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27 March 2024
Two Peruvian Nationals Charged with Credit Card Fraud, Identity Theft Offenses Related to Distraction Theft SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging ANGEL GIANCARLO BELLIDO COSIO, also known as “Jesus Requejo,” 34, a citizen of Peru last residing in Paterson, New Jersey, and ANGEL EUGENIO BANCES CHAPONAN, 60, a citizen of Peru last residing in Queens, New York, with credit card fraud and identity theft offenses.
As alleged in court documents and statements made in court, the FBI and local law enforcement agencies in Connecticut and elsewhere have been investigating a series of distraction thefts of wallets from victims at Trader Joe’s grocery stores and other retail stores. The investigation revealed that Bellido Cosio and Bances Chaponan rented vehicles using a fraudulent passport, traveled throughout the U.S., stole wallets from unwary victims at Trader Joe’s and other stores, and then used the victims’ credit and debit cards to purchase electronic devices and other items.
Bellido Cosio and Bances Chaponan were arrested on March 13, 2024, and are currently detained.
The indictment charges Bellido Cosio and Bances Chaponan with access device fraud, and offense that carries a maximum term of imprisonment of 10 years, and with aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, the Manchester (Conn.) Police Department, the Fairfax County (Va.) Police Department, the Spartanburg County (S.C.) Sheriff’s Office, and the Spartanburg Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Nathan J. Guevremont.
Three sentenced in deadly home robberyRead the Press Release
McALLEN, Texas - Three South Texas men have been sentenced following their conviction for a home invasion that led to the death of a homeowner, announced U.S. Attorney Alamdar S. Hamdani.
Juan Antonio Moreno, 41, and Jesse Joe Mata, 32, both of Donna; and Alberto Vela, 43, Mercedes, pleaded guilty Aug. 4, 2012, to conspiracy to possess with intent to distribute more than 100 kilograms of marijuana and discharging a firearm during and in relation to a drug trafficking crime.
U.S. District Chief Judge Randy Crane has now ordered Moreno to serve a 115-month-term of imprisonment for the drug charge in addition to another 120 months for the firearms offense which must be served consecutively for a total 235-month federal prison sentence. Mata received a total of 212 months, while Vela was ordered to serve 12 years. His prison sentence will be immediately followed by three years of supervised release while the other two serve four years.
“For most of us, our homes are our sanctuaries,” said Hamdani. “We could never imagine, not for one moment, armed gang members breaking down doors and shooting us to death in such a sacred place. This case illustrates how the dirty, greedy and violent business of drug trafficking takes no prisoners and has no redeeming value. Our office will not rest until we can put drug traffickers out of business and eradicate this type of violence from our communities.”
“Our citizens deserve to feel safe in their homes, and the violent acts committed by the defendants in this case deprive everyone in the community of that right,” said Special Agent in Charge Aaron Tapp of the FBI's San Antonio Field Office. “We would like to thank our partners with the Texas Alcoholic Beverage Commission (TABC), McAllen Police Department (MPD), Hidalgo County Sheriff’s Office (HCSO) and the Organized Crime Drug Enforcement Task Forces (OCDETF) for their collective efforts to ensure every person has the opportunity to live and work in a safe community.”
Moreno had contacted members of the Tri-City Bombers, a violent criminal enterprise, to assist him and the others a home invasion to steal marijuana he believed was stored in the home.
On April 12, 2012, Moreno, Mata, Vela and others broke into the Edinburg residence. The homeowner was present and confronted them with a firearm. A struggle ensued and the homeowner was shot and killed. Vela was also shot.
FBI led the OCDETF investigation with the assistance of TABC, MPD and Hidalgo County Sheriff’s Office.
OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald prosecuted the case.
Thoreau Woman Pleads Guilty to Second-Degree MurderRead the Press Release
ALBUQUERQUE – Second defendant pleads guilty to the brutal 2020 murder of a Gamerco, New Mexico woman. Stacey Yellowhorse, 53, of Thoreau, New Mexico pleaded guilty in federal court on Thursday to second degree murder.
