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28 March 2024
Philadelphia Man Sentenced for Directing a Scheme to Steal Diesel Fuel from Gas Stations and for Illegally Possessing FirearmsRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that William Cole, 32, of Philadelphia, PA, was sentenced to 70 months’ imprisonment and three years of supervised release by United States District Court Judge Gerald A. McHugh for directing a scheme to steal diesel fuel from gas stations and illegally possessing firearms.
In October 2023, Cole pleaded guilty to one count of conspiracy to commit access device fraud and one count of possession of a firearm by a felon.
From March 2021 through June 21, 2023, the defendant purchased stolen credit card data and had co-conspirators fill up auxiliary tanks at Philadelphia-area gas stations, at his direction and using his trucks, with more than $750,000 worth of diesel fuel, using those unlawfully obtained credit card numbers. Cole would then resell the diesel fuel at a discounted rate.
On June 26, 2023, during a court-authorized search of Cole’s residence, Homeland Security Investigations recovered a Smith and Wesson semi-automatic pistol loaded with 15 rounds of ammunition and a Glock 27, which had been modified with a conversion kit into a fully automatic pistol. Cole had previously been convicted of state drug and gun offenses in Pennsylvania and was not permitted to be in possession of firearms.
“Cole fueled his scheme using other people’s stolen information and armed himself with guns he knew he shouldn’t have,” said U.S. Attorney Romero. “This sentence holds him accountable for both his financial and firearms offenses. We’ll continue to work with HSI and our other valued partners to prosecute repeat offenders like William Cole.”
“Fraud through the manipulation of financial systems is one of the core investigative priorities of Homeland Security Investigations,” said William S. Walker, Special Agent in Charge of HSI Philadelphia. “Convicted felons like William Cole need to be held accountable for perpetrating fraud schemes targeting commercial businesses. Cases like this one are only accomplished when dedicated agents and prosecutors work side-by-side to bring fraudsters to justice.”
The case was investigated by Homeland Security Investigations (HSI) Philadelphia’s El Dorado – Cyber Crimes Investigations Task Force (C2iTF) and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Peoria Man Sentenced to 10 Years in Prison for Attempting to Entice a MinorRead the Press Release
BENTON, Ill. – A district judge sentenced a man from Peoria, Illinois, to spend 10 years in prison after he traveled to southern Illinois to engage in sexual activity with a purported minor.
Mitch M. Titus, 34, pleaded guilty to one count of attempted enticement of a minor on Dec. 14, 2023.
“This federal prison sentence reflects the serious threat the defendant could have had on an actual minor, who luckily in this case was purported,” said U.S. Attorney Rachelle Aud Crowe. “The U.S. Attorney’s Office and the Illinois State Police are working in lockstep to prosecute minor enticement cases and apprehend those intent on victimizing children.”
According to documents and evidence presented during court hearings, Titus responded to a forum on social media posted by an undercover detective with the Illinois State Police posing as an inexperienced minor. Titus had sexually explicit conversations with who he believed to be a 14-year-old minor from September 27 through October 4, 2022.
“Preying on youth is a diabolical crime and ISP is relentless when it comes to investigating predators,” said ISP Director Brendan F. Kelly. “Through our partnerships with our prosecutorial partners at all levels, and training with the Internet Crimes Against Children Task Force, we will continue to identify child predators and successfully bring them to justice."
As the conversation progressed, Titus arranged to meet the purported minor in Carbondale, where instead law enforcement was waiting and detained him.
The Illinois State Police and the Illinois Attorney General’s Office Internet Crimes Against Children Taskforce contributed to the investigation. Assistant U.S. Attorney Casey Bloodworth 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.
Passaic County Man Charged with Using Explosive to Damage Chase Bank ATMRead the Press Release
NEWARK, N.J. – A Passaic County man was charged with using an explosive to damage a Chase Bank automated teller machine (ATM) in Prospect Park, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Nicolas Torres, 41, of Passaic, New Jersey, is charged by complaint with using an explosive to damage real property used in interstate commerce and possession of an unregistered firearm, namely the destructive device. The defendant appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
In the early morning hours of July 5, 2022, Torres was captured on surveillance video approaching the Chase Bank ATM in Prospect Park and appearing to ignite an item in front of the ATM. Several seconds later, an explosion was seen at the ATM. Torres was seen fleeing the location with two individuals.
In addition to the surveillance video, cellular phone location data placed Torres in the area of the Chase Bank at the time of the explosion. The investigation also revealed that Torres had traveled to Pennsylvania the day before and purchased approximately $1,000 worth of fireworks.
Examination of the physical evidence obtained from Chase Bank revealed cardboard with “MgAl” stamped on it. MgAl refers to magnalium, an alloy of magnesium and aluminum, which can be used as fuel to form an explosive when ignited by heat or a flame (as depicted in the surveillance video), thereby making it an improvised explosive device.
The use of an explosive to damage real property used in interstate commerce charge carries a statutory minimum of five years in prison, a statutory maximum of 20 years in prison, and a fine of $250,000. The possession of an unregistered firearm charge carries a statutory maximum of 10 years in prison and a fine of $10,000.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, Newark Field Division, under the direction of Special Agent in Charge James E. Dennehy, and the Prospect Park Police Department, under the direction of Officer in Charge Captain Walter Richmond, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s National Security Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
torres.complaint.pdfOwner of New Jersey Fireproofing and Painting Company Indicted for Tax CrimesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged with tax evasion and failure to file tax returns, U.S. Attorney Philip Sellinger announced today.
John Constantino, 67, of Ridgewood, New Jersey, is charged in an 18-count indictment with six counts of tax evasion and 12 counts of failure to file tax returns.
According to documents filed in this case and statements made in court:
Constantino owned and operated a fireproofing and painting business since at least 1989. Despite both the company and Constantino earning income between 2017 and 2022, Constantino failed to report the company’s income on corporate tax returns and also failed to report his own income on personal tax returns, resulting $682,735 in taxes due and owing to the United States, which Constantino never paid.
Instead of paying those taxes, Constantino took affirmative steps to conceal both his and the company’s income and assets including, cashing approximately $13 million worth of checks payable to the company at a check cashing facility and structuring cash deposits into both his and the company’s bank accounts to avoid triggering Currency Transaction Reports, which are reported to the U.S. Department of Treasury.
The tax evasion counts each carry a maximum potential penalty of five years and a fine of $100,000. Each count of failure to file tax returns carry a maximum potential penalty of one year in prison and a fine of $100,000 each.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U. S. Attorney Rachelle M. Navarro of the Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
r_constantino.indictment.pdfNorthern District of Georgia U.S. Attorney and Procurement Collision Strike Force Director Host Antitrust SummitRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia, the Department of Justice’s Antitrust Division, and the Procurement Collusion Strike Force (“PCSF”) hosted a summit where procurement officials and law enforcement partners from across the Atlanta metropolitan area convened to raise awareness concerning collusion, corruption, and fraud schemes that target government spending. spending.
"Our office is committed to working closely with our federal, state, and local partners to ensure that the citizens of this district receive government services free from collusion, corruption, and fraud,” said U.S. Attorney Ryan K. Buchanan. “Our close collaboration with the Antitrust Division, in particular, allows us to better identify, investigate, and prosecute procurement fraud and, in so doing, assure the public that safeguarding taxpayer funds ranks as a top priority.”
“Today’s summit is a valuable opportunity for the PCSF to forge vital partnerships with representatives from the U.S. Attorney’s Office for the Northern District of Georgia and several local, state and federal law enforcement agencies that are dedicated to protect the integrity of the federal government’s contracts,” said Director Glad. “Our partnerships increase awareness and combine resources and tools that protect taxpayers’ money.”
During the summit, U.S. Attorney Buchanan and Director Glad reflected on the PCSF’s growth and success since its inception in 2019. They detailed additional resources the Department of Justice has dedicated to combat procurement collusion and emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending. They also sharpened the PCSF’s focus on the challenges, risks, and opportunities posed by significant government spending in and around the Atlanta metropolitan area under the Investment in Infrastructure and Jobs Act, which will provide billions in federal spending in Georgia over the next several years.
Presentations at the summit outlined the ways that federal, state, and local government agencies can partner with the PCSF to address these emerging threats. Other topics discussed at the summit included ways that government agencies can strengthen their procurement processes to better protect taxpayer funds and meet the mission to provide services to residents. Summit participants included representatives from the FBI, Department of Transportation Office of Inspector General, Environmental Protection Agency Office of Inspector General, Department of Commerce Office of Inspector General, Department of Homeland Security Office of Inspector General, General Services Administration Office of Inspector General, Air Force Office of Special Investigations, Department of the Army Criminal Investigative Division, Defense Criminal Investigative Service, Georgia Department of Education, Georgia Department of Transportation, and City of Atlanta Office of Inspector General.
The PCSF is the Department of Justice’s coordinated, national law enforcement effort to target antitrust crimes and related fraudulent schemes that impact procurement, grant, and program funding at all levels of government — federal, state, and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorney’s Offices around the country, the FBI, and the Inspectors General for multiple federal agencies.
Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving more than $500 million worth of government contracts. The summit marks the Department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Nine Mile Falls Man Who Used a Hidden Camera to Produce Child Pornography Sentenced to 20 Years in Federal PrisonRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Robert Wayne Hutton, age 60, of Nine Mile Falls, Washington, was sentenced on child exploitation charges. On January 3, 2024, Hutton pleaded guilty to Possession of Child Pornography. On January 16, 2024, after a bench trial before United States District Judge Mary K. Dimke, Hutton was found guilty of Production and Attempted Production of Child Pornography. Judge Dimke imposed a sentence of 240 months of imprisonment to be followed by a lifetime of supervised release. Judge Dimke also ordered restitution in the amount of $25,000 be paid to Hutton’s production victim.
According to court documents and evidence presented at trial, between May 2021 and May 2022, Hutton secretly recorded a minor using a bathroom. Hutton placed a camera, hidden in a clock radio, on a bathroom counter in order to film the victim nude and create child pornography. The camera was wirelessly linked to Hutton’s smartphone, which Hutton used to view the recordings. Trial evidence also included Hutton’s 2009 Washington state conviction for Communication with a Minor for Immoral Purposes, based on sexual statements Hutton made in person and via text messages to a 15-year old girl.
Law enforcement obtained a search warrant and seized several electronic devices belonging to Hutton, including the hidden camera, Hutton’s phone, and several computers. A forensic review of the phone and computers revealed several video files and 33 images of the minor in various stages of undress, as well as hundreds of additional child pornography files.
“For months, Mr. Hutton used a secret camera to record images of a young victim. He was also engaged in online trading of child pornography with similar-minded offenders. Our office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to aggressively prosecute those who harm children,” stated U.S. Attorney Waldref. “I want to commend our law enforcement partners, as well as our prosecutors and support staff for bringing justice for the victims and accountability to this defendant.”
“This child predator engaged in behavior that was a betrayal of trust and a heinous exploitation of unsuspecting victims,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Collectively, we cannot tolerate such egregious acts that strip away the dignity of victims and provide the opportunity for revictimization. HSI will pursue these perpetrators tirelessly, seeking to end the abuse associated with images of child exploitation wherever it may be found.”
“This case was particularly heinous; the victim was preyed upon by someone in a position of trust. Though there is nothing my office can do to undo the hurt this victim has felt, I hope that healing can begin with this conviction,” said Erika George, Prosecuting Attorney for Stevens County. “I would like to thank the Stevens County Sheriff’s Office for their hard work in their investigation, and I am equally grateful for the efforts of the US Attorney’s Office in their successful prosecution.”
This case was investigated by Homeland Security Investigations and the Stevens County Sheriff’s Office. State charges were filed by the Stevens County Prosecutor’s Office, and the federal case was prosecuted by Assistant United States Attorney Ann Wick.
