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Tuesday 20 February 2024
Two Men Indicted for Federal Firearm and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on February 8, 2024, TEVIN MARCELIN, age 29, and DERRICK DOUGHTY, age 32, both from New Orleans, were charged in a seven-count superseding indictment for violations of federal gun and drug laws.
In Count 1, MARCELIN and DOUGHTY are charged with possession with intent to distribute methamphetamine, marijuana, and cocaine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). If convicted of Count 1, MARCELIN and DOUGHTY face up to 20 years imprisonment, up to a $1,000,000 fine, and at least three years of supervised release. In Count 2, MARCELIN and DOUGHTY are charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A). If convicted of Count 2, MARCELIN and DOUGHTY face a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. In Count 3, MARCELIN is charged with possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1). In Count 4, DOUGHTY is charged with possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1). If convicted of Counts 3 or 4, MARCELIN or DOUGHTY face up to 10 years imprisonment, up to a $250,000 fine, and up to three years of supervised release.
In Count 5, MARCELIN is charged with possession with intent to distribute methamphetamine, marijuana, cocaine and fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). If convicted of Count 5, MARCELIN faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least three years of supervised release. In Count 6, MARCELIN is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A). If convicted of Count 6, MARCELIN faces a mandatory minimum sentence of five years up to life imprisonment, to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. In Count 7, MARCELIN is charged with possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g). If convicted of Count 7, MARCELIN faces up to15 years imprisonment, up to a $250,000 fine, and up to three years of supervised release. As to each charged count against either MARCELIN or DOUGHTY, they also face payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Sarah Dawkins of the Violent Crimes Unit is in charge of the prosecution.
Two Maryland Residents Found Guilty of Multimillion Dollar Scheme to Defraud Apple Inc. out of 5,000 iPhonesRead the Press Release
WASHINGTON – Haotian Sun, 33, and Pengfei Xue, 33, both Chinese nationals, were found guilty today by a federal jury for participating in a sophisticated scheme to defraud Apple out of millions of dollars’ worth of iPhones, announced U.S. Attorney Matthew M. Graves; Acting Assistant Attorney General Nicole M. Argentieri, of the Justice Department’s Criminal Division; Inspector in Charge Damon E. Wood, of the United States Postal Inspection Service (USPIS) Washington Division; and Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations, Washington Field Office.
Sun, of Baltimore, and Xue, of Germantown, MD, were found guilty by a federal jury in U.S. District Court in the District of Columbia of conspiracy to commit mail fraud and mail fraud, which carry a statutory maximum sentence of 20 years in prison. U.S. District Court Judge Timothy J. Kelly scheduled sentencing for June 21, 2024.
According to the government’s evidence, between May 2017 and September 2019, Sun, Xue, and other conspirators defrauded Apple Inc. by submitting counterfeit iPhones to Apple for repair to get Apple to exchange them with genuine replacement iPhones. Sun and Xue received shipments of inauthentic iPhones from Hong Kong at UPS mailboxes throughout the D.C. Metropolitan area. They then submitted the fake iPhones, with spoofed serial numbers and/or IMEI numbers, to Apple retail stores and Apple Authorized Service Providers, including the Apple Store in Georgetown. Trial evidence showed that conspirators submitted more than 5,000 inauthentic phones to Apple during the conspiracy, intending to cause a loss of more than $3 million to Apple.
Sun and Xue used various aliases during the scheme. They were arrested on December 5, 2019.
This case was investigated by the U.S. Postal Inspection Service and Homeland Security Investigations.
It is being prosecuted by Assistant U.S. Attorney Kondi J. Kleinman, with the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section. Essential work was provided by Paralegal Specialists Sona Chaturvedi, Liliana Villamizar, Mariela Andrade, and Amanda Rohde, as well as former Paralegal Specialist Michon Tart, all of the U.S. Attorney’s Office.
Two L.A. County Men Charged with Armed Robbery in Connection with Spree Targeting Massage Parlors in L.A. and Orange CountiesRead the Press Release
SANTA ANA, California – Two Los Angeles County men were charged today in a federal criminal complaint alleging they committed more than a dozen armed robberies of massage parlors in Los Angeles and Orange counties.
Andy Cuellar, 28, of Hawthorne, and Arturo Morales, 27, of Downey, were arrested last Friday and are scheduled to make their initial appearances tomorrow in United States District Court in Santa Ana.
The defendants are charged with interference with commerce by robbery (Hobbs Act) and using and carrying a firearm during a crime of violence. Their arraignment is expected in the coming weeks.
According to an affidavit filed with the complaint, on the evening of February 16, Cuellar drove the getaway vehicle – a black Jeep Grand Cherokee – with Morales as the passenger to multiple massage parlors before robbing one such business in Torrance. After the robbery, Cuellar and Morales allegedly were located less than two miles away at a gas station, standing at the back of the Jeep and going through items taken in the robbery, throwing some of them in the trash.
Once law enforcement arrived on scene, the defendants allegedly fled on foot and discarded items they had stolen. At the time of his arrest, Morales was found to have approximately $4,000 in cash on his person while Cuellar carried $400 and was found to have the same type of clothing – including a blue Los Angeles Dodgers baseball cap – identified in previous robberies of massage parlors, the affidavit alleges.
After the defendants were arrested, law enforcement searched the Jeep, in which they found a .38-caliber firearm that had been reported stolen in 2018, according to the affidavit.
Law enforcement believes that Cuellar and Morales are responsible for at least 12 additional armed robberies, including the alleged robberies of massage parlors from January 12 to January 29 in Santa Ana, Reseda, Venice, Orange, Bellflower, and Redondo Beach.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Cuellar and Morales will face statutory maximum sentences of 20 years in federal prison for the robbery charge and life in federal prison for the firearm charge.
The Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Orange County Violent Crime Task Force (OCVCTF) is comprised of federal and local law enforcement agencies, including the ATF, the Brea Police Department, the Santa Ana Police Department, the Orange County District Attorney’s Office, and the Fullerton Police Department.
Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.
Two Foreign Nationals Convicted of Multimillion-Dollar Scheme to Defraud Apple Inc. Out of 5,000 iPhonesRead the Press Release
A federal jury in the District of Columbia convicted two Chinese nationals today for participating in a sophisticated scheme in which they submitted more than 5,000 inauthentic phones to Apple Inc., intending to cause a loss of more than $3 million to Apple.
According to court documents and evidence presented at trial, from May 2017 to September 2019, Haotian Sun, also known as Hao Sun, Jack Sun, and Frank Sun, 33, of Baltimore, Maryland, and Pengfei Xue, 33, of Germantown, Maryland, along with their co-conspirators, submitted counterfeit iPhones to Apple for repair to get Apple to exchange them with genuine replacement iPhones. Sun and Xue received shipments of inauthentic iPhones from Hong Kong at UPS mailboxes throughout the D.C. Metropolitan area. They then submitted the fake iPhones, with spoofed serial numbers and/or IMEI numbers, to Apple retail stores and Apple Authorized Service Providers.
In 2017, Sun opened eight UPS Store mailboxes using his Maryland driver’s license and university identification card. U.S. postal inspectors arrested Sun and Xue in December 2019.
The jury convicted Sun and Xue of mail fraud and conspiracy to commit mail fraud. They are scheduled to be sentenced on June 21 and each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector in Charge Damon Wood of the U.S. Postal Inspection Service (USPIS) Washington Division, and Special Agent in Charge Derek W. Gordon of the Homeland Security Investigations (HSI) Washington Field Office made the announcement.
USPIS and HSI investigated the case.
Trial Attorney Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kondi J. Kleinman for the District of Columbia are prosecuting the case.
Twice convicted felon pleads guilty to new gun chargeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Willis Bowles, 36, of Geneva, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to being a felon in possession of a firearm, which carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that on June 23, 2023, the Ontario County Sheriff’s Office executed a search warrant at Bowles’ Geneva residence. During the search, investigators seized a loaded Smith and Wesson rifle. A high capacity 30 round magazine, containing 22 rounds of ammunition was also seized. In 2006 and 2007, Bowles was convicted of gun felonies in the State of Florida and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Ontario County Sheriff’s Office, under the direction of Sheriff David Cirencione, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Geneva Police Department, under the direction of Chief Matt Colton.
Sentencing is scheduled for June 10, 2024, before Judge Wolford.
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Trafficker Who Brutally Assaulted Victims Sentenced to 30 Years in PrisonRead the Press Release
A DeSoto man who sex trafficked women for more than a decade was sentenced last week to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Phillip Jay Curlett, 34, was indicted in October 2023 and pleaded guilty later that month to conspiracy to commit sex trafficking through force, fraud, and coercion. He was sentenced Friday by U.S. District Judge Mark Pittman.
“Human trafficking is one of the most egregious crimes the HSI investigates,” said Homeland Security Investigations Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI’s role is simple; we will find and prosecute those who force victims into this degrading and inhumane lifestyle.”
According to court documents, Mr. Curlett trafficked multiple women, brutally beating several.
According to court documents, one victim told investigators that when she first met Mr. Curlett, he gave her a fake name and asked her to spend the night with him. Believing they were embarking upon a dating relationship, she consented.
He then drove her to a local motel and ordered her to “go to work.” That same night, she saw her first two commercial sex customers.
Mr. Curlett went on to advertise the victim’s commercial sex services online and forced her to tun her proceeds over to him, threatening to hurt her if she did not make enough money for him. He forced her to use methamphetamine so that she could stay awake to maximize profits, and assaulted her on multiple occasions, including after she tried to leave.
Homeland Security Investigations conducted the investigation with the assistance of the North Texas Trafficking Task Force. Assistant U.S. Attorney Brandie Wade prosecuted the case.
Three Individuals Found Guilty of Child Neglect, Endangerment on the Red Lake ReservationRead the Press Release
MINNEAPOLIS – Three individuals living on the Red Lake Indian Reservation have been convicted by a federal jury of felony child neglect, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial, between February 2022 and January 2023, Robin John Roy, 55, Nicole Robyn Roy, 29, and Harrison Edwin Dudley Sr., 36, willfully deprived the minor victims of necessary food, clothing, shelter, health care, or supervision despite their reasonable ability to make the necessary provisions, resulting in substantial harm to the minor victims’ physical, mental, and emotional health.
