Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 22 February 2024
A Leader of Gorilla Stone Sentenced to 35 Years in Prison for Murder of 15-Year-Old and Other OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRANDON SOTO, a/k/a “Stacks,” was sentenced today by U.S. District Judge Philip M. Halpern to 35 years in prison for racketeering, transferring a firearm to a juvenile, and conspiracy to commit arson arising out of his leadership role in the Untouchable Gorilla Stone Nation Bloods Gang (“Gorilla Stone”). As part of his participation in the racketeering conspiracy, SOTO planned out and ordered a fellow gang member, who was a teenager at the time, to murder a rival gang member. On September 21, 2020, SOTO drove the shooter to the location and provided him with the gun and directions to commit the shooting. With people, including small children, nearby, the shooter shot Jalani Jones in the head, killing him instantly. Jones was just 15 years old at the time. Following the murder, SOTO took numerous steps to avoid detection, including setting fire to the car that was used in connection with the murder and ordering the deletion of social media accounts associated with those involved. SOTO previously pled guilty on October 27, 2022, before Judge Halpern to one count of conspiring to conduct and participate in the conduct of the affairs of a criminal enterprise through a pattern of racketeering activity, one count of transferring a firearm to a juvenile, and one count of conspiracy to commit arson.
U.S. Attorney Damian Williams said: “Brandon Soto used his leadership role in the violent Gorilla Stone gang to direct a teenager to kill a 15-year-old boy, who was riding his bike down the street. This horrific act of violence was committed in broad daylight as small children looked on just feet away. Today’s sentence holds Soto accountable for the senseless murder of Jalani Jones, as well as for his yearslong participation in the wide range of crimes committed by the Gorilla Stone gang. Together with our law enforcement partners, we will continue to aggressively prosecute those who engage in such violence in our communities.”
According to the Indictment, public court filings, and statements made in court:
Since at least 2004, Gorilla Stone has been a brutally violent street gang with a national presence that was founded by SOTO’s co-defendant Dwight Reid, a/k/a “Dick Wolf.” Gorilla Stone has many members across New York State, including throughout New York City, Westchester, and the New York State Prison System, and all over the country. Gorilla Stone is comprised of various sets (or “Caves” as they are called by gang members). Gorilla Stone is a highly organized and efficient street gang with an organizational commitment to violence that strictly enforces its internal laws.
For years, SOTO participated in and was associated with the Gorilla Stone racketeering conspiracy. Over time, SOTO rose to a leadership role in the gang. SOTO took an active role in the gang’s distribution of crack cocaine, which is one of the main ways the gang made money. SOTO was also one of the gang’s more violent members. SOTO bragged about his access to firearms and directed that his reports in the gang commit retaliatory acts of violence, the most significant of which was his direction and involvement in the murder of Jalani Jones. Following the murder of Mr. Jones, SOTO got a new phone number and directed another Gorilla Stone member to delete relevant social media accounts to avoid being caught. Days after the murder, SOTO’s car, which he had used in connection with the murder, was towed. SOTO went with other Gorilla Stone members to the lot where the car was parked, stole the car from the lot, and then set it on fire in a further effort to avoid being caught.
SOTO’s violence extended beyond his involvement in the murder of Mr. Jones. SOTO violently attacked someone in the street, punching and kicking the man in the head and body as he lay defenseless on the ground and ultimately became unconscious. As SOTO beat the man unconscious, he yelled “You’re not Gorilla.” The violent incident was recorded on video, and SOTO proudly posted the video to his Instagram account.
* * *
In addition to the prison term, SOTO, 26, of the Bronx, New York, was sentenced to three years of supervised release.
All 21 defendants in the Gorilla Stone case before Judge Halpern have been convicted. With SOTO’s sentencing today, 14 defendants have been sentenced and seven defendants have been convicted and are awaiting sentencing. The 13 defendants aside from SOTO who have been sentenced by Judge Halpern to date are:
- Godfather DONAVAN GILLARD, a/k/a “Donnie Love,” who was sentenced to 248 months in prison;
- Godmother NAYA AUSTIN, a/k/a “Baby,” who was sentenced to 234 months in prison;
- Godmother BRINAE THORNTON, a/k/a “Luxury,” who was sentenced to 210 months in prison;
- JARRETT CRISLER, Jr., a/k/a “Jayecee,” who was sentenced to 207 months in prison;
- CASWELL SENIOR, a/k/a “Casanova,” who was sentenced to 188 months in prison;
- Godfather BRANDON NIEVES, a/k/a “Untouchable Dot,” who was sentenced to 110 months in prison;
- JAMAL TRENT, a/k/a “Trap Smoke,” who was sentenced to nine years in prison;
- DEZON WASHINGTON, a/k/a “Blakk,” who was sentenced to 97 months in prison;
- ROBERTA SLIGH, a/k/a “Trouble,” who was sentenced to eight years in prison;
- JORDAN INGRAM, a/k/a “Flow,” who was sentenced to eight years in prison;
- STEPHEN HUGH, a/k/a “Chino,” who was sentenced to seven years in prison;
- ISAIAH SANTOS, a/k/a “Zay,” who was sentenced to seven years in prison; and
- SHANAY OUTLAW, a/k/a “Easy,” who was sentenced to three years in prison.
Five additional defendants have pled guilty and are awaiting sentencing: Godfather DESHAWN THOMAS, a/k/a “Don,” Godfather WALTER LUSTER, a/k/a “Shells,” AHMED WALKER, a/k/a “Ammo,” NEIKO CRUDUP, a/k/a “JhitRilla,” and ROBERT WOODS, a/k/a “Blakk Rob.” Finally, DWIGHT REID a/k/a “Dick Wolf,” and CHRISTOPHER ERSKINE, a/k/a “Beagle,” were convicted following a jury trial and are awaiting sentencing.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s (“FBI”) Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI; U.S. Probation; New York State Police; New York State Department of Corrections and Community Supervision; New York City Police Department; Westchester County Police Department; Westchester County District Attorney’s Office; Putnam County Sheriff’s Office; Rockland District Attorney’s Office; and the Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments. Mr. Williams also thanked the Dutchess County District Attorney’s Office and the Poughkeepsie Police Department for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Shiva H. Logarajah, David R. Felton, Courtney L. Heavey, and Kathryn Wheelock are in charge of the prosecution.
17 Charged in Abilene Drug BustRead the Press Release
Seventeen alleged drug dealers were charged following a large scale drug bust in Abilene on Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The operation involved more than 80 agents and officers from the Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, the Abilene Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and IRS – Criminal Investigations. Over the course of the operation, agents seized 29 kilos of meth, 721 grams of cocaine, 1370 grams of fentanyl, and 60 firearms.
Those charged in four separate indictments unsealed Thursday include:
- Diana Nichole Perez, aka Diana Santana, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Orson Rolando Ortegon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Rafael Perez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Eddie Ochoa Lomas, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Angel Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Hannah Rai Gongora, aka Hannah Alvarez, charged with conspiracy to distribute and possess with intent to distribute controlled substances; possession with intent to distribute methamphetamine; and possession of firearms (a Taurus 9 mm semi-automatic pistol and a Sarsilmaz 9mm semiautomatic pistol missing a serial number) in furtherance of a drug trafficking crime
- Jacob Lee DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute cocaine
- Jason Eugene DeLeon, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Nathaniel Deal, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Lisa Ann Beckham, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Gloria Santibanez, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Petra Soliz, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with distribution and possession with intent to distribute methamphetamine
- Alexandrea Delgado, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Laura Trevino, charged with conspiracy to distribute and possess with intent to distribute controlled substances and with possession with intent to distribute methamphetamine
- Juan Manuel Oliveros, Jr., charged with possession with intent to distribute methamphetamine
- Joseph Brassell, charged with possession to distribute fentanyl
- Joshua Gosson: charged with possession with intent to distribute methamphetamine and with possession of a firearms (a Rohm, RG10 Model, .22 caliber short barrel revolver) in furtherance of a drug trafficking crime
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, some defendants face up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Taylor County Sheriff’s Office, and the Abilene Police Department conducted the investigation with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and the IRS – Criminal Investigations. The cases are being prosecuted by the West Texas Branch of the U.S. Attorney’s Office for the Northern District of Texas.
13 Defendants Indicted in Connection with Two Drug Trafficking ConspiraciesRead the Press Release
CONCORD – Thirteen defendants have been indicted in connection with drug trafficking organizations out of Manchester and Concord, U.S. Attorney Jane E. Young announces.
Over the past week and a half, law enforcement arrested nine of these defendants on conspiracies to distribute controlled substance charges, namely methamphetamine and fentanyl.
The following defendants have been indicted in connection with these charges:
- Rashidahmed Cantave, 42, of Boston, Massachusetts, who was released on federal pretrial supervision.
- Matthew Schnell, 43, of Bellingham, Massachusetts, who is in federal custody.
- Thomas Conway, 53, of Bedford, New Hampshire, who is in federal custody.
- Michael Raiche, 47, of Manchester, New Hampshire, who is in federal custody.
- Angel Demarco, 41, of Manchester, New Hampshire, who is in federal custody.
- Anthony Conley, 47, of Gilmanton, New Hampshire, who is in federal custody.
- Dennis Drew, 50, of Northfield, New Hampshire, who is in federal custody.
- Robby Lewis, 51, of Manchester, New Hampshire, who is in federal custody.
- Maureen Corsetti, 34, of Manchester, New Hampshire, who was released on federal pretrial supervision.
- Serene Hull, 38, of Concord, New Hampshire, who is in federal custody.
- Zachary Albert, 42, of Concord, New Hampshire, who is in state custody.
- Jeremy Trask, 35, of Milford, New Hampshire, who is in state custody.
- Alton Ryan, 50, of Boscawen, New Hampshire, who is in state custody.
According to court documents and statements made in court, these drug trafficking rings have allegedly been supplying methamphetamine and fentanyl to customers since at least October 2022.
The charges provide for a sentence of up to 20 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation Major Offender Task Force and the New Hampshire State Police led the investigation. Valuable assistance was provided by the Manchester Police Department, the Concord Police Department, the Bow Police Department, and the Seabrook Police Department. Assistant U.S. Attorneys Jarad E. Hodes and Heather A. Cherniske are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
###
11 Defendants Indicted for $220,000 Covid Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Eleven defendants from Missouri, Kansas, Texas, and Washington have been indicted by a federal grand jury for their roles in a conspiracy that resulted in more than $220,000 in fraudulent Paycheck Protection Program (PPP) loans being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Daisha Sanders, 32, and her boyfriend, Joel Wright, 34, both formerly of Blue Springs, Mo., and her mother, Denise Sanders, 60, all of Royse, Texas; Shaquille Fielder, 31, of Kansas City, Mo.; Jordan Nichols, 30, of North Kansas City, Mo.; Kiandra Crowe, 33, of Grandview, Mo.; Alfred Hayes IV, 29, of Overland Park, Kansas; Luana McNurlin, 36, of St. Louis, Mo.; Rashonda Golden, 34, of Tacoma, Washington; Roxanne Nazir, 38, of Arlington, Texas; and Jeffrey Chillis, 30, of Corpus Christi, Texas, were charged in a 13-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Feb. 6, 2024.
That indictment was unsealed and made public today following the arrests of nine defendants. Crowe, Hayes, McNurlin and Fielder will have their initial court appearances in the U.S. District Court in Kansas City, Mo., today. Daisha and Denise Sanders, Wright, Nazir and Chillis were arrested in Texas and will have their first court appearances tomorrow.
The federal indictment alleges that each of the 11 defendants participated in a conspiracy to submit false and fraudulent applications for PPP loans from February 2021 to July 2022. The conspiracy allegedly caused more than $220,000 in fraudulent PPP loans to be issued to ineligible borrowers, most of which were forgiven even though the funds were not used for the purposes specified in the PPP.
According to the indictment, Daisha Sanders created PPP loan applications for herself and for each of the co-conspirators in exchange for a payment from the loan proceeds. The applications falsely stated either the existence of a sole proprietorship prior to the pandemic or greatly inflated the revenues of any “businesses” that did exist in 2019. Daisha Sanders allegedly created fictitious bank records, IRS forms and other false financial documents to support the fraudulent PPP loan applications.