Niagara Falls man with prior child sexual abuse conviction going back to prison on new child pornography chargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Albert Smith, 40, of Niagara Falls, NY, who was convicted of possession of child pornography involving a prepubescent minor and having a prior conviction under the laws of any state relating to sexual abuse involving a minor, was sentenced to serve 188 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Maeve E. Huggins, who handled the case, stated that in 2003, Smith was convicted in North Tonawanda City Court of Sexual Abuse 2nd: Sexual Contact with Person Less Than 14 Years Old. On October 22, 2021, a search warrant was executed at Smith’s residence, during which investigators seized two cell phones. Investigators also located another electronic device containing child pornography, which Smith had attempted to discard. In total, Smith possessed 314 images and 25 videos of child pornography on the three devices. The images included depictions of prepubescent minors less than 12 years old, and the sexual abuse of an infant or toddler.
The sentencing is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent Nicholas Ligammari, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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New York Man Convicted of Bank FraudRead the Press Release
ALBUQUERQUE – A New York man was convicted by a federal jury after 39 minutes of deliberation of a bank fraud charge related to the brutal assault of his father-in-law. Prosecutors allege the crime was driven by the defendant, Marc Candelaria, 36, of Wantagh, New York, accruing mounting gambling debts at the time.
According to court documents and evidence presented at trial, in the early hours of Sept. 14, 2021, an armed and masked intruder entered Candelaria’s father-in-law’s home and forced him to write a check for $23,000.00 and demanded he leave all other portions of the check blank. The intruder then severely beat the victim and left him in the closet of his home. Candelaria’s father-in-law did not see the intruder’s face and retained little memory of the incident due to the severity of his injuries.
On Sept. 15, 2021, Wells Fargo bank alerted the victim’s wife to a possibly fraudulent check. The bank advised that a hold had been placed on the check due to what appeared to be two separate handwritings. The next day, she viewed the check and observed that it had been made out to Candelaria. Candelaria claimed that his father-in-law had given him the check because they intended to invest in Bitcoin together. The victim’s wife doubted Candelaria’s story but wrote him another check for $23,000.00.
The victim’s wife later informed the victim that she had written Candelaria a check to replace the first one. The victim denied agreeing to invest in Bitcoin or writing a check to Candelaria but recalled that he had been forced to write a check for $23,000.00 against his will during the home invasion. The victim’s wife contacted the Santa Fe Police Department and provided copies of the two checks made out to Candelaria.
A deposit slip for the check the victim wrote during the home invasion was found in Candelaria’s car pursuant to a state search warrant. The deposit slip showed that the check was deposited at 8:58AM on the morning of the home invasion.
The Court ordered that Candelaria remain in detention pending sentencing, which has not been scheduled. At sentencing, Candelaria faces up to 30 years in prison followed by five years of supervised release.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorneys Samuel A. Hurtado and Natasha Moghadam are prosecuting the case.
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Monroe, N.C. Man Is Sentenced to 25 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Jake Henry Anderson, 24, of Monroe, N.C., to 300 months in federal prison followed by a lifetime of supervised release for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Anderson was also ordered to register as a sex offender upon completion of his prison term.
According to Anderson’s guilty plea and other documents filed with the court, between July 8, 2021, and July 10, 2021, Anderson induced, enticed, and coerced a minor to engage in sexually explicit conduct and produced a visual depiction of the conduct. Court documents show that Anderson befriended the 15-year-old minor female on Snapchat and began to communicate with her. Over the course of their communications, Anderson exchanged sexually explicit images with the minor victim and discussed having sex with her. As their communications progressed, Anderson discussed meeting the minor victim and told her he would make her his girlfriend.
According to court documents, on July 8, 2021, Anderson drove to the minor victim’s house in Tennessee, picked her up from her home and drove her back to his home in Union County, North Carolina. During this time, Anderson engaged in sexual acts with the minor victim. Videos of the sexual acts were recorded and saved in his Snapchat account. Anderson was arrested after the minor was reported missing and law enforcement was able to trace her to the defendant’s home.
Filed court documents show that after Anderson’s arrest and upon seeing the defendant’s picture in the news, another individual contacted law enforcement to report that a 16-year-old female had also been in contact with Anderson. During their communications on Snapchat, Anderson pressured this minor victim to send him sexual images of herself, to leave her family, and to move in with him. Investigators also determined that Anderson had driven by the minor victim’s house and briefly met with her.
On June 29, 2022, Anderson pleaded guilty to production of child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King commended Homeland Security Investigations, the Union County Sheriff’s Office and the Rutherford County (Tennessee) Sheriff’s Office for their work in the investigation.
Assistant U.S. Attorney Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Missouri Man Caught in Overseas Sting Admits Child Pornography ChargeRead the Press Release
ST. LOUIS – A man from Kirksville, Missouri on Thursday pleaded guilty to a child pornography charge after being caught by an undercover police officer posing as a 12-year-old girl.
Corey Alexander Wadel, 36, pleaded guilty to one count of receipt of child pornography. Wadel admitted that he possessed more than 600 images containing child sexual abuse material and exchanged that material with others online. He also admitted taking pictures of himself exposing his genitals to two young children.
The investigation began after law enforcement in the United Kingdom notified Homeland Security Investigations that someone in the United States, later identified as Wadel, was talking to an undercover officer posing as a twelve-year-old female. Using Kik Messenger, Wadel sent explicit images and videos of himself to the officer.
As part of the plea agreement, both sides have agreed to recommend 12 years in prison when Wadel is sentenced in July.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Minot Man Sentenced to Federal Prison for Distributing Large Amounts of Methamphetamines into North Dakota from Mexico, and Trafficking Firearms into MexicoRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on March 27, 2024, Joshua Paul Kranig, age 41, from Minot, North Dakota, appeared before U.S. District Court Judge Daniel M. Traynor and pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and one count of Possession of Firearms by a Convicted Felon. Kranig was sentenced to serve 10 years and 5 months in federal prison, followed by five years supervised release for the methamphetamine conspiracy conviction, and to serve 60 months in federal prison, followed by three years supervised release for the illegal possession of firearms conviction. The sentences will run concurrent to one another.
Kranig was involved in trafficking large quantities of methamphetamine from Mexico to North Dakota. Further, Kranig was unlawfully possessing and trafficking firearms into Mexico as payment for the drugs.
“This prosecution took dangerous drugs off the streets of our communities and firearms out of the hands of international cartels,” Schneider said. “Where organized drug trafficking occurs, illegal guns and violent crime all too often follow. Our career prosecutors and their law enforcement partners deserve credit for the results in this case, which will benefit public safety in the District of North Dakota and beyond.”
This case was investigated by the Minot Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, and prosecuted by the United States Attorney’s Office, with Assistant US Attorney Chris Myers and Assistant US Attorney David Hagler assigned to the case.
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Minneapolis Felon Sentenced to 9 Years in Prison for Firearms ViolationsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 111 months in prison followed by three years of supervised release for possessing a firearm as a felon and for carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 13, 2023, law enforcement responded to a report of a man wearing a mask and waving a handgun in a white Kia with Colorado plates. Upon arrival law enforcement ordered the sole occupant of the car, identified as Tracrill Smith, 26, out of the Kia and placed him in handcuffs. Law enforcement searched the Kia and found a 9mm semi-automatic pistol with an obliterated serial number and loaded with an extended magazine, 3,340 fentanyl pills and approximately 47.15 grams of fentanyl powder. Because Smith has a previous prior felony conviction, he is prohibited under federal law from possessing firearms or ammunition at any time.
Smith pleaded guilty on October 19, 2023, to one count of possession of a firearm as a felon and one count of carrying a firearm during and in relation to a drug trafficking crime. He was sentenced today in U.S. District Court by Senior Judge Michael J. Davis.This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Maplewood Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorney Mary S. Riverso prosecuted the case.Mathis dealer sent to prison after attempting to dispose of two duffel bags full of narcotics and cashRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old man has been sentenced for possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Rivas aka Scarface pleaded guilty Jan. 3, 2023.
U.S. District Judge Drew B. Tipton has now ordered Rivas to serve 180 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding his lengthy criminal history which began when he was just 12 years old including the facts surrounding his arrest and his role in narcotics trafficking in Mathis. The court also heard how Rivas was a poly-substance, multi-kilogram narcotics distributor who had been operating for years in the Mathis area.
The investigation began when Rivas sold meth to an informant for law enforcement. When authorities executed the arrest warrant for that sale, Rivas attempted to flee by running out of the back of his girlfriend’s house and hiding in the brush.
Rivas then attempted to dispose of two duffel bags containing almost four kilograms of cocaine, over 2.5 kilograms of meth, 133 grams of heroin, 600 grams of marijuana and more than $90,000 in cash by throwing the additional evidence into the brush. The estimated street value of the cocaine and meth was approximately $114,000.
However, law enforcement located Rivas and the duffel bags, and he was subsequently charged and pleaded guilty to the larger quantity of narcotics he attempted to throw away.
Additionally, while executing a search of the residence, authorities located a hidden closet concealed as a bookshelf. Rivas admitted he had it built in the house to help him hide from authorities when they came to arrest him.
Rivas’ girlfriend was also charged and convicted of harboring a fugitive for her role in helping him evade arrest in her home.
Rivas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Homeland Security Investigations conducted the investigation with the assistance the U.S. Marshals Service, Sheriff’s Offices in Live Oak and San Patricio Counties, George West Police Department, Texas Department of Public Safety and Texas Parks and Wildlife Department. Assistant U.S. Attorney Barbara J. De Peña prosecuted the case.
Man from Hawaii Admits Sextortion of Missouri TeenRead the Press Release
ST. LOUIS – A resident of Hawaii pleaded guilty Thursday in U.S. District Court in St. Louis and admitted the sextortion of a 14-year-old Missouri girl, as well as the distribution of explicit images of other minors.
Gerardo Javier Montes, 33, pleaded guilty to one felony count of distribution of child pornography.
Between Dec. 6, 2021, and Jan. 14, 2022, Montes communicated with the 14-year-old Missouri girl via numerous private messages on Reddit. She initially believed he was 21 but later found out that he was a decade older. Montes often turned the conversation to sexual matters. He provided advice on how to create nude images. He also sent her an explicit image of a 15-year-old. At one point she sent him an image of herself in a bra and a picture of herself topless. She later told Montes her full name and directed him to an online profile.
On Jan. 13, 2022, the victim tried to cut off contact with Montes. He responded by threatening to post nude photos of her on various social media sites and send them to “every school in the state.” He demanded more pictures, providing a detailed list of what he wanted, and tried to get her to engage in sexual activity with a dog. He also created a fake Reddit account, pretending to be a 15-year-old girl, to try and trick the victim into providing nude images. On Jan. 15, 2022, he sent images of the victim to someone else via Discord.
An investigation began after the FBI received a tip about the sextortion and traced the blackmailer to Hawaii. They performed a court-approved search of his home and seized electronic devices that contained child sexual abuse material.
Montes admitted as part of his plea that he traded child pornography with others online, including images of his former girlfriends when they were minors and other child victims that he provided with money, gift cards, clothes, sexual toys or electronics in exchange for nude images. Those victims include one girl in Oklahoma, one in Texas and one in Colorado.
Montes made posts and comments in teen-focused Reddit groups, as well as groups discussion depression and rape fantasies. He also admitted seeking child sexual abuse material from other minors online. In February of 2021, he asked someone who said she had been sexually abused as a minor for nude images of herself when she was 13. In December 2021, Montes asked a 12-year-old girl if she wanted to see his genitals and asked to see her nude.
Montes is scheduled to be sentenced on August 15. The distribution charge carries a mandatory minimum prison term or five years, and a maximum of 20 years.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
The National Center for Missing and Exploited Children (NCMEC) has detailed information on resources for sextortion victims, including videos and discussion guides to help explain the problem to children and adults. They also have a step-by-step guide on how to report pictures or videos of children to social media companies and flag pictures so that the companies will seek out and remove the images.
