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Tuesday 20 February 2024
Co-Owner of Media Brokerage Firm Sentenced for Filing False Tax ReturnsRead the Press Release
A former Maryland woman was sentenced today to 15 months in prison for filing a false tax return.
According to court documents and statements made in court, Susan K. Patrick, now a resident of Cody, Wyoming, co-owned a media brokerage firm with her husband and hired an accounting firm to prepare business and personal tax returns for 2012 through 2014. Despite receiving the completed and accurate tax returns from the accounting firm, Patrick did not file them with the IRS. After the IRS contacted Patrick and requested that she file the unfiled returns, Patrick lied to the IRS, claiming that her accounting firm had timely filed the returns and that she would provide copies of those returns.
Patrick, however, did not provide copies of the accurate returns that had been prepared by her accounting firm. Instead, Patrick doctored the business returns, removing $10 million in gross receipts received by her brokerage firm, and altered the personal returns by removing over $9.5 million in related income that she and her husband had earned from 2012 through 2014. Patrick also falsely backdated her signature on each tax return to make it appear as if the returns had been timely signed and mailed these false documents to the IRS, hoping to evade paying the full amount of taxes she owed.
In addition, Patrick did not timely file business and individual returns for 2015, which she had also hired the accounting firm to prepare, nor did she pay the tax due and owing for the individual return.
In total, Patrick sought to evade more than $2.5 million in taxes.
In addition to the term of imprisonment, U.S. District Judge George L. Russell III for the District of Maryland ordered Patrick to serve one year of supervised release and to pay approximately $3,843,922 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney Matthew L. Cofer of the Tax Division prosecuted the case.
Citrus Heights Man Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — On Feb. 15, 2024, a federal grand jury returned an indictment against Kyle Travis Colton, 36, of Citrus Heights, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2022 and December 2023, Colton received visual depictions of children engaged in sexually explicit conduct. The indictment was unsealed today.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.
If convicted, Colton faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Cincinnati woman pleads guilty to making false racial discrimination claims against landlord to federal agentsRead the Press Release
CINCINNATI – A Cincinnati tenant pleaded guilty in federal court today to making false statements accusing her landlord of violating the Fair Housing Act.
Dermisha Pickett, 33, fabricated messages from her landlord stating the landlord did not want Black tenants.
According to court documents, in February 2023, the U.S. Attorney’s Office was forwarded several text messages purportedly sent by the Cincinnati-area landlord as part of a civil rights report. The U.S. Attorney’s Office referred the matter to the U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) to investigate the claims.
The investigation revealed that the landlord owns more than 100 properties, including 56 properties rented through HUD’s housing choice voucher program. Many of his tenants appear to be Black/African American.
In March 2023, Pickett met with HUD agents and provided the agents with numerous discriminatory messages purportedly made by Pickett’s landlord. Pickett also claimed to receive a call from the landlord as she arrived at the meeting and placed the call on speaker phone.
Pickett told agents that she had attempted to pay her portion of the rent but that her landlord returned it, stating he did not want to rent to Black individuals.
In a later interview with the landlord, the landlord told agents he did not want to continue to rent to Pickett because she was causing extensive damage to the property.
Phone records and forensic analysis indicate that no text messages were exchanged during the time periods Pickett claimed. It is alleged that Pickett used mobile applications to fabricate the text messages.
“False reports to law enforcement undermine legitimate reports of racial discrimination and could discourage victims from coming forward for fear that they will not be believed,” said U.S. Attorney Kenneth L. Parker. “This office will continue to do its due diligence when presented with any potential civil rights violations.”
“Making false reports of racial discrimination is unacceptable and can have tangible effects on other tenants who rely on HUD-assisted housing,” said Special Agent in Charge Shawn Rice with the HUD Office of Inspector General. “In this case, if the landlord had violated the Fair Housing Act, his participation in HUD’s Housing Choice Voucher program may have been revoked, causing the displacement of approximately 50 families who rely on the Housing Choice Voucher program. These families would have been forced to uproot their families to find new homes, incurring non-reimbursable expenses.”
Pickett was charged by criminal complaint in August 2023.
Making a false statement to federal officers is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, Mid-Atlantic Region announced the guilty plea entered into today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Canadian woman arrested, charged with assaulting a CBP officerRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Romane Toumani, 29, of Ontario, Canada, was arrested and charged by criminal complaint with assaulting a federal officer, which carries a maximum penalty of eight years in prison.
Assistant U.S. Attorney Andrew J. Henning, who is handling the case, stated that on February 8, 2024, at approximately 12:00 p.m., Homeland Security Investigations received a report of a Customs and Border Protection Officer being assaulted by Toumani at the Peace Bridge Port of Entry. According to the complaint, Toumani and her sister were traveling in an UBER vehicle, when the UBER driver was referred for immigration inspection at the Peace Bridge and then told that he would have to return to Canada for insufficient travel documents. The Toumani’s were told to retrieve their baggage from the vehicle and advised that CBP would be examining their luggage, which the sisters stated that CBP had no authority to do. As CBP officers attempted to return the Toumani’s to the immigration inspection area, Romane Toumani forcefully bit the arm of an officer and resisted efforts multiple attempts to place her in handcuffs.
Toumani made an appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brian Walshe Sentenced for Scheme to Sell Counterfeit Warhol PaintingsRead the Press Release
BOSTON – A Lynn man was sentenced today in connection with a years-long, multi-faceted art fraud scheme involving two purported Andy Warhol paintings.
Brian R. Walshe, 49, was sentenced by U.S. Senior District Court Judge William G. Young to 37 months in prison and three years of supervised release. Walshe was also ordered to pay restitution of $475,000. In April 2021, Walshe pleaded guilty to one count each of wire fraud, interstate transportation for a scheme to defraud and unlawful monetary transaction.
In early November 2016, a buyer found two Andy Warhol paintings for sale on eBay. The paintings were two of Warhol’s “Shadows,” a series of untitled, abstract canvas paintings from 1978. The original listing price for the paintings was $100,000.
In the advertisement, Walshe – the eBay seller - included a picture of an invoice for the two Warhol Shadow paintings with Warhol Foundation numbers and a purchase price of $240,000.
The buyer believed the paintings were authentic and between Nov. 3 and 5, 2016, arranged with Walshe to purchase the artwork outside of eBay for $80,000. Walshe and the buyer signed a contract which specified that the buyer had three days to terminate the contract and get a full refund if the buyer did not accept the artwork.
On Nov. 7, 2016, the buyer’s assistant flew to Boston to retrieve the paintings, providing Walshe with a cashier’s check for $80,000. The cashier’s check was deposited that day into an account that Walshe controlled and $33,400 was subsequently withdrawn in the following 14 days.
On Nov. 8, 2016, the buyer removed the paintings’ frames and found no Warhol Foundation authentication stamps and noticed that the canvasses and staples looked new. When he compared the paintings to the photographs from the eBay listing, they did not look identical. The buyer concluded that the paintings he purchased from Walshe were not authentic. The buyer then repeatedly attempted to contact Walshe, who initially did not respond, and then made excuses for the delay in refunding the buyer’s money.
Walshe initially gained access to the paintings through a victim who was his friend. While visiting the victim in South Korea, Walshe told the victim that he could sell some of the art for a good price. The victim agreed and let Walshe take the two Shadow paintings and other fine art pieces. A subsequent investigation revealed that Walshe sold the original Shadow paintings to a gallery in 2011. Those paintings passed through multiple hands until they were sold to buyers outside the country. To date, the government has not regained possession of the original Shadow paintings.
Additionally, the investigation also revealed that, sometime in 2011, Walshe obtained a different set of replica Shadow paintings from an artist who did not know Walshe’s purpose. In 2015, Walshe sold that set to another victim who resided in France.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Lynn Police Department provided assistance with the investigation. Assistant U.S. Attorneys Timothy E. Moran, Kunal Pasricha and Philip A. Mallard of the Criminal Division and Carol E. Head, Chief of the Asset Recovery Unit prosecuted the case.
Brazilian National Sentenced, Faces Deportation in Scheme That Defrauded a National Retailer of Nearly $300,000Read the Press Release
PROVIDENCE, RI – A former West Hartford, CT, resident who, for more than eight months prior to his arrest and detention nearly two years ago, operated a scheme in several states, from Maine to Rhode Island to Maryland, to steal and return merchandise to Home Depot, amassing and spending nearly $300,000 in store credit, has been sentenced to time served, ordered to pay full restitution, and faces deportation proceedings, announced United States Attorney Zachary A. Cunha.
Alexandre Henrique Costa-Mota, 27, a Brazilian national, pleaded guilty in U.S. District Court in Rhode Island on November 9, 2023, to charges of wire fraud and conspiracy. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to time served, three years of federal supervised release, and to pay restitution to Home Depot in the amount of $297,332.
Mr. Costa-Mota will be turned over to Immigration and Custom Enforcement to face deportation proceedings.
According to court documents and information presented to the court, on at least 60 occasions spread over approximately eight months from mid-2021 to early 2022, Costa-Mota stole merchandise from the retailer then returned the merchandise for store credit. He amassed – and spent - $297,332 in store credit. He executed the scheme at no less than 40 different store locations. To evade detection, he used fake driver licenses for identification purposes.
The case was prosecuted in U.S. District Court in Rhode Island by Assistant U.S. Attorneys Dulce Donovan and Milind M. Shah.
The matter was investigated by the United States Secret Service.
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Bloods Gang member pleads guilty to drug and gun chargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Rasheem “Coop” Sullivan, 31, of Rochester, NY, pleaded guilty to conspiracy to distribute controlled substances and being a felon in possession of a firearm, before U.S. District Judge Frank P. Geraci, Jr. The charges carry a minimum penalty of five years in prison, a maximum of life in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Sullivan is a member of the nationally recognized Bloods Gang, and the self-proclaimed leader of a local subset known as the Immortal Stone Gorilla Gang. In December 2022, following a lengthy investigation into narcotics trafficking, weapons possession, and associated violence, Sullivan and several of his fellow Blood Gang members were arrested. On December 14, 2022, several locations associated with Sullivan’s enterprise were searched, during which investigators recovered narcotics, cash, and numerous firearms. Inside Sullivan’s residence, a Glock 10 mm pistol loaded with 16 rounds of ammunition was recovered.
The investigation began in the aftermath of the murder of Rochester Police Department Investigator Anthony Mazurkewicz and the assault of Investigator Sino Seng in July 2022. It's alleged that individuals associated with Sullivan were engaged in a violent feud with another group led by Brandon “B-Mack” Washington. In September 2022, Washington and several associates were charged with federal drug and weapons offenses.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Bureau of Alcohol, Tobacco, and Firearms, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for May 21, 2024, before Judge Geraci.
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Alamogordo Man Charged with Possessing Unregistered Weapon Used in Police Officer KillingRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Dallas Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced that Dominic Cruz De La O appeared in federal court on a criminal complaint charging him with possession of an unregistered weapon made from a shotgun. De La O, 27, of Alamogordo, will remain in temporary custody pending a detention hearing, which is scheduled for Feb. 22, 2024.
According to the criminal complaint, on July 15, 2023, De La O allegedly shot and killed Alamogordo Police Officer Anthony Ferguson during a traffic stop with a modified 12-gauge shotgun. The barrel length of the shotgun was 16 inches, and the overall length was 25.5 inches. The shotgun stock had been removed and replaced with a pistol grip.
On July 26, 2023, ATF agents received information that Jonah Apodaca allegedly provided the modified shotgun to De La O. Apodaca, 32, of Alamogordo, appeared in federal court on a criminal complaint charging him with possession of a firearm by a felon on Feb. 12, 2024. Apodaca will remain in custody pending trial, which has not been scheduled.
A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the current charges, De La O faces up to 10 years in prison and Apodaca faces 15 years in prison. De La O also faces state charges including first-degree murder, aggravated fleeing, aggravated assault, tampering with evidence, and other lesser charges stemming from the July 15, 2023, death of Officer Ferguson.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Alamogordo Police Department, New Mexico State Police, and the Otero County Sheriff’s Office. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.
View Del La O's Criminal Complaint View Apodaca's Criminal Complaint# # #
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Ada Resident Sentenced for Murder, Kidnapping, Arson, Burglary, Voluntary Manslaughter, Assault and Prison Contraband ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Kalup Allen Born, age 25, of Ada, Oklahoma, was sentenced to a total of 608 months imprisonment related to three separate cases.
For crimes related to a murder committed in January 2017, Born was sentenced to 450 months imprisonment for Murder in Indian Country – Second Degree, Kidnapping in Indian Country, Arson in Indian Country, and First Degree Burglary in Indian Country. The sentences will run concurrently to each other, and consecutive to his other sentences.
For crimes related to a prison attack in December 2020, Born was sentenced to 121 months imprisonment for one count of Voluntary Manslaughter in Indian Country. The sentence will run consecutive to his other sentences.