On February 16, 2024, following a six-day trial before U.S. District Judge Nancy E. Brasel, all three defendants were found guilty of felony child neglect. Nicole Roy and Dudley were also found guilty of felony child endangerment. Sentencing hearings for the defendants will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Lindsey E. Middlecamp and Rachel L. Kraker tried the case.
Terrebonne Parish Man Sentenced for Conspiring to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – ANTHONY MONREAL-FABELA, age 22, a resident of Houma, Louisiana, was sentenced on February 15, 2024 to 36 months imprisonment, five (5) years of supervised release, and a $100 mandatory special assessment fee, announced U.S. Attorney Duane A. Evans. MONREAL-FABELA previously pleaded guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846.
According to court documents, MONREAL-FABELA was arrested on July 27, 2022, for conspiring with his co-defendant, Diogo Hernandez, to possess with intent to distribute twenty kilograms of cocaine that had been smuggled into the Port of New Orleans via container ship.
This case was investigated by the United States Homeland Security Investigations, the United States Customs and Border Protection, and the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Financial Crimes Unit.
Teen Admits Role in Several New Haven Gang Shootings, Pleads Guilty to Racketeering ChargeRead the Press Release
DEVIN SUGGS, also known as “JB,” 19, of New Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to a racketeering offense stemming from his role in a violent New Haven street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating an ongoing gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Suggs and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
Suggs pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that he took part in five shootings of rival gang members between April 2021 and January 2023. As a result of these shootings, on April 27, 2021, a rival gang member was shot in the leg; on May 14, 2021, a rival gang member was shot in the leg and torso; and on May 20, 2021, one victim was shot in the back and another victim was shot in the leg. On January 20, 2023, Suggs and other Exit 8 members stole an SUV in Scarsdale, New York, and, later that day, committed a drive-by shooting of a rival gang member in New Haven. The victim was shot in the head, but survived the attack.
At sentencing, which is not scheduled, Suggs faces a maximum term of imprisonment of 20 years. Suggs has been detained since August 3, 2023.
This investigation is being conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity, and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
St. Lucie County robber sentenced to federal prisonRead the Press Release
MIAMI – On Feb. 15, a St. Lucie County woman was sentenced to 36 months in federal prison, followed by three years of supervised release, for attempted Hobbs Act robbery, after previously pleading guilty in November 2023.
On April 21, 2023, Jennifer Scee, 48, of St. Lucie County, Florida, entered a pharmacy in Port St. Lucie, approached a pharmacy associate, who was behind the counter, and demanded Dilaudid, a brand name for hydromorphone, an opioid. When the associate asked Scee for her prescription, Scee displayed a weapon while she continued to demand the medication. When the associate told Scee that she did not have any Dilaudid, Scee jumped over the counter and pointed the weapon at the associate’s chest. After the associate started yelling and banging on the counter, Scee fled the scene.
Port St. Lucie Police Department officers obtained video surveillance from the plaza where the pharmacy is located, which shows Scee wearing a long-sleeved white shirt, black leggings, a black hat covering, and a surgical mask covering her face entering and fleeing the pharmacy on foot. Later, law enforcement officers also obtained surveillance footage showing a 2001 – 2005 Honda Civic Coupe with a sunroof and dark tinted windows pulling into the parking lot at the nearby plaza shortly before the robbery and leaving the parking lot shortly after the robbery. Law enforcement officers confirmed that a 2004 Honda Civic Coupe was registered to Scee in Port St. Lucie, Florida. Later, law enforcement arrested Scee at her residence in Port St. Lucie.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office and Chief Richard R. Del Toro, Jr. of the Port St. Lucie Police Department (PSLPD) announced the sentence imposed by U.S. District Judge Donald M. Middlebrooks.
FBI Miami and PSLPD investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14043.
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South Texan imprisoned for producing child pornography of two minors for over a yearRead the Press Release
BROWNSVILLE, Texas – A 34-year-old Weslaco man has been sentenced for possession of child pornography and sexual exploitation of a child, announced U.S. Attorney Alamdar S. Hamdani.
Ulysses Rubalcava pleaded guilty Oct. 31, 2023.
U.S. District Judge Fernando Rodriguez Jr. considered victim impact statements and imposed a total of 360 months in federal prison. At the hearing, the court noted Rubalcava’s remorse, but explained how society deems these crimes as particularly heinous and that the court must protect children and the public to deter this type of crime. Garza was further ordered to serve 24 years on supervised release following the completion of his sentence. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. A restitution hearing has been scheduled for April 23.
The investigation began in June 2021 when authorities learned of concerning behavior and photos believed to be the sexual assault of a child.
Law enforcement conducted a search of Rubalcava’s cellphone in which they discovered numerous saved child pornography files including the sexual assault of two minors. Following an investigation, authorities determined Rubalcava had been grooming and abusing two minor girls for more than a year. He eventually began producing child pornography images and videos of himself with the young girls.
Rubalcava will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
South Florida Man Arrested in Relation to Shooting at the Palm Beach Gardens MallRead the Press Release
MIAMI - Kamarcio Mitchell, 28, of West Palm Beach, had his initial appearance this morning before a U.S. Magistrate Judge in West Palm Beach on a criminal complaint charging him with unlawfully possessing a firearm and ammunition as a convicted felon. Mitchell’s arrest, on Feb. 16, was the result of a joint response by local, state, and federal law enforcement partners following a shooting that occurred at the Palm Beach Gardens Mall (The Gardens Mall) on Valentine’s Day.
According to allegations in the criminal complaint, on Feb. 14, Mitchell was at The Gardens Mall with a firearm. Surveillance video captured Mitchell on the second level of The Gardens Mall near a retail store. Mitchell followed another male onto the escalator and was manipulating an object under his shirt. Mitchell was then fired upon by the other male and shot. Mitchell fled the mall to the parking lot, leaving a trail of blood. A loaded firearm that had been disassembled was found in the parking lot by police, near the blood trail. Mitchell was later treated for his injury at a local hospital where he admitted to being shot. The investigation by law enforcement determined that the firearm found in The Gardens Mall parking lot was a loaded handgun that had previously travelled in interstate commerce.
Mitchell is a convicted felon and based upon his prior criminal history is charged in the criminal complaint as an Armed Career Criminal. If convicted, Mitchell faces a mandatory minimum prison sentence of 15 years to a maximum sentence of life.
The United States has sought the pretrial detention of Mitchell. A detention hearing has been scheduled before the West Palm Beach Duty Magistrate Judge on Feb. 27. An arraignment hearing is scheduled for March 5.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service, Chief Clinton Shannon of the Palm Beach Gardens Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office announced the arrest and charges.
The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant United States Attorney John McMillan is prosecuting the case.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
A criminal complaint contains allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-8057-BER.
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South Bend Man Sentenced to 87 Months in PrisonRead the Press Release
SOUTH BEND – Tyshawn Kellogg, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Kellogg was sentenced to 87 months in prison followed by 2 years of supervised release.
According to documents in the case, in January of 2023 Kellogg led police officers on a high-speed chase that ended when Kellogg crashed his car into a fence. Kellogg ran from the car, leaving behind a handgun, heroin, fentanyl, cocaine, and other controlled substances. Kellogg had previously been convicted of felony offenses and, as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department, Indiana State Police, and St. Joseph County Prosecuting Attorney’s Office. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
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.
Sex Offender Charged with Child Exploitation OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal grand jury in New Haven returned an indictment today charging MICHAEL SZWARC, 36, of Derby, with child exploitation offenses.
As alleged in the indictment and in court filings, Szwarc was convicted in 2013 in state court of possession of child pornography in the second degree, and in 2022 in federal court of receipt of child pornography. In January 2024, while Szwarc was on federal supervised release, his federal probation officer conducted an unannounced visit to his home and discovered him in possession of an unauthorized laptop. The probation officer seized the laptop. A subsequent examination of the device by the FBI revealed multiple images of child pornography.
The indictment charges Szwarc with receipt of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years, and with possessing and accessing with intent to view child pornography, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced because of Szwarc’s prior federal and state convictions for possessing child pornography.
Szwarc has been detained since his arrest on February 9, 2024.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
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.
Riverton man convicted of first-degree murderRead the Press Release
Francis James Acebo Jr., age 34, of Riverton, Wyoming, was convicted on Feb.16 by a federal jury of first-degree murder and using, carrying, and discharging a firearm during and in relation to a crime of violence. The trial lasted five days and was held before U.S. District Court Judge Alan B. Johnson in Cheyenne.
Acebo was indicted by a federal grand jury and pleaded not guilty to the charges in May 2023. According to evidence presented at trial and witnesses to the crime, Acebo entered the victim’s Riverton residence in the morning of Mar. 25, 2023, and shot the victim in the back of the head.
Sentencing has been set for May 6, 2024. Acebo faces a mandatory life sentence for the first-degree murder conviction, another 10 years to life imprisonment for the firearm offense, and up to $500,000 in fines. A federal district court judge will determine and impose the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Special agents with the Bureau of Indian Affairs and the FBI investigated this crime. Assistant U.S. Attorneys Kerry Jacobson and T.J. Forwood prosecuted the case.
Case No. 23-CR-00081
Pulaski County Man Sentenced to 20 Years for Receiving Child PornographyRead the Press Release
LONDON, Ky. – A Eubank, Ky., man, Floyd Adams, 48, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 20 years in prison, for receiving child pornography.
According to his plea agreement, in December 2021, law enforcement began investigating Adams, after he showed up for an internet-arranged meeting with a fictitious 11-year-old girl, at a Somerset movie theatre. Law enforcement later searched his electronic devices and his residence and found images of child pornography on his devices. Adams admitted to downloading sexually explicit pictures of minors.
Under federal law, Adams 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; and Sheriff Bobby Jones, Pulaski County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by FBI and Pulaski County Sheriff’s Office. Assistant U.S. Attorney Pearce Nesbitt is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Portsmouth Felon Sentenced for Possessing Multiple FirearmsRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to five years in prison for possessing multiple firearms and a machinegun conversion device as a convicted felon.
According to court documents, on June 9, 2022, after a lengthy investigation into several individuals suspected of being involved in the distribution of narcotics, law enforcement officers executed a court-authorized search warrant at the Portsmouth residence of Michael Jerrod Scott, 40. During the search, officers recovered three firearms, multiple firearm magazines and ammunition, approximately six ounces of marijuana and related edible products, items associated with the manufacturing and distribution of drugs, and $2,920 in cash.