Daisha Sanders submitted the PPP loan applications on behalf of each of the co-conspirators, according to the indictment. Once the PPP loans were funded, the co-conspirators would pay her up to $5,000 for making and submitting the false loan applications.
In addition to the wire fraud conspiracy, Daisha Sanders is charged with one count of wire fraud and each of the remaining defendants is charged with aiding and abetting Daisha Sanders in one count of wire fraud. Each of the defendants allegedly applied for a PPP loan of approximately $20,833.
Daisha Sanders is also charged with one count of money laundering. The indictment also contains a forfeiture allegation, which would require Daisha Sanders to forfeit to the government any proceeds she derived from the alleged offenses, including a money judgment of $70,832.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Wednesday 21 February 2024
Woman Sentenced to More Than 7 Years in Federal Prison for Her Role in Stealing Firearms from Her FamilyRead the Press Release
A woman who conspired to steal firearms and other valuables from a family member’s home was sentenced February 20, 2024, to more than 7 years in federal prison.
Tresa Fiedler, 24, from LeMars, Iowa, received the prison term after a September 28, 2023, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.
Evidence in the case revealed that on October 1, 2021, Fiedler participated in a home burglary where she and coconspirator, Ian Bigler stole 10 guns. The burglary was planned in advance, and Fielder used diversions to insure the home was empty when the burglary was committed. Afterward, Fielder and Bigler took several steps to conceal the conspiracy. On October 5, 2021, Fiedler, in an attempt to leave town, purchased a 2008 Dodge Charger for $5,500 in cash. On October 11, 2021, Bigler, fled from police in a 2008 white Dodge Ram pickup truck that contained evidence of the burglary (including a pistol which had been stolen during the burglary). On October 15, 2021, Bigler equipped himself with a bulletproof vest and two firearms (including a pistol, which had been stolen during the burglary) and a shortened shotgun, and hid himself from law enforcement at a home in North Sioux City, and held another person against his/her will.
Fielder was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 87 months’ imprisonment adjusted for time served. She must also serve a 1-year term of supervised release after the prison term. There is no parole in the federal system.
Ian Bigler was sentenced July 20, 2023, in Sioux City by United States District Court Chief Judge Leonard T. Strand to 180 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fielder is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by LeMars, Iowa Police Department, Sioux City, Iowa Police Department, and ATF, and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4022.
Follow us on Twitter @USAO_NDIA.
Utica Woman Sentenced to Six Years in Prison for Fentanyl ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Melisa Muminovic, age 26, of Utica, New York, was sentenced today to 72 months’ imprisonment for conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl.
The announcement was made by United States Attorney Carla B. Freedman, Oneida County District Attorney Todd Carville, New York State Police Acting Superintendent Steven G. James, Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division, John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division, and Chief Mark Williams, Utica Police Department.
As part of her prior guilty plea, Muminovic admitted that between approximately January 2021 and July 2021, she conspired with Jahari Brown, Jr. and others to knowingly and intentionally distribute fentanyl in the Utica area. More specifically, she acknowledged that she agreed to keep bags of fentanyl mixture at her residence and other locations, which she delivered to Brown and others, who in turn sold the fentanyl mixture to customers. Muminovic also admitted that in furtherance of the conspiracy, she accompanied Brown to the New York City area for the purpose of purchasing fentanyl and bringing it back to the Utica area, where it would be packaged for sale.
United States District Judge David N. Hurd also sentenced Muminovic to serve a term of supervised release of 4 years, upon her release from prison.
Five other defendants were charged in the indictment as co-conspirators with Muminovic. All of them pleaded guilty and were previously sentenced as follows:
Jahari Brown, Jr., aka “JB,” aka “Yay,” age 23, of Utica, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl, and distribution and possession with intent to distribute fentanyl. He was sentenced on April 26, 2023, to serve 216 months (18 years) in federal prison, to be followed by a 5-year term of supervised release and an order of forfeiture totaling $177,874. He also pleaded guilty in Oneida County Court to Attempted Murder in the Second Degree, Attempted Assault in the First Degree, Criminal Possession of a Weapon in the Second Degree, Criminal Possession of a Firearm, and Reckless Endangerment in the First Degree, and was sentenced to serve a total of 18 years in state prison and 5 years of post-release supervision. The Federal and New York State sentences are to be served concurrently. The cases in Oneida County Court were prosecuted by the Oneida County District Attorney's Office.
Kymani K. Minott, aka “Bizz,” aka “K-Bizz,” age 20, of Utica, was sentenced on July 14, 2022, to 60 months’ imprisonment, 4 years’ supervised release, and an order of forfeiture of $2,500. Minott pleaded guilty to conspiracy to distribute, and distribution of, a mixture and substance containing fentanyl.
Daequon D. Perkins, age 26, of Utica, was sentenced on November 10, 2022 to 27 months’ imprisonment, 4 years’ supervised release, and an order of forfeiture of $2,500. Perkins pleaded guilty to conspiracy to distribute, and distribution of, a mixture and substance containing fentanyl.
Mark W. Baker, age 45, of Utica, was sentenced on May 18, 2023, to 110 months’ imprisonment, 4 years’ supervised release, and forfeiture of $1,193, three firearms (a .40-caliber pistol, a 12-gauge shotgun, and a 12-caliber shotgun), and assorted rounds of ammunition. Baker pleaded guilty to conspiracy to distribute, and possession with the intent to distribute, a mixture and substance containing fentanyl, possession of a firearm by a felon, and possession of a firearm in furtherance of drug trafficking.
Matthew Brooks, age 37, of Utica, was sentenced on July 25, 2023, to 108 months’ imprisonment, 3 years’ supervised release, and forfeiture of $3,377 and four firearms (a Mossberg .22 caliber rifle, an Armalite M-15 semiautomatic rifle, a Mossberg Maverick 88 12-gauge shotgun, and a Mossberg 500A, 12-gauge shotgun). Brooks pleaded guilty to conspiracy to distribute a mixture and substance containing fentanyl and possession of a firearm in furtherance of drug trafficking.
New York State Police-Special Investigations Unit (NYSP-SIU) and investigators from the Oneida County District Attorney’s Office investigated this case, with assistance from the City of Utica Police Department, DEA, and ATF. Assistant U.S. Attorneys Matthew J. McCrobie and Richard R. Southwick prosecuted the case.
U.S. Attorney’s Office hosts United Against Hate meeting in Great FallsRead the Press Release
BILLINGS — The U.S. Attorney’s Office held a United Against Hate meeting Tuesday afternoon at the Great Falls Public Library with community members, along with federal and local law enforcement representatives, U.S. Attorney Jesse Laslovich said today.
United Against Hate is an initiative launched by the U.S. Department of Justice focused on improving the prevention of hate crimes and hate incidents by building relationships at the local level. Through this initiative, the Justice Department seeks to create and strengthen partnerships among law enforcement, community leaders and residents.
“The United States Department of Justice knows we have an obligation, both legally and morally, to hold individuals accountable for crimes driven by all forms of hatred. Indeed, we are united against hate and this essential and sobering work requires all of us pulling in the same direction. I am proud to stand shoulder to shoulder with our federal and local partners to combat hate crimes in Montana,” U.S. Attorney Laslovich said.
“The latest FBI statistics show that hate-fueled violence is on the rise,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “It's imperative we take a collective approach to address this issue head on. We hope this event spurred conversations, strengthened relationships, and empowered the community with the knowledge and tools to combat hate crimes together.”
The meeting with the Great Falls community is one in a series of meetings the U.S. Attorney’s Office is holding throughout Montana and provided an opportunity for community members to have a better understanding of hate crimes and hate incidents, how to report them to law enforcement and to learn about available resources. Approximately 60 people attended the event, which was hosted by the Great Falls Public Library. Additional Justice Department information and resources about hate crimes are available at https://www.justice.gov/hatecrimes.
Speakers at the event included U.S. Attorney Laslovich and Assistant U.S. Attorney Ryan G. Weldon, from the Missoula Division Office. In addition, the event featured a Hate Crimes Panel Discussion and question and comment session that included U.S. Attorney Laslovich; FBI Special Agent in Charge Shohini Sinha, from the Salt Lake City Field Office; Cascade County Attorney Josh Racki; and Great Falls Police Department Captain Rob Moccasin.
The U.S. Attorney’s Office will be holding additional United Against Hate events in coming months in communities across the state.
XXX
U.S. Attorney Announces Nuclear Materials Trafficking Charges Against Japanese Yakuza LeaderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced the issuance today of a Superseding Indictment charging TAKESHI EBISAWA with conspiring with a network of associates to traffic nuclear materials from Burma to other countries. In the course of this conspiracy, EBISAWA and his confederates showed samples of nuclear materials in Thailand to a DEA undercover agent (“UC-1”), who was posing as a narcotics and weapons trafficker. With the assistance of Thai authorities, the nuclear samples were seized and subsequently transferred to the custody of U.S. law enforcement. A U.S. nuclear forensic laboratory later analyzed the samples and confirmed that the samples contain uranium and weapons-grade plutonium.
EBISAWA and co-defendant SOMPHOP SINGHASIRI were previously charged in April 2022 with international narcotics trafficking and firearms offenses, and both have been ordered detained. EBISAWA and SINGHASIRI will be arraigned on the Superseding Indictment before U.S. District Judge Colleen McMahon tomorrow at noon.
U.S. Attorney Damian Williams said: “It is impossible to overstate the seriousness of the conduct alleged in today’s Indictment. As alleged, Takeshi Ebisawa brazenly trafficked material containing uranium and weapons-grade plutonium from Burma to other countries. He allegedly did so while believing that the material was going to be used in the development of a nuclear weapons program, and the weapons-grade plutonium he trafficked, if produced in sufficient quantities, could have been used for that purpose. Even as he allegedly attempted to sell nuclear materials, Ebisawa also negotiated for the purchase of deadly weapons, including surface-to-air missiles. I want to thank the career prosecutors of my Office and our law enforcement partners for their unwavering commitment to protecting our national security by ensuring that the defendant will now face justice in an American court.”
Assistant Attorney General Matthew G. Olsen said: “The defendant stands accused of conspiring to sell weapons grade nuclear material and lethal narcotics from Burma, and to purchase military weaponry on behalf of an armed insurgent group. It is chilling to imagine the consequences had these efforts succeeded, and the Justice Department will hold accountable those who traffic in these materials and threaten U.S. national security and international stability.”
DEA Administrator Anne Milgram said: “As alleged, the defendants in this case trafficked in drugs, weapons, and nuclear material — going so far as to offer uranium and weapons-grade plutonium fully expecting that Iran would use it for nuclear weapons. This is an extraordinary example of the depravity of drug traffickers who operate with total disregard for human life. I commend the men and women of DEA and this prosecution team for their tireless work to protect us from such evil.”
According to the allegations contained in the Superseding Indictment, which was unsealed today in Manhattan federal court:[1]
Beginning in early 2020, EBISAWA informed UC-1 and a DEA confidential source (“CS-1”) that EBISAWA had access to a large quantity of nuclear materials that he wanted to sell. Later that year, EBISAWA sent UC-1 a series of photographs depicting rocky substances with Geiger counters measuring radiation, as well as pages of what EBISAWA represented to be lab analyses indicating the presence of thorium and uranium in the depicted substances. In response to EBISAWA’s repeated inquiries, UC-1 agreed, as part of the DEA’s investigation, to help EBISAWA broker the sale of his nuclear materials to UC-1’s associate, who was posing as an Iranian general (the “General”), for use in a nuclear weapons program. EBISAWA then offered to supply the General with “plutonium” that would be even “better” and more “powerful” than uranium for this purpose. Examples of the photographs sent by EBISAWA are shown below:
During their discussions regarding EBISAWA’s access to nuclear materials, EBISAWA also engaged with UC-1 concerning EBISAWA’s desire to purchase military-grade weapons. To that end, in May 2021, EBISAWA sent UC-1 a list of weapons, including surface-to-air missiles, that EBISAWA wished to purchase from UC-1 on behalf of the leader of an ethnic insurgent group in Burma (“CC-1”). Together with two other co-conspirators (“CC-2” and “CC-3”), EBISAWA proposed to UC-1 that CC-1 sell uranium to the General, through EBISAWA, to fund CC-1’s weapons purchase. On a February 4, 2022 videoconference, CC-2 told UC-1 that CC-1 had available more than 2,000 kilograms of Thorium-232 and more than 100 kilograms of uranium in the compound U3O8 — referring to a compound of uranium commonly found in the uranium concentrate powder known as “yellowcake” — and that CC-1 could produce as much as five tons of nuclear materials in Burma. CC-2 also advised that CC-1 had provided samples of the uranium and thorium, which CC-2 was prepared to show to UC-1’s purported buyers. CC-2 noted that the samples should be packed “to contain . . . the radiation.”