For crimes related to a prison attack in April 2023, Born was sentenced to 37 months of imprisonment for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and one count of Possession of Contraband in Prison. The sentence will run consecutive to his other sentences.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, the Oklahoma State Fire Marshal, the Pontotoc County Sheriff’s Office, and the Muskogee County Sheriff’s Office.
On December 5, 2022, Born pleaded guilty to one count of Murder in Indian Country—Second Degree, one count of Kidnapping in Indian Country, one count of First Degree Burglary in Indian Country, and one count of Arson in Indian Country for his January 2017 crimes.
According to investigators, on January 15, 2017, Born broke into an Ada residence, threatened and assaulted the occupant with a knife, stole the victim’s vehicle, then kidnapped and forced the victim into the car. As he drove south, Born backed the vehicle over the side of a bridge, sending it over the edge and down into the creek bed below. The victim suffered severe blunt force trauma, including a ruptured organ and a pelvic injury, and ultimately died from the injuries sustained in the incident.
Born then made his way to a second home nearby, which he burglarized, stealing a blanket, a knife, a wallet, and electronics.
From there, Born proceeded to yet a third residence, where he broke in and set the home ablaze with the occupants still inside. A bystander was able to rescue the occupants from the fire and Born was captured nearby.
In December 2020, while being held on charges for these crimes, Born killed a fellow inmate in the Pontotoc County Justice Center in a brutal and sustained attack. On June 7, 2022, a federal jury convicted Born at trial for one count of voluntary manslaughter.
On April 24, 2023, Born stabbed a Muskogee County Jail inmate repeatedly with a homemade knife and attempted to throw the inmate over a railing. On January 3, 2024, Born entered a guilty plea to one count of assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and one count of Possessing Contraband in Prison.
The crimes occurred in Pontotoc County and Muskogee County, within the boundaries of the Chickasaw Nation Reservation and the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
“The crimes committed by Born are gut-wrenching and there is no question the sentencing is just,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI is responsible for investigating the most serious crimes in Indian Country and along with our law enforcement partners, we will continue to aggressively pursue these cases. The FBI is committed to protecting all of the tribal communities we serve, helping victims, and ensuring that justice is met for violent offenders. Born decided to continue his life of crime even while in prison. He clearly did not learn his lesson and continued to terrorize the lives of others. The FBI is grateful to the law enforcement agencies that contributed to this investigation and led to Born’s conviction.”
“The enormity of these heinous acts cannot be overstated,” said United States Attorney Christopher J. Wilson. “Born has proven to be a threat to society both inside and outside the walls of the prison system. This sentence ensures he will spend a substantial portion of his life, if not all, behind those walls where his actions are as limited as possible.”
The Honorable John F. Heil, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearings. Born will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorneys Ryan Conway and T. Cameron McEwen represented the United States.
Monday 19 February 2024
U.S. to collect over $350,000 in damages after judgement ordered in False Claims Act caseRead the Press Release
ANCHORAGE, Alaska – The U.S. will collect over $350,000 in treble damages and penalties after a default judgement was ordered in the False Claims Act case of the former co-owner of Arm Rippin Toys, who made false statements on an Economic Injury Disaster Loan (EIDL) application.
Michael Hanzuk II, 31, of Anchorage, co-owned Arm Rippin Toys Inc. According to court documents, Hanzuk admitted in a related criminal case that beginning in July 2019 he and the two other co-owners and employees ran a “tuning and deleting” scheme of their customers’ diesel vehicles. This scheme involved removing control systems designed to reduce pollutants being emitted from vehicles, which is illegal under the Clean Air Act. Hanzuk was charged and convicted of conspiracy to violate the Clean Air Act in August 2022.
In response to the COVID-19 crisis, Congress authorized emergency funding for federal agencies to provide financial assistance to the public in the form of loans. In 2020, Hanzuk applied for an EIDL loan of over $100,000 and falsely certified that he and Arm Rippin Toys were not engaged in “any illegal activity,” despite their active conspiracy to violate the Clean Air Act.
The False Claims Act (FCA) creates a civil cause of action for the recovery of damages and penalties from those who submit false or fraudulent claims to the United States. The U.S. affirmatively sought and was granted treble damages, as well as penalties against Hanzuk in the civil matter for his false claims, which were three times the amount of the EIDL funds he received.
“My office will continue to prosecute Covid-19 related fraud and bring justice to those who abuse these programs,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The False Claims Act allows treble damages and penalties, which acts as a valuable tool to deter and to hold accountable those who seek to misuse public funds and scam American taxpayers.”
“Those who violate the False Claim Act by wrongfully receiving SBA pandemic program funds will be held accountable,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This settlement demonstrates that wrongfully obtaining taxpayer dollars will not go unnoticed, and violators will be identified. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The Small Business Administration Office of Inspector General investigated the case.
Assistant U.S. Attorney Jackie Traini litigated the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
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U.S. Attorney’s Office announces priority to prosecute white-collar, financial crimes in AlaskaRead the Press Release
ANCHORAGE, Alaska – U.S. Attorney S. Lane Tucker for the District of Alaska announced her office’s priority to prosecute white-collar and financial crimes committed in Alaska. One prong of this effort is the formal establishment of an interagency Covid-19 Fraud Task Force.
“White-collar and other financial crimes devastate families, communities and organizations. This task force brings together key law enforcement personnel to continue our ongoing efforts to combat all types of white-collar crime, including Covid-19 related fraud,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will remain steadfast in our work with law enforcement to find, investigate and prosecute any individual who chooses to commit these crimes.”
The following agencies are part of the task force:
- U.S. Small Business Administration, Office of Inspector General Western Region Office (SBA OIG)
- IRS, Criminal Investigation Seattle Division Office (IRS CI)
- FBI Anchorage Field Office
- U.S. Department of Treasury, Inspector General for Tax Administration (TIGTA)
“The task force model is a proven approach to efficiently bringing resources to bear to combat fraud,” stated SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office values our law enforcement partners' shared commitment to holding wrongdoers accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“White-collar crimes are not violent, but they are not victimless,” said Assistant Special Agent in Charge Brandon Waddle of the FBI Anchorage Field Office. “By collaborating with our partners and utilizing intelligence-driven strategies, the FBI has been working diligently to tackle white-collar crimes and to hold fraudsters accountable.”
“Financial crime is not victimless and hurts many people,” said Special Agent in Charge Adam Jobes, IRS CI, Seattle Field Office. “Our team here in Alaska is incredibly invested in our local communities, and we are dedicated to protecting them from harm. We all depend on our financial systems every day, and we are proud to join with U.S. Attorney Tucker and our partners in law enforcement in these essential efforts to keep our communities vibrant and safe.”
The Task Force identifies, investigates and prosecutes those whose defraud economic aid programs intended to help individuals and small businesses negatively impacted by the COVID‑19 pandemic. That includes programs such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), Restaurant Revitalization Funds (RRF), Shuttered Venue Operator Grants (SVOG), State and Local Fiscal Recovery Funds (SLFRF), Coronavirus Farm Assistance Program (CFAP), Emergency Rental Assistance Program (ERAP) and Unemployment Insurance (UI). To fraudulently obtain these funds, criminals have created fake businesses, committed identity theft, falsely reported their criminal history and inflated the size and scope of actual businesses, most often subsequently misusing federal funding for personal gain.
Notable Cases
In conjunction with today’s announcement, U.S. Attorney Tucker also announced charges and recognized milestones in a number of financial crimes cases, including charges in cases investigated by the Task Force.
Since September 2023, three cases alleging fraud charges related to Covid-19 programs have been indicted following investigations by the Task Force. The cases are as follows (by date of indictment):
- Rosaline Natazha Mavaega, 41, and Esau Malele Fualema Jr., 44, of Anchorage, were indicted in September 2023 on major fraud, wire fraud, money laundering and identify theft charges related to an alleged scheme to steal millions of dollars through Covid-19 recovery funds. The indictment alleges they stole over $1.6 million.
- Lloyd Pennebaker, 58, of Anchorage, was indicted in October 2023 on wire fraud charges related to false statements regarding his criminal history he allegedly made on EIDL loan applications from April 2020 to May 2021. The indictment alleges he received $122,500 in federal funding from the EIDL loans.
- Cheryl Labrie, 36, of Anchorage, was indicted in January 2024 on wire fraud, bank fraud and money laundering charges related to an alleged scheme to obtain and launder nearly $1 million she received through multiple EIDL and PPP loans and advances over a year.
Other notable financial fraud cases:- Garett Elder, 30, of Anchorage, was sentenced to 10 years in prison on Nov. 13, 2023, after he defrauded more than $26 million from over 170 victims in a large-scale investment fraud scheme.
- The U.S. will collect over $350,000 in treble damages and penalties after a default judgement was ordered in the False Claims Act case against Michael Hanzuk II, 31, of Anchorage. Hanzuk was a former co-owner of Arm Rippin Toys Inc. and was convicted of conspiracy to violate the Clean Air Act in August 2022. In 2020, Hanzuk applied for an EIDL loan of over $100,000 and falsely certified that he and Arm Rippin Toys were not engaged in “any illegal activity,” despite their active conspiracy to violate the Clean Air Act.
- Saray Consuelo Sarmiento Angarita Lockwood, 58, of Kenai, was sentenced to one year in prison on Dec. 18, 2023, after she and her late husband made a materially false statement in a bankruptcy case.
- Melissa Dobbs, 50, of the Matanuska Valley, was indicted in January 2024 on charges of healthcare fraud and allegedly making false statements on a loan application.
- Jayel Jean Lane, 34, of Anchorage, was sentenced to nine months in prison on Feb. 7, 2024, after she stole and misused Social Security benefits for roughly seven years. Lane stole over $76,000 in benefits that she applied for on behalf of a minor and spent the money for her own personal use.
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic can report crimes by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips for all white-collar and financial crimes can also be submitted to the FBI at ic3.gov or tips.fbi.gov, the SBA OIG at sbax.sba.gov/oigcss/ or the IRS CI at www.irs.gov/compliance/criminal-investigation/reporting-fraud-and-abuse-within-the-irs-e-file-program.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three of Four Co-Conspirators Sentenced in Fentanyl, Meth, and Firearms ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced three defendants convicted of Conspiracy to Distribute a Controlled Substance and Possession of Firearm by a Prohibited Person.
Antoine Ray Thomas, 39, of San Francisco, California, was sentenced on February 12, 2024, to 20 years in federal prison, followed by five of supervised release. He was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Antoine was convicted of Conspiracy to Distribute over 500 grams of Methamphetamine and Possession of a Firearm by a Prohibited Person.
Tyrin Thomas, Jr., 28, of Sioux Falls, South Dakota, was sentenced on February 5, 2024, to 27 years in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 assessment to the Federal Crime Victims Fund. Tyrin was convicted of Conspiracy to Distribute over 500 grams of Methamphetamine.
Lyric Christina Simon Tschetter, 26, also of Sioux Falls, was sentenced on February 9, 2024, to 12 years and two months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 assessment to the Federal Crime Victims Fund. Lyric was convicted of Conspiracy to Distribute over 400 grams of Fentanyl.
All three defendants were indicted by a federal grand jury in May of 2022. Antoine Ray Thomas pleaded guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person on November 8, 2023; Tyrin Thomas, Jr. pleaded guilty to Conspiracy to Distribute Methamphetamine on October 27, 2023; and Lyric Christina Simon Tschetter pleaded guilty to Conspiracy to Distribute Fentanyl on November 21, 2023.
A fourth defendant, Stevie Thomas, was indicted in this conspiracy on September 12, 2023, on the charges of Conspiracy to Distribute 500 Grams or more of Methamphetamine, Conspiracy to Distribute 400 Grams or more of Fentanyl, and Conspiracy to Launder Monetary Instruments. He is currently set for trial in May of 2024.
These defendants were operating a large methamphetamine and fentanyl distribution organization in South Dakota. Their source was located in California who was supplied by sources in Mexico. This conspiracy involved fifty pounds of methamphetamine, hundreds of pills containing fentanyl, and several firearms and ammunition.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Minnehaha County Sheriff’s Office, and the Sioux Falls Police Department. Assistant U.S. Attorneys Elizabeth Ebert and Mark Hodges prosecuted the case.
All three defendants were immediately remanded to the custody of the U.S. Marshals Service.
Two Puerto Rican Men Sentenced on Cocaine Smuggling ConvictionsRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Chief District Judge Robert A. Molloy sentenced Pedro Juan Ramos-Ramirez, 28, and Gerald Albert Cruz, 27, both of Puerto Rico to 48 and 57 months incarceration, followed by four years of supervised release and $100 special assessment each, on their convictions for Conspiracy to Possess with Intent to Distribute Cocaine While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court documents, on December 29, 2021, Customs and Border Protection Air Marine Operations officers interdicted a go-fast vessel operating without navigational lights heading towards Puerto Rico. As the officer pursued the vessel, the occupants began throwing bails into the ocean. Officers disabled the vessel’s engine forcing it to stop, and later recovered the bales from the ocean which contained 73 bricks of cocaine weighing 75 kilograms.