One of the firearms had a machinegun conversion device installed at the rear of the slide, which made it a “machinegun” as defined by federal law. Scott had previously been convicted of several felony offenses, to include robbery, use of a firearm in the commission of robbery, statutory burglary of a dwelling while armed, use of a firearm in the commission of armed burglary, and possession of a schedule I or II drug.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Stephen Jenkins, Chief of Portsmouth Police; and Mark G. Solesky, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Kevin Comstock and Special Assistant U.S. Attorney Marc West prosecuted the case.
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 of Justice 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.
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. 2:23-cr-74.
Portland Man Sentenced to 16 Years for Child Sexual Exploitation and Drug OffensesRead the Press Release
PORTLAND, Maine: A Portland man was sentenced in U.S. District Court in Portland today for sexually exploiting a child and drug trafficking.
U.S. District Judge Nancy Torresen sentenced Sebastian Demers, 32, to 15 years on the child exploitation count and one year on the drug count, to be served consecutively, followed by 10 years of supervised release. He was also ordered to pay the victim and the victim’s family $15,843.27 in restitution. Demers pleaded guilty on December 9, 2022.
According to court records, in November 2020, Demers befriended a 14-year-old child online and soon thereafter began engaging in illegal sexual contact with the victim. Even after the victim’s parents obtained a protection order against Demers, Demers continued to pressure the victim to see him and threatened to harm the victim and the victim’s family if the victim did not comply. Demers took several sexually explicit photos and videos of the victim, which investigators later found on Demers’ cell phone. Demers also plied the victim with alcohol and drugs and told the victim that he sold drugs. In April 2022, federal agents executed a search warrant at Demers’ residence and found cocaine and other evidence of drug trafficking.
Homeland Security Investigations and the Portland Police Department investigated the case
Reports of child sexual exploitation are increasing: In 2022, The National Center for Missing & Exploited Children (NCMEC) CyberTipline received approximately 32 million reports of suspected child sexual exploitation. That included more than 80,500 reports of online enticement of children for sexual acts and more than 31 million reports of child sexual abuse materials. Victimization can take place across every platform, including social media, messaging apps, gaming platforms, etc. To make a CyberTipline Report, visit https://report.cybertip.org/. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: 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’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, visit www.justice.gov/psc.
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Palm Beach County Armed Career Criminal and Drug Dealer Sentenced to 45 Years in Federal PrisonRead the Press Release
MIAMI – A Palm Beach County man was sentenced to 45 years in federal prison. The sentence comes after a federal jury in West Palm Beach convicted him on multiple drug trafficking and firearms charges related to his participation in a conspiracy to sell a synthetic opioid, commonly sold as fentanyl, cocaine, and Eutylone (a synthetic cathinone with effects akin to Methylenedioxymethamphetamine), and his possession of a machinegun in furtherance of those crimes.
On or about March 3, 2022, the West Palm Beach Police Department executed a search warrant at a West Palm Beach residence. Willie Boone, 24, was detained on scene. During the search, officers recovered multiple controlled substances, including N-Pyrrolidino Etonitazene, Eutylone, and cocaine. Other evidence included two of Boone’s cellphones and two firearms, one of which was a Glock Model 17 pistol with a machinegun conversion device. That conversion device, commonly known as a “Glock Switch” rendered the pistol fully automatic. Boone had previously been convicted of three felony drug-trafficking offenses and was prohibited from possessing a firearm, including the unregistered machinegun. Forensic evidence recovered from the cellular telephones and Boone’s DNA on the Glock Model 17 pistol confirmed his possession of the firearm and possession in the charged drug conspiracy.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and West Palm Beach Police Department Chief Frank Adderley announced the conviction.
ATF and the West Palm Beach Police Department investigated the case. Assistant U.S. Attorneys Shannon O’Shea Darsch and Alexandra Chase are prosecuting the case. Assistant U.S. Attorney Gabrielle Charest-Turken for the Southern District of Florida is handling asset forfeiture.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80175.
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Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Orlando Brewer, 54, of Omaha, Nebraska was sentenced today in federal court in Omaha for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Brewer to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
As part of a long-term investigation into a Mexican-based Drug Trafficking Organization (DTO), DEA identified Maria Reyes-Monge as a meth distributor for the Omaha metro area. As part of the investigation, Reyes-Monge was kept under electronic and physical surveillance. She was observed on numerous occasions meeting with local dealers and supplying them with Mexican-imported meth.
On October 5, 2022, Reyes-Monge was observed going to the Walgreen’s parking lot at 1606 S. 72nd Street. Reyes-Monge was observed meeting with Brewer and conducting what appeared to be a hand-to-hand narcotics transaction. A traffic stop was done on Brewer leaving the meeting, and it was determined that he had active felony arrest warrants. On the passenger side rear floorboard was a bag with 361 grams pure meth.
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.
This case was investigated by the DEA, Omaha Police Department, and Bellevue Police Department.
Ocean Springs Man Sentenced to over 17 Years in Prison for Possession with Intent to Distribute over 1200 Grams of MethamphetamineRead the Press Release
Gulfport, Miss. – An Ocean Springs man was sentenced to 211 months in federal prison for possession with intent to distribute 1,231 grams of methamphetamine.
Dante Ladon Evans, 48, was sentenced today in U.S. District Court in Gulfport.
According to court documents, Evans was on supervised release when a probation officer went to his residence and discovered narcotics. Further investigation revealed that Evans was in possession of 1,231 grams of methamphetamine.
Evans pled guilty on November 6, 2023, to possession with intent to distribute a controlled substance.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Muskogee Resident Sentenced for Federal Crime of ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Daniel Lewis Moon, age 26, of Muskogee, Oklahoma, was sentenced to 72 months in prison for one count of Arson.
The charges arose from investigations by the Wagoner County Sheriff’s Office, the Oklahoma State Fire Marshal’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On November 9, 2022, a federal jury found Moon guilty at trial of Arson. According to investigators, on March 28, 2020, Moon, an employee at the Dollar General in Porter, Oklahoma, turned in his two-week resignation notice then purposefully lit a fire in a store aisle during business hours. Employees successfully evacuated shoppers and staff, but the fire caused significant damage before firefighters were able to extinguish it.
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Oklahoma City. Moon will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Patrick M. Flanigan represented the United States.
Montgomery Man Sentenced to Prison and Ordered to Pay Nearly $370,000 for Schemes Targeting Elderly VictimsRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross, along with Alabama Securities Commission Director Amanda Senn, announced that a federal judge sentenced Nicholas Houston Allen, 36, a resident of Montgomery, Alabama, to 76 months in prison for fraud targeting the elderly. The United States Secret Service and the Alabama Securities Commission Enforcement Section provided valuable assistance in the investigation and prosecution of this case.
Previously, Allen pleaded guilty to two counts of wire fraud after scamming an elderly victim of approximately $250,000 between 2020 to 2021. Allen convinced the victim to give him money to remodel a home Allen claimed to have inherited from his mother. However, those claims were false, and Allen used the money for his own personal benefit. Court records show that this victim was not the only one to be targeted by Allen. During Allen’s sentencing hearing, four other elderly victims were identified. Allen solicited money and made numerous misrepresentations to each of them. He then used their funds for his own benefit.
During the February 15, 2024, sentencing hearing, the judge characterized Allen’s conduct towards the victims as “cruel” and concluded that Allen’s conduct warranted a sentence even greater than the highest sentence recommended by the advisory Sentencing Guidelines. In addition to a prison sentence, the judge ordered Allen to pay restitution in the amount of $369,703.60.
“Each year, far too many seniors are financially exploited,” said Acting United States Attorney Ross. “Crimes like this one can be devastating, depriving individuals of their resources, their independence, and their dignity. I am grateful to the other agencies involved in this case for identifying Nicholas Allen’s crimes and providing justice to his victims.”
“The Alabama Securities Commission has no higher priority than fighting the scourge of elder abuse,” said Alabama Securities Commission Director Senn. “We are dedicated to working with our fellow federal and state law enforcement partners to eradicate this monstrous behavior. We will leave no stone unturned to find and punish its heartless perpetrators.”
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s efforts to combat elder abuse, neglect, and financial fraud scams that target our nation’s seniors. To learn more, visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).
The United States Secret Service and the Alabama Securities Commission investigated this case. Assistant United States Attorney Michelle R. Turner and Special Assistant United States Attorney Louis V. Franklin, Sr., of the Alabama Securities Commission prosecuted the case.
Man and woman charged in elder fraud conspiracyRead the Press Release
MIAMI – On Feb. 1, a federal grand jury returned an indictment charging a man and a woman for their alleged involvement in an elder fraud conspiracy.
Monique C. Clarke, aka Monique Clark-Mootoo, aka Rebecca White, and aka Mark Hilton, 28, a Jamaican national, and Jon-Michael Hudson, 33, a resident of Jamaica, were charged in federal court by indictment with conspiracy to commit money laundering. Allegedly, the criminal enterprise targeted a total of 51 elderly victims throughout the United States and incurred in a total loss of more than $6.6 million dollars.
According to the allegations in the indictment, court documents, and statements made during court hearings, from October 2020 through January 2021, Clarke and Hudson were allegedly engaged in laundering proceeds from a criminal enterprise that targeted elderly victims throughout the United States. As alleged in a court document, members of the criminal enterprise engaged in a lottery scam.
The co-conspirators made telephone calls to elderly victims and told them that they had won a lottery contest prize of millions of dollars. The victims were told that to collect the prize, they must pay fees for shipping, taxes, insurance, and customs processing, among other things. The co-conspirators then asked the victims to send the funds (generally, via personal checks and cashier’s checks) to third-party individuals, commonly known as money mules, who are known for receiving and moving money that is fraudulently acquired from victims. Then, these individuals allegedly deposited the checks into their bank accounts, withdrew the cash and sent it to Clarke and other co-conspirators via a courier service.
A court document further alleges that Clarke received over $500,000 of $1,653,473 from the proceeds of five victims’ losses. Clarke and Hudson allegedly deposited a portion of the fraudulently obtained proceeds into Clarke’s bank accounts. Later, Clarke allegedly wired transferred $150,000 to a car dealer’s bank account in Jamaica for the purchase of a 2020 AMG GT 63 S Coupe Mercedes Benz.
On Feb. 14, Clarke and Hudson made their initial appearances in federal court. On Feb. 20, Hudson had his detention hearing. Clarke’s detention hearing was continued to Feb. 23. If convicted, Clarke and Hudson each face up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.