About one week later, EBISAWA, CC-2, and CC-3 participated in a series of meetings with UC-1 and CS-1 in Southeast Asia, to discuss their ongoing weapons, narcotics, and nuclear materials transactions. During one of these meetings, CC-2 asked UC-1 to meet in CC-2’s hotel room. Inside the room, CC-2 showed UC-1 two plastic containers each holding a powdery yellow substance (the “Nuclear Samples”), which CC-2 described as “yellowcake.” CC-2 advised that one container held a sample of uranium in the compound U3O8, and the other container held Thorium-232. UC-1 photographed and video-recorded the Nuclear Samples, images of which are shown below:
With the assistance of Thai authorities, the Nuclear Samples were seized and subsequently transferred to the custody of U.S. law enforcement authorities. A U.S. nuclear forensic laboratory examined the Nuclear Samples and determined that both samples contain detectable quantities of uranium, thorium, and plutonium. In particular, the laboratory determined that the isotope composition of the plutonium found in the Nuclear Samples is weapons-grade, meaning that the plutonium, if produced in sufficient quantities, would be suitable for use in a nuclear weapon.
* * *
A table containing the charges and minimum and maximum penalties for EBISAWA, 60, of Japan, and SINGHASIRI, 61, of Thailand, is set forth below. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge McMahon.
Mr. Williams praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. Williams also thanked the DEA Tokyo Country Office, DEA Bangkok Country Office, DEA Chiang Mai Resident Office, DEA Jakarta Country Office, DEA Copenhagen Country Office, DEA New York Field Office, DEA New Delhi Country Office, the Counterterrorism Section of the Department of Justice’s National Security Division, the Office of International Affairs of the Department of Justice’s Criminal Division, and our law enforcement partners in Indonesia, Japan, and the Kingdom of Thailand for their assistance.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Alexander Li, Kaylan E. Lasky, and Kevin T. Sullivan are in charge of the prosecution, with assistance from Trial Attorney Dmitriy Slavin of the Counterterrorism Section.
The charges contained in the Superseding Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANT(S)
MIN. AND MAX. PRISON TERM
Count One: Conspiracy to commit international trafficking of nuclear materials
EBISAWA
Maximum of 10 years in prison
Count Two: International trafficking of nuclear materials
EBISAWA
Maximum of 20 years in prison
Count Three: Narcotics importation conspiracy
EBISAWA and SINGHASIRI
Mandatory minimum of 10 years in prison; maximum of life in prison
Count Four: Conspiracy to possess firearms, including machineguns and destructive devices
SINGHASIRI
Maximum of life in prison
Count Five: Conspiracy to acquire, transfer, and possess surface-to-air missiles
EBISAWA
Mandatory minimum of 25 years in prison; maximum of life in prison
Count Six: Narcotics importation conspiracy
EBISAWA
Mandatory minimum of 10 years in prison; maximum of life in prison
Count Seven: Conspiracy to possess firearms, including machineguns and destructive devices
EBISAWA
Maximum of life in prison
Count Eight: Money laundering
EBISAWA
Maximum of 20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
U.S. Attorney Announces Extradition of Organized Crime Leader Charged with A Murder Plot Directed from Iran Targeting A JournalistRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; and Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), announced the extradition of POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” from the Czech Republic on murder-for-hire and money laundering charges contained in a Superseding Indictment. The case is pending before U.S. District Judge Colleen McMahon. OMAROV was arrested in the Czech Republic on January 4, 2023, at the request of the United States, arrived in the Southern District of New York on February 21, 2024, and will be arraigned on the charges in the Superseding Indictment before U.S. Magistrate Judge Sarah L. Cave later today.
U.S. Attorney Damian Williams said: “Polad Omarov is alleged to have brazenly attempted to murder an outspoken critic of Iran’s human rights abuses – right here on American soil. The audacious alleged plot to kidnap and murder the victim are indicative of Iran’s policies of aggressive suppression and violence against anyone who speaks against them. Today’s extradition makes clear our unwavering resolve to charge and bring to justice any individuals attempting to stifle free speech in the U.S., especially at the behest of a malign foreign regime.”
Attorney General Merrick B. Garland said: “Last year, I announced charges against three defendants for their roles in a conspiracy to murder a U.S. citizen who has long been targeted by the Government of Iran. At the time of the announcement, two of the defendants were in U.S. custody, and we said that the long arm of the law would find and bring to justice those who seek to threaten, silence, or harm American citizens. Today, we have done just that. The third defendant, Polad Omarov, was extradited to the United States to face charges for attempting to murder on U.S. soil a journalist, author, and human rights activist who is a U.S. citizen of Iranian origin. We are grateful to our Czech government counterparts for this extradition. The Department of Justice will not tolerate attempts by an authoritarian regime to undermine the rights to which every American citizen is entitled.”
FBI Director Christopher A. Wray said: “With today’s extradition of Omarov, we have taken a significant step forward to hold Iranian actors accountable for their brazen plot to assassinate a U.S. citizen on American soil. I am honored to be here in Prague today to thank our Czech law enforcement, intelligence, and prosecutor partners for their collaboration and commitment to upholding the rule of law.”
According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]
OMAROV, a leader within an Eastern European organized crime group (the “Organization”), worked with other members of the Organization to attempt to murder a U.S. citizen of Iranian origin (the “Victim”) on instructions from individuals in Iran. The Victim previously has been the target of plots by the Government of Iran to intimidate, harass, and kidnap the Victim. The Victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime.
Beginning in approximately mid-July 2022, OMAROV’s co-defendant, RAFAT AMIROV, a leader within the Organization residing in Iran, sent targeting information – which AMIROV had received from other individuals in Iran – about the Victim and the Victim’s residence to OMAROV. OMAROV, in turn, communicated the targeting information to co-defendant KHALID MEHDIYEV, a leader within the Organization residing in Yonkers, New York, in order to begin conducting surveillance of the Victim and reconnaissance of the Victim’s residence and surrounding neighborhood. MEHDIYEV sent photographs and videos of the Victim’s residence to OMAROV for further sharing with AMIROV and the plot’s orchestrators in Iran.
After MEHDIYEV’s initial surveillance of the Victim’s residence, AMIROV and OMAROV arranged for the delivery of a $30,000 cash payment to MEHDIYEV in New York City in furtherance of the plot. MEHDIYEV used a portion of this cash payment to buy an AK-47-style assault rifle manufactured in China, along with two magazines for ammunition and at least 66 rounds. MEHDIYEV bragged in electronic communications that he had procured for himself a “war machine.”
Between July 20 and 28, 2022, MEHDIYEV repeatedly travelled to the Victim’s neighborhood to conduct surveillance and reconnaissance, sending reports of the Victim’s activities, photographs, and videos to OMAROV for further distribution to AMIROV. On July 24, 2022, after arriving at the Victim’s residence, MEHDIYEV reported to OMAROV that MEHDIYEV was “at the crime scene.” OMAROV encouraged MEHDIYEV, “You are a man!” MEHDIYEV described to OMAROV that “we blocked it from both sides, it will be a show once she steps out of the house.” OMAROV forwarded this report to AMIROV, who responded, “God willing.”
MEHDIYEV was unable to carry out the assassination that day and returned on several subsequent days to seek out opportunities to complete the murder mission. AMIROV, OMAROV, and MEHDIYEV schemed different strategies to attempt to draw the Victim out, including by attempting to ask the Victim for flowers from the Victim’s garden. On July 28, 2022, MEHDIYEV sent OMAROV a video taken from inside the car MEHDIYEV was driving showing the assault rifle, along with the message that “we are ready.” The Victim, after observing suspicious activity outside the residence, left the area, and MEHDIYEV drove away shortly afterwards. After MEHDIYEV drove away from the Victim’s residence, he was stopped after a traffic violation, and during a subsequent search of the car, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
* * *
OMAROV, 39, of Georgia, has been charged with: (i) murder-for-hire, which carries a maximum sentence of 10 years in prison; (ii) conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison; and (iii) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge McMahon.
AMIROV, 45, of Iran, and MEHDIYEV, 25, of Yonkers, New York, were previously arrested on the charges contained in the Superseding Indictment.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence Division and the New York FBI Iran Threat Task Force. Mr. Williams also thanked the New York Field Office Criminal Division, the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, and the Department of Justice’s National Security Division for their assistance. The Department of Justice’s Office of International Affairs provided critical assistance in securing OMAROV’s arrest and extradition. Mr. Williams also appreciates the significant cooperation and assistance provided by authorities in the Czech Republic.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig, Matthew J.C. Hellman, and Michael D. Lockard are in charge of the prosecution, with assistance from Trial Attorney Christopher Rigali of the National Security Division, Counterintelligence and Export Control Section.
The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Superseding Indictment and the description of the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two men sentenced for illegal moose kill in Denali National ParkRead the Press Release
ANCHORAGE, Alaska – Two men were sentenced to four years’ probation for killing a bull moose inside Denali National Park.
According to court documents, on Sept. 20, 2021, Andrew McDonald, 42, of Harrisburg, South Dakota, and Christopher Brumwell, 42, of Anchorage, were hunting in Denali National Park when McDonald shot a bull moose inside the park boundary. Three groups of hunters witnessed the illegal kill and separately reported McDonald’s and Brumwell’s conduct to law enforcement. The defendants spent several hours field dressing the moose to move the skull and a small portion of the meat to a concealed location outside the park boundary. The rest of the meat was left at the kill site for two days, until Park Rangers packed out an additional 76 pounds.
McDonald denied any knowledge of the moose kill when questioned by law enforcement the next day, while Brumwell was out in the field attempting to move the rest of the meat. Witnesses reported that Brumwell denied any knowledge of the kill when they contacted him in the field. Brumwell returned to his camp without moving any more of the meat.
Park rangers directed the men to retrieve the two game bags they moved, along with the remainder of the meat. Two days after the illegal kill, Park Rangers contacted McDonald and Brumwell as they were headed out of the field. The Park Rangers observed the men with the skinned moose skull from the kill site and the two game bags, but the men failed to retrieve the rest of the meat from the kill site as directed.
McDonald was hunting on a non-resident license, and Brumwell was hunting on a resident license.
The court delivered a sentence of four years’ probation and prohibited both defendants from hunting or seeking hunting licenses anywhere in the world for four years. Brumwell is required to pay a fine of $10,000. McDonald will pay a fine of $2,500 and $7,500 in restitution to Denali National Park. When delivering the sentence, the Court emphasized the seriousness of the crime by stating, “I want anyone who is aware of this case to know that this is not a mistake, this is a big deal. … We take this very seriously.”
Moose that aren’t taken through conventional hunting are donated to the Alaska Department of Safety “Roadkill Salvage Program,” which donates the moose meat to participating charities, people and organizations. The average moose yields roughly 500 pounds of meat, but because of the defendants conduct in this case, Rangers were able to salvage and donate only approximately 196 pounds of meat.
"Mr. McDonald and Mr. Brumwell’s actions are an affront to law abiding hunters and Alaskan subsistence living,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Hunting must be done legally and in accordance with regulations. My office will continue to work with our wildlife law enforcement partners to ensure that hunting rules and regulations are followed by resident and non-resident hunters.”