To report sextortion, contact local law enforcement or the FBI by calling Call 1-800-CALL-FBI, contacting your local FBI office, or reporting it online at tips.fbi.gov or cybertipline.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Pleads Guilty to Selling $3.5M in Counterfeit and Deficient Electronics for Use in Military SystemsRead the Press Release
A California man pleaded guilty yesterday to a scheme to defraud the Department of Defense’s (DoD) Defense Logistics Agency (DLA) by selling over $3.5 million worth of fan assemblies to the DLA that were either counterfeit or misrepresented to be new.
“The defendant sold counterfeit and deficient fan assemblies for use in military systems to increase his profit,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Criminals who cheat the U.S. military by selling deficient or counterfeit goods put our national security at risk. This case demonstrates the Justice Department’s commitment to protecting the military supply chain and Americans’ security.”
“Through his company, Kim delivered counterfeit products to our armed services and tried to pass off non-conforming products with fake invoices,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “Swindling our military is a sure way to find oneself in jail. This office is always on the lookout for fraudsters and will prosecute anyone caught cheating our military by providing products that endanger our service people or compromise our readiness.”
According to court documents, Steve H.S. Kim, 63, of Alameda County, controlled Company A, which sold fan assemblies to the DLA that were either counterfeit or were used or surplus fan assemblies that he claimed were new. To trick the DLA into accepting the fan assemblies, Kim created counterfeit labels — some of which used Company B’s registered trademarks — that he attached to the fan assemblies he sold to the DLA. When the DLA questioned Kim about the origin of the fan assemblies, Kim concealed his scheme by giving the DLA fake tracing documents that he created and often signed using a false identity. Some of these counterfeit fans were installed or intended to be installed with electrical components on a nuclear submarine, a laser system on an aircraft, and a surface-to-air missile system.
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Special Agent in Charge Bryan D. Denny of the DCIS Western Field Office. “Supplying counterfeit products to the DoD endangers the mission and betrays the public’s trust. This investigation demonstrates DCIS’ ongoing commitment to working with its law enforcement partners to hold individuals who defraud the DoD accountable.”
“The Naval Criminal Investigative Service (NCIS) and our law enforcement partners work diligently to thwart attempts to infiltrate the DoD supply chain with potentially damaging counterfeit product,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This case highlights the efforts of the investigative team to expeditiously shut down such a scheme and prevent possible grievous harm to our ability to conduct effective combat operations.”
“This case reflects Homeland Security Investigation’s (HSI) core mission set of investigating national security threats as well as protecting global trade and government supply chains,” said Special Agent in Charge Tatum King of HSI San Francisco. “In this case, the serious risks posed to mission readiness were especially alarming. HSI appreciates the joint efforts of NCIS, DCIS, and the Army Criminal Investigation Division (Army CID), together with the Justice Department, in bringing the violator to justice.”
“The result of this joint investigation underscores the importance of our federal law enforcement partnerships and shows that by working together we can identify, prosecute, and dismantle businesses that supply the U.S. military with fraudulent parts and services,” said Special Agent in Charge Keith K. Kelly of the Army CID Fraud Field Office. “Our Army communities and the public can rest assured that we are committed to pursuing anyone that would defraud the U.S. government for their own personal gain and put combat readiness at risk.”
Kim pleaded guilty to one count of wire fraud and one count of trafficking in counterfeit goods. He is scheduled to be sentenced on July 17 and faces a maximum penalty of 20 years in prison on the wire fraud count and 10 years in prison on the trafficking in counterfeit goods count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DCIS, NCIS, HSI, and Army CID are investigating the case.
Assistant Chief Kyle C. Hankey and Trial Attorneys Louis Manzo and David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California are prosecuting the case. Assistant Deputy Chief Adrienne Rose and Senior Counsels Jason Gull and Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance with the investigation.
Long Beach Man Charged with Transporting 14-Year-Old Arizona Runaway While Intending to Engage in Criminal Sexual ActivityRead the Press Release
LOS ANGELES – A Long Beach man has been arrested on a federal criminal complaint alleging he traveled with a 14-year-old runaway from Arizona – whom he met in a Reddit internet forum – across state lines to his apartment, where he engaged in criminal sexual activity with her, the Justice Department announced today.
Trevon Nathaniel Langstaff, 32, is charged with transportation of a minor with intent to engage in criminal sexual activity.
Langstaff was arrested at his residence early Wednesday morning. He is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, law enforcement officials on Tuesday received a report of a missing 14-year-old girl who ran away from a residence in Arizona. Early Tuesday morning, the victim’s family discovered she was missing.
The victim’s family searched for the girl in the neighborhood and reached out to her friends for information about the victim’s whereabouts and learned that the victim – one week earlier – said that she was planning to run away from home. The victim also told a friend that she had met a man who harbored runaways and who currently had two other teenagers staying with him, and that he would give her a cellphone and a room in which to stay, the affidavit alleges.
The victim and Langstaff allegedly met on a Reddit internet forum about runaways. A phone record search revealed numerous contacts between the victim and Langstaff, according to the affidavit.
Early Wednesday morning, law enforcement officials visited Langstaff’s Long Beach apartment to locate and rescue the victim. The victim was found hidden in a closet at Langstaff’s apartment, the affidavit alleges.
The victim said Langstaff and she engaged in sexual contact after their arrival at his apartment.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Langstaff would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
The FBI and the Long Beach Police Department are investigating this matter.
Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section is prosecuting this case.
Local Magician Sentenced to More Than Six Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Sutton man who worked as a magician for over 20 years was sentenced today in federal court in Boston for exploiting children in Cambodia.
Scott Jameson, 47, was sentenced by U.S. District Court Judge Richard G. Stearns to 78 months in prison to be followed by five years of supervised release. Jameson was also ordered to pay $20,000 in special assessments. In November 2024, Jameson pleaded guilty to one count of illicit sexual conduct in a foreign place and one count of transportation of child pornography.
“Scott Jameson thought that by travelling overseas to Cambodia in order to sexually exploit children, he could get away with it. He was wrong,” said Acting United States Attorney Joshua S. Levy. “Sexual exploitation of children is unconscionable, regardless of where the victims live. Our office works with international authorities regularly to make sure that individuals like Mr. Jameson are held accountable for their criminal conduct. We will not cease in our efforts to bring individuals who harm children to justice.”
“This predator with a passport traveled halfway around the world and engaged in illicit sexual conduct with a child and then brought back home evidence of that sexual abuse so he could relive it for his own sick gratification,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Child sexual exploitation is abhorrent anywhere it occurs, and the FBI will continue to go after Americans who travel abroad for that purpose. We’re determined to bring them to justice for the damage they’ve done and prevent them from victimizing anyone else’s child.”
In early 2022, Action Pour Les Enfants (APLE), a Cambodian Non-Governmental Organization founded to prevent child sexual abuse and exploitation, contacted federal authorities in the United States to report that Jameson engaged in inappropriate behavior with minors in Cambodia. An investigation revealed that, while in Cambodia, Jameson would provide gifts and money to children and their families. Children reported that he would visit the pagoda where they lived and sleep in a room with the children.
In September 2022, authorities in the United States were notified that Jameson, a dual citizen of the United States and Ireland, had again traveled from Boston to Cambodia in August 2022. Upon his return to the United States on Oct. 19, 2022, Jameson was stopped at Logan Airport. During a search of his belongings, a video was discovered which he produced during his most recent trip to Cambodia, depicting the genitals of a young boy who was approximately seven years old. Jameson admitted to creating the video and transferring it from his camera to a hard drive that he possessed when he was stopped at Logan Airport. Additionally, Jameson’s laptop revealed that it had been used to view images of child sexual exploitation material.
During a subsequent interview with law enforcement, Jameson stated that he worked as a magician for over 20 years, regularly performing at libraries and private and family events across New England, usually for children as young as kindergarten age and up to the eighth grade.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance in the investigation was provided by United States Customs and Border Protection, Homeland Security Investigations and the Sutton and Littleton Police Departments. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office 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 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.
Latvian Broker Arrested for Allegedly Smuggling Advanced U.S. Aircraft Technology to RussiaRead the Press Release
In a superseding indictment returned by a grand jury, a citizen of the Republic of Latvia is charged with crimes related to a years-long conspiracy to sell sophisticated avionics equipment to Russian companies, in violation of U.S. export laws. The defendant is the third to be arrested and charged in connection with the conspiracy led by a Kansas company and two U.S. nationals.
According to the superseding indictment, Oleg Chistyakov, also known as Olegs Čitsjakovs, 55, conspired with U.S. citizens Cyril Gregory Buyanovsky and Douglas Edward Robertson, of Kansas, to facilitate the sale, repair and shipment of U.S. avionics equipment to customers in Russia and in other countries that operate Russian-built aircraft, including the Federal Security Service of Russia (FSB). Chistyakov was arrested on March 19 near Riga, Latvia, and remains detained pending extradition proceedings. In December 2023, Buyanovsky pleaded guilty to conspiracy and conspiracy to commit money laundering, and consented to the forfeiture of over $450,000 worth of avionics equipment and a $50,000 personal forfeiture judgment.
“As alleged, Mr. Chistyakov facilitated hundreds of thousands of dollars in illicit transactions to funnel sophisticated U.S. aerospace technology to companies in Russia,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This arrest is another example of the Justice Department’s unwavering mission to hold accountable those who enable Russian aggression, including those involved in facilitation networks that fuel the Russian war effort.”
“The Justice Department upholds the laws of the United States and prosecutes those who break them regardless of whether those individuals are on U.S. soil or the other side of the world,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “Oleg Chistyakov’s arrest was only possible due to the assistance and cooperation of authorities in Latvia. This type of international cooperative effort makes it immensely challenging for those accused of committing crimes against the U.S. to find safe havens beyond reach of our judicial system.”
“The FBI and our partners continue to pursue anyone who aids Russia in its unjust and autocratic behavior or to violate export control laws or any other law for that matter,” said Executive Assistant Director Larissa Knapp of the FBI’s National Security Branch. “Today’s indictment and forfeiture judgment should serve as a reminder that we will not tolerate attempts to transfer sensitive avionics equipment and technology to hostile nations.”
“It doesn't matter if you’re in Kansas or in Latvia — if you violate American law, you risk facing American justice,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “We continue to work closely with law enforcement partners across the globe to pursue those who seek to send military-grade aerospace equipment to support the Russian military.”
According to court documents, after Russia’s full-scale invasion of Ukraine in February 2022 and despite additional U.S. economic countermeasures levied against Russia, Chistyakov and his conspirators continued to smuggle and export sophisticated and controlled avionics equipment to companies in Russia without the required licenses from the U.S. Department of Commerce.
As further alleged, Chistyakov, while operating from Latvia, worked with Buyanovsky and Robertson through their U.S. company, KanRus Trading Company Inc. (KanRus), to circumvent U.S export laws by purchasing avionics equipment from U.S. companies for customers in Russia. Chistyakov allegedly acted as a broker for KanRus by soliciting quotes, negotiating prices and terms of delivery, and facilitating payments between KanRus and customers in Russia.
The superseding indictment details actions allegedly taken by Chistyakov and his conspirators to conceal their illegal activities including by creating false invoices, transshipping items through third-party countries, such as Germany and the United Arab Emirates (UAE), using bank accounts in third-party countries, such as Kazakhstan, Kyrgyzstan and the UAE, and exporting items to intermediary companies which then reexported the items to the ultimate end destinations.
On Dec. 6, 2023, the U.S. Department of Commerce added many of the entities and individuals involved in Chistyakov’s alleged illegal export scheme to the Commerce Department’s Entity List as part of the U.S. government’s interagency efforts to dismantle Russian procurement networks designed to circumvent U.S. export controls and sanctions imposed in response to Russia’s invasion of Ukraine. The Entity List imposes specific license requirements on all listed individuals and entities.