HSI Ft. Lauderdale investigated the case with assistance from the Broward Sheriff’s Office (BSO) and U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Joseph A. Cooley is prosecuting it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (833–372–8311). Victims or witnesses can also contact the HSI Tip Line by calling (866) 347-2423. If you have received a scam phone call, email, or message, you may also report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov.
The Department of Justice is committed to helping protect American seniors. The public is encouraged to remain vigilant and not to provide personal identifiable information (PII), such as a social security number, or money in response to false claims. For information regarding the Department’s Elder Justice Initiative visit https://www.justice.gov/elderjustice. The Department of Justice also offers a variety of resources relating to elder fraud victimization through its Office for Victims of Crime at https://www.ovc.gov.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60023.
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Leader of drug trafficking organization imprisoned for international cocaine distribution schemeRead the Press Release
HOUSTON – A 44-year-old local man has been sentenced for his involvement in an ongoing cocaine distribution scheme that spanned more than nine years, announced U.S. Attorney Alamdar S. Hamdani.
Francisco Rene Luna pleaded guilty April 11, 2022.
U.S. District Andrew S. Hanen has now ordered Luna to serve 216 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court found Luna to be a leader and organizer of the drug trafficking conspiracy who maintained three locations in Houston he used to stash drugs and drug proceeds. In handing down the sentence, the court noted Luna was directly involved in the importation of the drugs.
“The Gulf Cartel is one of the most violent and brutal drug trafficking organizations, posing a threat to the citizens of both the United States and Mexico,” said Hamdani. “Luna, a trusted associate of this criminal enterprise, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities. Today’s sentence reflects our commitment to dismantling destructive drug trafficking organizations, wherever they are.”
Luna admitted he was a leader of a drug trafficking organization while residing in Houston. His role was to oversee the receipt of cocaine smuggled in from in vehicles on a monthly basis during the course of the eight-year conspiracy. The Gulf Cartel supplied the cocaine.
The drugs were eventually further distributed to others across the United States.
In December 2015, law enforcement seized 176 kilograms of cocaine, two kilograms of meth and $3.5 million in drug proceeds after executing search warrants at stash houses in Houston the organization controlled.
Luna was a fugitive for four years until his arrest in Monterrey, Mexico, in June 2019 as part of a joint Mexican and American law enforcement operation. He was subsequently removed from Mexico and transported to Houston for prosecution.
While he was a fugitive, Luna continued to run his drug operations from Mexico.
To date, 15 have been convicted in relation to the conspiracy.
Luna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation.
This Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations.
The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.
Kent, Washington man who illegally purchased and trafficked more than 100 firearms pleads guilty to gun crimesRead the Press Release
Seattle – A South King County man pleaded guilty last week in U.S. District Court in Seattle to multiple firearms offenses for his purchase of more than 100 firearms in a “straw purchaser” scheme, announced U.S. Attorney Tessa M. Gorman. Dion Jamar Cooper, 31, of Kent, Washington was arrested in April 2023, following an investigation by Seattle Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives. U.S. District Judge Ricardo S. Martinez scheduled sentencing for May 17, 2024.
“Mr. Cooper lied on purchase forms and then trafficked more than 100 firearms on the streets of our community. He trafficked to those who are prohibited from possessing guns, because of their criminal history. It is not surprising that more than two dozen of the firearms have been linked to crimes,” said U.S. Attorney Gorman. “Congress has responded to the epidemic of gun violence with new laws targeting such “straw purchasing” and we are using them in this case.”
According to the criminal complaint, the investigation began in late January 2023, with the assault and attempted robbery of a woman in Rainier Valley. The victim was able to flee in her car. Police found a firearm in her vehicle that had been dropped by one of the assailants. A check of the firearm revealed it had been purchased by Dion Jamar Cooper on December 10, 2022. That recovery led the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) to check Cooper’s purchase history. Cooper had purchased 107 firearms since June 2021. On 24 different instances he purchased multiple firearms – sometimes four or more. Of the 107 firearms identified as being purchased in this scheme, 26 of the guns have been recovered and linked to crimes.
During March and April 2023, agents surveilled Cooper as he made arrangements to purchase additional firearms. Agents identified De’ondre Lamontia Phillips as the person who drove Cooper to the gun shops where he purchased the firearms. Phillips is prohibited from purchasing and possessing firearms due to convictions for distribution of heroin (2014) and convictions for illegal firearms possession and two counts of assault (2009). Surveillance of the two revealed Cooper turning the firearms over to Phillips who stored them in his residence.
Cooper pleaded guilty to two counts of making a false statement in connection with the acquisition of firearms, one count of straw purchasing firearms and one count of trafficking in firearms. Phillips pleaded guilty last month to drug and gun possession crimes. He is scheduled for sentencing April 26, 2024.
Straw Purchasing of Firearms and Trafficking in Firearms are both punishable by up to 15 years in prison. Making a false statement in connection with a firearms acquisition is punishable by up to ten years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Jefferson County Man Admits Recording Sexual Abuse of a MinorRead the Press Release
ST. LOUIS – A man from Pevely, Missouri on Tuesday admitted recording his sexual abuse of a minor.
Matthew Gamel, 36, admitted that on at least four occasions, he recorded his sexual abuse of the victim. She was under 14 years of age at the time. He also acknowledged possessing more than 1,700 media files containing child sexual abuse material that he obtained online, in addition to the files documenting his abuse of the victim. Gamel pleaded guilty to one count of sexual exploitation of a minor and one count of receipt of child pornography.
Gamel is scheduled to be sentenced May 22. As part of the plea, both sides have agreed to recommend a sentence of 25 years in prison.
The Pevely Police Department and the FBI investigated the case. Assistant U.S. Attorney Michael Hayes 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.
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Melvin Pearson Jones, 40, of Huntington, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on August 3, 2023, Jones sold a quantity of fentanyl to a confidential informant at his Huntington apartment for $300. Jones admitted to the transaction, and to arranging it beforehand with the confidential informant. Jones further admitted to selling approximately 6.11 grams of heroin and fentanyl to the confidential informant in Huntington on August 9, 2023.
Jones is scheduled to be sentenced on June 10, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
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. 3:24-cr-1.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Stephen Michael Wolford, 32, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on March 29, 2023, a law enforcement attempted to initiate a traffic stop of a vehicle driven by Wolford near the intersection of 27th Street and Ninth Avenue in Huntington. Wolford admitted that he fled in the vehicle, speeding in excess of 90 miles per hour before wrecking the vehicle and flipping it on its roof on the 1400 block of 28th Street. Wolford further admitted that he attempted to flee on foot before he was caught and arrested.
Officers found a Smith & Wesson Model M&P .40-caliber pistol at the location of the vehicle crash. Wolford admitted to possessing the firearm and further admitted to bringing the firearm into a Huntington business on March 28, 2023, and showing it to a store employee while shopping for accessories for the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Wolford knew he was prohibited from possessing a firearm because of his prior felony conviction for grand larceny in Cabell County Circuit Court n August 15, 2017.
Wolford is scheduled to be sentenced on June 20, 2024, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
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. 3:23-cr-84.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Kenard Jerlonnie Moore, also known as “Lonnie,” 41, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on September 28, 2023, Moore sold approximately 16 grams of methamphetamine and approximately 63 grams of a substance that Moore represented was fentanyl to a confidential informant for $1,400. The transaction occurred behind Moore’s 28th Street residence. Moore admitted to the transaction, and further admitted that he arranged the transaction when the confidential informant contacted him earlier that day about purchasing fentanyl and methamphetamine. A forensic analysis confirmed that the methamphetamine had a net weight of 16.6 grams and the suspected fentanyl contained no controlled substances.
Moore is scheduled to be sentenced on June 10, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
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. 3:24-cr-3.
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Gulfport Woman Sentenced to over 17 Years in Prison for Possession with Intent to Distribute 264 Grams of MethamphetamineRead the Press Release
Gulfport, Miss.– A Gulfport woman was sentenced to 225 months in federal prison for possession with intent to distribute 264 grams of methamphetamine.
According to court documents, on July 1, 2020, law enforcement agents received information that packages containing narcotics were being delivered to Mary Lou Harmon, 61, at an address in D’Iberville, Mississippi. Harmon and a co-conspirator would receive the packages at the address and then distribute the narcotics. On July 8, 2020, two packages were sent to the address and law enforcement stopped the distribution. One of the packages addressed to Mary Lou Harmon contained 264 grams of pure methamphetamine.
Harmon was indicted by a federal grand jury, and she pled guilty on November 2, 2023, to possession with intent to distribute a controlled substance.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Mike Arnett of the Drug Enforcement Administration made the announcement.
The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
Assistant U.S. Attorney Erica Rose prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Glendale Man Sentenced for Using Credit and Debit Card Skimmers at Gas Stations to Steal Nearly $200,000 in Fresno and Southern CaliforniaRead the Press Release
FRESNO, Calif. — Akop Dongelyan, 47, of Glendale, was sentenced today to 364 days in prison for conspiring to commit credit and debit card fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in November 2015, Dongelyan and co-defendant Artak Vardanyan went on a crime spree in Fresno and Southern California where they stole multiple victims’ credit and debit card information through skimmers placed at gas stations. They then used that information to make counterfeit credit and debit cards and stole over $195,000 from the victims’ accounts.
On Feb. 12, 2024, Vardanyan was sentenced to 11 months in prison.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente prosecuted the case.
Gangster Disciples Assistant Chief Enforcer Sentenced to Life in Prison for Gang-Related MurdersRead the Press Release
MACON, Ga. – A high-ranking member of the Gangster Disciples convicted of a murderous conspiracy stemming from gang-related retribution that resulted in the shooting deaths of three Athens, Georgia, men was sentenced to life in federal prison without parole today.
Lesley Chappell Green, aka “Grip,” 35, of Stone Mountain, was sentenced to life in prison by Chief U.S. District Judge Marc Treadwell on Feb. 20. Green, along with two co-defendants, was convicted by a federal jury of Racketeer Influenced and Corruption Organization (RICO) conspiracy on Aug. 17, 2023. Green is not eligible for parole.