“We are very proud of the work our rangers, special agents, and law enforcement partners accomplished to ensure the successful outcome of this case," said National Park Service Alaska Regional Director, Sarah Creachbaum. “A special thanks to the local hunters who witnessed the violations and helped out with the case.”
The National Park Service investigated the case.
Assistant U.S. Attorney Ainsley McNerney prosecuted the case.
###
Two Individuals Charged with Non-Fungible Token “Rug Pull” and Laundering Proceeds Through the Solana and Ethereum BlockchainsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Devin Alan Rhoden (24, Pinellas Park), a/k/a “Denny” and “Deviinz,” and Berman Jerry Nowlin, Jr. (20, Huntsville, AL), a/k/a “Repulse” and “Zayous,” with conspiracy to commit wire fraud and money laundering. If convicted, Rhoden and Nowlin each face a maximum penalty of five years in federal prison.
According to court documents, in March 2022, Rhoden and Nowlin minted two non-fungible token (NFT) collections on the Solana blockchain named “UndeadApes” and “Undead Lady Apes.” In the weeks following the mint, the average sale price of both NFT collections (pictured below) increased significantly.
UndeadApes Collection
Undead Lady Apes Collection
In April 2022, Rhoden and Nowlin announced their intention to mint a third NFT collection named “Undead Tombstone.” In the announcement and subsequent advertisements, Rhoden and Nowlin made a number of material misrepresentations to attract victim-investors. On April 19, 2022, Rhoden and Nowlin minted 632 Undead Tombstone NFTs, resulting in approximately $135,000 USD in cryptocurrency being sent to wallets under the Rhoden and Nowlin’s control. Rhoden and Nowlin then abandoned the mint without satisfying several of the representations made to victim-investors, commonly known as a “rug pull.”
Rhoden and Nowlin transferred the fraud proceeds from the Solana blockchain to the Ethereum blockchain, also known as “chain-hopping.” This obfuscation technique is used by cybercriminals and money launderers to make identifying and tracing illicit funds more difficult. Rhoden and Nowlin then used the cryptocurrency to purchase U.S. dollars and transferred the currency into their respective bank accounts. In a matter of weeks, the three NFT collections resulted in Rhoden and Nowlin receiving more than $300,000 USD in cryptocurrency from hundreds of victim-investors all over the world.
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 U.S. Air Force Office of Special Investigations, Homeland Security Investigations (HSI), the Department of Defense – Office of Inspector General, the Defense Criminal Investigative Service, and the Pasco Sheriff's Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Download IndictmentTenderloin Drug Dealer Sentenced to More Than Six Years in Prison for Conspiracy to Distribute Fentanyl; Possession with Intent to Distribute Fentanyl, Heroin, and Cocaine; And Distribution of MethamphetamineRead the Press Release
SAN FRANCISCO – Melvin Alexis Diaz Arteaga (Diaz), a resident of Oakland, was sentenced today to 78 months in federal prison following his conviction last year on six drug charges relating to his sale of—and intent to sell—fentanyl, methamphetamine, heroin, and cocaine in the Tenderloin district of San Francisco, announced United States Attorney Ismail J. Ramsey. The sentence was imposed by the Hon. Charles R. Breyer, Senior United States District Judge.
Diaz, 30, a citizen of Honduras, pleaded guilty in October 2023 to charges including conspiracy to distribute fentanyl, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(A)(vi); possession with intent to distribute fentanyl, heroin and cocaine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A)(vi), (b)(1)(B)(i)–(ii); and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii), (b)(1)(C).
In his plea agreement, Diaz admitted he possessed 6.6 kilograms—that is, nearly 15 pounds—of fentanyl, along with lesser quantities of methamphetamine, heroin, cocaine, and other controlled substances, all of which he intended to sell, when he was arrested outside an apartment in Berkeley, California, on November 16, 2022. He also admitted that he (i) used that Berkeley apartment to manufacture and store significant quantities of drugs for sale in the Tenderloin, among other locations; and (ii) sold, or arranged the sale of, fentanyl and methamphetamine to an undercover officer of the San Francisco Police Department (SFPD) on four separate occasions between September 16, 2022, and October 5, 2022.
According to the government’s sentencing memorandum, officers found two firearms, cash, and drug manufacturing and processing equipment inside the stash house, in addition to the drugs themselves. In addition, the government’s sentencing memorandum says, officers determined that Diaz traveled from his residence in Oakland to the Tenderloin every night between October 13, 2022, and November 11, 2022. As part of his regular commute, Diaz typically picked up his co-defendant at another location in the East Bay and the two men then stopped by their Berkeley stash house to pick up drugs before heading into San Francisco to sell those drugs on the streets of the Tenderloin.
“By his own admission, this defendant had access to a staggering quantity of fentanyl, which he repeatedly sold in the Tenderloin,” said United States Attorney Ismail J. Ramsey. “Today’s sentencing should serve as a warning to those who regularly sell dangerous drugs on our streets: you will not escape justice. I am proud of the work being done by this Office and by our federal and local law enforcement partners to ensure that fentanyl dealers operating throughout this District, and particularly in the Tenderloin, are held to account.”
Pursuant to the plea agreement, Diaz agreed to forfeit, among other things, more than $50,000 in cash that officers seized on the night of his arrest, including nearly $42,000 found in Diaz’s bedroom. Diaz acknowledged these funds either were, or were derived from, drug proceeds, or that they were used, or were intended to be used, to commit or facilitate his drug trafficking crimes.
Diaz and two co-defendants were indicted by a federal grand jury on January 5, 2023. Diaz was charged in six of the eight counts alleged in the indictment.
In addition to sentencing Diaz to prison, Judge Breyer ordered the defendant to serve four years of supervised release to begin after his prison term is completed. Diaz has been in custody since he was arrested on November 16, 2022, and he was remanded into custody following his sentencing today.
Assistant United States Attorney Nicholas M. Parker is prosecuting the case with the assistance of Jessie Chelsea. The prosecution is the result of an investigation by the Drug Enforcement Administration, with assistance from SFPD.
Statement from Attorney General Merrick B. Garland on the Extradition of Polad Omarov from Czechia to the United StatesRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland on the extradition of Polad Omarov from Czechia to the United States:
“Last year, I announced charges against three defendants for their roles in a conspiracy to murder a U.S. citizen who has long been targeted by the Government of Iran. At the time of the announcement, two of the defendants were in U.S. custody, and we said that the long arm of the law would find and bring to justice those who seek to threaten, silence, or harm American citizens. Today, we have done just that. The third defendant, Polad Omarov, was extradited to the United States to face charges for attempting to murder on U.S. soil, a journalist, author, and human rights activist who is a U.S. citizen of Iranian origin.
“We are grateful to our Czech government counterparts for this extradition.
“The Department of Justice will not tolerate attempts by an authoritarian regime to undermine the rights to which every American citizen is entitled.”
St. Louis County Man Sentenced for Trying to Bribe Postal WorkersRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man who tried to buy keys to mail collection boxes from postal workers to 20 months in prison.
Dwaundre K. Valley, 21, of Bridgeton, pleaded guilty in October to bribery of a public official. He admitted offering three different postal carriers a bribe in March and April of 2022 for the “arrow” keys that allow access to certain mail collection boxes. Valley offered one letter carrier $5,000 for the key, his plea agreement says.
In a sentencing memo, Assistant U.S. Attorney Jonathan Clow wrote that the bribery attempts come at a time when mail theft has been on the rise, as criminals steal mail to obtain checks and use those checks to commit fraud. Crimes like Valley’s undermine the public’s sense of security and confidence in a vital government service, Clow wrote.
These cases were investigated by the U.S. Postal Inspection Service. A U.S. Marshals Service task force that includes the St. Louis County Police Department assisted in apprehending Valley. Assistant U.S. Attorney Jonathan Clow prosecuted the case.
St. Charles County Man Admits Collecting Child Pornography for YearsRead the Press Release
ST. LOUIS – A man from St. Charles County, Missouri on Wednesday admitted collecting child sexual abuse material for years.
Philip Daniel Shurtliff, 34, pleaded guilty in U.S. District Court in St. Louis to two counts of receipt of child pornography and admitted being caught with child sexual abuse material twice. In March of 2021, the St. Charles County Cyber Crimes Task Force received a tip from the National Center for Missing and Exploited Children (NCMEC) that someone used Kik Messenger to send child pornography. Detectives traced a Kik account to Shurtliff and performed a court-approved search of his home in April of 2021. Shurtliff told them that he obtained child pornography and sent it to someone to gain access to a Kik group. Investigators found five videos on his cell phone.
In 2023, the task force received a second report from NCMEC about child sexual abuse material that led them to Shurtliff’s home again, where they arrested Shurtliff in relation to the 2021 report. Shurliff told detectives that he is a “monster” and has been trading child pornography for approximately 19 years. Detectives found 97 images and 27 videos containing child pornography on his cell phone.
Shurtliff is scheduled to be sentenced May 21. The receipt of child pornography charge carries a mandatory minimum penalty of five years in prison and a maximum sentence of up to 20 years.
The St. Charles County Cyber Crimes Task Force investigated the case. Assistant U.S. Attorney Nathan Chapman is prosecuting 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
South Texan imprisoned for stolen identity and plot to smuggle firearms to MexicoRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old Brownsville man has been sentenced for aggravated identity theft and straw purchasing in connection to a firearm purchasing scheme out of Texas into Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Leonardo Barroso pleaded guilty June 9, 2022.
U.S. District Judge David S. Morales has now ordered Barroso to serve 87 months for the straw purchase conviction and a mandatory 24 months for the identity theft to be served consecutively for a total of 111 months in federal prison. The sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Barroso worked as a door-to-door electricity salesman who used his customers’ personal information to purchase firearms in San Antonio and Corpus Christi. Barroso purchased over 20 firearms to be smuggled into Mexico and intentionally delivered to cartel members.
On Feb. 7, 2022, Barroso purchased a firearm from a dealer in Corpus Christi using a Social Security number and identification that belonged to a known victim of identity theft. He then used the stolen identification to purchase a firearm for a third party to smuggle into Mexico. Barroso additionally provided false and misleading statements to the firearms dealer upon completing required paperwork for the purchase.
Barroso also admitted to law enforcement he was transporting other firearms out of the United States. He served as a facilitator by recruiting Mexican nationals to purchase numerous firearms from dealers in Texas to be smuggled into Mexico.
Barroso will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys John Marck and Lance Watt prosecuted the case.
South Portland Man Pleads Guilty to Gun and Drug Trafficking ChargesRead the Press Release
PORTLAND, Maine: A South Portland man pleaded guilty today in U.S. District Court in Portland to possession of a firearm by a prohibited person and possession of fentanyl and cocaine with intent to distribute.
According to court records, in April 2023, law enforcement located Joshua Hopkins, 33, who had an active state arrest warrant, at a South Portland hotel. A search of a backpack Hopkins had been wearing revealed multiple scales, a single round of 7.62 mm x 39 mm ammunition, a blender that contained suspected fentanyl powder, smaller containers of additional suspected fentanyl powder, bags of suspected cocaine, and what appeared to be a substance used to “cut” drugs. A man with Hopkins told officers that Hopkins supplied him with drugs and had left a rifle and personal belongings in his car. Officers found a black Norinco SKS-style rifle in the vehicle. The round of ammunition in the backpack matched the caliber of the rifle. Hopkins is prohibited from possessing firearms due to prior felony convictions.
Hopkins faces up to 15 years in prison on the gun charge and five to 40 years on the drug charge, with maximum fines of $250,000 and $5 million, respectively. He 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 Bureau of Alcohol, Tobacco, Firearms and Explosives; South Portland Police Department; Maine Drug Enforcement Agency and U.S. Drug Enforcement Administration investigated the case.
###
South Bend Man Sentenced to 132 Months in PrisonRead the Press Release
SOUTH BEND – Lincoln Glass, 30 years old, of South Bend, 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.