Chistyakov is charged with one count of conspiracy, two counts of violation of Export Control Reform Act, multiple counts of smuggling goods from the United States, conspiracy to commit international money laundering and two counts of international money laundering. If convicted, he faces a maximum penalty of five years in prison for conspiracy, 20 years in prison for each Export Control count, 10 years in prison for each smuggling count and 20 years in prison for each money laundering count.
The FBI and the Department of Commerce’s Office of Export Enforcement are investigating the case, including participation in Latvia following Chistyakov’s arrest. Procedural actions were carried out in close cooperation with the State Security Service of the Republic of Latvia and assistance of the Prosecutor-General’s Office.
Assistant U.S. Attorneys Scott Rask and Ryan Huschka for the District of Kansas and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The Justice Department’s Office of International Affairs is providing valuable assistance.
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.
Lame Deer man admits attempting to coerce and pay for sex with minors on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man today admitted to attempting to have sex with two minor girls on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
The defendant, Travis Dean Two Two, Sr., 35, pleaded guilty to attempted coercion and enticement and to attempted sex trafficking of a minor as charged in an indictment. Two Two faces a mandatory minimum of 10 years to life in prison, a $250,000 fine, and five years to a lifetime of supervised release on each charge.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 1 and Two Two was detained pending further proceedings.
In court documents, the government alleged that from about May 2023 to August 2023, in Lame Deer and Ashland, on the Northern Cheyenne Indian Reservation, Two Two communicated with a 14-year-old girl, identified as Jane Doe 1, through social media. Responding to a tip about the communications, law enforcement obtained messages in which Two Two confirms Doe 1 is 14 and indicates the two of them will have some fun together. Law enforcement obtained permission to take over Doe 1’s account and communicate with Two Two. The communications became increasingly sexual and Two Two requested naked pictures of Doe 1 and made plans to meet with her for sex. Ultimately, Two Two discussed meeting Doe 1 at the Montana Fair in Billings, indicated he wanted to take nude pictures of her and “maybe make a video” of sex acts with her. He noted that he “like[s] them young.” Law enforcement arrested Two Two on Aug. 19 as he was leaving the MontanaFair.
The government further alleged that from about June 2023 until September 2023, at Lame Deer, Two Two attempted to engage a minor girl in commercial sex. In August 2023, law enforcement interviewed a 16-year-old girl, identified as Jane Doe 2, who indicated she had met Two Two in 2021 and that they had communicated though text messages in the summer of 2023. Doe 2 told law enforcement Two Two provided her with marijuana and that in exchange, Two Two began asking for sexual contact, to include a kiss and to grab her butt, which she allowed on a couple of occasions. Two Two later asked for sex in exchange for the marijuana, and Doe 2 rejected this offer.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The FBI, Montana Division of Criminal Investigation, and Northern Cheyenne Investigative Services conducted the investigation.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Keene Couple Indicted for the Production of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Keene couple has been indicted in connection with their production of child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Paul Baird, 43, of Keene and Krystal Baird, 38, of Keene were charged by complaint and arrested on March 20, 2024 for the production of child pornography. They were indicted by a federal grand jury on March 27, 2024.
According to the indictment, on or about January 29, 2024, Paul and Krystal Baird knowingly attempted to and knowingly employed, used, persuaded, induced, enticed, and coerced a minor female under the age of 12 years, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, using materials that had been mailed, shipped, and transported in and affecting interstate and foreign commerce.
At the time of his arrest, Paul Baird was employed as a bus driver by the Student Transportation of America, which is a school transportation company that services the Contoocook Valley (ConVal) School District.
This investigation is ongoing. Members of the public who have information regarding this case should call the Homeland Security Investigations’ New England Field Division’s Manchester Office at 603-629-2716.
The Homeland Security Investigations is leading the investigation. The Keene Police Department is providing valuable assistance with this investigation. Assistant U.S. Attorney Anna Krasinski is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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KC Man Sentenced for Cocaine TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who boasted about having associates selling cocaine in several local bars and nightclubs was sentenced in federal court today for distributing cocaine.
Manuel A. Contreras, 33, was sentenced by U.S. District Judge Howard F. Sachs to 11 years and three months in federal prison without parole. The court also ordered Contreras to forfeit to the government $40,600, which represents the proceeds of his illegal cocaine trafficking.
On Oct. 26, 2023, Contreras pleaded guilty to five counts of distributing cocaine. According to his plea agreement, Contreras sold more than a kilogram of cocaine to an FBI confidential source over five separate occasions in 2022, for a total of $40,600.
On Oct. 14, 2022, law enforcement officers executed a search warrant at Contreras’s residence. Officers found a loaded SCCY 9mm semi-automatic handgun, 196.7 grams of cocaine, drug paraphernalia, and $2,526 in cash in his bedroom.
According to court documents, Contreras told the confidential source that he had people who sell cocaine for him at several bars and nightclubs in the Kansas City area.
Contreras also told the confidential source that he had done business with another defendant who was indicted in a separate and unrelated drug-trafficking case. Contreras said he had taken that person’s BMW i8 for a period of time for a drug debt, only returning the car when he was paid $15,000, and that he had taken guns and drugs from this person because he owed Contreras approximately $28,000.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the FBI.
Justice Department’s Investigation into International Commodities Trading Companies’ Foreign Bribery Schemes Results in Six Corporate Resolutions and 20 Individuals ConvictedRead the Press Release
The Justice Department announced today that its long-running investigation into international commodities trading companies that paid bribes to win business with state-owned and state-controlled oil companies in Latin America and Africa has resulted in six corporate resolutions, 20 convictions of individuals, and total fines, forfeitures, and other penalties of more than $1.7 billion.
Since 2017, the Criminal Division’s Fraud Section’s Foreign Corrupt Practices Act (FCPA) Unit, in partnership with U.S. Attorneys’ Offices across the country, the Money Laundering and Asset Recovery Section, and the FBI, has been investigating corruption committed by international commodities trading companies, which paid millions of dollars in bribes to corrupt government officials to secure billions of dollars in business with state-owned enterprises.
Through this work, the Criminal Division has entered into six corporate resolutions, which have included mandatory cooperation, disclosure, and compliance obligations and resulted in total fines, forfeitures, and other penalties of more than $1.7 billion:
- In September 2020, Sargeant Marine Inc., an asphalt company based in Boca Raton, Florida, with an asphalt trading arm, pleaded guilty in the Eastern District of New York to schemes to bribe government officials in Brazil, Venezuela, and Ecuador;
- In December 2020, Vitol Inc., entered into a deferred prosecution agreement (DPA) in the Eastern District of New York, admitting to schemes to pay bribes to government officials in Brazil, Ecuador, and Mexico;
- In May 2022, Glencore International AG pleaded guilty in the Southern District of New York to a scheme to pay bribes to government officials in seven countries across Africa and Latin America;
- In December 2023, Freepoint Commodities LLC entered into a DPA in the District of Connecticut and admitted to a scheme to bribe government officials in Brazil;
- In March, Gunvor S.A. pleaded guilty in the Eastern District of New York to a scheme to bribe government officials in Ecuador; and
- Today, Trafigura Beheer B.V. pleaded guilty in the Southern District of Florida to a scheme to bribe government officials in Brazil.
These corporate resolutions are connected to the guilty pleas of 19 culpable individuals, including six government officials, eight corrupt intermediaries, and five trading company employees. In addition, last month, Javier Aguilar, a former trader at Vitol Inc., was convicted on FCPA and money laundering charges following a seven-week trial in the Eastern District of New York.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, thanked the Criminal Division’s partners in these matters, including U.S. Attorney Breon Peace for the Eastern District of New York, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut, and U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. Principal Deputy Assistant Attorney General Argentieri also thanked the Criminal Division’s law enforcement partners, including the FBI’s International Corruption Unit, New York Field Office, Miami Field Office, and Los Angeles Field Office.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Justice Department’s Investigation into International Commodities Trading Companies’ Foreign Bribery Schemes Results in Six Corporate Resolutions and 20 Individuals ConvictedRead the Press Release
MIAMI – The Justice Department announced today that its long-running investigation into international commodities trading companies that paid bribes to win business with state-owned and state-controlled oil companies in Latin America and Africa has resulted in six corporate resolutions, 20 convictions of individuals, and total fines, forfeitures, and other penalties of more than $1.7 billion.
Since 2017, the Criminal Division’s Fraud Section’s Foreign Corrupt Practices Act (FCPA) Unit, in partnership with U.S. Attorneys’ Offices across the country, the Money Laundering and Asset Recovery Section, and the FBI, has been investigating corruption committed by international commodities trading companies, which paid millions of dollars in bribes to corrupt government officials to secure billions of dollars in business with state-owned enterprises.
Through this work, the Criminal Division has entered into six corporate resolutions, which have included mandatory cooperation, disclosure, and compliance obligations and resulted in total fines, forfeitures, and other penalties of more than $1.7 billion:
- Today, Trafigura Beheer B.V. pleaded guilty in the Southern District of Florida to a scheme to bribe government officials in Brazil.
- In September 2020, Sargeant Marine Inc., an asphalt company based in Boca Raton, Florida, with an asphalt trading arm, pleaded guilty in the Eastern District of New York to schemes to bribe government officials in Brazil, Venezuela, and Ecuador;
- In December 2020, Vitol Inc., entered into a deferred prosecution agreement (DPA) in the Eastern District of New York, admitting to schemes to pay bribes to government officials in Brazil, Ecuador, and Mexico;
- In May 2022, Glencore International AG pleaded guilty in the Southern District of New York to a scheme to pay bribes to government officials in seven countries across Africa and Latin America;
- In December 2023, Freepoint Commodities LLC entered into a DPA in the District of Connecticut and admitted to a scheme to bribe government officials in Brazil;
- In March, Gunvor S.A. pleaded guilty in the Eastern District of New York to a scheme to bribe government officials in Ecuador; and
These corporate resolutions are connected to the guilty pleas of 19 culpable individuals, including six government officials, eight corrupt intermediaries, and five trading company employees. In addition, last month, Javier Aguilar, a former trader at Vitol Inc., was convicted on FCPA and money laundering charges following a seven-week trial in the Eastern District of New York.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, thanked the Criminal Division’s partners in these matters, including U.S. Attorney Breon Peace for the Eastern District of New York, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut, and U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. U.S. Attorney Lapointe and Principal Deputy Assistant Attorney General Argentieri also thanked the Criminal Division’s law enforcement partners, including the FBI’s International Corruption Unit, New York Field Office, Miami Field Office, and Los Angeles Field Office.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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Justice Department and Federal Trade Commission File Statement of Interest in Hotel Room Algorithmic Price-Fixing CaseRead the Press Release
The Justice Department joined by the Federal Trade Commission (collectively the “Agencies”), filed a statement of interest with the District of New Jersey in the case of Cornish-Adebiyi v. Caesars Entertainment, which explains that hotels cannot collude on room pricing and cannot use an algorithm to engage in practices that would be illegal if done by a real person.
Companies across the economy are increasingly using algorithms to determine their prices. When a small group of algorithm providers can influence a major segment of a market, competitors are better able to use the algorithm provider to facilitate collusion. This risk is even greater as markets have become more concentrated across a wide range of industries. Algorithms that recommend prices to numerous competing hotels make it harder for travelers to comparison-shop for the best rate.
In their statement, the Agencies highlight two key aspects of competition law. First, plaintiffs do not need to identify direct communications between competitors to allege an agreement under Section 1 of the Sherman Act, particularly when they allege that an algorithm provider that works with the competitors is acting in concert with them. Competitors cannot lawfully cooperate to set their prices, whether via their staff or an algorithm, even if the competitors never communicate with each other directly. Second, an agreement to use shared pricing recommendations, list prices or pricing algorithms is still unlawful even when co-conspirators retain some pricing discretion. Setting or recommending initial starting prices can still violate the antitrust laws even if those are not the prices that consumers ultimately pay.