This case was investigated by Customs and Border Protection Air and Marine Operation, Drug Enforcement Administration and Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Everard E. Potter.
Sioux Falls Woman Sentenced for Her Role in Fentanyl and Meth Conspiracy, While Co-Conspirators Await SentencingRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on February 5, 2024.
Tayler Alyssa Hanssen, 29, was sentenced to five years in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hanssen was indicted for Conspiracy to Distribute at least 400 grams of Fentanyl by a federal grand jury in December of 2022. She pleaded guilty on October 30, 2023.
Hanssen obtained pills that contained fentanyl from co-conspirators and then distributed the pills to others in the Sioux Falls area. She was personally involved in the distribution of more than 6,000 pills containing fentanyl.
The co-conspirators, who were indicted with Hanssen, are Kaitlin Tierra Meis, who pleaded guilty to Conspiracy to Distribute Methamphetamine on January 5, 2024, and Lauren Gena Pourier, who pleaded guilty to Conspiracy to Distribute Methamphetamine on December 21, 2024. Meis is set to be sentenced on April 1, 2024, and Pourier is set to be sentenced on March 11, 2024. Both Meis and Pourier are from Sioux Falls.
This case was investigated by the FBI, South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, and the Sioux Falls Police Department. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Hanssen was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to Federal Prison for Prohibited Possession of a FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man, convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on February 16, 2024, in Sioux Falls, South Dakota.
Travene Tyrone Myers, age 42, was sentenced to seven years and eight months federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Myers was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in September of 2023. He pleaded guilty on November 7, 2023.
The conviction stems from an incident on July 10, 2023, when law enforcement was dispatched to an address in Sioux Falls. When officers arrived, they located Myers in a vehicle and initiated a stop. During a subsequent search of the vehicle, an officer located a fully loaded, semi-automatic pistol under the driver seat, which Myers, a convicted felon, admitted to possessing.
This case was investigated by Homeland Security Investigations, the Sioux Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Alison J. Ramsdell prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Myers was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Readout of Deputy Attorney General Lisa Monaco’s Participation in the 2024 Munich Security ConferenceRead the Press Release
Deputy Attorney General (AG) Lisa Monaco traveled to Munich this week to participate in the 60th annual Munich Security Conference (MSC), which brings together leaders from around the world to confront current and emerging threats to our collective, global security.
The Deputy AG delivered the closing keynote at the Munich Cyber Security Conference, where she highlighted the continuing successes of the Justice Department’s proactive cyber strategy that prioritizes near-term disruptions and victim protection, while tackling the broader ecosystem that supports cyber criminals, including the abuse of crypto-currencies and disruptive technologies. Emphasizing the Department’s commitment to this strategy, she said: “You’re going to continue to see that same tempo of prevention-focused, disruption-focused, victim-centered action, and you're going to see it at the same pace – so stay tuned.”
During the MSC, the Deputy AG met with law enforcement and intelligence counterparts, as well as international thought leaders, to further discuss the warnings she issued in London about the risks posed to global elections this year by nation-state actors’ misuse of disruptive technology — specifically, artificial intelligence (AI). Referencing the work of the Disruptive Technology Strike Force, which she launched one year ago to strike back against adversaries trying to steal America’s most advanced technology, she again described AI as the “ultimate disruptive technology” and reiterated her announcement at Oxford University earlier this week that going forward, whenever appropriate, the Justice Department will seek stiffer prison sentences for criminal offenses made significantly more dangerous by the misuse of AI.
Joined at the MSC by Secretary General Tõnis Saar of the Estonian Ministry of Justice, the Deputy Attorney General announced a first-of-its-kind international sharing agreement between the United States and Estonia that will transfer to Ukraine nearly $500,000 in funds confiscated in connection with an illicit Russian procurement network. Those funds will be used to support the people of Ukraine, as they continue to bravely defend themselves against Russia’s unprovoked and illegal invasion. In signing the agreement, the Deputy AG emphasized that the Justice Department “will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild. Dollar by dollar. House by house. Town by town.”
While at the MSC, the Deputy AG also held bilateral meetings with foreign leaders and international law enforcement counterparts, including Prime Minister Mohammed Shia’ Sabbar Al-Sudani of Iraq, President Bernardo Arévalo of Guatemala, European Commissioner for Home Affairs Ylva Johansson, Foreign Minister Margus Tsahkna of Estonia, and Secretary General of Interpol Jurgen Stock. In all of her engagements, the Deputy AG reiterated the importance of international partnerships in combating transnational threats, including malign state interference, terrorism, narcotics trafficking, and human smuggling.
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MSC MSC MSCPine Ridge Man Sentenced to 45 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Pine Ridge, South Dakota, man convicted of Second-Degree Murder, Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence. The sentencing took place on February 6, 2024.
JT Myore, 37, was sentenced to 45 years in federal prison, followed by 10 years of supervised release, and ordered to pay $400 in special assessments to the Federal Crime Victims Fund.
JT Myore was also indicted for Carjacking, Robbery, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous Weapon by a federal grand jury in January of 2023. He was found guilty of Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence following a jury trial in federal district court on September 27, 2023. He was also indicted for Second-Degree Murder by a federal grand jury in August of 2021, and found guilty of Second-Degree Murder following a jury trial on November 9, 2023.
In August of 2019, Myore and a co-defendant brandished firearms in order to carjack a Ford Freestyle from another male in Pine Ridge. In May of 2021, Myore and his co-defendants forcibly assaulted a male in Pine Ridge in order to steal his Toyota Celica. The male sustained a broken arm and cuts and contusions to his head and face.
In May of 2021, Myore was at a party at a residence just outside of Pine Ridge. He was intoxicated and a verbal confrontation ensued among some of the party-goers and the male victim. The victim attempted to walk away, but before he could get away, Myore stabbed him to death with a knife.
These cases were investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Anna Lindrooth prosecuted the case.
Myore was immediately remanded to the custody of the U.S. Marshals Service.
Matanuska Valley Woman charged with healthcare fraud, false statementsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging a Matanuska Valley woman with healthcare fraud and with making a false statement in a loan application.
According to court documents, beginning in January 2017, Melissa Ann Dobbs, 50, allegedly executed and attempted to execute a scheme to defraud healthcare benefit programs. The indictment also alleges that Dobbs made a false statement to a federally insured bank. According to State of Alaska records, Dobbs holds a professional behavior analyst license.
Dobbs is charged with one count of healthcare fraud in violation of 18 U.S.C. §1347, and one count for a false statement in a loan application in violation of 18 U.S.C. §1014. The defendant made her initial court appearance on February 6, 2024, before U.S. Magistrate Judge Matthew M. Scoble of the United States District Court for the District of Alaska. If convicted, she faces a maximum penalty of 10 years of imprisonment for the healthcare fraud charge, plus an additional 30 years for the bank loan fraud charge, and a cumulative fine of up to $500,000. Further, the indictment alleges that the Court may order forfeiture of all proceeds traceable to the offense, including funds already seized by the State of Alaska. A federal district court judge will determine any sentence after conviction and will consider the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska, Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service Seattle Resident Agency, and Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General, Western Regional Office made the announcement.
The Offices of Inspector General of the United States Department of Defense and the Small Business Administration are investigating the case.
Assistant U.S. Attorney Morgan Walker is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Illinois Man Sentenced to Federal Prison for Passing Counterfeit United States Currency and Attempted Passing Counterfeit United States CurrencyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Chicago, Illinois, man convicted of Passing Counterfeit U.S. Currency and Attempted Passing Counterfeit U.S. Currency. The sentencing took place on February 12, 2024, in Sioux Falls, South Dakota.
Shavez Moody, age 28, was sentenced to one year and three months in federal prison, followed by three years of supervised release. He was ordered to pay $817.54 in restitution to retail stores where he had passed counterfeit currency and $200 as a statutorily required special assessment to the Federal Crime Victims Fund.
Moody was indicted for Passing Counterfeit U.S. Currency and Attempted Passing Counterfeit U.S. Currency by a federal grand jury in August of 2023. He pleaded guilty on November 7, 2023.
Moody passed and attempted to pass counterfeit $100 bills at retail stores in Sioux Falls and Aberdeen, South Dakota, knowing the bills were counterfeit and receiving goods and genuine currency as change. Moody did so intending to defraud the retailers.
This case was investigated by U.S. Secret Service, Aberdeen Police Department, Watertown Police Department, Sioux Falls Police Department, South Dakota Fusion Center, and the U.S. Marshals Service. Assistant U.S. Attorney Connie Larson prosecuted the case.
Moody was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Four Venezuelan Men Charged with Smuggling over Two Tons of Cocaine on the South Shore of St. CroixRead the Press Release
St. Croix, VI –United States Attorney Delia L. Smith expressed her appreciation to Homeland Security Investigations, United States Coast Guard, British Royal Navy, Drug Enforcement Administration, and the Virgin Islands Police Department for their diligent and unwavering effort in apprehending four individuals charged with possession with intent to distribute approximately 2,700 kilograms of cocaine.
“We continue to work closely with our Border Protection partners to dismantle transnational criminal organizations responsible for smuggling narcotics into the U.S. Virgin Islands”, stated Homeland Security Investigations Special Agent in Charge Rebecca Gonzalez-Ramos. “The shared resolve between the Coast Guard and our local, federal and regional partners in interdicting major drug smuggling activities in the high seas is instrumental to safeguarding our citizens in the U.S. Virgin Islands, the nation’s southern-most maritime border, from this threat,” said Capt. José Díaz, U.S. Coast Guard Sector San Juan Commander.” Drug Enforcement Administration’s Special Agent in Charge Denise Foster stated, “We will continue to work with our counterparts and allocate all our law enforcement resources to make a greater impact in vulnerable areas where criminal organizations dedicated to drug trafficking are causing greater damage.”
According to court documents, on February 11, 2024, at approximately 11:00 p.m., Customs and Border Protection detected a suspicious vessel traveling at approximately 67 nautical miles south of St Croix. The United States Coast Guard, assisted by the British Royal Navy, attempted to intercept the suspicious vessel, at which point the occupants on board the vessel began jettisoning bales of suspected narcotics overboard. On February 12, 2024, at approximately 3:00 a.m., vessel landed at Long Point, St. Croix, its occupants, later identified as Daniel Marval-Navarro, Desael Carreno-Carreno, Felix Jose Bermudez, and Luis Lugo-Marval, were taken into custody after they were observed walking in an open field in Estate Carlton wearing dripping wet clothing. Agents recovered the vessel and 74 bales containing 2,100 kilograms of cocaine. The United States Coast Guard later recovered an additional 26 bales which contained over 600 kilograms of cocaine. Based on estimates by the United Nations Office on Drugs and Crimes, the street value of 2,700 kilograms of cocaine in excess of $77 million.
This case is being investigated by Homeland Security Investigations, Drug Enforcement Administration and Virgin Islands Police Department and prosecuted by Assistant United States Attorney Evan Rikhye. United States Attorney Delia L. Smith reminds the public that a criminal complaint is merely an allegation and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ecuadorian Man Sentenced in Cocaine Trafficking CaseRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Carlos Benitez Estupinan, 30, of Ecuador, was sentenced by District Judge Wilma A. Lewis to 57 months incarceration, followed by two years of supervised release, and a $100 special assessment, on his Conspiracy to Possess a Controlled Substance with Intent to Distribute While on Board a Vessel Subject to the Jurisdiction of the United States.
According to court documents, on November 15, 2021, while on routine patrol in the eastern Pacific Ocean, a maritime patrol aircraft detected a low-profile vessel traveling at approximately 77 nautical miles north of the Galapagos Islands, Ecuador. The United States Coast Guard Cutter Hamilton later intercepted the 52’ vessel which had no flag flown, no registration numbers, and no name painted on the hull. Four individuals, including Estupinan, were found on board the vessel, and neither individual claimed nationality for the vessel, subjecting the vessel to the jurisdiction of the United States. Coast Guard officers recovered 43 bales which contained 1,298 kilograms of cocaine from the vessel.
This case was investigated by the United States Coast Guard, Homeland Security Investigations and the Drug Enforcement Administration and prosecuted by Assistant United States Attorneys Daniel H. Huston. 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.
Anchorage woman sentenced to prison for Social Security fraudRead the Press Release
ANCHORAGE, Alaska – An Anchorage woman was sentenced to nine months in prison for stealing and misusing Social Security benefits.
According to court documents, Jayel Jean Lane, 34, applied for Social Security benefits on behalf of a minor in 2013. She received benefits for the minor from 2014 to 2022.
