U.S. Naval Forces Central Command seized the weapons from four interdictions of stateless dhow vessels: two from 2021 and two from 2023. These interdictions led to the discovery and seizure of four large caches of conventional weapons, including long arms and anti-tank missiles, and related munitions – all of which were determined to be primarily of either Iranian, Chinese, or Russian origin.
This action followed the government’s successful March 2023 forfeiture action against over one million rounds of ammunition en route from Iran to Yemen, which were also transferred to the Ukrainian armed forces. These forfeiture actions addressed the illicit trafficking of advanced conventional weapons systems and components by sanctioned Iranian entities that directly support military action by the Houthi movement in Yemen and the Iranian regime’s campaign of terrorist activities throughout the region. The forfeiture complaints alleged sophisticated schemes by the IRGC to clandestinely ship weapons to entities that pose grave threats to U.S. national security.
The HSI Washington Field Office and the DCIS Mid-Atlantic Field Office are leading the larger investigation of the Iranian weapons-smuggling network, with substantial assistance from the U.S. Naval Forces Central Command in conducting the seizures.
Assistant U.S. Attorneys Stuart D. Allen, Brian P. Hudak, Rajbir S. Datta, and Anna D. Walker for the District of Columbia and Trial Attorneys S. Derek Shugert and Joshua Champagne of the National Security Division litigated the case, with support from Paralegal Specialists Brian Rickers and Angela De Falco.