“No sentence could ever ease the pain that Lesley Green inflicted on the families of the murder victims in this tragic case,” said U.S. Attorney Peter D. Leary. “The Gangster Disciples are a strategically violent organization whose members willingly committed these monstrous crimes. The U.S. Attorney’s Office for the Middle District of Georgia will join with our law enforcement partners to prosecute such crimes to the fullest extent of the law.”
“While this life sentence can never undo the loss of the affected family, it sends a message that justice will prevail,” said Athens-Clarke County Police Chief Jerry Saulters. “We are grateful to our officers for their continued support of this case and those involved in the prosecution. Our community is safer because of your efforts.”
“Protecting the safety of our communities is fundamental to what we do at the FBI,” said Robert Gibbs, Supervisory Senior Special Agent of FBI Atlanta Athens office. “The FBI is committed to reducing violent crime and combating the threat people like Lesley Green pose to our communities and residents. We are proud to work alongside our local, state and federal partners to bring violent members of criminal organizations the Gangster Disciples to justice.”
Two co-defendants convicted with Green at trial will be sentenced on March 20 in Macon:
Philmon Deshawn Chambers, aka “Dolla Phil,” 35, of Atlanta was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); Carry and Use of a Firearm During and In Relation to a Crime of Violence; and Causing the Death of a Person Using a Firearm. Chambers faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Co-defendant Andrea Paige Browner, aka “Drea,” 29, of Athens, Georgia, was convicted of Racketeer Influenced and Corruption Organization (RICO) conspiracy; Violent Crime in Aid of Racketeering - Murder (VICAR-Murder); and Causing the Death of a Person Using a Firearm. Browner faces a mandatory minimum sentence of life in prison for the VICAR-Murder offense, and a maximum of life in prison for each of the remaining offenses.
Two co-defendants previously entered guilty pleas and will be sentenced on March 22 in Macon:
Robert Maurice Carlisle, aka “Different,” 37, of Lithonia, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8, and is facing a maximum sentence of life in prison; and
Shabazz Larry Guidry, aka “Lil Larry,” 29, of Decatur, Georgia, pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy on June 8 and is facing a maximum sentence of life in prison.
According to court documents, Chambers held a “Position of Authority” within the national Gangster Disciples criminal organization, which included overseeing members of the “Enforcement Team.” The Enforcement Team is directed to discipline gang members using physical assault or murder. Co-defendant Green was a member of the Enforcement Team and held the title of “Assistant Chief Enforcer.” Co-defendant Browner was a member of the “Sisters of the Struggle” (SOS), a parallel female component of the Gangster Disciples, and held a leadership position in the gang.
Evidence presented at trial proved that on Dec. 10, 2018, Gangster Disciples member Walter Brown was murdered in Athens, Georgia. Chambers and Browner sought retaliation for Brown’s death and believed three unnamed Athens residents were responsible. On Dec. 14, 2018, Browner met Rodriquez Apollo Rucker, of Athens, at a downtown Athens hotel and learned that Rucker was related to one of the individuals she believed killed Brown. Browner texted Chambers, and Chambers came to the motel. Chambers followed Rucker home and shot and killed him. Browner notified an associate of the Gangster Disciples that she and Chambers would be leaving town because the police would be looking for them.
Browner was taken into custody in Mt. Enterprise, Texas, on Dec. 15, and Chambers got away. Chambers was suspicious that someone was cooperating with law enforcement and focused his suspicions on Derrick Ruff and Joshua Jackson who were, in fact, not cooperating with law enforcement. Chambers incorrectly concluded that Ruff and Jackson were “snitches” and directed Green, who held a subordinate position on the Enforcement Team, to carry out the murders of Ruff and Jackson.
Text messages and intercepted phone calls between Chambers, Green, Carlisle and Guidry revealed that Ruff and Jackson were lured by Green, as directed by Chambers, to drive from Athens to Lawrenceville to break into storage sheds and steal items to send to Chambers as “aid and assistance” as he was hiding out from law enforcement in a Gangster Disciple “safe house” in Killeen, Texas. The ruse worked, and Ruff and Jackson were murdered on Dec. 19 and their bodies concealed in the storage unit until March 17, 2019, when police with the assistance of cadaver sniffing dogs located them. Additional messages between Chambers, Green, Carlisle and Guidry showed that they conspired to dispose of the victims’ bodies, which included potentially burning the bodies or dumping the bodies in a landfill. Law enforcement recovered the bodies and made arrests before these plans could be carried out.
This case is being prosecuted as part of the joint federal state, and local Project Safe Neighborhoods (PSN) Program, 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.
The case is being investigated by FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department and the Gwinnett County Police Department.
Assistant U.S. Attorney Mike Morrison of the Middle District of Georgia is prosecuting the case with assistance from Assistant U.S. Attorney Stuart Walker of the Middle District of Georgia and the Department of Justice’s Criminal Division’s Violent Crimes and Racketeering Section.
Former bank manager sentenced to 3+ years in prison for theft from customer accountsRead the Press Release
Tacoma –A 44-year-old former bank manager from Battle Ground, Washington, was sentenced today in U.S. District Court in Tacoma to 42 months in prison for Bank Fraud and Aggravated Identify Theft, announced U.S. Attorney Tessa M. Gorman. Brian Davie, a former branch manager at Wells Fargo, used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million. Davie targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $566,000 stolen from her retirement accounts.
At today’s sentencing hearing U.S. District Judge Benjamin H. Settle said, “The wake of damage in this case is large. It involved multiple victims over some time... Our society depends on the trust of those who hold our finances.”
Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to records in the case, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances. Davie hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements.
Davie continued undetected because he stole from elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts. That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions.
Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash.
In all, Davie embezzled S1,279,840 from victim accounts. Wells Fargo partially reimbursed victims for their losses.
Judge Settle will decide the amount of restitution Davie owes on March 18, 2024.
In asking for a four-year prison sentence, Assistant United States Attorney Zachary Dillon wrote to the court, “Bank fraud and aggravated identity theft cause devastating effects on their victims. It can often take years or even decades to undo the impact of identity theft and to untangle the impact it had on your finances and your credit score. Let alone the untold psychological damage it causes when you are unable to trust the government institutions that are designed to protect you. As a bank manager, Defendant knew better.”
This case was investigated by the FBI with assistance from the Wells Fargo investigation team.
This case is being prosecuted by Assistant United States Attorney Zachary Dillon.
Former VA Pharmacy Tech Sentenced to Prison for Stealing Prescription Medications from VeteransRead the Press Release
SAN ANTONIO – A Kerrville man was sentenced in a federal court in San Antonio to 42 months in prison for conspiracy to possess with intent to distribute a controlled substance, theft of government property and possession of stolen mail.
According to court documents, Scott Mitchell Brown, 38, was a pharmacy technician at the Veterans Affairs (VA) Medical Center in Kerrville. Using his position, Brown devised a scheme to steal narcotics that were being shipped from the pharmacy to VA patients, stealing the narcotics and selling them for profit to individuals in the Kerr County area.
One of the individuals was his codefendant John Swiencki. Swiencki introduced Brown to another codefendant, David Jeffrey Hughes Jr. Brown and Hughes proceeded to break into mailboxes and steal prescribed narcotics from veterans, using patient records obtained by Brown to identify the mailboxes.
In September 2022, Swiencki was sentenced to 12 months in prison. Hughes was sentenced to 35 months in prison in December 2022.
“Brown's misuse of his position with the VA is a repugnant betrayal by a public servant against our nation’s veterans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “These veterans rely on the care and compassion of the VA to assist them with ailments and disabilities. Instead, the veterans victimized by Brown and his codefendants were met with cruelty and greed. My office and the Department of Justice will continue to seek justice for those who have sacrificed so much for our country.”
“Medical professionals stealing controlled substances intended for our nation’s veterans cannot be tolerated. This sentence should send a strong message that those who would abuse their positions of trust will be caught and held accountable,” said Special Agent in Charge Kris Raper of the VA Office of Inspector General’s South Central Field Office. “The VA OIG thanks its law enforcement partners and the US Attorney’s Office for their efforts in this joint investigation.”
The Department of Veterans Affairs Office of Inspector General, Drug Enforcement Administration, U.S. Postal Inspection Service, VA Police, Kerr County Sheriff's Office, Kerrville Police Department, and Kerr County District Attorney's Office investigated the case.
Assistant U.S. Attorney Fidel Esparza III prosecuted the case.
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Former Tax Preparer Pleads Guilty in Pandemic Unemployment Fraud SchemeRead the Press Release
DETROIT - Christopher Niebel, a former tax preparer who did business as “Tax Guy Chris,” pleaded guilty today to fraud and identity theft charges resulting from his participation in a pandemic unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigation Detroit Field Office and Michigan Unemployment Insurance Agency Director Julia Dale.
Niebel, 45, pleaded guilty to one count of wire fraud and one count of aggravated identity theft arising out of a scheme in which Niebel used stolen identities to submit fraudulent claims for unemployment insurance benefits during the Covid 19 pandemic.
According to the plea agreement, at the beginning of the pandemic, Niebel owned and operated a tax preparation service (“Tax Guy Chris”) in Allen Park, Michigan. Niebel also worked seasonally as a manager for Party City, a New-Jersey-based retail chain selling party supplies. Through his employment at Party City (a job he had held for many years), Niebel had access to the files of individuals who had worked or applied to work at the company. These files included the U.S. Citizenship and Immigration Service’s I-9 employment verification forms of Party City employees and applicants, in which the applicants documented their eligibility for employment in the United States. In approximately 2019, Niebel stole a number of these I-9 forms from Party City, which contained a substantial volume of personal identifying information (PII) of the applicants (including names, social security numbers, and dates of birth). Niebel filed these documents away for his future use.
Once Pandemic Unemployment Assistance (PUA) funds became available, Niebel used the PII he had appropriated from Party City in a scheme to defraud the Michigan Unemployment Insurance Agency by submitting fictitious claims for those benefits. Specifically, Niebel submitted electronic applications seeking pandemic unemployment benefits using the PII of applicants for jobs with Party City, without the authorization, approval, or knowledge of those individuals. Niebel intentionally used the PII of individuals who were not from Michigan in submitting these claims, correctly surmising that such individuals would be unlikely to have submitted their own unemployment insurance claims in Michigan and thus making detection less likely. Niebel opened numerous bank accounts in Michigan in order to capture the PUA funds, which were wired to those accounts. After capturing the pandemic unemployment benefits from these fraudulent applications, Niebel spent the money on a variety of personal expenses, including food, lodging, lottery tickets, and casino gambling,
Over the course of the scheme, Niebel obtained approximately $512,000 in pandemic unemployment assistance funds to which he was not entitled.