Glass was sentenced to 132 months in prison followed by 5 years of supervised release.
According to documents in the case, in 2021, Glass sold different types of controlled substances on three separate occasions: September one pound of methamphetamine; November and December fentanyl pills. Thereafter, in March 2022, law enforcement recovered a loaded handgun stored with dealer amounts of marijuana from Glass’ residence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the DEA North Central Laboratory, the Indiana State Police, and the Mishawaka Police Department. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
This case was 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.
Seymour Man Admits Involvement in Danbury Post Office Bribery and Kickback SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Kenneth Cleevely, Special Agent in Charge of the United States Postal Service Office of Inspector General, and Robert Fuller, Special Agent in Charge of the Federal Bureau of Investigation, announced that MICHAEL D. LUTZ, 26, of Seymour, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a conspiracy offense stemming from a bribery and kickback scheme involving the Postmaster of the Danbury Post Office.
According to court documents and statements made in court, Ephrem D. Nguyen was employed by the U.S. Postal Service (“USPS”) as the Postmaster of the Danbury Post Office in Danbury, with responsibilities that included supervising the maintenance and repair of all equipment, facilities, and vehicles assigned to the post office. Lutz was the general manager for a company, identified in court documents as “Vendor-1,” which provided vehicle maintenance and repair services for the Danbury Post Office.
In November 2020, Nguyen required that all Danbury Post Office vehicle maintenance and repair work be performed by Vendor-1, even though Nguyen knew that another vendor already had a contract with the Danbury Post Office for those services. Nguyen demanded that Vendor-1 provide free vehicle maintenance and repairs for himself, one of his children, a USPS employee, and employee of Nguyen’s personal business. In 2022, Nguyen solicited and received from Lutz $90,000 in cash bribes, which Lutz paid from Vendor-1’s proceeds. In exchange for these bribes, Nguyen caused the USPS to overpay the Vendor-1 for vehicle maintenance and repair, which Nguyen characterized as a “raise.” Between approximately January 2022 and February 2023, Nguyen used USPS credit cards to pay Vendor-1 approximately $1.1 million, approximately $260,000 of which was for legitimate maintenance and repair work.
The USPS lost approximately $843,271.32 though this scheme.
Lutz pleaded guilty to conspiracy to commit honest services wire, which carries a maximum term of imprisonment of 20 years. Judge Underhill scheduled sentencing for May 16.
Lutz is released on bond pending sentencing.
On October 13, 2023, Nguyen pleaded guilty to one count of honest services wire fraud related to this scheme and also admitted that he embezzled more than $80,000 from the USPS by using his USPS credit cards to rent vehicles for the personal use of himself and others, and that he approved more than $8,000 in fraudulent travel expense reimbursement claims for a co-worker.
Nguyen is released on a $100,000 bond and residing in Massachusetts while awaiting sentencing.
This investigation is being conducted by the U.S. Postal Service, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jonathan N. Francis.
Ridgefield Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NICHOLAS SKIRKANICH, 44, of Ridgefield, pleaded guilty today before U.S. District Judge Vernon D. Oliver in Hartford to a charge related to possessing and accessing images and videos depicting child sex abuse material.
According to court documents and statements made in court, in October 2022, an online service provider submitted a CyberTip to the National Center for Missing and Exploited Children (“NCMEC”) indicating that a TikTok video containing child sex abuse imagery was sent from Skirkanich’s email account to another email account. Subsequent investigation revealed that Skirkanich possessed and accessed additional material containing child sex abuse imagery between approximately August 2021 and December 2022.
Skirkanich was arrested on December 15, 2022.
Skirkanich pleaded guilty to accessing with intent to view and possessing child pornography, an offense that carries a maximum term of imprisonment of 10 years. Judge Oliver scheduled sentencing for May 15. Skirkanich is released on a $150,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations (HSI) with the assistance of the Ridgefield Police Department. The case is being prosecuted by Assistant U.S. Attorney Shan Patel, with the assistance of the Danbury State’s Attorney’s Office.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Pulaski County Man Sentenced to 28 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Somerset, Ky., man, Johnathan Fitzgerald Cannada, 41, was sentenced on Tuesday, by U.S. District Judge Karen K. Caldwell, to 28 years in prison, for production of child pornography.
According to his plea agreement, Cannada admitted to having a sexual relationship with a minor, where he persuaded the minor victim to engage in sexually explicit conduct, to produce visual depictions of the conduct. On at least two occasions, Cannada filmed himself engaging in sexual activity with the minor. Separately, the minor would also capture sexually explicit depictions of herself, on a device Cannada provided her, and would then send them to him, via Facebook Messenger, at his request. During the investigation, Cannada also attempted to obstruct justice in several ways, by remotely wiping the victim’s device while it was in police custody, encouraging the victim to delete evidence through Facebook Messenger, and threatening physical violence toward a family member of the victim.
Under federal law, Cannada 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 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Russell Coleman, Kentucky Attorney General’s Office; and Chief William Hunt, Somerset Police Department, jointly announced the sentence.
The investigation was conducted by FBI, ,Somerset Police Department, and the Kentucky Attorney General’s Office. David Dalton, Commonwealth Attorney for the 28th Judicial Circuit, also provided significant assistance to the investigation and prosecution of the case. Assistant U.S. Attorney Mary Melton 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.
— END —
Prominent Ghanaian “Influencer” Pleads Guilty to Receiving Fraud Proceeds from Romance ScamsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of MONA FAIZ MONTRAGE for her role in laundering the proceeds of a series of romance scams. MONTRAGE pled guilty today to conspiracy to receive stolen money before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “Mona Faiz Montrage knowingly received money stolen from older Americans through romance scams and was arrested abroad and now faces serious consequences for her actions. Romance scams such as Montrage’s harmed her vulnerable, elderly victims not only in the cruel betrayal of trust in the realization that their online romantic connection was fiction, but by also callously stealing their money. This Office and our law enforcement partners are relentless in bringing fraudsters who target Americans to justice, no matter where they are.”
As alleged in the Indictment and statements made in public filings and public court proceedings:
From at least in or about 2013 through in or about 2019, MONTRAGE was a member of a criminal enterprise (the “Enterprise”) based in West Africa that committed a series of frauds against individuals and businesses in the U.S., including romance scams.
Many of the Enterprise’s romance scam victims were vulnerable, older men and women who lived alone. The Enterprise frequently conducted the romance scams by sending the victims emails, text messages, and social media messages that deceived the victims into believing that they were in romantic relationships with a person who was, in fact, a fake identity assumed by members of the Enterprise. Once members of the Enterprise had successfully convinced victims that they were in a romantic relationship and had gained their trust, they convinced the victims, under false pretenses, to transfer money to bank accounts the victims believed were controlled by their romantic interests, when, in fact, the bank accounts were controlled by members of the Enterprise.
MONTRAGE is a Ghanaian public figure who rose to fame as an influencer through her Instagram profile under the username “Hajia4Reall,” which at one point had approximately 3.4 million Instagram followers and was among the top 10 profiles with the most followers in Ghana.
MONTRAGE received money from several victims of romance frauds who members of the Enterprise tricked into sending money. Among the false pretenses used to induce victims to send money to MONTRAGE were payments to transport gold to the U.S. from overseas payments to resolve a fake FBI investigation, and payments to assist a fake U.S. Army officer in receiving funds from Afghanistan.
In total, MONTRAGE controlled bank accounts that received over $2 million in fraudulent funds from the Enterprise.
* * *
MONTRAGE, 31, of Accra, Ghana, pled guilty to one count of conspiring to receive stolen money, which carries a maximum sentence of five years in prison. MONTRAGE also agreed to pay forfeiture in the amount of $2,164,758.41 and make restitution in the same amount. MONTRAGE is scheduled to be sentenced by U.S. District Judge Paul A. Crotty.
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 the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Mitzi Steiner and Kevin Mead are in charge of the prosecution.
Philadelphia Man Admits Receiving Child Pornography and Transferring Obscene Images to MinorRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted causing a minor victim to create and send him sexually explicit images and videos and sending the victim obscene images of himself, U.S. Attorney Philip R. Sellinger announced.
Francisco Andres-Medina, 33, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to two counts of an indictment charging him with receipt of child pornography and transfer of obscene material to a minor.
According to documents filed in this case and statements made in court:
In March and April 2020, Medina communicated over the internet with a 15-year-old victim located in Camden County, New Jersey. After learning that his victim was 15 years old, Medina sent her obscene photographs of his exposed penis. Medina also caused the victim to produce videos and images of the victim engaged in sexually explicit conduct. Medina then caused the victim to send him the sexually explicit images and videos. Medina also directed the victim to send him a video of the victim having sex with another individual.
The count of receiving child pornography is punishable by a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison. The count of transferring obscene material to a minor is punishable by a maximum of 10 years in prison. Each count carries a fine of up to $250,000. Sentencing is scheduled for June 26, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, and the Camden County Prosecutor’s Office High Tech Crimes and Special Victims Units, under the direction of Prosecutor Grace C. MacAulay, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Josephine Park of the U.S. Attorney’s Office in Camden.
andresmedina.indictment.pdfOwner of Cuyahoga Falls Tax Prep Business Sentenced for Filing a False Tax ReturnRead the Press Release
Lateesha Black, 52, of Hudson, Ohio, was sentenced to 12 months and a day in prison by United States District Judge Benita Y. Pearson and ordered to pay restitution to the IRS in the amount of $114,022 after previously pleading guilty to aiding or assisting in filing a false tax return and corrupt endeavor to obstruct and impede the administration of the internal revenue laws. Black was also fined $15,000.
According to court documents, Black owned and operated Ideal Accounting Solutions L.L.C. (“Ideal”), an accounting and tax preparation business in Cuyahoga Falls, Ohio. Over the course of several years, Black knowingly prepared several false tax returns for her clients by claiming false Schedule C net losses, income, and expenses in order to inflate the size of her clients’ tax refund. Black then electronically filed these false tax returns in her clients’ names.
In 2019, Special Agents with IRS Criminal Investigation (IRS-CI) interviewed Black regarding Ideal’s tax preparation activities and served Black with an IRS summons for Ideal’s business records. After being served the summons, and in an attempt to conceal her fraud from IRS-CI, Black requested to meet with multiple clients and had them sign false and, in some instances back-dated, tax preparation working papers in order to substantiate the false Schedule C net losses, income, and expenses previously filed. The false tax preparation working papers were then provided to Special Agents.
The investigation was conducted by IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Edward D. Brydle.
Omaha Man Sentenced for Cocaine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Gary Pope II, 42, of Omaha, Nebraska, was sentenced February 21, 2024, in federal court in Omaha for conspiracy to distribute cocaine. U.S. District Court Judge Brian C. Buescher sentenced Pope to 87 months’ imprisonment. There is no parole in the federal system. After Pope’s release from prison, he will begin a three-year term of supervised release.
Law enforcement became aware of Pope as a dealer of cocaine in the Omaha area. This led to a three-month wiretap of Pope’s cell phone in 2022. The wiretap intercepts and resulting investigation confirmed that Pope would receive cocaine deliveries from Texas in kilogram quantities and sell the cocaine in lesser quantities in the Omaha area. As part of a plea agreement, Pope admitted to agreeing to distribute at least five kilograms of cocaine in Nebraska between January 19, 2022, and July 15, 2022.
This case was investigated by the Drug Enforcement Administration.
Pope has also pleaded guilty in the U.S. District Court for the Southern District of Iowa to two charges – possession with intent to distribute marijuana and carrying a firearm in relation to a drug trafficking crime. Sentencing in that case is scheduled for March 19, 2024.
Oklahoma Man Pleads Guilty to Defrauding Government’s Online Auctions, Purchasing Vehicles and Jewelry for $1Read the Press Release
MINNEAPOLIS – An Oklahoma man has pleaded guilty to wire fraud after hacking a government auction website and purchasing vehicles and jewelry for $1, announced United States Attorney Andrew M. Luger.