The Agencies have a strong interest in protecting consumers from algorithmic collusion, and their statement provides guidance to any firm that uses an algorithm to set prices. The Agencies recently filed a statement of interest in an algorithmic price-fixing case in the residential housing market, and the Justice Department’s Antitrust Division filed a statement of interest and memorandum of law in another real estate algorithmic price-fixing case last year. The division also has an ongoing case alleging that a middleman orchestrated a yearslong conspiracy to share pricing and other sensitive information among meat processing competitors.
Justice Department Seeks to Shut Down Broward County, Florida Tax Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit today to permanently bar Dexter Bataille and his tax return preparation business, Capital Financial Holdings LLC, from preparing federal income tax returns for others. The United States also seeks an order demanding Bataille disgorge his ill-gotten gains earned by preparing fraudulent tax returns.
The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that Bataille prepared hundreds of federal income tax returns from 2015 through 2023 that intentionally understated customers’ tax liabilities and overstated the refunds to which they were entitled. The complaint describes the various schemes Bataille allegedly used to, among other things, fraudulently increase customers claims for Earned Income Tax Credits and Additional Child Tax Credits by manipulating customers’ taxable income in fabricating household help income, misreporting their filing statuses or claiming false business income and losses. Bataille’s alleged, systematic fraudulent manipulation of customers’ tax liabilities and refund claims has caused a significant loss in federal tax revenue, estimated to be over $1.5 million for tax year 2021 alone.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Attorneys from the Tax Division are handling the case.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Bataille Complaint.pdfJustice Department Continues Efforts to Stop Unlawful Tax Return PreparersRead the Press Release
The Justice Department today urged taxpayers to choose their return preparers wisely as the April 15 federal tax filing deadline approaches. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers must look out for unscrupulous preparers, who often will promise refunds that are too good to be true,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your tax preparer asks you to sign a blank return, refuses to sign your return as your preparer or fails to give you a copy of your return, consult the IRS’s website to make sure that you are not exposing yourself to trouble. Taxpayers are responsible for the information on their tax return, so it is important to choose a tax professional that you trust to prepare your returns correctly.”
“Tax preparers contemplating filing false returns for their customers should know that our criminal prosecutors are prepared for the filing season too,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the division’s work this past year reflects, we have the expertise and resources to identify and hold preparers fully accountable for their criminal conduct.”
Over the last year, the Tax Division has worked with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers. These actions seek criminal penalties and civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds. The Justice Department’s message has been clear: those who prepare fraudulent returns will face serious and lasting consequences.
Examples of civil injunctions obtained by the Tax Division over the last and current filing seasons include:
- On March 2, 2023, a federal district court in the Southern District of Florida permanently barred Rudy Aly, Rhonda Hudge, Cindy Odige and TUPS Tax LLC from preparing tax returns for others or owning or operating a tax preparation business. The court also ordered Aly to disgorge approximately $400,000 in proceeds he received from preparing tax returns from 2018 to 2020. The court ordered Hudge to pay about $15,000 and Odige and TUPS Tax to pay $48,000 based on their settlement agreements with the United States.
- On May 17, 2023, a federal district court in the Eastern District of New York permanently barred Melida Portorreal individually and through her business, International Travel Multi & Tax Corp., from preparing returns for others and from owning or operating a tax return preparation business in the future. The government alleged that Portorreal prepared tax returns claiming fabricated business income and expenses, as well as various false tax deductions and false non-deductible expenses for her customers to receive the earned income tax credit and the child tax credit. The government estimated that Portorreal’s actions caused losses to the United States exceeding $3 million over a three-year period.
- On Sept. 1, 2023, a federal court in the Southern District of Texas permanently enjoined a Galveston-area tax preparer Johnathan Perry, doing business as X-Pert Taxes, from preparing tax returns or assisting or directing the preparation or filing of tax returns. The complaint says that Perry, over a six-year period, prepared over 4,000 tax returns that greatly overstated his customers’ tax refunds by claiming fictitious business income and expenses, fabricated household help income and fake education credits or fuel tax credits to which his customers were not entitled. The court also ordered Perry to pay around $325,000 to the United States in ill-gotten tax preparation fees.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought cases to court including:
- On March 22, 2023, a federal district court in the Southern District of Florida held that Jeffrey Cadet violated a permanent injunction entered against him in August 2019 that barred him from acting as a federal tax return preparer or requesting, assisting in or directing the preparation or filing of federal tax returns for others. To remedy his contempt, the court ordered Cadet to disgorge $24,410 in ill-gotten fees he received for conduct violating the injunction and ordered him to pay the United States about $7,400 in reimbursement for the attorneys’ fees incurred in investigating and litigating his post-injunction conduct.
- On May 11, 2023, a federal court for the Southern District of Texas permanently barred Houston-area tax return preparer Hollins Ray Alexander from preparing tax returns for others and from owning, operating or franchising any tax return preparation business in the future. The terms of injunction required Alexander to send notices of the injunction to each person for whom he prepared tax returns and to post the injunction in places he conducts business, including social media accounts and websites. Finally, the court ordered Alexander to pay $165,940 to the United States in illicitly obtained tax preparation fees.
- On July 11, 2023, federal court in the Southern District of Florida found Rose M. Chazulle in contempt for violating the injunction that bars her from preparing tax returns. The court found that Chazulle continued to prepare tax returns despite the court’s order entered in 2016 prohibiting her from doing so by using the personal tax identification numbers (PTIN) assigned to her daughter and brother-in-law and electronic filing identification numbers (EFINs) associated with their businesses. As a contempt sanction, the court ordered Chazulle to disgorge $48,100 in tax preparation fees she earned in violation of the injunction.
Criminal convictions against fraudulent preparers obtained by the Tax Division since the 2023 filing season began include:
- In February 2023, Thanh Ngoc Rudin and Seir Havana of California were sentenced to 34 months and 42 months in prison, respectively, for their role in a conspiracy to prepare and file false tax returns for professional athletes. Both were also ordered to pay over $38 million in restitution to the United States.
- In March 2023, Labanda Lody and Jaleesia Sais, Texas return preparers, were sentenced to over four and three years in prison, respectively, for their role in preparing and filing false tax returns on behalf of clients of their return preparation business. Lody and Sais were both ordered to pay nearly $1 million in restitution to the United States.
- In August 2023, Georgina Gonzalez, formerly a Miami-based return preparer, was sentenced to over three years in prison for her role in filing false tax returns that claimed false losses and tax credits on behalf of clients. She was also ordered to pay $423,917 in restitution to the United States.
- In November 2023, Adam Earnest, Christopher Randell and James Klish, return preparers in Jackson, Mississippi, were found guilty for their role in conspiring to file thousands of false income tax returns on behalf of customers of the tax return preparation business where they worked. For their conduct, Earnest was sentenced to more than eight years, Klish more than four years, and Wells to 15 months in prison for their role in a conspiracy to prepare and file false tax returns for their customers.
- In December 2023, Ronald Eugene Watson, a Maryland return preparer, was sentenced to over two years in prison for filing false returns for clients. He was also ordered to pay $268,634 in restitution to the United States.
The Tax Division reminds taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Justice Department’s Tax Division has obtained civil injunctions and criminal convictions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Announces Organizational Assessment of North Miami Police Department under Office of Community Oriented Policing Services’ Collaborative Reform InitiativeRead the Press Release
The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will conduct an organizational assessment of the North Miami Police Department through its Collaborative Reform Initiative. Over approximately the next year, the North Miami Police Department will work with the COPS Office’s Collaborative Reform Initiative Team to focus on:
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Crime Prevention and Analysis
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Community Engagement
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Technology
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Employee Wellness, Training and Development, and Retention
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Resource Analysis and Strategic Planning
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Oversight and Accountability
“The Collaborative Reform Initiative is an important vehicle for law enforcement agencies that want to improve how they operate and how they work with their communities,” said Acting Associate Attorney General Benjamin C. Mizer. “The Organizational Assessment process is the most intensive form of review and support we offer under this program, and credit goes to the North Miami Police Department for requesting this assistance.”
“This is a completely voluntary program, and it is always a significant step when a law enforcement executive asks for this type of review,” said Director Hugh T. Clements, Jr of the COPS Office. “We applaud Chief Cherise Gause for making this request. It is not just the agency that benefits from this type of work, but the entire community will reap the benefits of this in-depth examination.”
Regular updates on the team’s work with the North Miami Police Department will be provided as part of the transparency and public accountability of this new organizational assessment effort at cops.usdoj.gov/active-oa-site-north-miami-fl-police-department.
The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at cops.usdoj.gov/collaborativereform). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide.
The Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance on systemic issues that can challenge community trust and confidence. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives including in law enforcement, community engagement, research and evaluation, program management, and organizational reform.
The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.
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Jury Finds Searcy Man Guilty of Sex Trafficking of A MinorRead the Press Release
LITTLE ROCK—A Searcy man has been convicted of sex trafficking of a child at the conclusion of a two-day trial. On Wednesday, a federal jury found Muhammad Arif, 56, guilty on the sole count in the indictment: sex trafficking of children. Arif was indicted by a federal grand jury on February 4, 2020.
The jury returned their verdict after deliberating for approximately two hours. United States District Judge D.P. Marshall, Jr. presided over the trial and will sentence Arif at a later date.
On August 9, 2019, the Judsonia Police Department received information alleging inappropriate sexual misconduct involving a 15-year-old minor female (Minor). The Minor was interviewed at the White County Child Safety Center. During the interview, the Minor disclosed that sometime during the end of May 2019 she accompanied her dad and his boss, Arif, to a business in Searcy. While there, Arif instructed one of his employees to drive the Minor’s dad to a different job site in Bradford. Because the Minor accompanied her dad that day, she would need a ride home. The Minor stated that Arif volunteered to drive her from Searcy to Judsonia in his private vehicle.
The Minor stated that once alone in the vehicle, Arif stated he would give her $100 in exchange for oral sex. The Minor stated she feared no one would believe her, so she began recording their conversation using her cell phone. During the recording, Arif is heard asking the Minor to promise not to tell anyone and gave her $20. The Minor had another recording from a month later where Arif continues to bring up engaging in sexual activity and asked her not to tell anyone.
On September 21, 2019, Arif was interviewed and acknowledged giving the Minor a ride to Judsonia in his private vehicle. He confirmed that he and the Minor were the only ones in the vehicle and that it was his first time meeting her. Arif acknowledged knowing that the Minor was a minor. During the interview, officers played the recordings and Arif confirmed he was the male on the recording. Arif stated he was embarrassed and began to express his concerns that people he was close would find out about the recordings.
Arif faces a minimum sentence of 10 years to life in federal prison, no less than five years supervised release, and a fine of $250,000.
The investigation was conducted by U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement, with assistance from the Judsonia Police Department and the Kensett Police Department. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and Katie Hinojosa.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
Jamaican National Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GARFIELD ANTHONY PATTERSON, 49, a citizen of Jamaica residing in East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to six months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, Patterson was deported from the U.S. to Jamaica in January 1997 and again in April 2000, and he has sustained convictions in Broward County, Florida, in 1997, for grand larceny in the third degree, and, in 1999, for possession of marijuana, possession of a fraudulently issued driver’s license, and obstruction. Patterson again illegally reentered the U.S. and, in June 2019, was arrested in Middletown, Connecticut, for larceny in the first degree. He was convicted of that offense and, in March 2021, he was sentenced in state court to 18 months of imprisonment, execution suspended after four months, and three years of probation.
On June 15, 2021, a federal grand jury in Hartford returned an indictment charging Patterson with illegally reentering the U.S. On February 23, 2023, a jury in New Haven found him guilty of the offense.
Patterson, who is released on bond, is required to report to prison on May 15. He faces deportation when he completes his prison term.
This matter was investigated by Homeland Security Investigations (“HSI”) and U.S. Immigration and Customs Enforcement, with the assistance of the Middletown Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj Patel.