For roughly seven years, Lane filed false reporting with the Social Security Administration, claiming that she spent the benefits on behalf of the minor, when, in fact, she spent the money for her own personal use. In total, Lane stole over $76,000 of the minor’s benefits.
On Feb. 7, 2024, the Court denied Lane’s request to impose a sentence of home confinement and instead adopted the United States’ recommendation and sentenced the defendant to nine months’ incarceration. When delivering the sentence, the Court cited hopes of deterring others from taking money that Congress has determined necessary for those in need. The Court also ordered Lane to pay restitution to the Social Security Administration in the amount of $76, 998.74.
“The defendant’s actions caused direct harm to the minor victim and the Social Security Administration and was an affront to American taxpayers who play a significant role in assisting those who receive these benefits,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue to work with our law enforcement partners to investigate and prosecute perpetrators who steal from community members, taxpayers and the federal government.”
“This sentence holds Ms. Lane accountable for intentionally using her son’s Social Security benefits for her own personal gain and failure to notify SSA of a change in guardianship of the beneficiary,” said Inspector General Gail S. Ennis for SSA. “I want to thank the U.S. Attorney’s Office for prosecuting this case.”
The Social Security Administration Office of the Inspector General investigated the case.
Assistant U.S. Attorney Ainsley McNerney prosecuted the case.
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Anchorage businesswoman charged with fraudulently obtaining and laundering roughly $1M in Covid-19 relief fundsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging an Anchorage businesswoman with allegedly misusing Covid-19 relief funds for personal gain.
According to court documents, Cheryl Labrie, 36, is the owner of AKBS LLC, an entity with the trade name Liberty Tax Service that provides bookkeeping, payroll and bill pay services in Alaska. Over the course of a year, Labrie applied for and obtained multiple federal loans and advances, totaling approximately $1 million.
In her first loan application, the defendant failed to disclose a prior felony conviction on the application, and then continued to claim that all statements on the original loan application were true. The indictment alleges that in subsequent applications the defendant inflated her businesses’ average monthly payroll expenses and the total number of employees.
In total, Labrie applied for and obtained an Economic Injury Disaster Loans (EIDL) advance, two EIDL loans, two Paycheck Protection Program (PPP) loans and the forgiveness of two PPP loans for AKBS LLC. The funds loaned to the business were allegedly transferred from her official business bank account to her personal bank account. She used the money to facilitate the purchase of a new home, pay an outstanding tax debt of a separate entity, and pay the payroll expenses for a marijuana dispensary.
Labrie is charged with four counts of wire fraud in violation of 18 U.S.C. §1343, two counts of bank fraud in violation of 18 U.S.C. §1344, and six counts of money laundering in violation of 18 U.S.C. §1957. Labrie made her initial court appearance on Feb. 1 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska.
U.S. Attorney S. Lane Tucker of the District of Alaska and Small Business Administration Office of Inspector General, Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General Western Regional Office made the announcement.
The Small Business Administration Office of Inspector General, the U.S. Treasury Inspector General for Tax Administration and the FBI Anchorage Field Office are investigating the case.
Assistant U.S. Attorneys Michael Heyman and Mac Caille Petursson are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Anchorage business owner charged with wire fraud related to applications for Covid-19 recovery fundsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment in October charging an Anchorage businessman with allegedly committing wire fraud related to his application for Covid-19 recovery funds. He was transferred from Texas to Alaska this month.
According to court documents, Lloyd Pennebaker, 58, is the owner of The Pennebaker Group, an organization doing business in Anchorage under the name Cornerstone Auto Sales. Pennebaker was also convicted of three felonies in September 2002.
From April 2020 to May 2021, the defendant applied for and obtained Economic Injury Disaster (EIDL) loans for Cornerstone Auto Sales and received $122,500 in federal funding. Court documents allege Pennebaker made false statements regarding his criminal history on the applications for the EIDL loans, which were sent through interstate communications.
Pennebaker is charged with one count wire fraud in violation of 18 U.S.C. §1343.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Weston King of the Small Business Administration Office of Inspector General Western Regional Office made the announcement.
The Small Business Administration Office of Inspector General is investigating the case.
Assistant U.S. Attorney Carly Vosacek is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sunday 18 February 2024
Maryland Real Estate Investor Sentenced for Stealing a Residence in Northwest Washington D.C.Read the Press Release
WASHINGTON – Franklin A. Olaitan, 51, of Beltsville, Maryland, was sentenced to 40 months in prison for stealing a residential property in Northwest Washington D.C., announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division. The sentence was handed down on Friday, February 16, 2024, by U.S. District Court Judge Paul L. Friedman who also ordered Olaitan to serve three years of supervised release, to not buy or lease any properties during the period of supervised release, to pay at least $580,663.73 in restitution and a $111,159.63 criminal forfeiture money judgment and pay a $100 assessment.
Olaitan pleaded guilty before U.S. District Court Judge Carl J. Nichols on Aug. 15, 2023, to one count of wire fraud. As part of the plea, Olaitan admitted he caused the filing of a false deed transferring the property, which he immediately resold to a third-party, pocketing the sale proceeds. As a result of the fraudulent scheme, Olaitan caused over $600,000 in losses to the various victims.
According to the government’s evidence, between September 23, 2016, through March 22, 2017, Olaitan stole a real property on First Street, NW, using a fake deed and other falsified documents in order to rapidly sell the property, pocketing the sale proceeds, and defrauding the true owner of the property, settlement company, mortgage lenders, title company, and the buyer. Olaitan impersonated the victim owner through false documents which enabled him to get away with his theft for a significant time during which the buyer of the property spent over $600,000 renovating the property.
Olaitan was arrested Dec. 15, 2021, in the District.
The FBI’s Washington Field Office conducted the investigation.
Assistant U.S. Attorneys Diane Lucas and Christopher Howland prosecuted the case with valuable assistance from Paralegal Specialists Lisa Abbe and Liliana Villamizar, Victim-Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Jeanie Latimore-Brown, and former Assistant U.S. Attorneys Derrick Williams and Veronica Sanchez.
Maryland Man Sentenced to 12 Years for Deadly Homicide in Northeast WashingtonRead the Press Release
WASHINGTON – Jamaarr Morgan, 23, of Hyattsville, Maryland, was sentenced in the Superior Court of the District of Columbia to 12 years in prison for the fatal shooting of Jacques Russ, on December 14, 2021, in the Unit block of 61st Street Northeast, Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Morgan pleaded guilty, on July 12, 2023, to voluntary manslaughter while armed. Under the District of Columbia Voluntary Sentencing Guidelines, Morgan faced a sentencing range of 90 to 180 months of incarceration. On Friday, February 16, 2024, the Honorable Marisa Demeo sentenced Morgan to 144 months in prison followed by five years of supervised release.
According to the government’s evidence, on December 14, 2021, Morgan encountered Mr. Russ in the Unit block of 61st Street Northeast on December 14, 2021, around 6:50 a.m., as the victim was on his way to work. Morgan proceeded to shoot the victim once in the head before fleeing the scene. Mr. Russ’s body was found lying in the street a short time later by a passerby.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged those who worked on the case from the U.S. Attorney’s Office including Assistant U.S. Attorney Ariel Dean, who prosecuted the case, with valuable assistance by Paralegal Specialists Tasha Harris and Lauren Douglas and Victim Witness Program Specialist Karina Hernandez.
Saturday 17 February 2024
Justice Department Transfers Approximately $500,000 in Forfeited Russian Funds to Estonia for Benefit of UkraineRead the Press Release
Deputy Attorney General Lisa Monaco and Estonian Secretary General Tõnis Saar announced today at the Munich Security Conference the transfer of nearly $500,000 in forfeited Russian funds for the purpose of providing aid to Ukraine. The funds were forfeited by the United States following the breakup of an illegal procurement network attempting to import into Russia a high-precision, U.S.-origin machine tool with uses in the defense and nuclear proliferation sectors. Additionally, on Wednesday, Feb. 14, a citizen of Latvia charged criminally in connection with the procurement scheme pleaded guilty to violating U.S. export laws and regulations.
This transfer is the first of its kind from the United States to a foreign ally for the express purpose of assisting Ukraine, and the second time the Justice Department’s Task Force KleptoCapture has made confiscated Russian assets available for Ukraine—having provided $5.4 million in forfeited funds last year to the State Department for the support of Ukrainian war veterans. The confiscated funds are being transferred to Estonia since under current authorities, the facts of this case do not allow for a direct transfer to Ukraine. Estonia will use the funds for a project to expedite damage assessments and critical repairs to the Ukrainian electrical distribution and transmission system, which have been purposefully targeted by Russian forces.
“Today’s announcement demonstrates the unwavering resolve of the United States and our Estonian partners to cut off President Putin's access to the western technologies he relies on to wage an illegal war against Ukraine,” said Deputy Attorney General Lisa Monaco, who signed the transfer agreement on behalf of the United States. “This step for justice and restoration blazes a new trail toward combating Russia’s ongoing brutality. The Department of Justice will continue pursuing creative solutions to ensure the Ukrainian people can respond and rebuild.”
“Preventing cross-border crime has been and will be an even greater priority in the future,” said Secretary General Tõnis Saar of the Estonian Ministry of Justice.“Effective prosecution of sanctioned crimes is a very important part of this. In my opinion, this agreement provides additional motivation to deal with sanctions violations even more. The reason is very simple, the goal here is not only to detect, prosecute and ensure justice, but to direct illegal income to the victim, i.e. Ukraine. I hope that this will become the new normality for sanctioned crimes in other countries in the future.”
“Since the start of Russia’s full-scale invasion of Ukraine, the Department of Justice, together with its U.S. and overseas partners, has leveraged every tool available to cut off the Kremlin from the resources it needs to prosecute its war of aggression. These efforts are yielding results,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, we demonstrate once again our commitment to holding Russia to account and to aiding the people of Ukraine as they bravely resist and rebuild.”
“I commend the investigators who prevented this sensitive piece of Connecticut-manufactured equipment from crossing the Russian border, and our team of prosecutors who are not only bringing the individuals and entities involved to justice but have worked to seize and forfeit the funds involved in its purchase,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “We thank our law enforcement partners and the Government of the Republic of Estonia for helping us achieve our mission to chase down the assets of those who violate our laws and to ensure proper compensation to their victims.”
“This agreement between the United States and Estonia not only reinforces our strong partnership, it fortifies the commitments of both countries to stand up to Russian aggression,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “This transfer stems from a joint investigation into the attempted illegal shipment of military materials to aid the Russian war against Ukraine. HSI will continue to ensure the safety of the homeland of this great nation, and when necessary, that of our allies.”
“The Putin regime has purposefully targeted critical and civil infrastructure in Ukraine to weaken morale, cripple the Ukrainian economy, and use winter as a weapon of war. The funds we are providing to Estonia today will be used to dramatically reduce the time needed to evaluate and prioritize urgent repairs to Ukraine’s electrical infrastructure, all in effort to literally keep the lights on,” said Task Force KleptoCapture Co-Director Michael Khoo.
This action demonstrates that the Department and its international partners will seek and develop novel solutions to ensure that the profits of Russian criminal networks are redirected for the support of the Ukrainian people.
The agreement with Estonia showcases the joint commitments of the United States and Estonia to both enforce the export control regimes that deprive the Russian war machine of critical technologies and supplies and use the confiscated criminal proceeds to sustain Ukraine as it resists illegal Russian aggression.
In March 2023, an investigation into the attempted smuggling of a dual-use export-controlled item to Russia resulted in the forfeiture of $484,696, representing funds wired into the United States to purchase the item. The item, known as a jig grinder, is a high-precision grinding machine system that requires a license for export or reexport to Russia because of its applications in nuclear proliferation and defense programs. The jig grinder was intercepted before it could reach Russia.
In addition to the forfeiture, U.S. authorities, with the active support of the Estonian Prosecutor General’s Office and the Estonian Tax and Customs Board, charged multiple individuals and companies who were part of the smuggling network. The transfer of the forfeited funds to Estonia is in recognition of the crucial assistance received from the Estonian authorities.
Among those criminally charged in the smuggling case, Latvian national Vadims Ananics, 47, was arrested in Latvia on Oct. 18, 2022, and pleaded guilty earlier this week in federal court in Connecticut. Ananics admitted to his role in the scheme to violate U.S. export laws and regulations by attempting to smuggle a dual-use export-controlled item to Russia.
According to court documents and statements made in court, Ananics was the general manager of CNC Weld, a Latvia-based corporation. Beginning in 2018, Ananics conspired with others, including individuals in Russia and a Russia-based company, to violate U.S. export laws and regulations to smuggle a 500 Series CPWZ Precision jig grinder that was manufactured in Connecticut to Russia.