According to court documents, between February 25 and March 6, 2019, Evan James Coker, 41, participated in a scheme to defraud General Service Administration’s (“GSA”) auctions. The GSA conducts online auctions through which it sells excess equipment, including surplus, seized, and forfeited assets, as well as equipment that is no longer needed by government agencies. The auctions are conducted online through servers located in Eagan, Minnesota.
As part of his scheme, Coker bid in multiple auctions for vehicles and jewelry on the GSA Auctions website. When Coker won a particular auction, he was directed to the pay.gov website to remit payment in the amount of his winning bid. Instead of remitting payment in the amount of his winning bid, Coker breached the pay.gov website and falsified the true auction price to $1.
In total, Coker bid on and won 19 auction items and fraudulently paid just $1 for each item. As a result of his scheme, Coker obtained three vehicles, including a 2010 Ford Escape Hybrid, for which he bid $8,327; a Ford F550 pickup truck, for which he bid $9,000; and a Chevrolet C4500 Box Truck, for which he bid $22,700.
Coker pleaded guilty today in U.S. District Court before Judge Michael J. Davis to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the General Services Administration Office of Inspector General and the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Matthew D. Forbes are prosecuting the case.
Northern Cambria Woman Sentenced for Tax and Wire FraudRead the Press Release
JOHNSTOWN, Pa. – A resident of Northern Cambria, Pennsylvania, was sentenced in federal court on February 20, 2024, to a total of 12 months and one day in prison followed by two years of supervised release on her conviction of tax and wire fraud, United States Attorney Eric Olshan announced today.
United States Senior District Judge Kim R. Gibson imposed the sentence on Sarah Stiles, 39.
According to information presented to the Court, Stiles admitted that, in and around December 2019, she willfully failed to collect and pay over employees’ employment taxes, a task for which she was personally responsible as the vice president of a Northern Cambria business. She further admitted that, from on or about August 2, 2019, until on or about February 26, 2020, she knowingly and willfully conspired to commit wire fraud, in part by directing fraudulent payments from her employer to a fictitious company.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Internal Revenue Service, Federal Bureau of Investigation, Pennsylvania State Police, and Pennsylvania Office of Attorney General for the investigation that led to the successful prosecution of Stiles.
North Tonawanda man going to prison for 10 years on drug and gun chargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Daniel Rodriguez, 40, of North Tonawanda, NY, who was convicted of possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of a firearm and ammunition, was sentenced to serve 120 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Evan K. Glaberson, who handled the case, stated that leading up to September 11, 2020, Rodriguez and co-defendant Adrienne Czosnyka resided together on Center Avenue in North Tonawanda. Rodriguez was a suspect in an investigation being conducted by the Town of Tonawanda Police Department. On September 11, 2020, investigators executed a search warrant at the Center Avenue residence and on a vehicle belonging to defendant Czosnyka. They recovered over 500 grams of cocaine, four digital scales, 10 cellular telephones, and over $4,700 in currency. Investigators also recovered a 12-gauge shotgun, and three rounds of ammunition. Rodriguez was previously convicted of felonies in 2001 and 2007, and is legally prohibited from possessing firearms.
Adrienne Czosnyka pleaded guilty to misdemeanor possession of cocaine and faces up to a year in prison when sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, III, New York Field Division; the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger; the North Tonawanda Police Department, under the direction of Chief Keith T. Glass; and the New York State Police, under the direction of Major Eugene Staniszewski.
# # # #
North Henderson, Illinois, Man Sentenced to 30 Months in Prison for Failing to Register as a Sex OffenderRead the Press Release
ROCK ISLAND, Ill. – A North Henderson man, Alan Dean Secrist, 48, of the 500 block of 300th Street, North Henderson, Illinois, was sentenced on February 14, 2024, to 30 months of imprisonment, to be followed by five years of supervised release, for Failure to Register as a sex offender.
At the sentencing hearing, Chief United States District Judge Sara L. Darrow determined that Secrist was a Tier III offender under the Sex Offender Registration and Notification Act (SORNA) and was required to register for life as a sex offender due to his 2011 conviction in Knox County, Illinois, for aggravated criminal sexual abuse. Secrist failed to register his residence and in March of 2023, he was located arrested on the charge. Secrist has remained in custody of the U.S. Marshals Service since his arrest.
Secrist pleaded guilty in October 2023, to Failure to Register. The statutory penalty for failure to register as a sex offender is up to 10 years of imprisonment, to be followed by 5 years to life of supervised release.
The investigation was conducted by the Galesburg Police Department, the Mercer County Sheriff’s Office, the Fountain Police Department in Fountain, Colorado, and the United States Marshals Service. Assistant United States Attorney Elizabeth Lee Aguilar represented the federal government in the prosecution.
North Carolina Man Sentenced for Role in 59 Kilo Cross-Border Cocaine DeliveryRead the Press Release
NEWPORT NEWS, Va. – A Durham, North Carolina man was sentenced yesterday to 123 months in prison for his role in the attempted delivery of 59 kilograms of cocaine that was transported across the U.S.-Mexico border en route to Providence Forge, Virginia.
According to court documents, on July 26, 2023, agents from the Drug Enforcement Administration and Homeland Security Investigations intercepted a load of cocaine as it crossed the U.S.-Mexico border. Agents then replaced the cocaine with an imitation substance and took the load to a truck stop in Providence Forge to make a controlled delivery to the intended recipient, Jose Daniel Arellano Rodriguez, 36.
Arellano Rodriguez arrived at the truck stop with $90,000 in cash to take delivery of the cocaine. He was arrested at the scene and charged with attempted possession with the intent to distribute more than five kilograms of cocaine.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Assistant U.S. Attorney Eric M. Hurt prosecuted 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.
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. 4:23-cr-61.
New Orleans Man and Woman Indicted for Fraudulent Vehicle Purchase SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Friday, February 16, 2024, KENNETH RICHMOND, age 63, and KENDRA WALKER, age 40, of New Orleans, were charged in a six-count indictment by for conspiring to commit wire fraud, and aggravated identity theft.
In Count One, RICHMOND and WALKER were charged with conspiring to commit wire fraud, in violation of Title 18, United States Code, Section 1343. According to the indictment, in 2022, RICHMOND and WALKER conspired to use fake or stolen personal identifying information to make fraudulent vehicle purchases from a local car dealership. The vehicle purchases were bank financed, and the loans went into default.
Counts Two through Five of the indictment allege that on several dates between February and November of 2022, RICHMOND and/or WALKER caused credit applications to be submitted through wire communications, in order to defraud a car dealership and bank, in violation of Title 18, United States Code, Sections 1343 and 2.
Count Six alleges that RICHMOND and WALKER knowingly transferred, without lawful authority, a means of identification belonging to another actual person, to further their fraudulent scheme, in violation of Title 18, United States Code, Sections 1028A and 2.
If convicted of Counts One through Five, RICHMOND and WALKER face, as to each count, up to twenty (20) years imprisonment, up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. As to Count Six, RICHMOND and WALKER face a prison term of two (2) years consecutive to any other sentence imposed, up to one (1) year of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Secret Service. Assistant United States Attorney Maria Carboni of the Financial Crimes Unit is in charge of the prosecution.
New Orleans Man Pleads Guilty to Possessing Cars Stolen from Norfolk Southern Railyard and Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – MISTER MACKEY, JR., age 22, a resident of New Orleans, pleaded guilty on February 20, 2024, before U.S. District Judge Jay C. Zainey to two counts of possessing goods stolen from an interstate shipment, in violation of Title 18, United States Code, Section 659; possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), announced U.S. Attorney Duane A. Evans. MACKEY is the tenth and final defendant to plead guilty in this case.
According to court documents, on March 29, 2023,a 2023 Ford F-150 Raptor Crew Cab 4X4 and a 2023 Lincoln Aviator were stolen from the Norfolk Southern Automotive Distribution Facility. Between March 29 and April 3, 2023, MACKEY was observed on surveillance video occupying both stolen vehicles.
On August 19, 2023, MACKEY was the sole passenger in a vehicle stopped for a traffic violation. A vehicle search revealed backpacks containing marijuana, digital scales, and a Glock Model 17 handgun with a loaded 30-round magazine partially inserted in the gun, and an additional loaded drum magazine in the glove box. MACKEY possessed the marijuana for distribution, and also possessed the Glock Model 17 and ammunition. Previously, MACKEY had been convicted of engaging in organized criminal activity, unauthorized use of a motor vehicle, and bank fraud.
Each count of possessing a stolen car carries a sentence of up to 10 years imprisonment, up to a $250,000 fine, and up to three years of supervised release. As to his conviction for possession with intent to distribute marijuana, MACKEY faces up to 5 years imprisonment, up to a $250,000 fine, and a minimum of two years of supervised release. As to his conviction for being a felon in possession of a firearm, MACKEY faces up to 15 years imprisonment, up to a $250,000 fine, and up to three years of supervised release. As to each count of conviction, MACKEY also faces payment of a mandatory $100 special assessment fee.
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.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA –CHRIS ROBERTSON, JR., age 25, a resident of New Orleans, pleaded guilty on February 15, 2024 before Chief U.S. District Judge Nanette Jolivette Brown to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, the Federal Bureau of Investigation (FBI) executed a search warrant at ROBERTSON’s residence in November of 2023. FBI agents found a box of 9-millimeter ammunition hidden beneath ROBERTSON’s mattress and a Glock Model 19, 9-millimeter handgun, hidden beneath a rug outside his bedroom. ROBERTSON has previous convictions for possessing a firearm with an obliterated serial number and attempted illegal carrying of weapons, while in possession of a controlled substance.
ROBERTSON, JR. faces up to 15 years in prison, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
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 investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
Missouri Man Who Fled to Asia During Child Pornography Investigation Sentenced to 7 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man who fled to Asia after his arrest during a child pornography investigation to seven years in prison.
Dominic J. Pavia, now 42, pleaded guilty in November to one count of possession of child pornography. He admitted as part of his plea that on Dec. 10, 2010, an investigation by the Saint Louis County Police Department's Special Investigations Unit identified a computer being used to store child sexual abuse material. During an April 26, 2011, court-approved search, detectives seized computer equipment and Pavia, a law school student, was arrested. A scan revealed child pornography on the computer.
Pavia, who was living in University City at the time, left the country, knowing that criminal charges were a possibility, according to his plea agreement.
On March 4, 2014, detectives performed a full forensic analysis of the computer, finding 4,641 images and 1,719 videos containing child pornography. Pavia was indicted on Nov. 19, 2014.
After leaving the U.S., Pavia traveled to China, Thailand, Cambodia and the Philippines. He was unable to renew his visa in China in the summer of 2022 and his passport was set to expire in September 2023, according to court records. He returned to the United States in January 2023.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Dianna Collins 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
Missouri Man Sentenced to 20 Years in prison for Recording Child Sexual AbuseRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a man who recorded his sexual abuse of a 13-year-old girl and recorded other children in the shower to 20 years in prison.
Matthew A. Prewett, 43, of Kennett, in Dunklin County, engaged in sexual contact with a 13-year-old girl beginning in April of 2022, and recorded his crimes on video. He also placed hidden cameras in his home, including in the bathroom, and recorded children between ages 12 and 17 while they were nude and showering.
The investigation began after the victim’s mother found sexually suggestive text messages from Prewett on her daughter’s phone.
Prewett pleaded guilty in November to a felony charge of sexual exploitation of a minor.
The case was investigated by the Kennett Police Department and the FBI. Assistant U.S. Attorney Julie Hunter is prosecuting 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
Missouri Man Admits Selling Fentanyl to Drug Overdose VictimRead the Press Release
CAPE GIRARDEAU – A man from Jackson, Missouri on Wednesday admitted selling fentanyl to someone who later suffered a fatal overdose.
Dylan C. McMikle, 22, of Jackson, Missouri, pleaded guilty to one felony count of distribution of fentanyl. He admitted selling fentanyl to a 25-year-old Sikeston man early on the morning of Dec. 16, 2022. The victim snorted several lines of powdered fentanyl that McMikle provided and McMikle sold the victim an additional capsule containing fentanyl as he was leaving at approximately 6 a.m., McMikle’s plea agreement says The victim, who had been struggling with a serious addiction, died of a drug overdose that evening.