Jackson Man Sentenced to 10 Years in Prison for Possession of a Firearm by a Convicted Felon While Firing at Officers During a High-Speed PursuitRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 120 months in prison for possession of a firearm by a convicted felon while firing at officers during a high-speed pursuit.
According to court documents, on July 21, 2021, Jerry Shannon McAlister, 47, failed to yield when officers with the Clinton Police Department attempted to conduct a traffic stop on the vehicle he was driving. This led to a high-speed pursuit into the city of Jackson with McAlister firing shots at an officer during the pursuit. McAlister has previous felony convictions, including a conviction for statutory rape. It is a violation of federal law for a convicted felon to possess any firearm.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The ATF and Clinton Police Department investigated the case.
Assistant U.S. Attorney Matt Allen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department 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.
Inmate Pleads Guilty to Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Jonathan Webb, 27, an inmate at the Federal Correctional Institution (FCI) Beckley, pleaded guilty today to possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on June 26, 2023, an FCI Beckley staff member conducted a pat-down search of Webb and found a handcrafted weapon commonly known as a “shank” in his right front pants pocket. The shank was a piece of metal approximately six inches long with a sharpened point on one end and a cloth handle. Webb admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon.
Webb is scheduled to be sentenced on July 12, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-45.
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Inland Empire Man Who Was Employed as School Bus Driver Charged with Possessing Child Sexual Abuse MaterialRead the Press Release
RIVERSIDE, California – A San Bernardino County man who worked as a school bus driver has been charged in federal court with possessing more than 10,000 images of child sexual abuse material (CSAM), the Justice Department announced today.
Donal James Seaver, 49, of Hesperia, made his initial appearance this afternoon in United States District Court in Riverside. A federal magistrate judge ordered Seaver jailed without bond and scheduled an April 16 arraignment for him.
According to an affidavit filed Tuesday with a criminal complaint, law enforcement officials on March 7 executed a search warrant at Seaver’s residence. During the search, law enforcement seized a Samsung Tablet that allegedly contained more than 10,000 images and 13 videos of CSAM.
The tablet’s historical device data show that it was frequently “wiped” – or factory reset – which deleted all data on the device, and had been reset most recently on February 27.
As of March 7, Seaver was employed as a school bus driver for a private company and drove a route that included 10 elementary school students with special needs.
He was arrested and charged in state court prior to a federal criminal case being brought against him.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Seaver would face a statutory maximum sentence of 20 years in federal prison.
The FBI and the San Bernardino County Sheriff’s Department are investigating this matter.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.
Husband and Wife Sentenced to Prison for Roles in Drug Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – Two individuals from Detroit, Michigan, have been sentenced to prison for conspiring to distribute cocaine, announced U.S. Attorney Andrew M. Luger.
According to court documents, beginning in January 2022 through May 2023, Ladale Jajaum Solomon, 30, and Leila Darsel Ivery, 30, conspired together to distribute cocaine. On May 16, 2023, Solomon and Ivery flew on separate flights from Los Angeles, California, to Cleveland, Ohio, each with a layover at the Minneapolis-St. Paul Airport (MSP). Both Solomon and Ivery were transporting cocaine in their respective checked suitcases. Solomon and Ivery intended to transfer the cocaine after landing in Cleveland. During their respective layovers at MSP, law enforcement determined their suitcases were suspect. After obtaining a search warrant, law enforcement seized a total of approximately 23 kilograms of cocaine from the two suitcases.
Ivery pleaded guilty on November 28, 2023, to one count of conspiracy to distribute cocaine. On March 26, 2024, she was sentenced in U.S. District Court by Judge David S. Doty to 57 months in prison, followed by five years of supervised release.
Solomon pleaded guilty on December 5, 2023, to one count of conspiracy to distribute cocaine. He was sentenced today in U.S. District Court by Judge David S. Doty to 120 months in prison, followed by five years of supervised release.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the MSP Airport Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Human smuggling family admits to over $2M money laundering conspiracyRead the Press Release
McALLEN, Texas – Four Mission residents have entered guilty pleas for their roles in a conspiracy to launder monetary instruments and a related conspiracy to transport aliens within the United States, announced U.S. Attorney Alamdar S. Hamdani.
Luis Enrique Moctezuma-Acosta, 36, Elizabeth Acosta, 52, and Keysi Fuentes-Gavarrete, 27, admitted to laundering over $2 million in monetary instruments. Scarlett Fuentes-Gavarrette, 35, entered her plea March 26 to the same charge. She and her husband - Moctezuma-Acosta - also pleaded guilty to conspiracy to transport illegal aliens. All four are either related through blood or marriage.
“In the heart of South Texas, where the borders converge, we confront the stark reality of money laundering and the smuggling of undocumented individuals,” said Hamdani. “From the distant lands of Honduras to the bustling streets of Boston, Massachusetts, this illicit network spans continents, but our resolve to dismantle it remains unwavering. By safeguarding against these criminal enterprises, we not only uphold the rule of law but also ensure the safety and dignity of all members of our community.”
The conspiracy involved a sophisticated network of alien smugglers across the United States utilizing commercial airplanes, tractor-trailers and various other smuggling methods.
An investigation began in November 2019 and revealed the smuggling organization brought approximately 300 undocumented migrants from the Southwest border regions further into the northern parts of the United States. The network spanned from Honduras to as far north as Boston, Massachusetts, with a heavy emphasis on smuggling Brazilian nationals.
On March 9, 2023, Authorities executed multiple search warrants at the properties of Scarlett Fuentes-Gavarrette and Moctezuma-Acosta, at which time they seized over $1.5 million in cash. The locations included their residence and a purported car dealership they operated as a front business. Throughout the investigation, law enforcement also seized approximately $2.69 million in assets and several luxury vehicles, such as a 2023 Escalade, 2021 Ford Shelby Truck, jewelry and several pieces of real property.
U.S. District Chief Judge Randy Crane will impose sentencing June 6. At that time, they all face up to up to 20 years in federal prison. Scarlett Fuentes-Gavarrette and Moctezuma-Acosta also face an additional 20 years. Both convictions also carry fines up to $250,000.
All will remain in custody pending sentencing.
The FBI conducted the investigation with the assistance of Border Patrol, Homeland Security Investigations, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Eric D. Flores prosecuted the case. Assisting with forfeiture proceedings is Assistant U.S. Attorney Tyler Foster.
Houston Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
SAN ANTONIO – A Houston man was sentenced in a federal court in San Antonio to 30 years in prison for sexual exploitation of children.
According to court documents, Xzavier Martin-Mari Drescher, 32, revealed his sexual interest in minor females through online conversations with FBI covert employees beginning in May 2022. During one of the conversations, Drescher sent the FBI employee 11 videos of himself in a room with a clothed prepubescent female. Drescher also admitted that he had gone “hands on” with the girl within the past 24 hours.
FBI agents located Drescher in Houston and confirmed he had used his phone to produce multiple videos depicting sexual acts with a prepubescent minor on or about July 9, 2022. Additionally, Drescher’s phone contained other child sexual abuse material that he had received via the Internet.
Drescher was arrested July 15, 2022 and has remained in federal custody. He pleaded guilty Oct. 18, 2023 to one count of sexual exploitation of children, a charge which carries a penalty of 15 to 30 years in federal prison. In addition to the imposed 30-year imprisonment, Drescher was ordered to pay $50,000 restitution to the victim.
“This defendant preyed on a young child by producing sexual abuse material, then sent it into the stream of commerce, using the illicit images for sexual gratification.,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The 30-year sentence imposed by the court appropriately reflects the immense harm and long-term trauma inflicted on children who are sexually exploited by predators.”
“Xzavier Martin-Mari Drescher victimized innocent children,” said Special Agent in Charge Aaron Tapp for the FBI San Antonio Field Office. “Those who exploit and abuse these most vulnerable among us are a danger to society. The FBI is committed to putting them behind bars where they can no longer cause harm.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Haverhill Man Arrested and Charged with Filing Fraudulent Pandemic Unemployment Assistance ClaimRead the Press Release
BOSTON – A Haverhill man was arrested and charged today in connection with a Massachusetts Pandemic Unemployment Assistance (PUA) claim he filed in 2020 for a man who was living in Brazil and who has since been charged with migrant smuggling, among other offenses.
Julio Roncaly Morais, 41, was charged by complaint with mail fraud, wire fraud, and conspiracy to commit mail and wire fraud. The defendant was arrested this morning and will appear in federal court at 2:30 p.m. today.
According to the charging document, Julio Morais filed a Massachusetts PUA claim on June 3, 2020, on behalf of Chelbe Willams Moraes, who was living in Brazil when the PUA claim was filed. In the PUA application, Julio Morais allegedly certified under penalty of perjury that Chelbe Moraes was a current resident of Massachusetts and was able and available to work in Massachusetts but was unable to due to the pandemic. As a result of this alleged claim, the Massachusetts Department of Unemployment Assistance paid a total of $5,202 in benefits before suspending payments due to an inability to reach Chelbe Moraes.
Chelbe Moraes is currently charged in a separate case in the District of Massachusetts for alleged forced labor conspiracy, encouraging and inducing an alien to come to, enter and remain in the United States for the purpose of commercial advantage or private financial gain, knowing and in reckless disregard of the fact that such coming to, entry, and residence is or will be in violation of law and conspiring to do so; money laundering conspiracy and money laundering.
The charges of mail fraud, wire fraud, and conspiracy provide for a sentence of up to 20 years in prison, a fine of up to $250,000 and up to three years of supervised release. 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; Michael J. Krol, Special Agent in charge for the Homeland Security Investigations New England Field Office; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. Valuable assistance was provided by the Woburn and Norwood Police Departments. Assistant U.S. Attorneys Kelly Begg Lawrence, James D. Herbert, and Samuel R. Feldman of the Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greenbrier County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Jason Michael Tucker, 43, of Frankford, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on December 30, 2022, Tucker sold a Ruger model Wrangler .22LR caliber revolver to a confidential informant for $125 in the Frankford area of Greenbrier County. Tucker admitted to the transaction, and further admitted to selling a quantity of heroin to the confidential informant at the same location a few hours before the transaction.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Tucker knew he was prohibited from possessing a firearm because of his prior felony convictions for possession of a controlled substance with intent to deliver in Monroe County Circuit Court on August 30, 2018, and for delivery of a controlled substance-marijuana in Greenbrier County Circuit Court on April 22, 2005.
Tucker is scheduled to be sentenced on July 26, 2024, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenbrier Valley Drug and Violent Crime Task Force. The Greenbrier Valley Drug and Violent Crime Task Force is composed of members of the West Virginia State Police, the Greenbrier County Sheriff’s Department, and the Lewisburg Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-17.
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Fugitive from Jamaica Sentenced to More Than Four Years for Aggravated Identity Theft and Fraud Involving Cellphone SchemeRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Brian J. Davis has sentenced Rohan Conrad Campbell (50, Jamaica) to four years and six months in federal prison for wire fraud and aggravated identity theft. The court also ordered Campbell to forfeit $4,207, which represents the proceeds of his offenses, and pay restitution of $80,208.08 to the victims he defrauded. Campbell entered a guilty plea on December 13, 2023.
According to the plea agreement and public records, on August 5, 2017, Campbell entered a cellphone store in Clay County and used a fraudulently established account and a counterfeit Washington state driver license, both in the name of a victim, and obtained multiple cellphones. On August 15, 2017, Campbell visited another cellphone store in Clay County to collect cellphones he had fraudulently ordered using another victim’s identity. A store employee recognized Campbell and called the Clay County Sheriff’s Office (CCSO). Upon arriving and making contact with Campbell, Campbell provided a deputy with a counterfeit Washington state driver license in the identity of a third victim. As a deputy was talking with him, Campbell attempted to flee but was apprehended. Further investigation by the CCSO and the U.S. Secret Service determined that Campbell had set up numerous fraudulent accounts using counterfeit identification documents in the identity of 10 different victims. He obtained thousands of dollars of cellphones from multiple stores in Florida.