In August 2019, to finalize the purchase of the jig grinder, Ananics and others traveled to Bridgeport, Connecticut, where he informed the sellers that the jig grinder was being purchased for the benefit of CNC Weld. Only after the jig grinder was exported from the United States did Ananics inform the sellers that CNC Weld was not the end user.
Ananics pleaded guilty to one count of conspiracy to violate the Export Control Reform Act, an offense that carries a maximum penalty of five years in prison. A sentencing date has not yet been scheduled.
U.S. authorities, working with Latvian authorities, intercepted the jig grinder in Riga, Latvia, before it was to be shipped to Russia. In March 2023, $484,696 in funds involved in the purchase of the jig grinder were subsequently forfeited.
In turn, Estonia has, in consultation with the United States, agreed to use the transferred funds to finance a drone-based program to assess the damage Russian aggression has done to Ukraine’s electrical distribution and transmission infrastructure.
In April 2023, an additional €312,192.44 (approximately $342,000) was ordered forfeited as part of a criminal sentence imposed on one of the shell companies involved in the jig-grinder smuggling network. The funds are currently held in Latvia pending final enforcement of the U.S. forfeiture order.
HSI Field Offices in New Haven, Connecticut; Portland Oregon; and the Hague, Netherlands; the U.S. Department of Commerce’s Office of Export Enforcement in Boston; and the FBI handled the investigation. In addition to the assistance by Estonian authorities, the Prosecutor General’s Office of the Republic of Latvia, the Latvian Tax and Customs Police, and the Latvian State Police provided valuable assistance.
Assistant U.S. Attorneys Rahul Kale, Konstantin Lantsman, Stephanie Levick, and David Nelson for the District of Connecticut and Trial Attorneys Brendan Geary and Matthew Anzaldi of the National Security Division’s Counterintelligence and Export Control Section are handling the investigation and the Ananics prosecution. The Justice Department’s Office of International Affairs provided valuable assistance. The international sharing agreement was prepared with the support of the Criminal Division’s Money Laundering and Asset Recovery Section, the Treasury Executive Office for Asset Forfeiture, and the State Department.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
D.C. Woman Charged in Death of Three-Year-Old Child from Fentanyl PoisoningRead the Press Release
WASHINGTON – Sasha McCoy, 27, of Washington, D.C., was arrested on February 15, 2024, on the charge of first-degree felony murder in the death of her three-year-old daughter on October 28, 2022, U.S. Attorney Matthew M. Graves announced.
Defendant McCoy was arraigned on February 16th in D.C. Superior Court where she entered a plea of not guilty to first-degree murder and first-degree cruelty to children for allegedly allowing her child to ingest a lethal dose of fentanyl. The Honorable Renee Raymond found probable cause that the defendant committed the murder and held her without bond pending her preliminary hearing on March 8, 2024, before Judge Brandt in Courtroom 201.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Emma McArthur for her efforts in prosecuting this case.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Friday 16 February 2024
Zuni Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Ian Channing Lasiloo pleaded guilty in federal court to using, carrying and brandishing a firearm during and in relation to a crime of violence. Lasiloo, 31, of Zuni, and an enrolled member of the Zuni Tribe, voluntarily surrendered and will remain in custody pending sentencing, which has not been set.
A federal grand jury indicted Lasiloo on March 21, 2023. In his plea agreement, Laslioo admitted that he drove to of the residence of John Doe and asked Doe “where my 40 was.” John Doe replied that he didn’t owe Lasiloo anything. While still in the driver’s seat of the car, and approximately five feet away from John Doe, Lasiloo pointed a .22 caliber revolver at John Doe’s face and then pointed the weapon downwards. Lasiloo then fired the weapon one time, shooting John Doe in the heel.
At sentencing, Lasiloo faces a minimum of seven years and up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case.
View the Plea Agreement# # #
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Yellville Man Sentenced to 30 Years in Federal Prison for Online Sexual Enticement of a MinorRead the Press Release
Fayetteville – Isaac James Melder, age 42, of Yellville was sentenced on February 13, 2024, to 360 months in prison without the possibility of parole after being found guilty of communicating with a minor through the internet to entice the minor to engage in illegal sexual activity. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, in May of 2022, a fourteen-year-old female was reported missing after failing to get on the afternoon school bus. An extensive search involving multiple law enforcement agencies began, during which officers discovered that Melder and the victim had communicated via the internet using an Xbox. The messages revealed the two had planned to run away and live in a cave in the Marion County wilderness. The investigation further revealed that Melder had groomed both the victim and her family by providing groceries, money, alcohol, and marijuana and referred to the victim as his wife.
On June 22, 2022, an informant led law enforcement to the cave where Melder and the victim had lived since their May disappearance. Melder was immediately taken into state custody.
Melder was indicted by a Grand Jury in the Western District in April of 2023 and entered a plea of guilty in July 2023.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Mountain Home Police Department, Baxter County Sheriff’s Office, Marion County Sheriff’s Office, Arkansas State Police, Flippin Police Department, Arkansas Department of Correction, the U.S. Marshal’s Service, Federal Bureau of Investigation, Harrison Police Department, Arkansas Game and Fish Commission, Arkansas State Parks, the 14th Judicial District Drug Task Force, investigated or assisted in the search in the case.
Assistant U.S. Attorney Devon Still prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Weeki Wachee Couple Sentenced for Conspiring to Sell New Opioid VariantRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jacob Spinoza (50, Weeki Wachee) to nine years and Veronica Jo Barback (29, Weeki Wachee) to three years and four months in federal prison, respectively, for conspiring to distribute protonitazene and metonitazene. Spinoza and Barback were also ordered to forfeit several firearms and assorted ammunition traceable to the offense. Spinoza pleaded guilty on September 7, 2023, and Barback pleaded guilty on September 12, 2023.
According to court records, Spinoza and Barback conspired to distribute two chemicals in the nitazene class: protonitazene and metonitazene. These are chemicals intended to have similar effects on the body as fentanyl, with varying degrees of potency stronger than fentanyl. Spinoza obtained the chemicals from China and the packages were delivered to the Middle District of Florida. On October 7, 2022, law enforcement officers executed a search warrant at the residence the two shared and recovered trafficking amounts of protonitazene and metonitazene, as well as cash, digital scales, drug paraphernalia, firearms, and ammunition.
This case was investigated by the Drug Enforcement Administration and Hernando County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dan Baeza.
Washington man sentenced to 20 years for sexually enticing, exploiting minorRead the Press Release
ANCHORAGE, Alaska – A Washington man was sentenced today to 20 years in prison for sexually enticing and exploiting a minor from a rural Alaskan village.
According to court documents, Brian Powell, 41, of Spokane, Washington, enticed and coerced the 12-year-old juvenile victim. Powell, 40, claimed to be “Brian Gaither” and that he was 27 years old.
Powell communicated with the victim through social media, text messages and calls nearly every day for roughly five months. Powell exploited the victim in order to obtain child sexual abuse material.
Powell pleaded guilty to coercing a minor in August 2023. He is required to pay over $35,000 in restitution and serve 15 years’ supervised release as part of his sentence.
When handing down the sentence, the Court cited concern for Powell’s actions in this case and the need to protect the public from future crimes of this nature that the defendant could potentially commit.
"Mr. Powell’s exploitation of this victim in this case is abhorrent but does not define that child’s life,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Our community is safer today thanks to those who came forward to disclose Mr. Powell’s bad acts and to the hard work done by law enforcement across the state. My office maintains our unwavering commitment to working with law enforcement to vigorously prosecute predators who exploit our children.”
"HSI is dedicated to pursuing justice for children who endure abuse and exploitation online, both locally and globally," said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. "This successful case was the result of seamless collaboration between HSI Anchorage, Alaska State Troopers, HSI Spokane, Spokane Police Department, U.S. Marshals Service, as well as the U.S. Attorney’s Offices in both districts. Together, we located and apprehended the target of our investigation, while also providing support to the victims."
“Your Alaska State Troopers will continue to work with our local, state, and federal law enforcement partners to hold anyone that victimizes Alaska’s children responsible for their reprehensible actions,” stated Alaska State Troopers Colonel Maurice Hughes. “I hope that this significant prison sentence serves as a deterrent that criminally enticing youth comes with a steep penalty. Know that law enforcement will catch up to you and arrest you.”
The Alaska State Troopers and Homeland Security Investigations Anchorage, Alaska, Office investigated the case. If anyone has information concerning Powell’s actions or may have encountered someone in person or online using the name “Brian Powell,” “Brian Gaither” or “Tyshawn Gaither,” please contact the Homeland Security Investigations tip line at (866) 347-2423.
Assistant U.S. Attorneys Ainsley McNerney and Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
UPDATE: This release has been amended with a different tip line phone number.
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U.S. Citizen Charged with Providing Material Support to Isis and Receiving Military-Type Training at Isis Fighter CampRead the Press Release
A complaint was unsealed today charging Harafa Hussein Abdi, 41, of Minneapolis, with providing and conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS) and receiving and conspiring to receive military-type training from ISIS. Abdi, a U.S. citizen, was recently taken into custody overseas and was transported to the United States yesterday. Abdi will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today.
“As stated in the complaint, Mr. Abdi left his country to join ISIS, trained as a fighter and actively aided the group’s propaganda efforts to spread its vile ideology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is no higher priority for the National Security Division than to protect Americans from terrorist organizations and we will work tirelessly to find and hold accountable those who would join these groups to do our people harm wherever they may be.”
“As alleged, Harafa Hussein Abdi, a citizen of this country, traveled from Minnesota to join a group of ISIS fighters in Somalia,” said U.S. Attorney Damian Williams for the Southern District of New York. “While training with ISIS fighters in Somalia, Abdi allegedly carried an AK-47, threatened to attack civilians in New York City, and encouraged others to carry out such attacks. Our law enforcement partners have relentlessly pursued this investigation to ensure the disruption of Abdi’s alleged plans to wage terror on our shores and bring Abdi to an American court to face justice. No matter how long it takes, this office is steadfast in its commitment to investigate, disrupt and prosecute terrorist threats against Americans.”
“Abdi allegedly trained in an ISIS camp, encouraged others to fight on behalf of ISIS, and sent social media messages about committing violent acts in New York City,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “The FBI works tirelessly to protect the American people against acts of terrorism and will hold accountable all those who break our laws and endanger our citizens. We will continue to work with our law enforcement partners both here and overseas to uncover and disrupt terrorist activity.”
As alleged in the complaint, Abdi, moved from Minnesota to Somalia in 2015. Once there, he joined a group of ISIS fighters at an ISIS training camp in the Puntland region of Somalia. During his time with the group, Abdi regularly carried an AK-47 assault rifle and received training on how to use it. In addition, Abdi worked in the ISIS group’s “media” wing, where he filmed footage for distribution by a pro-ISIS media outlet.
In social media communications during his time at the ISIS camp, Abdi described how he had left the United States and joined the “Islamic state.” Abdi also stated that he had made “hijra,” an Arabic term used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. Abdi also sent a photograph of himself carrying an AK-47 assault rifle, as depicted below:
In or about January 2017, Abdi sent an audio clip of rap lyrics in which he expressed support for ISIS and described multiple acts of violence, including shooting and bombing individuals in New York City. Specifically, Abdi stated, “hollow tips put a hole in your Catholic vest, and chop his head off let it rest on his Catholic chest.” Abdi further stated, “We going to carry on jihad”; “Fly through America on our way to shoot New York up. They trying to shut this thing. We ain’t going. We going to come blow New York up.” Abdi sent the audio clip to at least 20 other social media users and included messages with the audio clip, such as “Fighting back the kuffar who’s at war with Muslims if [that] is not islam then I don’t know wats Islam.”
Abdi left the ISIS camp in 2017 after his relationship with the ISIS group’s leadership deteriorated. After being jailed by the group, Abdi escaped and traveled to East Africa, where he was arrested by law enforcement authorities. In subsequent Mirandized interviews with FBI personnel, Abdi admitted that he had joined the training camp, which was affiliated with a known ISIS leader in Somalia. Abdi also identified himself in an ISIS propaganda video that he helped to film at the training camp in which Abdi carried an AK-47 assault rifle, promoted ISIS and urged others to join and fight on its behalf. In the video, Abdi said, “We thank almighty God for making us His soldiers and chose us to be among the Khilafa troops,” and “So do not stay behind, brother, and get on this caravan…. Those who believe fight in the cause of Allah, and those who reject Faith fight in the cause of Evil.” Abdi also admitted that he was trained on and regularly carried an AK-47 assault rifle and practiced shooting the AK-47 in the Somali wilderness outside the camp.
Abdi is charged with (i) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison; and (iv) receiving military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison, a fine or both.
The FBI’s New York Field Office’s Joint Terrorism Task Force investigated the case. The National Security Division’s Counterterrorism Section, Justice’s Department’s Office of International Affairs, FBI’s Counterterrorism Division, the FBI’s International Operations Division and the Department of Homeland Security, U.S. Customs and Border Protection provided assistance.