After the victim’s death, investigators found messages between the victim and McMikle about obtaining fentanyl. McMikle consented to a search of his home and officers found a small baggie of fentanyl powder and several fentanyl pills.
McMikle is scheduled to be sentenced May 21. The distribution of fentanyl charge carries a penalty of up to 20 years in prison.
The case was investigated by the Drug Enforcement Administration, the Southeast Missouri Drug Task Force and the Sikeston Department of Public Safety. Assistant U.S. Attorney Jack Koester is prosecuting the case.
Middlesex County Man Sentenced to 33 Months in Prison for Role in COVID-19 Fraud Schemes Totaling over $2.1 MillionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 33 months in prison for his role in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Arlen G. Encarnacion, 38, of Perth Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering.
On Aug. 8, 2023, Jacquelyn Pena, 38, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering and were each sentenced to probation.
U.S. Attorney Philip R. Sellinger“This defendant fraudulently obtained funds earmarked for struggling Americans who needed financial relief during the COVID 19 pandemic. Today’s sentence demonstrates that those who used the pandemic to illegally enrich themselves will be held accountable. My office will continue to bring to justice individuals who have engaged in COVID-related fraud.”
“Brazen schemes have callously defrauded COVID-19 relief programs and caused undue financial harm to both hardworking Americans and businesses alike,” Christopher A. Nielsen, Inspector in Charge, U.S. Postal Inspection Service, Philadelphia Division, said. “Today’s sentencing illustrates that Postal Inspectors will continue its efforts to identify and hold accountable, those individuals who steal pandemic funds to fulfill their own greed.”
“IRS Criminal Investigation and our law enforcement partners are committed to investigating and prosecuting those who engage in acts of COVID-related fraud,” said Tammy Tomlins, Special Agent in Charge of Newark Field Office. “Today, Mr. Encarnacion was held accountable for fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). His conscious decision to participate in this illicit scheme has cost him his freedom.”
According to the documents filed in these cases and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.
In addition to the prison term, Judge Castner sentenced Encarnacion to three years of supervised release and ordered restitution of $2.18 million.
U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tomlins; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau New York Regional Office, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; with the investigation leading to today’s sentencing. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Meth Distributor Sentenced to over 7 Years in PrisonRead the Press Release
TUCSON, Ariz. – Esteban Terrazas, 56, of Tucson, was sentenced last week by United States District Judge Jennifer G. Zipps to 87 months in prison. Terrazas pleaded guilty to Possession with Intent to Distribute Methamphetamine on October 27, 2023.
On August 10, 2021, law enforcement officers stopped Terrazas for a traffic violation and found approximately one pound of methamphetamine and a loaded handgun in his possession. Terrazas admitted that he intended to sell the methamphetamine and that he was prohibited from possessing a gun. Terrazas has multiple prior felony convictions, the most recent being for manslaughter, that prohibit him from possessing firearms.
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.
Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-2360-TUC-JGZ
RELEASE NUMBER: 2024-019_Terrazas# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Mason City Woman Sentenced to Federal Prison for Conspiring to Distribute MethRead the Press Release
A Mason City woman who allowed her daughter and another individual to store methamphetamine in her home was sentenced February 21, 2024, to more nearly 4 years in federal prison.
Julie Ann Sankey, age 62, from Mason City, Iowa received the prison term after an August 29, 2023, guilty plea to conspiracy to distribute methamphetamine. Sankey was in possession of a half-ounce of ice methamphetamine that belonged to the co-defendants and was intended for sale. Sankey allowed her co-defendants to store up pounds of methamphetamine for resale on 15 through 20 different occasions between 2020 and 2021.
Sankey was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sankey was sentenced to 46 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Sankey 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 Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Clear Lake Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3006.
Follow us on Twitter @USAO_NDIA.
Manchester Man Sentenced to Federal Prison for 6 Years for Possessing with Intent to Distribute Fentanyl and MethamphetamineRead the Press Release
CONCORD – A Manchester man was sentenced yesterday in federal court for possession of fentanyl and methamphetamine with the intent to distribute the drugs, U.S. Attorney Jane E. Young announces.
Jeffrey Hayes, 44, was sentenced by U.S. District Court Judge Joseph Laplante to 72 months in prison and 3 years of supervised release.
“The devastation caused by fentanyl and methamphetamine touches every community in New Hampshire,” U.S. Attorney Jane E. Young said. “Those who traffic these poisons like the defendant will be sentenced to prison for significant periods of time.”
"Our efforts to combat drug distribution are vital to safeguarding our community, and this outcome underscores the severity of such criminal activities and their detrimental impact on society,” said Manchester Police Chief Allen Aldenberg.
In 2021, the Manchester Police Department investigated Hayes for drug distribution, and eventually searched his residence. During the search, they found distribution-level quantities of methamphetamine and fentanyl.
The Manchester Police Department led the investigation. Assistant U.S. Attorney Heather Cherniske prosecuted the case.
###
Kaplan, La. Man Sentenced to Three Years Probation for Wire Fraud and Money Laundering ConspiracyRead the Press Release
NEW ORLEANS – GRANT C. MENARD, age 37 and a resident of Kaplan, La., was sentenced today by U.S. District Judge Jane Triche-Milazzo to three years of probation after previously pleading guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans.
As according to court documents, MENARD conspired with RYAN MULLEN, DUANE DUFRENE, DILLON ARCENEAUX, LANCE VALLO, and ZEB SARTIN to use a number of shell Louisiana companies with no assets, to defraud a merchant cash advance company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of existing companies. MULLEN and DUFRENE then created fake vendor accounts for the companies, and MULLEN, with the aid of another person, created falsified bank records for the companies. MULLEN then used an alias, claiming to be a broker for the companies he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim merchant cash advance company then approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent companies before fully repaying the merchant cash advance company, resulting in overall losses to the victim of approximately $6.4 million. MENARD, himself, was responsible for approximately $649,990 in losses to the victim.
In addition to the sentence, MENARD was sentenced to pay $649,990 in victim restitution, 40 hours of community service and a mandatory special assessment fee of $200.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera of the Financial Crimes Unit and Andre Lagarde of the Public Integrity Unit.
Kansas man indicted on drug trafficking chargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with drug trafficking and firearms crimes.
According to court documents, Horace R. Wright, 40, of Pittsburg is charged with one count of possession of methamphetamine with intent to distribute, one count of possession of fentanyl with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
The Kansas Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Lanny Welch is prosecuting the case.
OTHER INDICTMENTS
Raul Delgado-Sanchez, 32, of Wichita was indicted on one with count of distribution of methamphetamine, one count of possession of methamphetamine with the intent to distribute, and one count of unlawful possession of a firearm. The Drug Enforcement Administration (DEA) is investigating the case. Assistant U.S. Attorney Lanny Welch is 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.
###
Kanawha County Man Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Sean Patrick Boyd Jr., 26, of Dunbar, was sentenced today to five years of federal probation for receipt of stolen money. Boyd was also ordered to pay $23,817.79 in restitution, and owes $17,227.79 of that amount after turning over $6,590 in seized assets. Boyd admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $20,832 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 18, 2021, Boyd applied for a PPP loan on behalf of his purported business, “Sean Boyd.” Boyd falsely stated in his application that “Sean Boyd” was in operation on February 15, 2020, which was a requirement to qualify for a PPP loan. Boyd admitted that “Sean Boyd” was fictitious and was not a registered business entity in West Virginia at the time he applied for the loan. Businesses applying for PPP loans were also required to provide documentation showing their prior gross income from either 2019 or 2020. Boyd admitted that he submitted a false IRS Form 1040, Schedule C, stating that “Sean Boyd” had earned $99,996 in gross income during 2019.
Boyd submitted the loan application electronically from West Virginia and it was uploaded to servers in Nebraska for processing. Boyd’s loan application was approved and $20,832 was electronically transferred to his personal bank account in West Virginia. Boyd admitted that before he received the fraudulent loan, his bank account balance was $12.47. On May 24, 2021, Boyd withdrew $10,000 of the fraudulent loan proceeds from his bank’s branch in Nitro.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the PPP.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-123.
###
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit to permanently bar Julius T. Price and his tax return preparation business, Price’s Accounting Firm Inc., from preparing federal income tax returns for others.
The complaint, filed in the U.S. District Court for the Middle District of Florida, alleges that Price prepared thousands of federal income tax returns from 2018 through 2023 that understate his customers’ tax liabilities and overstate the refunds to which they were entitled through a variety of schemes. The complaint describes how Price knowingly made up businesses on returns he prepared to generate bogus losses, included fraudulent claims for the Earned Income Tax Credit (EITC), claimed fictitious deductions and credits for tuition and fees and fabricated itemized deductions for medical expenses, mortgage interest and gifts to charity. According to the complaint, Price’s pattern of fraudulently understating his customers’ tax liabilities and overstating their refunds has resulted in the loss of significant federal tax revenue, estimated to exceed $1.5 million.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Price Complaint.pdfJustice Department Announces Nuclear Materials Trafficking Charges Against Japanese Yakuza LeaderRead the Press Release
A superseding indictment was unsealed in Manhattan today charging a Japanese national with conspiring with a network of associates to traffic nuclear materials from Burma to other countries.
According to court documents, Takeshi Ebisawa, 60, and co-defendant Somphop Singhasiri, 61, were previously charged in April 2022 with international narcotics trafficking and firearms offenses, and both have been ordered detained.
“The defendant stands accused of conspiring to sell weapons grade nuclear material and lethal narcotics from Burma, and to purchase military weaponry on behalf of an armed insurgent group,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “It is chilling to imagine the consequences had these efforts succeeded and the Justice Department will hold accountable those who traffic in these materials and threaten U.S. national security and international stability.”
“As alleged, the defendant brazenly trafficked material containing uranium and weapons-grade plutonium from Burma to other countries,” said U.S. Attorney Damian Williams for the Southern District of New York. “He did so while believing that the material was going to be used in the development of a nuclear weapons program, and while also negotiating for the purchase of deadly weapons. It is impossible to overstate the seriousness of this conduct. I want to thank the career prosecutors of my office and our law enforcement partners for ensuring that the defendant will now face justice in an American court.”
“As alleged, the defendants in this case trafficked in drugs, weapons, and nuclear material – going so far as to offer uranium and weapons-grade plutonium fully expecting that Iran would use it for nuclear weapons,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “This is an extraordinary example of the depravity of drug traffickers who operate with total disregard for human life. I commend the men and women of DEA and this prosecution team for their tireless work to protect us from such evil.”
According to the allegations contained in the indictment, beginning in early 2020, Ebisawa informed UC-1 and a DEA confidential source (CS-1) that Ebisawa had access to a large quantity of nuclear materials that he wanted to sell. Later that year, Ebisawa sent UC-1 a series of photographs depicting rocky substances with Geiger counters measuring radiation, as well as pages of what Ebisawa represented to be lab analyses indicating the presence of thorium and uranium in the depicted substances. In response to Ebisawa’s repeated inquiries, UC-1 agreed, as part of the DEA’s investigation, to help Ebisawa broker the sale of his nuclear materials to UC-1’s associate, who was posing as an Iranian general (the General), for use in a nuclear weapons program. Ebisawa then offered to supply the General with “plutonium” that would be even “better” and more “powerful” than uranium for this purpose. An example of a photograph sent by Ebisawa is shown below:
Source: Superseding Indictment, filed publicly in U.S. District Court for the Southern District of New York, case S3:22-cr-2566. Photo sent by the defendant depicting rock substances with Geiger counters measuring radiation.During their discussions regarding Ebisawa’s access to nuclear materials, Ebisawa also engaged with UC-1 concerning Ebisawa’s desire to purchase military-grade weapons. To that end, in May 2021, Ebisawa sent UC-1 a list of weapons, including surface-to-air missiles, that Ebisawa wished to purchase from UC-1 on behalf of the leader of an ethnic insurgent group in Burma (CC-1). Together with two other co-conspirators (CC-2 and CC-3), Ebisawa proposed to UC-1 that CC-1 sell uranium to the General, through Ebisawa, to fund CC-1’s weapons purchase. On a Feb.4, 2022 videoconference, CC-2 told UC-1 that CC-1 had available more than 2,000 kilograms of Thorium-232 and more than 100 kilograms of uranium in the compound U3O8 — referring to a compound of uranium commonly found in the uranium concentrate powder known as “yellowcake” — and that CC-1 could produce as much as five tons of nuclear materials in Burma. CC-2 also advised that CC-1 had provided samples of the uranium and thorium, which CC-2 was prepared to show to UC-1’s purported buyers. CC-2 noted that the samples should be packed “to contain . . . the radiation.”