Yellowhorse’s co-defendant, Timothy Chischilly, pleaded guilty in federal court to second-degree murder on Feb. 6, 2024.
According to court documents, on Jan. 23, 2020, Yellowhorse and her then boyfriend, Chischilly, invited Jane Doe over to their house in Mexican Springs, New Mexico. During the night, Yellowhorse and Chischilly restrained Jane Doe and bludgeoned her to death. Afterwards, Yellowhorse and Chischilly burned Jane Doe’s remains.
The Court ordered that Yellowhorse remain in detention pending sentencing, which has not been scheduled. At sentencing, Yellowhorse faces up to life in prison followed by five years of supervised release.
Per the terms of her plea agreement, Yellowhorse faces 10 to 20 years at sentencing.
There is no parole in the federal system.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Gallup Police Department. Assistant U.S. Attorneys Kimberly Brawley and Tavo Hall are prosecuting the case.
View the Plea Agreement# # #
Tennessee Man Indicted for Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that BART GREEN, age 62, of Nashville, Tennessee, was indicted on March 22, 2024 for Bank Robbery, in violation of Title 18, United States Code, Section 2113(a).
According to the indictment, on or about March 1, 2024, GREEN robbed a Regions Bank in New Orleans, Louisiana. GREEN obtained approximately $2000 in the robbery.
If convicted, GREEN faces up to twenty years in prison, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and the New Orleans Police Department. Assistant U.S. Attorney Paul J. Hubbell of the General Crimes Unit is handling the prosecution.
Statement of U.S. Attorney Damian Williams on the Convictions of Three Lev Tahor Leaders of Child Exploitation and Kidnapping OffensesRead the Press Release
“Yoil Weingarten, Yakov Weingarten, and Shmiel Weingarten, leaders of Lev Tahor, an extremist Jewish sect based in Guatemala, have been found guilty of kidnapping a 12-year-old boy and a 14-year-old girl and transporting the 14-year-old girl outside the United States to continue a sexual relationship with her adult male ‘husband.’ With this verdict, all nine Lev Tahor leaders and operatives charged for these heinous crimes have been held accountable. The defendants’ conduct — which included forced child marriages, physical beatings, and family separations — is unthinkable and has caused irreparable harm to children in their formative years. Whether in the name of religion or any other belief system, subjecting children to physical, sexual, or emotional abuse will never be tolerated by this Office.”
Seventh Correctional Officer at Federal Facility in Dublin, California, Sentenced to Prison for Sexual Abuse of Female PrisonersRead the Press Release
A former correctional officer at the Federal Correctional Institution Dublin (FCI Dublin), where he supervised prisoners, was sentenced to 72 months in prison for sexually abusing five inmates at FCI Dublin. This is the seventh correctional officer to be sentenced in connection with the wide-ranging investigation into sexual abuse of the inmates in the prison.
Nakie Nunley, 48, of Fairfield, California, pleaded guilty on Sep. 5, 2023 to four counts of sexual abuse of a ward, five counts of abusive sexual contact, and one count of making false statements in connection with the investigation into abuse allegations at FCI Dublin. In addition to admitting he was guilty of crimes related to his sexual acts and sexual contacts with five separate women, Nunley also describes in his plea agreement how he engaged in sexual acts with two other inmates and how he lied to Justice Department Office of Inspector General (DOJ-OIG) agents who were investigating allegations regarding his conduct.
“Nakie Nunley egregiously exploited his authority by sexually abusing multiple incarcerated women and then retaliating against those who blew the whistle,” said Deputy Attorney General Lisa Monaco. “As today’s sentence shows, the Justice Department will hold accountable officials who abuse their authority to harm those they are sworn to protect — and will not tolerate retaliation against victims.”
“Rooting out injustice in prisons is difficult work,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “But we will not shy away from the task. I want to thank the DOJ-OIG and the FBI for their continued partnership in prosecuting this case. With their help, we will ensure that prison personnel who violate the rights of inmates are held accountable.”