“Stealing money from pandemic benefit programs is a serious offense that harms both the intended beneficiaries and taxpayers. Doing so by stealing people’s identities further compounds the harm to the public,” said U.S. Attorney Ison. “Today’s guilty plea is an important step towards ensuring accountability for Mr. Niebel’s crimes.”
"Christopher Niebel fraudulently obtained unemployment insurance benefits by submitting claims using the names of identity theft victims. Niebel directed that the stolen benefits be deposited into bank accounts under his control. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
“With today’s guilty plea, Christopher Niebel became another example of an individual who callously took advantage of pandemic benefit programs and was caught,” said Charles Miller, Special Agent in Charge of IRS-CI’s Detroit Field Office. “In this case, Niebel sought to defraud the U.S. Government and steal funds from our local citizens, for whom these funds were intended to aid and provide much needed relief during the Covid-19 pandemic. IRS-CI, along with our law enforcement partners, remains committed to combat and prevent this type of pandemic-related fraud.”
“It is astounding the selfish schemes fraudsters cook up using fake identities to steal money meant for hard-working Michiganders,” said Michigan Unemployment Insurance Agency Director Julia Dale. “At the start of the pandemic, so many people needed help and all Chris Niebel thought about was how he could game the system for his personal gain. His actions – and those of more than 160 others charged so far with unemployment fraud – erodes the public’s trust. We won’t let that get in the way of wide-ranging reforms to win back that trust and position the Michigan UIA as a national model for fast, fair, and fraud-free service.”
Sentencing is set for May 21, 2024, before United States District Judge Stephen J. Murphy III. Niebel faces a statutory maximum of 20 years imprisonment on the wire fraud count. The aggravated identity theft charge carries a two-year mandatory sentence of imprisonment, which must run consecutively to any custodial time imposed on the wire fraud charge.
The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Internal Revenue Service-Criminal Investigation.
Former Portland Man Sentenced to 20 Years in Federal Prison for Sexually Abusing Multiple ChildrenRead the Press Release
PORTLAND, Ore.—A former Portland resident was sentenced to 20 years in federal prison today for sexually abusing multiple children, videorecording and photographing the abuse, and posting the illicit videos and photos on a private Snapchat page he maintained and used to entice other children to produce and share sexually explicit images of themselves.
Rolando Daniel Benitez, 30, was sentenced to 240 months in federal prison and 10 years’ supervised release.
According to court documents, in July and August 2019, Benitez, pretending to be a 15-year-old boy named “Marcos,” sexually abused two children, then ages 14 and 17, used his cell phone to videorecord and photograph the abuse, and posted the child sexual abuse material to a private Snapchat story page he maintained. In at least one of the images posted to Snapchat, Benitez’s online alias “Marcos” was written with black ink on one of the children’s bodies. On at least one occasion, Benitez sexually abused both minor victims together.
Investigators later discovered that Benitez, who moved to Washington state while the investigation was pending, used his Snapchat story page to entice other children to produce and send him sexually explicit images of themselves. Benitez only allowed girls to join and view his private Snapchat stories, and only after the girls complied with his “rules” by sending him photos of their exposed bodies. He further required some of the girls to write and photograph his online alias on their bodies.
A local investigation of Benitez’s crimes was opened after one of his child victims submitted a tip to the National Center for Missing and Exploited Children’s CyberTipline. The victim included Benitez’s full name and phone number in the report and pleaded with authorities to “please stop this man.” Less than a month later, Benitez was arrested in Auburn, Washington, for sexually abusing a 12-year-old child he met on SnapChat.
On January 26, 2021, Benitez was charged by federal criminal complaint in the District of Oregon with producing, advertising, receiving, and possessing child pornography. On October 5, 2023, he pleaded guilty to a three-count criminal information charging him with two counts of sexually exploiting children, and one count of possessing child pornography.
Benitez’s federal plea agreement is part of a global resolution between the U.S. Attorney’s Office for the District of Oregon and the King County, Washington, Prosecuting Attorney’s Office. On July 7, 2023, Benitez was sentenced in King County Superior Court to 136 months in state prison and a life-term of community custody (supervised release) for his abuse of the 12-year-old child in Auburn. Benitez’s federal and state sentences will run concurrently.
This case was investigated by the Portland Police Bureau and FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Auburn, Washington, Police Department. It was prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
FBI Portland’s CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state, and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Bank Employee Convicted After Four-Day Trial for Using His Position to Facilitate a Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – After deliberating less than 90 minutes, a federal jury convicted Jalen Craig McMillan, age 30, of Jessup, Maryland, for conspiracy to commit bank fraud, bank fraud and aggravated identity theft. The jury returned its verdict late on February 16, 2024.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge Christina Bentham of the U.S. Secret Service – Baltimore Field Office.
According to the evidence presented at his four-day trial, McMillan used his position as a “Member Service Representative” at a federal credit union to facilitate both the opening of accounts in the names of identity theft victims and subsequent financial transactions, including assisting with loans. As detailed at trial and in court documents, co-defendant Archie Paul and his co-conspirators obtained, possessed and used fictitious identities and the personal identifying information (“PII”) of real persons (the “victims”), which Paul and co-defendant John Fitzgerald Washington used to manufacture and procure false identification documents displaying the PII of the victims, but photographs of others. Paul, co-defendant Tiffany Rainel Williams and others then used the false identification documents to impersonate the victims and with the help of McMillan and other conspirators, open bank accounts and conduct financial transactions in their names, including making large withdrawals from the victims’ accounts.
In addition to the conspiracy and bank fraud charges, McMillan was convicted of aggravated identity theft for providing the identifying information of a bank customer to Paul, knowing that it would be used to facilitate the fraud. Specifically, the evidence proved that McMillan used his special access to the bank’s customer database to steal confidential PII belonging to Victim 5, a customer at the bank. McMillan provided that information to Paul. A co-conspirator subsequently opened a bank account using Victim 4’s PII and Victim 5’s banking information. McMillan serviced the transaction and assisted the co-conspirator in obtaining a $10,000 loan in Victim 4’s name, which the co-conspirator immediately withdrew in cash.
Trial evidence proved that the conspirators intended to fraudulently obtain more than $400,000 from the bank and successfully defrauded the bank of more than $150,000.
Co-defendants Paul Archie, a/k/a “Carter Hill” and “Zion Davis,” age 31, of Laurel, Maryland; John Fitzgerald Washington, age 52, of Waldorf, Maryland, and Tiffany Rainel Williams, age 37, of Glenarden, Maryland, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
McMillan faces a maximum sentence of 30 years in federal prison for the conspiracy and for each count of bank fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Peter J. Messitte has scheduled sentencing for McMillan on June5, 2024, at 2:30 p.m.
U.S. Attorney Erek L. Barron commended the U.S. Secret Service for its work in the investigation and thanked the City of Laurel Police Department for its assistance. Mr. Barron also thanked Assistant United States Attorneys Bijon Mostoufi and Ranganath Manthripragada, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foreign National Pleads Guilty to Role in Cybercrime Schemes Involving Tens of Millions of Dollars in LossesRead the Press Release
United States Attorney Susan Lehr announced that Vyacheslav Igorevich Penchukov pleaded guilty on February 15, 2024, in federal court in Lincoln, Nebraska for his role in two separate and wide-ranging malware schemes involving tens of millions of dollars in losses.
Penchukov was a leader of two prolific malware groups that infected thousands of computers with malicious software. These criminal groups stole millions of dollars from their victims and even attacked a major hospital with ransomware, leaving it unable to provide critical care to patients for over two weeks,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Before his arrest and extradition to the United States, the defendant was a fugitive on the FBI’s most wanted list for nearly a decade. Today’s guilty pleas should serve as a clear warning: the Justice Department will never stop in its pursuit of cybercriminals.”
According to court documents, Vyacheslav Igorevich Penchukov, also known as Vyacheslav Igoravich Andreev and Tank, 37, of Donetsk, helped lead a wide-ranging racketeering enterprise and conspiracy that infected thousands of business computers with malicious software known as “Zeus” beginning in May 2009. After installing “Zeus” without authorization on victims’ computers, the enterprise then used the malicious software to capture bank account information, passwords, personal identification numbers, and similar information necessary to log into online banking accounts. Penchukov and his co-conspirators then falsely represented to banks that they were employees of the victims and authorized to make transfers of funds from the victims’ bank accounts, causing the banks to make unauthorized transfers of funds from the victims’ accounts, resulting in millions of dollars in losses to the victims. The enterprise used residents of the United States and elsewhere as “money mules” to receive wired funds from victims’ bank accounts into their own bank accounts, who then withdrew and wired funds overseas to accounts controlled by Penchukov’s co-conspirators.
Penchukov was charged with these offenses in the District of Nebraska. Given the severity of the charges in the case and the harm posed to American victims, Penchukov was added to the FBI’s Cyber Most Wanted List.
“The U.S. Attorney’s Office for the District of Nebraska, in concert with the U.S. Attorney’s Office for the Eastern District of North Carolina and Justice Department’s Computer Crime and Intellectual Property Section, successfully coordinated the prosecution and plea of Penchukov,” said U.S. Attorney Susan T. Lehr for the District of Nebraska. “This case demonstrates that cybercrime can affect anyone, no matter where they are. It also demonstrates that no matter where the cybercriminals are, the department can and will bring them to justice.”
Despite being added to the FBI’s Cyber Most Wanted List, Penchukov returned to criminal activity by helping lead a conspiracy that infected victim computers with IcedID or Bokbot, a new malware, from at least November 2018 through February 2021. IcedID was a sophisticated form of malicious software that collected and transmitted personal information from victims, including credentials for banking accounts. Penchukov and his co-conspirators used this information to steal from IcedID’s victims. IcedID also provided access to infected computers for other forms of malicious software, including ransomware. One such victim of this ransomware attack was the University of Vermont Medical Center, causing the loss of over $30 million from this victim alone, and left the medical center unable to provide many critical patient services for over two weeks, creating a risk of death or serious bodily injury to patients. Penchukov was charged with these offenses in the Eastern District of North Carolina.