Campbell was arrested on May 31, 2018. After being released on pre-trial supervision, he fled the jurisdiction in August 2019 and a warrant was issued for his arrest. Campbell remained a fugitive for more than three years until law enforcement in Florida arrested him in early 2023.
This case was investigated by the Clay County Sheriff’s Office and the U.S. Secret Service – Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture was handled by Assistant United States Attorney Jennifer M. Harrington.
Fresh Express Abandons Proposed Acquisition of Dole’s Packaged Salad Business in Response to Antitrust Division’s ConcernsRead the Press Release
Today, Fresh Express Acquisition LLC’s, a wholly-owned subsidiary of Chiquita Holdings Limited (Chiquita), announced its decision to abandon its proposed $308 million acquisition of Dole plc’s Fresh Vegetables division. The abandonment comes in response to the department’s concerns about competition in the packaged salad market.
The Justice Department issued the following statement from Assistant Attorney General Jonathan Kanter of the Antitrust Division:
“At a time when food companies are already overcharging Americans for groceries, today’s abandonment preserves lower prices and availability for an essential kitchen staple. This merger would have reduced the number of competitors from three to two and raised grocery prices for food products that are purchased by 85% of American households. I am grateful for the tireless efforts of the Antitrust Division’s lawyers, economists, paralegals and professional staff who made this result possible.”
Packaged salad represents $3.2 billion in spending by grocers and their customers each year.
Four Gun Traffickers Plead Guilty to Conspiring to Traffic Firearms into BrooklynRead the Press Release
Earlier today, David Mccann and Calvin Tabron pleaded guilty at the federal courthouse in Brooklyn, New York to conspiring to traffic firearms. Mccann also pleaded guilty to conspiring to distribute fentanyl. Today’s proceedings took place before United States District Judge William F. Kuntz, II. Co-defendants Raymond Minaya and Tajhai Jones pleaded guilty to conspiring to traffic firearms earlier this month. When sentenced, Mccann faces up to 40 years in prison, Minaya faces up to 20 years in prison, and Jones and Tabron each face up to 15 years in prison. The defendants were charged in January 2023 in the first case in New York to publicly charge the gun trafficking provisions of the Bipartisan Safer Communities Act.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration (DEA) and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“With these guilty pleas, the defendants have admitted to bringing dozens of deadly weapons and dangerous drugs, including fentanyl, to the streets of Brooklyn,” stated United States Attorney Peace. “This Office will vigorously use all tools available, such as Bipartisan Safer Communities Act, to ensure that no one is able to illegally feed the cycles of gun violence and drug abuse in our community.”
“These pleas resonate public sentiment that gun and drug trafficking will not be tolerated. These deadly weapons have been removed from circulation, saving lives along the way. I commend our law enforcement teams from the DEA Group D-41, NYPD and the U.S. Attorney’s Office Eastern District of New York for their diligent work,” stated DEA Special Agent-in-Charge Tarentino.
“Today’s guilty pleas underscore the unwavering commitment of our investigators to disrupt the flow of illegal guns and deadly drugs coming into our communities,” stated NYPD Commissioner Caban. “I thank our colleagues at the DEA for their partnership, and I commend our NYPD undercover officer for their diligent work, performed under the most dangerous of circumstances. I also applaud everyone at the office of the U.S. Attorney for the Eastern District of New York for delivering this prosecution to its righteous conclusion.”
According to court filings and facts presented during the plea proceedings, the gun-trafficking operation involved the sale of at least 50 illegal firearms over multiple transactions in Brooklyn between January 2022 and August 2022. The defendants conducted these firearms sales in broad daylight in a public park, in shopping center parking lots, and in vehicles in and around the New York City Housing Authority’s Breukelen Houses complex, located in Canarsie, Brooklyn, across from a church, and blocks away from a preschool and grade school. Two members of the gun-trafficking operation obtained the firearms in Virginia and then transported them to New York to be sold on the streets of Brooklyn. Some of the firearms the defendants sold had defaced serial numbers or were made from ghost gun kits, making them harder for law enforcement to trace. Two defendants also engaged in significant narcotics trafficking conspiracies, including a fentanyl distribution conspiracy that introduced thousands of lethal doses of fentanyl into the community.
Firearms sold in the conspiracy have also been linked to several shootings in Brooklyn. For example, on June 22, 2022, a defendant sold an undercover officer a Glock 30, .45 caliber handgun. The investigation revealed that this gun was used in an August 21, 2021 shooting in Bedford-Stuyvesant during which armed perpetrators shot into a large crowd gathered for a family day celebration. In total, eight individuals were struck by gunfire. Another gun trafficked by a defendant—a Glock 43, 9 millimeter caliber handgun—is linked to a December 18, 2021 shooting of an individual in Canarsie, in the blocks surrounding the Breukelen Houses complex. That individual sustained multiple gunshot wounds to his body, including his right hand, shoulder, neck, and the base of his skull.
This prosecution is among the first in the country, and the first in New York, to charge the gun trafficking provisions of the Bipartisan Safer Communities Act, which Congress and the President enacted in June 2022.
Assistant United States Attorneys Adam Amir, Irisa Chen, and James R. Simmons are in charge of the prosecution.
The Defendants:
DAVID MCCANN
Age: 29
Brooklyn, New YorkTAIJHAI JONES
Age: 29
Portsmouth, VirginiaRAYMOND MINAYA
Age: 27
Brooklyn, New YorkCALVIN TABRON
Age: 26
Virginia Beach, VirginiaE.D.N.Y. Docket No. 23-CR-8 (WFK)
Former fugitive sentenced for transporting over 65 into United StatesRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old Mission resident has been sentenced for his role in a conspiracy to transport non U.S. citizens via commercial tractor-trailers, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Cantu Jr. pleaded guilty Aug. 23, 2022. He was originally set to be sentenced in late 2023, but failed to appear. He remained a fugitive until February.
U.S. District Judge Drew B. Tipton has now ordered Cantu to serve a total of 110 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence about how Cantu was directly involved in the transportation of more than 65 people via commercial tractor-trailers in 2021. Additionally, the court heard that Cantu has continued his involvement in criminal activity in the Rio Grande Valley, including additional alien transporting attempts while on bond in this case. In handing down the sentence the court noted the seriousness of the offense due to the large number of undocumented individuals the organization attempted to smuggle into the United States as well as the dangerous way in which they were doing so.
“The transportation of undocumented migrants across the U.S. southern border is a rapidly growing threat,” said Hamdani. “It is made worse by traffickers such as Daniel Cantu Jr., whose organization uses the cover of legitimate traffic to mask this criminal conduct and attempts to profit by transporting migrants.”
The organization as a whole is responsible for transporting over 200 aliens from South Texas and further into the United States as part of the conspiracy.
From August 2021 through December 2021, law enforcement intercepted five related smuggling attempts at the Falfurrias Border Patrol checkpoint and identified four men responsible for coordinating these smuggling events. Those men – Cantu, Jose Guadalupe Garcia Jr., Jesus Francisco Mares and Jose Antonio Cardona - were responsible for finding trucks, trailers and drivers as well as loading the vehicles with undocumented aliens.
Over the course of the conspiracy from July 2021 through April 2022, authorities estimate this trafficking organization transported or attempted to transport over 200 people further into the United States, most concealed in commercial trailers.
Garcia, 23, Alton, and Mares, 23, Mission, previously received 36 and 15 months, respectively, while Cardona, 30, Mission, is currently a fugitive. A warrant remains outstanding for his arrest.
Cantu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Former State Representative and Friend Charged for Fraud SchemeRead the Press Release
ALBUQUERQUE – A former State Representative and her longtime friend are facing federal charges for long-term scheme to defraud the U.S. government. Sheryl Williams Stapleton, 66, of Albuquerque, and Joseph Johnson, 72, of Chantilly, Virginia, are schedule to appear in federal court for an initial appearance on April 9, 2024.
The indictment alleges that from about July 1, 2013, through June 30, 2020, Stapleton used her position at Albuquerque Public Schools (APS) as Director of the Perkins Project and Career and Technical Education (CTE) Coordinator to direct approximately 40% of APS’s non-personnel CTE funding to Robotics Management Learning Systems (Robotics), a company owned and operated by her close personal friend, Johnson, for use of and support for the CyberQuest software in APS classrooms.
Stapleton reviewed and approved Robotics’ invoices and directed other APS employees under her supervision to approve those invoices. APS then issued checks to Robotics and mailed them to a post office box in Albuquerque. At Johnson’s request, Stapleton personally retrieved the checks from the post office box and deposited them into the Robotics bank account. In return, Johnson provided blank checks for the Robotics business checking account.
Stapleton used the blank checks to write approximately 233 checks from Robotics for her own benefit, totaling approximately $1,152,506.00, or 35% of the funds APS paid to Robotics. Specifically:
- Stapleton wrote about 60 checks totaling about $286,772.20 from Robotics to S. Williams & Associates, a company Stapleton owned and controlled.
- Stapleton wrote about 56 checks totaling about $313,123.48 from Robotics to Taste of the Caribbean, an Albuquerque restaurant that Stapleton owned, and her family members operated.
- Stapleton wrote about 104 checks totaling about $479,960.86 from Robotics to Ujima Foundation, a nonprofit entity that Stapleton and Johnson operated and controlled together.
- Stapleton wrote about 11 checks totaling about $72,649.16 from Robotics to other parties providing goods and services to Stapleton, including for a remodeling of Stapleton’s house.
On March 26, 2024, a federal grand jury returned an indictment charging Stapleton and Johnson with one count of conspiracy to defraud the United States, 13 counts of mail fraud, one count of conspiracy to commit money laundering and five counts each of bribery concerning programs receiving federal funds.
Stapleton is additionally charged with one count of fraud and false statements and nine counts of money laundering.
“New Mexicans deserve public systems that serve them and public servants who are honest, effective, and worthy of our trust,” said U.S. Attorney Uballez. “Fraud against the government is just a fancy way to say that someone is stealing your hard-earned tax dollars. Public corruption is a fancy way of saying that they abuse your trust to do so. When public officials steal from our pockets and from our children, we will restore your faith in our public systems through vigorous investigation and zealous prosecution.”
“Rooting out public corruption remains one of IRS Criminal Investigation’s highest priorities,” said Carissa Messick, Acting Special Agent in Charge, IRS Criminal Investigation, Phoenix Field Office. “Today’s indictment underscores our commitment to work in a collaborative effort with our federal partners, promoting honest and ethical governing at all levels, and prosecuting those who allegedly violated the public’s trust.”
“This former lawmaker and educator along with her friend are charged with cheating the most innocent of victims – Albuquerque school children -- as well as America’s taxpayers whose hard-earned dollars fund vital education programs,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “OIG Special Agents will continue to work with our law enforcement partners to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
“Violations of public trust by public officials, a position of trusted authority, is a true cancer to society. Our citizens have the right to expect that public officials conduct themselves in a fair, honest, and impartial manner. Standing in defiance of public corruption is a fundamental priority for the FBI," said FBI-Albuquerque Special Agent in Charge Raul Bujanda. "There is no level of acceptable corruption. We ask anyone with information regarding such matters to contact their nearest FBI field office or resident agency so that we can bring them to justice.”
If convicted, Stapleton and Johnson both face 20 years in prison followed by three years of supervised release.
U.S. Attorney Alexander M.M. Uballez, Carissa Messick, Acting Special Agent in Charge of IRS Criminal Investigation Phoenix Field Office, Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, and the U.S. Department of Education made the announcement today.