“Today’s sentencing holds Nunley accountable for his heinous abuse of his authority by sexually assaulting multiple inmates under his custody and care, and retaliating against his victims by threatening to take away their UNICOR jobs and transfer them to another facility,” said Inspector General Michael E. Horowitz. of DOJ-OIG “The DOJ-OIG will continue to aggressively investigate sexual abuse at FCI Dublin and across the Federal Bureau of Prisons.”
"The defendant sexually assaulted multiple female inmates, disregarding their dignity and violating his responsibilities as a corrections officer,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s dedication to investigating civil rights violations and holding accountable any corrections officers who abuse their authority."
At the time that Nunley abused his victims, he was assigned to supervise prisoners who worked for UNICOR, a trade name for the federal prison industries. All of Nunley’s victims worked at the UNICOR call center at the time he abused them.
According to his plea agreement, Nunley admitted that, between March 2020 and November 2021, he engaged in sexual acts with two prisoners, including having oral and vaginal sex with one victim and digitally penetrating another victim on multiple occasions. He also admitted that he was guilty of crimes related to his illegal sexual contacts with three other prisoners.
In addition to his conduct with the five victims that resulted in criminal charges, Nunley admitted he sexually abused two additional prisoners and engaged in inappropriate conduct with multiple other prisoners who worked at UNICOR. With respect to one victim, Nunley admitted he digitally penetrated her vagina and caused her to touch his penis under his pants, resulting in him ejaculating in her hand. Further, Nunley admitted he caused another victim to perform oral sex on him. Moreover, Nunley wrote sexual notes to one of his victims and made sexual comments to multiple additional victims.
Nunley’s plea agreement also describes how he retaliated against prisoners who complained about his conduct. For example, the plea agreement describes how one of his victims approached Nunley about his conduct towards another victim. In response, Nunley threatened her by telling her she could get transferred to another facility and that she could lose her job. Similarly, Nunley admitted that he told another victim that if she wanted to keep her job at UNICOR, she needed to pull down her underwear and bend over. When she complied, Nunley slapped her buttocks several times.
In addition to admitting he engaged in illegal and improper conduct towards prisoners, Nunley also admitted in his plea agreement that he lied to federal investigators about sexually abusing his victims and about sending one of his victims sexually explicit notes.
DOJ-OIG and the FBI investigated the case.
Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson for the Northern District of California are prosecuting the case with the assistance of Legal Assistant Kay Konopaske.
Seventh Correctional Officer at Federal Facility in Dublin California Sentenced to Prison for Sexual Abuse of Female PrisonersRead the Press Release
OAKLAND – Nakie Nunley, a former correctional officer at FCI Dublin where he supervised prisoners, has been ordered to serve 72 months on prison for sexually abusing five inmates at the Federal Correctional Institute Dublin (FCI Dublin). This is the seventh correctional officer to be sentenced in connection with the wide-ranging investigation into sexual abuse of the inmates in the prison. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, United States District Judge.
Nunley, 48, of Fairfield, Calif., pleaded guilty to the charges on September 5, 2023. Specifically, Nunley pleaded guilty to four counts of sexual abuse of a ward, five counts of abusive sexual contact, and one count of making false statements in connection with the investigation into abuse allegations at FCI Dublin. In addition to admitting he was guilty of crimes related to his sexual acts and sexual contacts with five separate women, Nunley also describes in his plea agreement how he engaged in sexual acts with two other inmates and how he lied to federal investigators who were investigating allegations regarding his conduct.
“Nakie Nunley egregiously exploited his authority by sexually abusing multiple incarcerated women and then retaliating against those who blew the whistle,” said Deputy Attorney General Lisa Monaco. “As today’s sentence shows, the Justice Department will hold accountable officials who abuse their authority to harm those they are sworn to protect — and will not tolerate retaliation against victims.”
“Rooting out injustice in prisons is difficult work,” said U.S. Attorney Ismail Ramsey, “but we will not shy away from the task. I want to thank the Department of Justice Office of the Inspector General and the FBI for their continued partnership in prosecuting this case. With their help, we will ensure that prison personnel who violate the rights of inmates are held accountable.”