Assistant U.S. Attorney Nicholas S. Bradley for the Southern District of New York is prosecuting the case, with assistance from Trial Attorney Kevin Nunnally of the National Security Division’s Counterterrorism Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Charged with Providing Material Support to ISIS and Receiving Military-Type Training at ISIS Fighter CampRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General for National Security; James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging HARAFA HUSSEIN ABDI with providing and conspiring to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”), and receiving and conspiring to receive military-type training from ISIS. ABDI, a U.S. citizen, was recently taken into custody overseas and was transported to the United States yesterday, February 15, 2024. ABDI will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today.
U.S. Attorney Damian Williams said: “As alleged, Harafa Hussein Abdi, a citizen of this country, traveled from Minnesota to join a group of ISIS fighters in Somalia. While training with ISIS fighters in Somalia, Abdi allegedly carried an AK-47, threatened to attack civilians in New York City, and encouraged others to carry out such attacks. Our law enforcement partners have relentlessly pursued this investigation to ensure the disruption of Abdi’s alleged plans to wage terror on our shores and bring Abdi to an American court to face justice. No matter how long it takes, this Office is steadfast in its commitment to investigate, disrupt, and prosecute terrorist threats against Americans.”
Assistant Attorney General Matthew G. Olsen said: “As stated in the complaint, Mr. Abdi left his country to join ISIS, trained as a fighter, and actively aided the group’s propaganda efforts to spread its vile ideology. There is no higher priority for the National Security Division than to protect Americans from terrorist organizations, and we will work tirelessly to find and hold accountable those who would join these groups to do our people harm wherever they may be.”
FBI Assistant Director in Charge James Smith said: “Harafa Hussein Abdi allegedly moved overseas to join ISIS, aided in their propaganda efforts, and openly threatened violence against New York City. Abdi was arrested before his plans came to fruition. The FBI’s New York Joint Terrorism Task Force is determined to bring to justice anyone willing to carry out evil in order to protect the American people.”
NYPD Commissioner Edward A. Caban said: “As alleged, this arrest is the result of New York law enforcement’s ongoing commitment to hold accountable anyone who voices solidarity with terrorist organizations and, motivated by ideology, desires to harm Americans. I commend everyone from the NYPD, the FBI, and the dozens of other agencies on New York’s Joint Terrorism Task Force for always relying heavily on the strength of our partnerships here and around the world.”
As alleged in the Complaint:[1]
ABDI is a U.S. citizen who moved from Minnesota to Somalia in 2015. Once there, ABDI joined a group of ISIS fighters at an ISIS training camp in the Puntland region of Somalia. During his time with the ISIS group, ABDI regularly carried an AK-47 assault rifle and received training on how to use it. In addition, ABDI worked in the ISIS group’s “media” wing, where he filmed footage for distribution by a pro-ISIS media outlet.
In social media communications during his time at the ISIS camp, ABDI described how he had left the United States and joined the “Islamic state.” ABDI also stated that he had made “hijra,” an Arabic term used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. ABDI also sent a photograph of himself carrying an AK-47 assault rifle, as depicted below:
In or about January 2017, ABDI sent an audio clip of rap lyrics in which ABDI expressed his support for ISIS and described multiple acts of violence, including shooting and bombing individuals in New York City. Specifically, ABDI stated, “hollow tips put a hole in your Catholic vest, and chop his head off let it rest on his Catholic chest.” ABDI further stated, “We going to carry on jihad”; “Fly through America on our way to shoot New York up. They trying to shut this thing. We ain’t going. We going to come blow New York up.” ABDI sent the audio clip to at least 20 other social media users and included messages with the audio clip, such as “Fighting back the kuffar who’s at war with Muslims if [that] is not islam then I don’t know wats Islam.”
ABDI left the ISIS camp in 2017 after his relationship with the ISIS group’s leadership deteriorated. After being jailed by the ISIS group, ABDI escaped and traveled to East Africa, where he was arrested by law enforcement authorities. In subsequent Mirandized interviews with FBI personnel, ABDI admitted that he had joined the ISIS training camp in the Puntland region, which was affiliated with a known leader of ISIS fighters in Somalia. ABDI also identified himself in an ISIS propaganda video that he helped to film at the ISIS training camp in which ABDI carried an AK-47 assault rifle, promoted ISIS, and urged others to join ISIS and fight on its behalf. In the video, ABDI stated, “We thank almighty God for making us His soldiers and chose us to be among the Khilafa troops,” and “So do not stay behind, brother, and get on this caravan. . . Those who believe fight in the cause of Allah, and those who reject Faith fight in the cause of Evil.” ABDI also admitted that he was trained on and regularly carried an AK-47 assault rifle while at the ISIS camp and practiced shooting the AK-47 in the Somali wilderness outside the camp.
* * *
ABDI, 41, of Minneapolis, Minnesota, is charged with (i) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; and (iv) receiving military-type training from a designated foreign terrorist organization, which carries a maximum sentence of 10 years in prison, a fine, or both.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, the FBI’s Counterterrorism Division, the FBI’s International Operations Division, and the Department of Homeland Security, U.S. Customs and Border Protection for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Nicholas S. Bradley is in charge of the prosecution, with assistance from Trial Attorney Kevin Nunnally of the Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Riverside County Brothers Plead Guilty to Priority Mail Insurance Scam that Defrauded U.S. Postal Service Out of More Than $2.3 MillionRead the Press Release
LOS ANGELES – Two Temecula brothers pleaded guilty today to defrauding the United States Postal Service (USPS) out of more than $2.3 million by filing thousands of fraudulent Priority Mail insurance claims.
Anwer Fareed Alam, 35, and Yousofzay Fahim Alam, 31, each pleaded guilty to one count of mail fraud.
According to their plea agreements, from October 2016 to May 2019, the Alam brothers purchased from the USPS Priority Mail packages and postages that included $100 in insurance for lost or damaged parcel contents. Anwer Alam wrapped empty packages or packages containing little or no value and then sent them via Priority Mail to fake recipients at fictitious addresses.
Yousofzay Alam then submitted to USPS fraudulent insurance claims via the Postal Service’s website and falsely certified that the packages contained items of higher value than they did and lied that the packages were lost or had been damaged in transit. Yousofzay Alam also included false invoices as well as photographs of goods that were not actually inside the parcels. The Alam brothers used aliases and fake business names to hide the number of false insurance claims they submitted.
Relying on the false information in the fraudulent insurance claim forms, USPS issued checks to the Alam brothers to cover their purported losses up to $100 in value plus the cost of shipping. USPS sent the insurance claim checks by mail to the Alam brothers to various addresses in Temecula, which included their home addresses, their business addresses, and approximately 15 different post office boxes at two different post offices. The brothers then deposited the fraudulently obtained funds into their bank accounts.
For example, in November 2018, the Alam brothers fraudulently caused to be sent in the mail via USPS a $106.59 Priority Mail claim check, which was mailed to a business address in Temecula.
The total loss caused to USPS through this scheme was at least $2,367,033.
United States District Judge Wesley L. Hsu scheduled a November 1 sentencing hearing for the Alam brothers, at which time each of them will face a statutory maximum sentence of 20 years in federal prison.
The United States Postal Service Office of Inspector General investigated this matter.
Assistant United States Attorney Courtney N. Williams of the Riverside Branch Office is prosecuting this case.
Two New Orleans Men Plead Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN TYLER, III, age 25, and ANTHONY ROMAN, age 25, residents of New Orleans, pleaded guilty on February 7, 2024, before U.S. District Judge Jay C. Zainey to federal drug and weapons charges. TYLER pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). ROMAN pleaded guilty to possession with intent to distribute tapentadol and conspiracy to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B-D), and 846. TYLER and ROMAN also each pleaded guilty to possession of a firearm in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c). ROMAN additionally pleaded guilty to possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, in violation of Title 18, United States Code, Section 659.
According to court documents, on January 29, 2023, law enforcement observed ROMAN driving an Infinity QX80 that was stolen from the Norfolk Southern Automotive Distribution Facility. Federal Bureau of Investigation (FBI) subsequently executed search warrants at two of ROMAN’s residences and recovered tapentadol, marijuana, and ten firearms. ROMAN purchased two of the firearms and possessed them in furtherance of drug trafficking.
The FBI executed a search warrant at TYLER’s residence and recovered fentanyl, a fentanyl precursor, cocaine, and loaded firearms. TYLER possessed the fentanyl and cocaine with the intent to distribute those substances and possessed a firearm in furtherance of drug trafficking.
For his conviction for possession with intent to distribute 40 grams or more of fentanyl, TYLER faces a minimum of five years and up to 40 years in prison, up to a $5,000,000 fine, and at least four years of supervised release. For his convictions for possession with intent to distribute and conspiracy to distribute tapentadol, ROMAN faces up to 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release on each count. For their convictions for possessing a firearm in furtherance of drug trafficking, TYLER and ROMAN each face a minimum of five years and up to life in prison, which must run consecutively to any other sentence, up to a $250,000 fine, and up to five years of supervised release. Finally, for his conviction for possessing a vehicle stolen from the Norfolk Southern Automotive Distribution Facility, ROMAN faces up to 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. As to each count of conviction, TYLER and ROMAN must pay a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Two Men Charged with Sexually Exploiting MinorRead the Press Release
BOSTON – Two men have been charged in U.S. District Court for their alleged sexual exploitation of a minor female and filming the assault.
Michael Lamountain, 41, of Oxford, Mass. and Jalen Latimer, 25, of Woonsocket, R.I., were charged with one count each of sexual exploitation of a minor. Both defendants are in state custody on related offenses and will appear in federal court in Worcester today at noon.
According to the criminal complaint, on or about July 7, 2022, Latimer traveled to Oxford where he and Lamountain created video recordings of themselves sexually exploiting a minor.
Lamountain was previously arrested in August 2023 and subsequently charged in Worcester Superior Court with rape of a child; aggravated indecent assault and battery on a child; depicting minors in sexual conduct; human trafficking of a minor; possession of child pornography; distribution of child pornography; and intimidation of a witness. According to court documents, Latimer was arrested in February 2024 and is facing charges in Worcester Superior Court of rape of a child, aggravated indecent assault and battery of a child, human trafficking of a minor and depicting a minor in sexual conduct.
The charge of sexual exploitation of a minor provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, up to a lifetime 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Paul B. Saucier; and Oxford Police Chief Michael K. Daniels made the announcement. Valuable assistance was provided by Rhode Island State Police and Massachusetts State Police. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Two Maryland Men Charged with Stealing over 50 Firearms from Virginia Firearms StoreRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment yesterday charging two Maryland residents with the burglary of a federal firearms licensee (FFL), conspiracy to steal firearms from FFLs, and interstate transportation of stolen firearms and stolen vehicles.
According to allegations in the indictment, Cedric Minger, 21, and Victor Jones, 22, stole more than 50 firearms—including pistols, rifles, short-barreled rifles, and silencers—from Dominion Defense, an FFL in Springfield, Virginia, on April 29, 2023. According to the indictment, Minger, Jones, and two co-conspirators traveled from Washington, D.C. to Dominion Defense in a stolen Acura ILX. After breaking the business’s exterior glass door, the defendants and their co-conspirators allegedly struggled to gain entry through the interior door, with Minger at one point resorting to shooting at the door with a firearm. Ultimately, Minger allegedly shimmied his way through an opening at the top of the interior door. Once inside, Minger allegedly grabbed more than 50 firearms, passing them along to his co-conspirators, including Jones, who then loaded them into the stolen Acura, which they used to flee back to Washington, D.C.
According to the indictment, as part of the conspiracy to steal firearms from FFLs, Minger and Jones attempted to burglarize Engage Armament in Rockville, Maryland, on April 30, 2023, and Minger and at least two co-conspirators attempted to burglarize Top Gun Firearms in Fallston, Maryland, on May 10, 2023.
The indictment also charges Minger and Jones with multiple counts relating to the possession and interstate transportation of stolen vehicles, including the above-mentioned Acura and a Nissan Sentra used to travel to and from the attempted burglary of Top Gun Firearms.
If convicted, Minger and Jones face a maximum of five years in prison for the conspiracy to steal firearms from FFLs, and up to 10 years in prison for each additional count charged in the indictment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Steve T. Descano, Commonwealth’s Attorney for Fairfax County; Craig B. Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement.
Significant assistance on this investigation was provided by the City of Fairfax Police Department, Metropolitan Police Department, Alexandria Police Department, Montgomery County Police Department, Maryland State Police, Prince George’s County Police Department, Howard County Police Department, and Prince William County Police Department.
Assistant U.S. Attorneys Meredith Edwards and Cristina C. Stam are prosecuting 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. 1:24-cr-39.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Two Individuals Convicted for $11M COVID-19 Relief Fraud SchemeRead the Press Release
A federal jury in Atlanta convicted a Georgia man and woman yesterday for their roles in an over $11 million Paycheck Protection Program (PPP) fraud scheme.