“Malware like IcedID bleeds billions from the American economy and puts our critical infrastructure and national security at risk,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “The Justice Department and FBI Cyber Squad won’t stand by and watch it happen, and won’t quit coming for the world’s most wanted cybercriminals, no matter where they are in the world. This operation removed a key player from one of the world’s most notorious cybercriminal rings. Extradition is real. Anyone who infects American computers had better be prepared to answer to an American judge.”
“Core to the FBI’s cyber strategy is our willingness to play the long game and take players off the field. Vyacheslav Penchukov was a prolific criminal for over a decade and his criminal activities caused millions in damages,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI would like to thank our partners in both public and private sectors, and domestically and globally, for helping us bring Penchukov to justice.”
Penchukov was arrested in Switzerland in 2022 and extradited to the United States in 2023.
Penchukov pleaded guilty to one count of conspiracy to commit a racketeer influenced and corrupt organizations (RICO) act offense for his leadership role in the “Zeus” enterprise. Penchukov (as Andreev) also pleaded guilty to one count of conspiracy to commit wire fraud for his leadership role in the IcedID malware group. He is scheduled to be sentenced by Senior United States District Court Judge John M. Gerrard on May 9, 2024 and faces a maximum penalty of 20 years in prison for each count. Judge Gerrard will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Omaha and Charlotte Field Offices are investigating the case.
Assistant Deputy Chief William A. Hall Jr. and Senior Counsels Frank Lin and Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney John E. Higgins for the District of Nebraska, and Assistant U.S. Attorney Brad DeVoe for the Eastern District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs worked with the Swiss Federal Office of Justice to secure the arrest and extradition of Penchukov.
Fernandina Beach Man Pleads Guilty to Attempting to Entice an 11-Year-Old to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that William Rand Paige, Jr. (50, Fernandina Beach) has pleaded guilty to using the internet to attempt to entice a 11-year-old child to engage in sexual activity. Paige faces a minimum mandatory penalty of 10 years, up to life, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. Paige was arrested on December 18, 2023, and has since been detained.
According to court documents, on November 29, 2023, an undercover FBI agent in Jacksonville was conducting an online undercover operation to identify individuals who were seeking to meet and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover agent was online in a particular social messaging app when he was contacted by an individual using the app user name “ah..904,” subsequently identified as Paige. After learning the age of the “child,” Paige asked the agent if he and the “child” would “like her to be touched all over.” In a series of online conversations on the app and emails from November 29 through December 11, 2023, Paige discussed his desire to meet the “child” and engage in sexual activity with her. On December 11, 2023, Paige contacted the undercover agent online and stated “What are your thoughts on meeting? You think [the “child”] would be receptive? Do you want to have it happen?” On December 4 and again on December 11, 2023, Paige sent the undercover agent several videos depicting young children being sexually abused.
On December 18, 2023, FBI agents executed a federal search warrant at Paige’s residence and arrested Paige. A review of the content on Paige’s cellphone revealed that it contained at least one photo depicting the sexual abuse of a child, as well as the email account used by Paige to communicate with the undercover agent.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fentanyl Trafficker Who Attempted to Retaliate Against and Intimidate Witnesses Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
PITTSBURGH, Pa. - A former resident of Verona, Pennsylvania, has been sentenced in federal court to 293 months of imprisonment and 10 years of supervised release following his conviction for conspiracy to distribute 40 grams or more of fentanyl, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Jamal Knox, 29.
Knox was sentenced today following his conviction at trial in December 2022. Evidence introduced at trial established that, from approximately September 2017 to November 2019, Knox supplied fentanyl to large-scale drug traffickers who referred to themselves as Hustlas Don’t Sleep. During the conspiracy, Knox possessed multiple firearms, including an AR-15-style assault rifle and various handguns. Execution of a search warrant at his home revealed $50,000 in cash and various items used in large-scale fentanyl trafficking. In connection with Knox’s sentencing, Judge Horan determined that the defendant orchestrated a campaign of intimidation directed at cooperating witnesses called to testify by the government. Specifically, during the testimony of these witnesses, multiple known associates of Knox would enter the courtroom and sit in the public gallery, leaving when the testimony ended. The Court also determined that following his trial, and while he was detained pending sentencing, Knox attempted to have other non-incarcerated individuals retaliate against various trial witnesses.
Prior to imposing sentence, Judge Horan emphasized the seriousness of Knox’s criminal conduct and his significant criminal history, along with his attempts to intimidate and retaliate against trial witnesses, as reasons for the sentence.
“Jamal Knox was a central player in the large-scale fentanyl trafficking associated with the Hustlas Don’t Sleep street gang,” said U.S. Attorney Olshan. “Today’s significant sentence reflects the egregiousness of Knox’s conduct, his refusal to leave the deadly drug trade behind after multiple prior convictions, and his blatant efforts to silence those who would expose the extent of his criminal conduct—including while they testified in a federal courtroom. This office and our dedicated law enforcement partners will leave no stone unturned in our joint work to rid our communities of deadly narcotics and keep our neighbors safe.”
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania State Police, Pennsylvania Office of Attorney General, Allegheny County Police Department, Monroeville Police Department, and Penn Hills Police Department for the investigation leading to the successful prosecution of Knox.
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.
Federal Jury Convicts Minneapolis Man for Insider Trading SchemeRead the Press Release
ST. PAUL, Minn. – A federal jury has convicted a Minneapolis man in an insider trading conspiracy involving nonpublic negotiations for the acquisition of a medical device company valued at $1.6 billion, announced First Assistant U.S. Attorney Ann M. Bildtsen.
According to evidence presented at trial, beginning in January 2018 through at least August 2020, Doron “Ron” Tavlin, 68, of Minneapolis, and Afshin “Alex” Farahan, 57, of Los Angeles, engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Mazor Robotics, an Israeli-based company that specialized in robotics for spinal procedures, by Medtronic, Inc., an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, while working as vice president of business development at Mazor Robotics, learned material, nonpublic information about Medtronic’s potential acquisition of his company. In violation of federal law and his duty to his former employer, Mazor Robotics, Tavlin tipped this information about the acquisition to his friend, Farahan, and instructed him to keep the information secret. Farahan knew that Medtronic’s imminent acquisition of Mazor would likely result in an increase in Mazor’s stock price. Farahan used the nonpublic information to quickly buy more than $1 million of Mazor stock throughout August and September 2018. The morning after the acquisition was announced, Farahan immediately sold all the stock he had purchased over the preceding weeks, which resulted in a combined profit of over $500,000 for himself and one other individual. According to evidence presented at trial, after the acquisition occurred, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Mazor securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked Tavlin, and other insiders who knew about the secret acquisition negotiations, whether he knew any of the parties who traded in Mazor securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Mazor securities, which included Farahan.
According to evidence presented at trial, the insider trading conspiracy included an agreement between Tavlin and Farahan that Farahan would pay money to Tavlin in exchange for the material, nonpublic information. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Mazor Robotics leading up to the acquisition.
On February 16, 2024, following a nine-day trial before U.S. District Judge Donovan W. Frank, Tavlin was found guilty on one count of conspiracy to commit insider trading and ten counts of securities fraud and aiding and abetting securities fraud. Another defendant, David Jay Gantman, 58, of Mendota Heights, was found not guilty on one count of conspiracy to commit insider trading and six counts of securities fraud.
Farahan pleaded guilty on August 4, 2022, to one count of conspiracy to engage in insider trading. Sentencing hearings for both defendants will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert, Robert M. Lewis, and William C. Mattessich tried the case.
Farmington Woman Charged with Violations of the Federal Oil and Gas Royalty Management Act and Wire FraudRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and the Department of the Interior (DOI) Office of Inspector General announced today that a federal grand jury returned an indictment charging Teresa McCown with violations of the Federal Oil and Gas Royalty Management Act and wire fraud. McCown, 55, of Farmington, will remain on condition of release pending trial, which has not been scheduled.
According to the indictment, between Jan. 24, 2017, and June 5, 2023, McCown owned M&M Production & Operation, Inc. (M&M) and Shoreline Oil & Gas Company (Shoreline). Both are in the business of extracting oil and gas from land leased to the companies by the federal government, the Navajo Nation, and by the Jicarilla Apache Nation and both companies sold extracted oil and gas to refiners. M&M and Shoreline are required to report the quantity and quality of oil and gas extracted from the leases and the revenue derived from sales of those materials to the Department of the Interior, Office of Natural Resources Revenue (ONRR), in Report of Sales and Royalty Remittance (Form ONRR-2014) forms and Oil and Gas Operations Reports (OGORs). The intent of these reports is to determine royalties due to the lessors: the Navajo Nation, the Jicarilla Apache Nation, and the federal government.
After reviewing financial statements from refiners, ONRR determined that M&M and Shoreline’s Oil and Gas Operations and Sales and Royalty Remittance reports were incorrect. More specifically, a detailed analysis revealed over 400 incorrect reports on both Indian and Federal leases between January 2017 and July 2021. Furthermore, ONRR issued a Notice of Noncompliance to McCown in March 2021 for failing to report M&M's production of oil or gas from Federal and Indian properties from July 2019 through January 202l. ONRR is also authorized to issue civil penalties associated with the Notice of Noncompliance for failure to correct violations identified – and did issue those penalties. After receiving notices, penalties, and participating in teleconferences with regulators, McCown failed to correct false and inaccurate reporting. The total civil penalties assessed by ONRR for multiple violations by M&M and Shoreline total $1,707,339.58.
For knowingly and willfully submitting false and inaccurate reports, McCown is charged in Counts 2-9 with wire fraud. Specifically, McCown submitted the false and inaccurate reports over the internet via ONRR’s website. The electronically submitted forms were transmitted over interstate wire from Farmington, New Mexico to servers in Raleigh, North Carolina. ONRR employees in Lakewood, Colorado then accessed the same data through an internal networking system for overseeing production reporting and to process royalty payments.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, McCown faces up to 20 years in prison and $300,000 in additional fines. As part of her conditions of release, McCown may not work as a record-keeper or reporter in any industry subject to state or federal reporting or regulatory requirements, including oil and gas companies.
The Department of the Interior, Office of Inspector General, Office of Investigations, Energy Investigations Unit investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case.
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East Bay Resident Sentenced to Prison in Securities Fraud SchemeRead the Press Release
OAKLAND – Dileep Kumar Reddy Kamujula was sentenced today to six months in prison, and ordered to forfeit $130,369.28, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge.