About one week later, Ebisawa, CC-2 and CC-3 participated in a series of meetings with UC-1 and CS-1 in Southeast Asia to discuss their ongoing weapons, narcotics, and nuclear materials transactions. During one of these meetings, CC-2 asked UC-1 to meet in CC-2’s hotel room. Inside the room, CC-2 showed UC-1 two plastic containers, each holding a powdery yellow substance (the Nuclear Samples), which CC-2 described as “yellowcake.” CC-2 advised that one container held a sample of uranium in the compound U3O8, and the other container held Thorium-232. UC-1 photographed and video-recorded the Nuclear Samples, an example image of which is shown below:
Source: Superseding Indictment, filed publicly in U.S. District Court for the Southern District of New York, case S3:22-cr-2566. Photo of the Nuclear SamplesWith the assistance of Thai authorities, the Nuclear Samples were seized and subsequently transferred to the custody of U.S. law enforcement authorities. A U.S. nuclear forensic laboratory examined the Nuclear Samples and determined that both samples contain detectable quantities of uranium, thorium and plutonium. In particular, the laboratory determined that the isotope composition of the plutonium found in the Nuclear Samples is weapons-grade, meaning that the plutonium, if produced in sufficient quantities, would be suitable for use in a nuclear weapon.
A table containing the charges and maximum penalties for Ebisawa and Singhasiri is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Count
Defendant(s)
Maximum Penalty
Count One: conspiracy to commit international trafficking of nuclear materials
Ebisawa
20 years in prison
Count Two: international trafficking of nuclear materials
Ebisawa
10 years in prison
Count Three: narcotics importation conspiracy
Ebisawa and Singhasiri
Life in prison; mandatory minimum penalty of 10 years in prison
Count Four: conspiracy to possess firearms, including machineguns and destructive devices
Singhasiri
Life in prison
Count Five: conspiracy to acquire, transfer, and possess surface-to-air missiles.
Ebisawa
Life in prison; mandatory minimum sentence of 25 years in prison
Count Six: narcotics importation conspiracy
Ebisawa
Life in prison; mandatory minimum sentence of 10 years in prison
Count Seven: conspiracy to possess firearms, including machine guns and destructive devices
Ebisawa
Life in prison
Count Eight: money laundering
Ebisawa
20 years in prison
The DEA Special Operations Division Bilateral Investigations Unit is investigating the case, with valuable assistance provided by the DEA Tokyo Country Office, DEA Bangkok Country Office, DEA Chiang Mai Resident Office, DEA Jakarta Country Office, DEA Copenhagen Country Office, DEA New York Field Office, DEA New Delhi Country Office, the Justice Department’s Office of International Affairs and the National Security Division’s Counterterrorism Section, and law enforcement partners in Indonesia, Japan and the Kingdom of Thailand.
Trial Attorney Dmitry Slavin of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Alexander Li, Kaylan E. Lasky and Kevin T. Sullivan for the Southern District of New York are prosecuting the case.
This prosecution 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 www.justice.gov/OCDETF.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ebisawa superseding indictment.Jackson Center Man Sentenced to Prison for Drug Trafficking and Firearms ConvictionsRead the Press Release
PITTSBURGH, Pa. – A resident of Jackson Center, Pennsylvania, has been sentenced to 33 months in federal prison for conspiring to distribute fentanyl, heroin, cocaine, and crack, and for receiving and transporting a firearm while under a felony indictment, United States Attorney Eric G. Olshan announced today.
Michael Love, 46, was sentenced by United States District Judge Cathy Bissoon, who also ordered Love to serve three years of supervised release following his prison sentence.
According to information presented to the Court, Love was responsible for the distribution of 20 grams of fentanyl, 10 grams of heroin, 20 grams of powder cocaine, and 20 grams of crack cocaine in Mercer County, Pennsylvania, in 2020 and 2021. The Court was also informed that, after Love was indicted for this conduct in 2021 and released on bond, he unlawfully received firearms in March 2022 while his felony indictment was pending.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Love.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Immokalee Felon Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Javier Joel Perez (45, Immokalee) today pleaded guilty to possessing a controlled substance with the intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm and ammunition as a convicted felon. Perez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Perez has also agreed to forfeit the firearm and ammunition used to facilitate the offenses.
According to court documents, deputies from the Collier County Sheriff’s Office executed a search warrant on Perez’s residence and located marijuana, cocaine, and methamphetamine packaged for distribution. They also located a loaded firearm. Perez told deputies that the items located in his residence belonged to him. Perez is a nine-time convicted felon, as such he prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Neenah Man Charged with Distributing Sexually Explicit Images of a Minor
Adam J. Westbrook, 34, Neenah, Wisconsin, is charged with distributing a visual depiction of a minor engaged in sexually explicit conduct. The indictment charges that Westbrook used Snapchat to distribute two videos of Minor A engaged in sexually explicit conduct on or about January 27, 2024. Westbrook will make his initial appearance on the charge on February 22, 2024, at 11:15 am.
If convicted, Westbrook faces a mandatory minimum penalty of 5 years and a maximum penalty of 20 years in prison.
The charge against Westbrook is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and the Neenah, Lake Delton, and Kenosha Police Departments. Assistant United States Attorneys Elizabeth Altman and Anita Marie Boor are handling the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. 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.
Dane County Men Charged with Possessing Fentanyl and Methamphetamine Intended for Distribution
Corvalis M. Stewart, 36, Madison, Wisconsin, and Larry D. Williamson Jr., 35, Waunakee, Wisconsin, are charged with possessing 400 grams or more of fentanyl intended for distribution. The indictment alleges that the two men possessed the fentanyl on February 8, 2024. Both men were arrested on February 8, 2024, and remain in custody. Stewart and Williamson are also charged with possessing, with intent to distribute, 500 grams or more of a mixture containing fentanyl and methamphetamine on February 8, 2024.
If convicted, Stewart and Williamson, Jr. face a mandatory minimum penalty of ten years and a maximum penalty of life in prison on each charge.
The charges against Stewart and Williamson Jr. are the result of an investigation by the U.S. Department of Homeland Security’s Homeland Security Investigations, Dane County Narcotics Task Force, and the Middleton Police Department, with the assistance of the Air and Marine Operations Center (AMOC) in Riverside, CA. Assistant U.S. Attorney Corey Stephan is handling the case.
Eau Claire Men Charged with Distributing Fentanyl and Methamphetamine
Hector A. Jimenez-Sosa, 41, and Mario R. Aviles, 26, both of Eau Claire, Wisconsin, are charged with distributing fentanyl and methamphetamine on September 19, 2023, and with distributing fentanyl on October 3, 2023. The indictment alleges that with respect to Jimenez-Sosa, the amount attributable to him on September 19, 2023, was 50 grams or more of methamphetamine. Jimenez-Sosa is also charged with distributing 50 grams or more of methamphetamine on October 31, 2023.
If convicted, Jimenez-Sosa faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison on the two charges involving distribution of 50 grams or more of methamphetamine. If convicted on the other charges, both Jimenez-Sosa and Aviles face maximum penalties of 20 years in prison.
The charges against Jimenez-Sosa and Aviles were the result of an investigation by the West Central Drug Task Force, Eau Claire Police Department, Eau Claire County Sheriff’s Office, Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorney Steven P. Anderson is handling the case.
Former Tax Return Preparer Pleads Guilty to Preparing False Tax Returns for ClientsRead the Press Release
FARGO – A former tax return preparer who provided services to clients in North Dakota pleaded guilty today to five counts of preparing false tax returns for clients.
According to court documents and statements made in court, Joseph Korha, currently of Minneapolis, Minnesota, worked as a tax return preparer for a business located in Phoenix, Arizona. In 2019, Korha prepared and submitted more than 100 fraudulent returns for clients, many of whom resided in the Fargo area. Korha claimed false tax credits and fictitious business profits and losses on these returns, which inflated his clients’ tax refunds. In total, Korha caused a tax loss to the IRS of approximately $294,000.
Korha is scheduled to be sentenced on Monday, June 3, 2024, at 10 a.m. He faces a maximum penalty of three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mac Schneider for the District of North Dakota made the announcement.
“This guilty plea is a victory for honest taxpayers,” Schneider said. “Nobody likes taxes, but when a preparer willfully commits fraud, that’s a crime that hurts the millions of Americans who work with trusted professionals to follow the law. I want to thank our partners at IRS Criminal Investigation for ensuring justice was done in this case.”
“A guilty plea is a good first step in achieving justice for taxpayers,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation’s St. Louis Field Office. “CI is happy to work alongside our partners in the U.S. Attorney’s Office to track down fraudulent tax preparers and hold them accountable for taking advantage of unsuspecting taxpayers.”
IRS Criminal Investigation is investigating the case.
Trial Attorney Dominick Giovanniello of the Tax Division and Assistant U.S. Attorney Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota are prosecuting the case.
###
Former San Antonio Lawyer Sentenced to 50 Years for Wire Fraud, Money LaunderingRead the Press Release
SAN ANTONIO – Former San Antonio Attorney Christopher John Pettit, 56, was sentenced in a federal court in San Antonio to 50 years in prison for fraud and money laundering.
For more than two decades, Pettit made numerous misrepresentations that persuaded his clients to deposit money with his firm, Chris Pettit and Associates, PC, which funds the clients believed would be used for services such as living trusts, irrevocable trusts, estate planning services, investments, and real-estate transactions, but which Pettit instead misused for his own enrichment and as part of a Ponzi-type scheme.
In one scheme, Pettit opened trustee accounts with client funds and simply moved the money to his own accounts, rather than using the funds for the benefit of the trust. Other fraudulent schemes included falsely promising to invest client money in high percentage bonds and instead wiring the funds to his personal account. He also falsely represented himself as a Qualified Intermediary for a 1031 real-estate exchange, which he used to convince clients to wire millions of dollars from asset sales into accounts he controlled and then misused for his own enrichment. Pettit would use his victimized clients’ funds to pay other client debts as well as to support an extravagant lifestyle. The schemes resulted in an estimated loss to the victims of between $20 million and $65 million. Pettit pleaded guilty Oct. 5, 2023, to three counts of wire fraud and three counts of money laundering.
“This case began with one victim filing a complaint before the investigation unraveled a massive and deceptive criminal scheme,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thanks to the Fair Oaks Ranch Police Department for first recognizing the depth of the fraud in this case, and to the Bexar County District Attorney’s Office for referring the case to the FBI. The punishment handed down by Judge Garcia reflects the seriousness of the offense and is the product of steadfast collaboration by our partners at the local, state and federal levels.”
“Christopher Pettit used his position of trust as an attorney to defraud his clients of millions of dollars, in some cases their life savings, all for his own selfish benefit. Today’s sentence reflects the resolve of the FBI to bring to justice anyone who would take advantage of their position to line their own pockets,” said Special Agent in Charge Aaron G. Tapp for the FBI San Antonio Division. “We want to thank our partners at Fair Oaks Ranch Police Department, Texas Department of Public Safety, and Texas State Securities Board for their continued assistance in keeping our communities safe.”
The FBI investigated the case in conjunction with the Texas State Securities Board, Texas Department of Public Safety and Fair Oaks Ranch Police Department.
Assistant U.S. Attorney Kelly Stephenson prosecuted the case.
###