Teldrin Foster, 42, of Decatur, was convicted of bank fraud, wire fraud, conspiracy to commit bank fraud and wire fraud, false statements to a federally insured financial institution, and money laundering in connection with 14 loan applications.
Carla Jackson, 55, of Tucker, was convicted of two counts of money laundering in connection with laundering the proceeds of a PPP loan.
According to court documents and evidence presented at trial, between April and August 2020, Foster and co-conspirators submitted, or assisted in the submission of, PPP loan applications on behalf of 14 businesses seeking loans of approximately $800,000 for each company. In the loan applications, the co-conspirators certified that each applicant business was in operation on Feb. 15, 2020, and had employees for whom it paid salaries and payroll taxes or that it paid independent contractors; that the funds would be used to retain workers and maintain payroll or to make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents was true and accurate in all material respects. The co-conspirators reported that each business had approximately 60 employees and approximately $300,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an IRS Form 941, which employers use to report payroll taxes. In reality, each Form 941 was fraudulent.
After the PPP loan proceeds were deposited into the businesses’ accounts, Jackson and others laundered certain of the funds through a series of transactions that were devised to disguise the origins of the funds and how the funds were spent.
The defendants face a maximum penalty of 20 years in prison on each of the wire fraud and money laundering charges and a maximum penalty of 30 years in prison on each of the bank fraud and false statement to a federally insured bank charges. 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 Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The FBI, IRS-CI, and SBA-OIG investigated the case.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Tal Chaiken and Samir Kaushal for the Northern District of Georgia are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Two Former U.S. Marines and Nurse Practitioner Sentenced in $65 Million TRICARE FraudRead the Press Release
SAN DIEGO – Three members of a massive conspiracy to bilk the military’s healthcare program known as TRICARE out of more than $65 million have been sentenced in federal court.
Former U.S. Marines, Daniel Castro and Jeremy Syto, were sentenced to 21 months and 15 months, respectively; Nurse Practitioner Candace Craven was sentenced to serve three months in home confinement. Castro and Syto recruited fellow Marines to receive expensive compounded drugs; Craven and others wrote bogus prescriptions and filled out fraudulent paperwork to process the insurance reimbursements. All told, tens of millions of dollars in false claims were submitted; everyone got kickbacks.
All of the defendants were working for Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, who quarterbacked the scheme. Two weeks ago, Jimmy Collins received a 10-year prison sentence; Ashley Collins was sentenced to 18 months in home confinement. To account for all the fraud, the couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE.
According to plea agreements, the Marines who Castro and Syto recruited agreed to receive the pricey compounded medications in return for a monthly kickback of approximately $300. For young Marines-turned-straw-beneficiaries, this money significantly augmented their monthly paycheck. One defendant noted “it took very little work to sign people up to receive free money.”
For recruiting bogus patients, Castro and Syto were paid a commission—somewhere between 3 to7 percent of the total TRICARE reimbursement paid to the pharmacy for the drugs sent to their recruits. By the time this fraud scheme was in full swing, the average cost for these compounded drugs was more than $13,000 for a 30-day supply, peaking at around $25,000 for certain individual drugs. Over the course of the conspiracy, the illegal kickbacks amounted to at least $1,013,450.36 for Castro and $264,000 for Syto.
In total, TRICARE paid at least $11,949,710.15 in insurance reimbursements for compounded medications prescribed to straw beneficiaries directly recruited by Castro. During the same period, TRICARE paid at least $8,620,215.83 for compounded medications prescribed to straw beneficiaries directly recruited by Syto.
Nurse Practitioner Craven admitted that her primary role was to write and process fraudulent prescriptions and fill out other fraudulent paperwork for compounded drugs for the straw beneficiaries.
According to the pleadings, the sharp increase in the number of bogus prescriptions for compounded drugs was the result of multiple fraud schemes, including this one, that popped up around the country. As a result, the TRICARE program faced a $2 billion explosion in liability for compounded prescription drugs.
“This outrageous scheme undermined health services for those who risk their lives to serve our country,” said U.S. Attorney Tara McGrath. “Our military members and taxpayers deserve so much better. This case reflects our dedication to the well-being of our armed forces and our steadfast protection of the U.S. taxpayer.”
During the course of the investigation, authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud: an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.
This case was prosecuted by Assistant U.S. Attorney Mark W. Pletcher.
DEFENDANTS Case Number: 18-CR-0432-JLS
Daniel Castro Age: 36 Oak Lawn, IL
Jeremy Syto Age: 30 Chula Vista, CA
DEFENDANTS Case Number: 18-CR-4209-JLS
Candace Michelle Craven Age: 57 Apison, TN
SUMMARY OF CHARGES
Daniel Castro:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $11,949,710.15 to DHA/TRICARE
Jeremy Syto:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $8,620,215.83 to DHA/TRICARE
Candace Craven:
Conspiracy, in violation of 18 U.S.C. § 1349, 1347
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater
An order of restitution requiring defendant to repay at least $32,750.00 to DHA/TRICARE
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Temich-Ramirez Sentenced to 10 Months for Illegally Possessing a FirearmRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on February 16, 2024, Ciro Temich- Ramirez, 35 of Mexico, was sentenced by Chief United States District Judge Geoffrey W. Crawford to a term of 10 months’-imprisonment. Temich-Ramirez previously pleaded guilty to illegal possession of a firearm by an individual who is unlawfully in the United States.
According to court records, on September 30, 2023, a federal agent encountered Temich-Ramirez less than one mile south of the United States and Canada border in North Troy, Vermont. Temich-Ramirez was standing next to a vehicle. Following a brief conversation, a physical altercation ensued between the agent and Temich-Ramirez. Additional federal agents responded and, after they restrained Temich-Ramirez, found a shotgun in Temich-Ramirez’s car. Law enforcement also found ammunition, methamphetamine, brass knuckles, and a knife. Temich-Ramirez, who is a Mexican national, is prohibited from possessing firearms because he is an individual unlawfully in the United States.
United States Attorney Nikolas P. Kerest commended the investigatory efforts and rapid response of the United States Border Patrol.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Temich-Ramirez was represented by Assistant Federal Public Defender Sara Puls.
Springfield, Illinois, Man Sentenced to Twenty Years for Drug TraffickingRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Denziel Witherspoon, 32, was sentenced on February 15, 2024, by Senior U.S. District Judge Sue Myerscough to twenty years in prison to be followed by ten years of supervised release, for his role in a wide-spread drug conspiracy lasting from approximately May of 2020 through November of 2020.
At the sentencing hearing, Witherspoon was held accountable for 72,000 grams of methamphetamine, 12,000 grams of heroin, 6,000 grams of fentanyl, and 5,129.1 grams of marijuana. During the hearing, Judge Myerscough noted that the amount of drugs Witherspoon was responsible for was the most she had seen during her judicial career.
Co-defendants in the case have received the following sentences James Cooper, 180 months; Isadore Montgomery, 120 months; Rashaud Brown, 84 months; Paul Davis, 40 months; and Taylor Cockrell, 36 months.
Charges remain pending against Derrick Bailey, Lavar Maney, Dorothy Jackson, Christopher Wallace, Haley Riley, Haylee Vaughn, and Shelton Witherspoon. Members of the public are reminded that an indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
Witherspoon was indicted on December 15, 2020, and pleaded guilty on February 9, 2023. He has remained in the custody of the United States Marshal since his arrest.
The statutory penalties for the most serious charge Witherspoon was convicted of include, 15 years to life imprisonment, up to a $20,000,000 fine, and up to a life term of supervised release.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Springfield Field Office, Illinois State Police, and Springfield Police Department Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Witherspoon was part of an investigation of the Springfield based Boss Playas street gang and was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Russian Citizen Pleads Guilty to Selling Stolen Financial Information on Criminal Internet Marketplace, SlilppRead the Press Release
WASHINGTON – Georgy Kavzharadze, 27, pleaded guilty today to being a prolific vendor of stolen financial information, login credentials, and other personally identifying information (PII) on a criminal internet marketplace called Slilpp, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office Criminal and Cyber Division.
Kavzharadze pleaded guilty to conspiracy to commit bank fraud and wire fraud before U.S. District Judge Colleen Kollar-Kotelly, who scheduled sentencing for July 19, 2024.
Kavzharadze is also known as “George” and “Georgii” and went by online monikers of “TeRorPP,” “Torqovec,” and “PlutuSS.” In Cyrillic his name is ГЕОРГИЙ КАХОВИЧ КАВЖАРАДЗЕ.
According to court documents, between July 2016 and May 2021, Kavzharadze, using the name “TeRorPP,” listed for sale over 626,100 stolen login credentials on Slilpp and sold more than 297,300 of them on the illegal marketplace. Those credentials were subsequently linked to $1.2 million in fraudulent transactions, or attempted transactions. On May 27, 2021, Kavzharadze's account on Slilpp listed 240,495 login credentials for sale that would allow the buyer to use the information to steal money from the victim’s online payment and bank accounts. The credentials included access to bank accounts in New York, California, Nevada, and Georgia. Kavzharadze only accepted Bitcoin as payment for the credentials. An FBI analysis connected Kavzharadze to withdrawals of more $200,000 in Slilpp profits from his Bitcoin account.
In June 2021, the FBI, in a coordinated action with international law enforcement partners, disrupted Slilpp by seizing its infrastructure and domain names. The Slilpp database contained a wealth of historical information about Slilpp vendors, customers and transactions, including subscriber and payment information for individual accounts that have been used to buy and sell login credentials over Slilpp. The database accurately reflected known Slilpp transactions and subscriber records, including FBI undercover purchases.
On August 19, 2021, Kavzharadze was charged with conspiracy to commit bank fraud and wire fraud, bank fraud, access device fraud, and aggravated identity theft. He was subsequently extradited to the United States. He had an initial appearance in the U.S. District Court on May 18, 2022.
This case was investigated by the FBI.
This case is being prosecuted by Assistant U.S. Attorney Christine Macey and Special Assistant U.S. Attorney Joseph “Tony” Misher. Valuable assistance was provided by Paralegal Specialist Lisa Abbe, former Assistant U.S. Attorney Demian S. Ahn, and former Paralegal Specialist Michon Tart.
Richmond Man Pleads Guilty to Mail Theft and Bank Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to conspiring to carry out a bank fraud scheme that targeted victims whose personal and financial information the defendant and his co-conspirators had obtained by stealing mail from United States Postal Service (USPS) mailboxes.
According to court documents, Olden Ellerbe III, 24, conspired with other individuals to steal or otherwise unlawfully obtain U.S. mail, sometimes using stolen or otherwise misappropriated USPS “arrow” keys, which unlock all Postal Service blue collection boxes within a given geographic area. Ellerbe and his co-conspirators obtained the personal and financial information of numerous victims through these mail thefts and misappropriations, and utilized that stolen information to fraudulently withdraw funds from those victims’ accounts at local banking institutions.
Ellerbe and his co-conspirators targeted the victims’ financial accounts through a variety of means, to include creating fictitious checks drafted on the victims’ bank accounts; utilizing the victims’ stolen debit and/or credit cards to withdraw funds from the victims’ bank accounts; and applying for loans in the names of these victims (and then withdrawing the fraudulently obtained loan proceeds with the victims’ stolen debit cards).
At the time of his arrest on November 15, 2023, Ellerbe and another conspirator had just completed the final transaction in a series of fraudulent withdrawals—amounting to a total of $85,000—from a victim’s bank account. Ellerbe possessed both a Glock handgun and numerous items stolen from the U.S. mail, including 83 stolen checks, $59,940 in U.S. currency, nine stolen credit or debit cards, and six stolen U.S. savings bonds.
Ellerbe is scheduled to be sentenced on August 19. He faces a maximum penalty of 35 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Ajay D. Lall, Acting Inspector in Charge for the U.S. Postal Inspection Service – Washington Division, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day are prosecuting the case.
U.S. Attorney Aber thanked Colette Wallace McEachin and the City of Richmond Office of the Commonwealth’s Attorney for their assistance in this matter.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-9.
Retired FBI Special Agent in Charge Sentenced for Concealing Information from the Federal Bureau of InvestigationRead the Press Release
WASHINGTON – Charles F. McGonigal, 55, a former Federal Bureau of Investigation (FBI) Special Agent in Charge of the New York Field Office, was sentenced today to 28 months in prison for his undisclosed receipt of $225,000 in cash from an individual with ties to the Albanian government while McGonigal was supervising counterintelligence investigations.
The sentence was announced by U.S. Attorney Matthew M. Graves; FBI Assistant Director in Charge Donald Alway of the Los Angeles Field Office; and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
In addition to the prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered McGonigal to serve three years of supervised release. McGonigal pleaded guilty on September 22, 2023, to one count of concealing material facts. In imposing the sentence, the Court found that McGonigal’s conduct involved substantial interference with the administration of justice.