The IRS Criminal Investigation Phoenix Field Office investigated this case with assistance from the FBI Albuquerque Field Office and U.S. Department of Education - Office of Inspector General. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
View the IndictmentAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former School Bus Driver Sentenced to 9 Years for Cyberstalking a ChildRead the Press Release
CONCORD – An Eliot, Maine, man was sentenced today in federal court in Concord for cyberstalking an 8-year-old boy, U.S. Attorney Jane E. Young announces.
Michael Chick, age 40, was sentenced by U.S. District Court Landya McCafferty to 9 years in prison and 3 years of supervised release. On February 1, 2024, Chick pled guilty to one count of cyberstalking stemming from his course of conduct targeting an 8-year-old child who was a student on Chick’s school bus route.
“Michael Chick’s crimes caused unimaginable pain and fear for the survivor and his family. It is only because of their bravery and diligence that the defendant’s crimes were uncovered,” said U.S. Attorney Jane E. Young. “While Michael Chick’s incarceration will not erase the trauma he inflicted, it will hopefully provide some measure of justice for the survivor and his family.”
“Michael Chick used his access to children as a bus driver to manipulate a child, striking fear across multiple communities he worked. We cannot undo the pain Chick inflicted but we hope the end of this case marks a chance for a new beginning for those he harmed and a time to heal,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England.
Over the course of several months, Chick told the survivor elaborate lies about a secret organization that would harm the survivor and his family unless the survivor complied with certain demands. Chick harassed and intimidated the survivor, telling him that he would be kidnapped and tortured and his family murdered if he did not do as “the organization” directed. Chick gave the survivor several cell phones, directing the survivor to call Chick on the phones when he was alone.
Unbeknownst to the survivor and his family, Chick also followed and photographed them in public, placed GPS tracking devices on their vehicles, made surreptitious recordings of the survivor on the school bus, and went to the family’s home in the middle of the night, even taking photographs of the inside of their home through the windows. Chick used the information he collected to further harass and intimidate the survivor, manipulating the survivor into believing that the organization was watching and following him.
Homeland Security Investigations led the federal investigation. Valuable assistance was provided by the Greenland Police Department, the Eliot, Maine, Police Department, the Old Town, Maine, Police Department, New England State Police Information Network, the New Hampshire Internet Crimes Against Children Task Force, and the Massachusetts State Police. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
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Former Orange County Education Official Pleads Guilty to Embezzling Nearly $16 Million from School District That Employed HimRead the Press Release
SANTA ANA, California – The former senior director of fiscal services at an Orange County public school district pleaded guilty today to embezzling approximately $15.9 million from the district over several years.
Jorge Armando Contreras, 53, of Yorba Linda, pleaded guilty to one count of embezzlement, theft and intentional misapplication of funds from an organization receiving federal funds, a felony offense that carries a statutory maximum sentence of 10 years in federal prison.
Law enforcement so far has seized approximately $7.7 million in personal and real property traced to the scheme, including a home in Yorba Linda, a 2021 BMW automobile, 57 luxury designer bags (mostly Louis Vuitton), various pieces of jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila.
Contreras was the senior director of fiscal services at Magnolia School District, which serves students in Anaheim and Stanton. In this role, Contreras, whom the school district hired in 2006, managed the district’s fiscal operations. The schools in this district educate children from preschool through sixth grade – 81% of whom are classified as socio-economically disadvantaged.
According to his plea agreement, Contreras managed and had access to various school district bank accounts as well as the student body bank account. Contreras caused checks from these accounts to be deposited into his personal bank account.
Contreras wrote checks in small dollar amounts written to “M S D,” with the letters spaced out, and, after receiving the proper signatures from others, would include fictitious names and increase the amounts of the checks and deposit the checks into his personal bank account via ATMs. To conceal his fraud, Contreras provided bank reconciliation packets to others at the school district with falsified bank statements and records.
In total, Contreras admitted to embezzling approximately $15,920,042 from the school district.
The school district placed Contreras on administrative leave in August 2023 and filed a lawsuit against him in Orange County Superior Court.
United States District Judge Fred W. Slaughter scheduled a July 25 sentencing hearing for Contreras, who is free on $450,000 bond.
The FBI, IRS Criminal Investigation, and the United States Department of Education’s Office of Inspector General are investigating this case.
Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, Brett A. Sagel of the Corporate and Securities Fraud Strike Force, and James E. Dochterman of the Asset Forfeiture and Recovery Section are prosecuting this case.
Former Lawyer Charged with Failure to Pay TaxesRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Michael Brady Scoma (51, Clermont) has been charged by information with three counts of failure to pay taxes. If convicted, Scoma faces up to three years in federal prison.
According to court records, Scoma is a former personal injury lawyer. Between 2013 and 2019, he reported his income to the Internal Revenue Service (IRS). Based on his reported income, Scoma owed the IRS $702,341.76 in tax liabilities. After the IRS unsuccessfully attempted to collect the outstanding amount from him multiple times, Scoma agreed to refinance his home and use the proceeds to pay his tax liabilities. Once Scoma completed the refinancing, however, he used the resulting $800,000 for personal expenses, including gambling, instead of paying his tax liabilities.
An information is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Former Employee Pleads Guilty to Robbing Danville Food LionRead the Press Release
ROANOKE, Va. – A former Danville Food Lion employee, who pulled a gun on a Food Lion cashier and robbed the store of more than $1,200 in cash, pled guilty yesterday to federal charges.
Christopher Rashard Harris, 30, pled guilty to one count of Hobbs Act Robbery.
According to court documents, on June 28, 2023, Harris entered the Food Lion grocery store where he used to be employed, placed two bags of Cheetos on the counter, and gave the cashier a $1 bill and some change. When the cashier opened the register, Harris pulled out a firearm, pointed it at the cashier, and said, “back the fu*k up.” The cashier put his hands up and backed away from the register while Harris grabbed the entire cash drawer and ran out with the contents, approximately $1,217.
On July 6, 2023, law enforcement arrested Harris who confessed to robbing the store and described where he had abandoned the cash drawer, which was later recovered.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jason M. Scheff is 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 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.
Florida man arrested, charged with firearms traffickingRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Jeshua Lion Myers a/k/a Dually, 28, a citizen of Canada, the United States, and the Bahamas, was arrested and charged by criminal complaint with trafficking in firearms, which carries a maximum penalty of 15 years in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, Myers stated to an individual working with Canadian law enforcement that he could fulfill large orders of firearms, which would be sourced at various stores and websites out of the United States and imported into Canada. Myers arranged to bring the firearms to the Buffalo area, so that they could then be smuggled into Canada, and sold with a massive profit margin. On December 20, 2023, Homeland Security Investigations Border Enforcement Security Task Force coordinated a controlled purchase of 19 firearms from Myers for $33,000. Myers also provided assorted magazines, ammunition, and other weapons components. Shortly after this purchase, Myers made arrangements to meet the individual working with Canadian law enforcement in Miami, Florida, to purchase additional firearms to be smuggled back to Canada.
Myers made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained.
The complaint is the result of an investigation by Homeland Security Investigations Border Enforcement Security Task Force, under the direction of Special Agent-in-Charge Matthew Scarpino, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Assistant Special Agent-in-Charge Bryan DiGirolamo, New York Field Division, and the Ontario Provincial Police. Additional Assistance was provided by Homeland Security Investigations, Miami, Florida.
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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Florida Man Admits Role in $4.6 Million Kickback Scheme Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man admitted his role in a conspiracy to receive kickbacks and bribes from laboratories in exchange for referrals of patient DNA samples and genetic tests, Attorney for the United States Vikas Khanna announced today.
Jeffrey Tamulski, 50, of Tampa, Florida, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on March 26, 2024, to a superseding information charging him with conspiracy to commit an offense against the United States in connection with a scheme to violate the Anti-Kickback Statute. Tamulski and five co-defendants were previously charged by indictment in September 2019 in connection with the conspiracy and a related health care fraud scheme.
According to documents filed in this case and statements made in court:
On behalf of certain laboratories, Tamulski recruited outside marketing groups, including Ark Laboratory Network LLC, a company owned by Tamulski’s conspirators, to refer patients’ DNA samples to the laboratories for genetic tests. Tamulski and certain conspirators entered into kickback agreements with laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Ark concealed these kickback arrangements by issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. From January 2018 through January 2019, Medicare paid these laboratories approximately $4.6 million for genetic tests that resulted from the referrals and DNA samples that Ark delivered to the laboratories in exchange for bribes. In turn, the laboratories paid Ark at least $1.8 million in bribes.
The charge to which Tamulski pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense whichever is greatest. Tamulski’s sentencing is scheduled for Aug. 6, 2024.
Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida; Kyle D. McLean, of Arlington Heights, Illinois; Edward B. Kostishion, of Lakeland, Florida; and Jeremy Richey, of Mars, Pennsylvania, previously pleaded guilty and all are awaiting sentencing.
Matthew Ellis, of Gainesville, Florida, was charged in connection with a related health care fraud scheme and his case is still pending; the charges and allegations against Ellis are merely accusations, and he is presumed innocent unless and until proven guilty.
Attorney for the United States Khanna credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas J. Mahoney, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the National Security Unit and George L. Brandley of the Health Care Fraud Unit.
tamulski.sinformation.pdfFederal Jury Convicts Worcester Couple of Conspiracy to Launder Wire Fraud ProceedsRead the Press Release
CONCORD – A man and woman from Worcester, Massachusetts were convicted today by a federal petit jury in Concord for conspiracy to launder wire fraud proceeds after an eight-day trial, United States Attorney Jane E. Young announces.
Nafise Quaye, 47, and Sunna Sepetu, 37, both of Worcester, Massachusetts were convicted of one count of conspiracy to money launder. United States District Court Judge Samantha Elliot scheduled sentencing for both defendants on July 8, 2024.
“This verdict demonstrates the seriousness with which the United States Department of Justice takes frauds committed against vulnerable people through the internet,” said United States Attorney Jane E. Young. “The defendants knowingly accepted millions of dollars in wire fraud proceeds from a vulnerable victim in the United States and sent those proceeds overseas to the fraud perpetrator. Prosecuting people in the United States who facilitate the execution of international frauds committed on the internet is essential to frustrating the networks that pray on vulnerable members of our society.”
Between 2013 and 2019, the defendants received approximately $3.2 million in proceeds from a fraud victim located in Texas. These proceeds were sent to bank accounts established by the defendants for various shell companies. The defendants then sent those fraud proceeds to the perpetrator of the fraud operating in Africa, while keeping a portion of the proceeds for themselves.
The investigation was led by Homeland Security Investigations within the United States Department of Homeland Security. Assistant U.S. Attorney Charles Rombeau is prosecuting the case.
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Federal Grand Jury Indicts Two D.C. Residents with Kidnapping and Carjacking ChargesRead the Press Release
WASHINGTON – Brian Allison, 54, and Angel Hall, 23, both of Washington, D.C., were charged today by indictment, filed in U.S. District Court, with kidnapping, carjacking, and transportation of a stolen vehicle, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
According to the indictment, on February 1, 2024, the pair carjacked the victim, kidnapped the victim, and transported the victim across the state line in the victim’s 2021 Chevrolet Malibu. According to documents filed in D.C. Superior Court, just after midnight on February 2, 2024, the victim reported the incident telling police that just over an hour earlier, the defendants approached as the victim was walking through the parking lot of the Subway food store at 4518 Benning Road, SE. Defendant Allison had a gun and demanded the victim’s keys. After the victim complied, Allison demanded the victim’s wallet and phone, and then ordered the victim into the car. The defendants drove the victim to a tobacco store in Capitol Heights, Maryland where they used the victim’s bank card to withdraw $500. The defendants drove around for approximately 10 minutes before parking the car in the 5700 block of Southern Avenue Southeast. Before exiting the vehicle, defendant Allison wiped down the interior of the car and the keys, then left the victim in the car and walked away. The defendants are in custody.
This case is being investigated by the FBI’s Washington Field Office's Violent Crimes Task Force and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys Emory Cole and David Lawrence.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.