Kamujula, 37, of Fremont, pleaded guilty to the charge on November 3, 2023. According to his plea agreement, Kamujula admitted that between April 9 and April 30, 2020, he used confidential Twilio customer usage data when purchasing approximately 167 Twilio call options that he sold on May 7 and May 8, 2020. Kamujula obtained the confidential information from a relative who worked at Twilio and made a profit of more than $550,000 on the transactions.
A federal grand jury indicted Kamujula on March 24, 2022, charging him with securities fraud, in violation of 18 U.S.C. §§ 1348 and 2 (Count One), and 15 U.S.C. §§78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1 (Count Two). Kamujula pleaded guilty to Count Two and Judge Tigar dismissed Count One on the government’s motion at the sentencing hearing.
In addition to the prison term, Judge Tigar also sentenced the defendant to serve a three-year period of supervised release, to begin after the prison term, and ordered the defendant to forfeit $130,369.28. Judge Tigar ordered the defendant to surrender to begin serving his prison term on April 15, 2024.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The U.S. Attorney’s Office appreciates the assistance of the San Francisco Regional Office of the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA).
Denham Springs Man Sentenced to 108 Months in Federal Prison for Access Device Fraud and Inducing a False Statement in the Application of a FirearmRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that the Honorable John deGravelles sentenced Jaylon Jamare Smullen, age 23, of Denham Springs, Louisiana, to 108 months in federal prison following his convictions for access device fraud and inducing a false statement in the application of a firearm. The Court further sentenced Smullen to serve three years of supervised release following his term of imprisonment and ordered that he pay a total of $27,836.11 in restitution to 49 victims.
According to admissions made as part of his guilty plea, Smullen devised a scheme to fraudulently obtain firearms, AR-15 lower receivers, and parts used to build firearms from federally licensed firearms dealers (“FFLs”) located in the Middle District of Louisiana and outside of the State of Louisiana. To execute the scheme, Smullen recruited, induced, procured, aided and abetted straw purchasers, to complete the firearm transfer paperwork, such as ATF Form 4473, in person, in order to obtain the firearms and AR-15 receivers representing that they were the actual purchasers/transferees of the firearms or lower receivers. To fund his scheme he obtained and used stolen credit card information belonging to 49 individuals, including the 16-digit credit card numbers, cardholder names, and billing addresses, to order firearms, firearm parts, and accessories, from multiple FFLs located outside of the State of Louisiana, for shipment to FFLs and residential addresses in the Middle District of Louisiana.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge City Police Department, and was prosecuted by Assistant United States Attorneys Kristin Lundin Craig and Lyman E. Thornton III.
Convicted sex offender imprisoned on additional child pornography offensesRead the Press Release
GALVESTON, Texas – A 37-year-old San Leon resident has been sentenced for possession and receipt of child pornography as well as distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Robert James Alden pleaded guilty April 11, 2023.
U.S. District Judge Jeffrey V. Brown has now ordered Alden to serve a total of 240 months in federal prison. At the hearing, the court noted the sentence reflected the severity of the materials Alden was using and his propensity to predation. Alden was further ordered to pay a total of $22,000 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the time of the offense, Alden was a registered sex offender and will continue to be upon release from custody.
“Today’s sentence makes it clear that online child predators will be prosecuted to the fullest extent of the law,” said Hamdani. “A convicted sex offender who continues seeking children online for sex will face swift and strong punishment.”
At the time of the plea, Alden admitted to communicating with whom he believed to be a 13-year-old female. During the message exchange, Alden requested nude photos from the minor, sent a video of child pornography to her and suggested they produce their own pornographic videos.
On March 9, 2021, authorities executed a federal search warrant and recovered multiple media devices, including his phone which contained multiple images and videos of child pornography.
Alden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations-Galveston conducted the investigation with assistance from the Pearland Police Department and Houston Metro Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Richard W. Bennett prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Convicted Ponzi Schemer and Alleged Conspirator Indicted for Multimillion-Dollar Fraud Scheme and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – A New Jersey man whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million was indicted today with one other conspirator in another fraud scheme, U.S. Attorney Philip R. Sellinger announced.
The indictment charges Eliyahu “Eli” Weinstein, aka Mike Konig, 48, and Aryeh “Ari” Bromberg, 49, with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, four counts of wire fraud, and conspiracy to obstruct justice. Three of Weinstein and Bromberg’s alleged conspirators, Christopher Anderson, 47, Richard Curry, 36, and Alaa Mohamed Hattab, 35, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing. Charges via criminal complaint are still pending against two of Weinstein and Bromberg’s alleged conspirators, Joel Wittels and Shlomo Erez.
U.S. Attorney Philip R. Sellinger“A federal grand jury in New Jersey has charged Weinstein and Bromberg with defrauding victim investors out of tens of millions of dollars. As alleged, soon after Weinstein got out of jail after receiving a Presidential commutation, he picked his Ponzi schemer’s playbook back up and allegedly started ripping off victims again. Weinstein allegedly used a fake name and worked with Bromberg and others to falsely promise access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. Weinstein didn’t try to make his prior victims whole – he made more victims, as alleged in the indictment. This office will aggressively investigate and prosecute fraudsters who allegedly prey on innocent investors.”
“The adage ‘history repeats itself’ proves true in the case we’ve built against Weinstein and his co-conspirators,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege he persuaded investors to put money into several ventures, based on taking advantage of the COVID pandemic, the baby formula shortage, and even the war in Ukraine. Our investigation shows those ventures weren’t real, and to use the exact words the subjects used - it was a Ponzi scheme. Weinstein squandered his pardon from the highest office in this country for similar criminal behavior. He now faces justice, a second time.”
According to documents filed in this case and statements made in court:
Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.
Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by Anderson and Curry. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.
In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.
In late August 2022, Weinstein revealed his true identity to Anderson and Curry, admitting in a secretly recorded meeting, “I am Eli Weinstein.” In another recorded August 2022 meeting, Weinstein admitted to misappropriating Tryon investor money and making various false statements and sending fake documents concerning the purported Optimus deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”
Once Anderson and Curry learned that Mike Konig was actually Weinstein, they agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud.
In addition to defrauding investors, Weinstein and Bromberg also conspired to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he “can’t touch” while on supervised release because he’d otherwise “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”
The conspiracy and substantive securities fraud charges are each punishable by a maximum of 5 years in prison and a $5 million fine. The conspiracy and substantive charges of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The obstruction conspiracy charge is punishable by a maximum of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Carolyn Silane, and Marko Pesce of the Economic Crimes Unit in Newark.
The charges and allegations against Weinstein, Bromberg, Wittels, and Erez are merely allegations, and they are presumed innocent unless and until proven guilty.
weinsteinbromberg.indictment.pdfConvicted Felon Pleads Guilty to Trafficking Firearms from Alabama into MassachusettsRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to illegally transporting dozens of firearms from Alabama into Massachusetts.
Jahquel Pringle, 26, pleaded guilty to one count of conspiracy to illegally transport firearms; two counts of illegal transportation or receipt in state of residency of firearm purchased or acquired outside of state of residency; and two counts of being a felon in possession of a firearm. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 6, 2024. Pringle was indicted by a federal grand jury in July 2022 along with co-defendants Brandon Moore, Jarmori Brown and Kobe Smith.
According to the charging documents, Pringle, Brown, Moore and, allegedly, Smith conspired to obtain at least 24 firearms from Alabama, where Moore lived, and then transport them to Boston. In two separate trips in July and August 2020, Pringle traveled from Boston to Alabama on a commercial bus to pick up the firearms from Moore and then transported the firearms, concealed within luggage, back to Boston by bus. At least seven of the firearms have been recovered from the streets of Boston and surrounding communities. Pringle was captured on video firing one of the firearms in Alabama. Pringle is prohibited from possessing firearms due to a prior felony conviction.
In July 2023, Brown was sentenced to 18 months in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy. Moore’s case was transferred to the Middle District of Alabama where he has since pleaded guilty. Smith remains in federal custody pending trial.
Both the interstate transportation charge and the conspiracy charge provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to ten years in prison, three years of supervised release and a fine of $250,000. 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.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case is being prosecuted by the Major Crimes Unit.
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 details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted Corpus felon heads to prison for illegal possession of ammunition and handgunRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been sentenced following his conviction for felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Adalberto Pena pleaded guilty June 13, 2023.
U.S. District Judge David S. Morales has now ordered Pena to serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information regarding Pena’s history of possessing firearms as a convicted felon, which includes four incidents in the 14 months preceding his arrest. The four prior incidents involved 10 firearms and included a silencer.
The investigation revealed Pena was possibly involved in selling narcotics and possessing a firearm as a convicted felon. On Dec. 22, 2022, law enforcement conducted surveillance at his residence in Corpus Christi.
At that time, authorities saw a vehicle leave the house without license plate lights and initiated a traffic stop. Pena informed law enforcement he did not have identification. Authorities then conducted a search of his vehicle which revealed 9mm and .223 ammunition inside the cup holder as well as a Taurus handgun with a loaded magazine in the glove box.
Pena was previously convicted of a felony for possession of cocaine in 2011. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
Pena 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 and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Liesel Roscher prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Columbus man pleads guilty to fraud crimes related to stealing identities for lines of creditRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in federal court here today to fraud crimes related to stealing identities to get more than $100,000 in fraudulent lines of credit.
Siyuan Ye, 24, of Columbus, pleaded guilty to mail fraud and aggravated identity theft.
According to his plea agreement, between January 2022 and August 2023, Ye stole the identities of at least 15 victims. Ye repeatedly obtained Ohio and Florida driver licenses of other individuals without their authorization and then used the licenses to fraudulently obtain credit from retailers in the victims’ names.
He used the fraudulent credit to purchase a Chevrolet Corvette Stingray, three motorcycles and a variety of electronics.
For example, in April 2023, Ye used a stolen identity and fraudulent line of credit to purchase $8,400 worth of goods from a Micro Center in Columbus. Ye bought graphics cards, laptops and an Apple watch.
That same month, Ye used the same Ohio victim’s identity to buy a Suzuki motorcycle at Iron Pony Motorsports in Westerville.
As part of his plea, Ye has agreed to pay more than $115,000 in restitution. Parties involved in his case have recommended a sentence of 24 to 36 months in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Shawn Gibson, Acting Special Agent in Charge, Homeland Security Investigations (HSI) Detroit, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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