According to papers filed with the court, McGonigal was responsible for overseeing counterintelligence and national security matters when he served as Special Agent in Charge (SAC) of the FBI’s New York Field Office from August 2017 through his retirement from the FBI in September 2018. During this time, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal hid from the FBI that he received at least $225,000 in cash from the individual and traveled abroad with him and met with foreign nationals, in-part to advance their private business interests.
The FBI arrested McGonigal on January 21, 2023, at J.F.K. International Airport in New York. He was simultaneously indicted on charges by DDC and Southern District of New York. In December 2023, McGonigal was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in an unrelated case being prosecuted in the Southern District of New York.
Today’s sentence of 28 months will be served consecutively with McGonigal’s previous sentence of 50 months out of the Southern District of New York.
This case is being investigated by the FBI’s Los Angeles and Washington Field Offices.
The case was prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Stuart D. Allen, and former Assistant U.S. Attorney Michael Friedman of the U.S. Attorney’s Office for the District of Columbia, with assistance from Deputy Chief Evan N. Turgeon of the DOJ’s National Security Division Counterintelligence and Export Control Section, and the Criminal Division’s Office of International Affairs.
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Retired FBI Special Agent in Charge Sentenced for Concealing Information from the FBIRead the Press Release
Charles F. McGonigal, 55, a former FBI Special Agent in Charge of the New York Field Office, was sentenced today to 28 months in prison followed by three years of supervised release for his undisclosed receipt of $225,000 in cash from an individual with ties to the Albanian government while McGonigal was supervising counterintelligence investigations.
McGonigal pleaded guilty on Sept. 22, 2023, to one count of concealing material facts. In imposing the sentence, the court found that McGonigal’s conduct involved substantial interference with the administration of justice.
According to papers filed with the court, McGonigal was responsible for overseeing counterintelligence and national security matters when he served as Special Agent in Charge of the FBI New York Field Office from August 2017 through his retirement from the FBI in September 2018. During this time, McGonigal concealed from the FBI the nature of his relationship with a former foreign security officer and businessperson who had ongoing business interests in foreign countries and before foreign governments. Specifically, McGonigal hid from the FBI that he received at least $225,000 in cash from the individual and traveled abroad with him and met with foreign nationals, in-part to advance their private business interests.
The FBI arrested McGonigal on Jan. 21, 2023, at J.F.K. International Airport in New York. He was simultaneously indicted on charges by the U.S. Attorneys’ Offices for the District of Columbia and the Southern District of New York. In December 2023, McGonigal was sentenced to 50 months in prison and ordered to pay a $40,000 fine for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to commit money laundering in an unrelated case being prosecuted in the Southern District of New York.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director in Charge Donald Alway of the Los Angeles Field Office and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Los Angeles and Washington Field Offices investigated the case.
Assistant U.S. Attorneys Elizabeth Aloi and Stuart D. Allen and former Assistant U.S. Attorney Michael Friedman for the District of Columbia prosecuted the case, with assistance from Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section and the Justice Department’s Office of International Affairs.
Report to Waterville Police of ‘Large-Scale Drug Trafficker’ Leads to 17 ½-Year Sentence for Local ManRead the Press Release
BANGOR, Maine: A Waterville-area man was sentenced today in U.S. District Court in Bangor for possessing fentanyl and cocaine with the intent to distribute.
U.S. District Judge Lance E. Walker sentenced Victor Soto Sanchez, 39, to 210 months in prison followed by five years of supervised release. Soto Sanchez had been found guilty on October 18, 2023, following a two-day federal jury trial.
According to the evidence presented during the trial, in late November 2021, the Waterville Police Department received information about a large-scale drug trafficker selling cocaine and fentanyl out of his apartment. The resulting three-week drug investigation culminated in the execution of a search warrant at Soto Sanchez’s residence where law enforcement found approximately five pounds of fentanyl in pill and powder form, almost five pounds of cocaine, over $5,000 in cash, and several firearms. The value of the narcotics seized was over $400,000.
The Waterville Police Department and Homeland Security Investigations investigated the case with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Police; and U.S. Customs and Border Protection.
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Recidivist Offender Sentenced to Nearly 15 Years in Federal Prison for Unlawful Possession of a Machinegun While on Supervised ReleaseRead the Press Release
PITTSBURGH, Pa. – A former resident of the East Hills area of Pittsburgh, Pennsylvania, has been sentenced in federal court to 10 years in prison followed by three years of supervised release for his conviction on charges of possession of a firearm and ammunition by a convicted felon and possession of a machinegun, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Oronde Shelton, 51, on February 13, 2024.
According to information presented to the Court, on March 17, 2021, Shelton possessed a semi-automatic Glock pistol equipped with an extended magazine and an aftermarket auto-sear, commonly referred to as a “Glock switch,” which rendered the gun capable of firing in a fully automatic capacity. Under federal law, the auto-sear or switch device was itself a machinegun. At the time of this offense, Shelton was a convicted felon and therefore prohibited from possessing any firearm or ammunition.
By his own admission at the time of his guilty plea, Shelton had used the machinegun on three occasions prior to his 2021 arrest, including during an exchange of gunfire on Frankstown Road in which an innocent bystander was struck by a bullet in his right ankle. In the incident that served as the basis for the most recent federal charges against him, Shelton admitted that he was driving in the North Side of Pittsburgh with the modified Glock pistol on the passenger seat. After occupants of another vehicle pulled up to Shelton’s vehicle and opened fire, Shelton returned fire from his weapon’s 30-round capacity magazine, shooting through his own windshield and striking a building nearby and at least one parked vehicle. Shortly after, Shelton abandoned his vehicle and walked away with his fully automatic firearm, which was found in his residence in April 2021 at the time of his arrest.
Judge Wiegand rejected Shelton’s attempt to minimize his conduct by claiming that he needed to carry the firearm for protection, finding that such a defense is unavailable for a felon’s “sustained possession of a firearm for personal protection over the course of” a period of months and “based on a generalized concern that unnamed individuals might” present a threat. Moreover, the Court clarified, because the law “prohibits anyone, even law-abiding individuals, from possessing a machinegun . . . it would be nonsensical for there to be an exception for ‘justified’ possession of a machinegun.”
At the time of these latest violations, Shelton was serving a term of supervised release following a prior 120-month federal prison sentence for his participation in a conspiracy to distribute large quantities of heroin in 2008. As a result of his current firearms conviction, Judge Wiegand determined that Shelton had violated the terms of his federal supervision, which the Court subsequently revoked, sentencing Shelton to an additional 57 months’ incarceration to be served consecutively to the 120 months he received for the machinegun possession.
“Oronde Shelton has repeatedly endangered the community, and in particular innocent bystanders, with his use of illegal firearms, in this case, a machinegun,” said U.S. Attorney Olshan. “This combined sentence of nearly 15 years is a recognition of how dangerous and destructive machineguns are, particularly when possessed and used by chronic violent offenders. Through coordinated efforts by our federal, state, and local law enforcement partners, and by using federal resources to investigate and prosecute those who are driving violence, we continue to prioritize the safety of our neighborhoods.”
Assistant United States Attorneys Barbara K. Doolittle and Michael R. Ball prosecuted this case on behalf of the government.United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Shelton.
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.
Readout of Civil Rights Division’s Quarterly LGBTQI+ Community Stakeholder MeetingRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and the division’s LGBTQI+ working group convened a quarterly meeting yesterday with LGBTQI+ community stakeholders.
Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs and Office on Violence Against Women heard from attending organizations on an array of topics. Those topics included hate crimes targeting the LGBTQI+ community, threats of violence against LGBTQI+ organizations and healthcare providers serving LGBTQI+ patients; discriminatory legislation targeting the LGBTQI+ community; protections for LGBTQI+ parents in the foster care and adoption process; and discrimination faced by both intersex individuals and individuals living with HIV. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission and the Departments of Health and Human Services, Education, Housing and Urban Development, Labor, Homeland Security, Defense and Veterans Affairs.
This week’s meeting reinforces the Justice Department’s commitment to taking an all-of-department approach to protecting LGBTQI+ rights, including by engaging with organizations and stakeholders on issues affecting the LGBTQI+ community. The department’s recent work on LGBTQI+ rights issues includes a statement of interest challenging North Carolina’s bans on gender-affirming health care for transgender minors and an amicus brief in support of transgender individuals who are seeking medical treatment for gender dysphoria that is excluded from Medicaid coverage by a Florida administrative rule and state statute.
The department has also prosecuted hate crimes based on LGBTQI+ status or affiliation with the LGBTQI+ community, addressed discrimination based on transgender status in employer-provided health insurance coverage, affirmed that correctional institutions cannot deny medically appropriate care for people with gender dysphoria, took action to combat the criminalization of HIV status, and continued to educate the public about threats facing the LGBTQI+ community, including by hosting another virtual, nationwide community meeting outlining practical steps for protecting LGBTQI+ communities from hate-motivated attacks and threats of violence. These and other efforts can be found on the Civil Rights Division’s LGBTQI+ working group’s website.
Assistant Attorney General Clarke and the division's LGBTQI+ working group meet with LGBTQI+ community stakeholders.Professional Money Launderer Sentenced to 40 Months in Prison for Transmitting $42 MillionRead the Press Release
SAN DIEGO –Jesus Vazquez Padilla of Tijuana was sentenced in federal court today to 40 months in custody for the unlicensed transmission of more than $42 million of illicit proceeds derived from the sale of drugs across the United States.
According to court records, between January 4, 2016 and May 24, 2019, Vazquez Padilla led the operation of an illegal unlicensed money transmission business by using 22 shell corporations and 85 corporate bank accounts at various U.S. banks to launder drug sale proceeds. Using the corporate bank accounts, Vazquez Padilla and his co-conspirators offered money transmitting services to the public for a fee by performing tasks that included: (1) depositing cash at financial institutions throughout the United States; (2) transferring money by wire, checks, and inter-bank transfers, and (3) transferring money to Mexico on behalf of third parties.
“The complexity of this money laundering operation was remarkable but as it unraveled so did the string of drug proceeds into the coffers of the cartels,” said U.S. Attorney Tara McGrath. “The United States will prosecute not only the drug traffickers, but also the facilitators who cannot out-maneuver justice.”
“Mr. Vasquez Padilla knowingly and willingly subverted laws that protect our financial institutions from becoming unwitting pawns in funding transnational crime and terrorism,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Furthermore, by moving over $42 million in drug money, Mr. Vasquez Padilla and his co-conspirators’ put our sons and daughters at risk of becoming statistics in the drug crisis we face as a country. IRS Criminal Investigation is committed to following the money to bring criminals like Mr. Vasquez Padilla to justice.”
In total, Vazquez Padilla’s business deposited $42,276,668 into the U.S. financial system. Of those deposits, approximately 95 percent of those funds were transferred to third party bank accounts in Mexico. The remaining 5 percent constituted the business’ fee for transmitting the funds.
Under U.S. law, a money transmission business must register with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury; file Currency Transaction Reports and Suspicious Activity Reports; and maintain an effective anti-money laundering compliance program. Vazquez Padilla did not comply with any of these requirements.
On December 5, 2022, Vazquez-Padilla’s co-conspirator, Jose Gonzalez, was sentenced to 30 months’ custody for operating an unlicensed money transmission business and for assisting in the preparation of false tax returns related to the conspiracy. Gonzalez helped Vazquez Padilla open approximately 11 shell corporations and then, to create a veneer of legitimacy, Gonzalez filed federal tax returns on behalf of 10 of the shell corporations in tax years 2016 and 2017. In doing so, Gonzalez invented $19,615,192 in false and fictitious deductions so the shell corporations would not owe taxes.
On December 18, 2023, another co-conspirator, Juan Medina, was sentenced to 12 months and one day in custody for operating an unlicensed money transmission business. Despite knowing the laundered money represented illegal drug proceeds, Medina helped Vazquez Padilla open bank accounts for the shell corporations to enable the money laundering.
Vazquez Padilla’s sister and co-conspirator, Monica Vazquez, remains at large.
Assistant U.S. Attorneys Christopher Beeler and Carl Brooker of the Southern District of California are prosecuting the case.
DEFENDANT Case Number 22-CR-1551-RBM
Jesus Vazquez Padilla Age: 47 Tijuana, Mexico
DEFENDANT Case Number 22-CR-1472-W
Jose Gonzalez Age: 52 San Diego, California
DEFENDANT Case Number 22-CR-1473-RBM
Juan Medina Age: 42 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Operate an Unlicensed Money Transmission Business – Title 18, U.S.C., Sections 371, 1960
Maximum penalty: Five years in prison, $250,000 fine; forfeiture and restitution
AGENCY
Internal Revenue Service Criminal Investigation