“Today’s sentencing holds Nunley accountable for his heinous abuse of his authority by sexually assaulting multiple inmates under his custody and care, and retaliating against his victims by threatening to take away their UNICOR jobs and transfer them to another facility. The Department of Justice Office of the Inspector General will continue to aggressively investigate sexual abuse at FCI Dublin and across the Federal Bureau of Prisons,” said Department of Justice Inspector General Michael E. Horowitz.
“This sentence is the result of the tireless efforts by the FBI and our partners to bring to justice Dublin FCI corrections officers and personnel who abused their positions to commit deplorable crimes,” said FBI Special Agent in Charge Robert Tripp. “We continue to work with our partners to protect the safety and civil rights of all individuals and hold public servants accountable when they violate the law and betray public trust.”
At the time that Nunley abused his victims, he was assigned to supervise prisoners who worked for UNICOR, a trade name for the federal prison industries. All of Nunley’s victims worked at the UNICOR call center at the time he abused them.
According to his plea agreement, Nunley admitted that between March 2020 and November 2021, he engaged in sexual acts with two prisoners, including having oral and vaginal sex with one victim and digitally penetrating another victim on multiple occasions. He also admitted that he was guilty of crimes related to his illegal sexual contacts with three other prisoners.
Further, in addition to his conduct with the five victims that resulted in criminal charges, Nunley admitted he sexually abused two additional prisoners and engaged in inappropriate conduct with multiple other prisoners who worked at UNICOR. With respect to one victim, Nunley admitted he digitally penetrated her vagina and caused her to touch his penis under his pants, resulting in him ejaculating in her hand. Further, Nunley admitted he caused another victim to perform oral sex on him. Moreover, Nunley wrote sexual notes to one of his victims and made sexual comments to multiple additional victims.
Nunley’s plea agreement also describes how he retaliated against prisoners who complained about his conduct. For example, the plea agreement describes how one of his victims approached Nunley about his conduct towards another victim. In response, Nunley threatened her by telling her she could get transferred to another facility and that she could lose her job. Similarly, Nunley admitted that he told another victim that if she wanted to keep her job at UNICOR, she needed to pull down her underwear and bend over. When she complied, Nunley slapped her buttocks several times.
In addition to admitting he engaged in illegal and improper conduct towards prisoners, Nunley also admitted in his plea agreement that he lied to federal investigators about sexually abusing his victims and about sending one of his victims sexually explicit notes.
In sum, Nunley was charged by information with four counts of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b); five counts of abusive sexual contact, in violation of 18 U.S.C. § 2244(a)(4); and one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2). He pleaded guilty to all counts.
Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson are prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the FBI.
Second Kern County Resident Pleads Guilty to Distributing ExplosivesRead the Press Release
FRESNO, Calif. — Michael Roy Anglin, 22, of Wofford Heights, entered a guilty plea today to distributing explosives to a non-licensed person, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2023, Vigneault and Michael Roy Anglin, 21, of Wofford Heights, sold and delivered six full boxes and one partial box of Hydromite 880, an explosive, weighing approximately 350 pounds to a non-licensed person. Neither Vigneault, Anglin, nor the buyer were licensed to handle or transport explosives as required by federal law. Anglin knew that the Hydromite 880 was stolen from Austin Powder West LLC. The boxes containing the explosives were labeled “Explosive, Blasting, Type E” and “Blasting Agent.” The sticks of Hydromite 880 were also individually labeled “Danger” and “Explosive.” Hydromite is a high explosive containing ammonium nitrate and is used as a blasting agent.
Austin Powder West LLC, a licensed explosives manufacturer, confirmed that 295 sticks of Hydromite, weighing 702 pounds, went missing from its Lake Isabella storage facility sometime in May 2023. The missing explosives included the boxes that Anglin and Vigneault sold. The value of the unrecovered explosives is $7,603.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Anglin is scheduled for sentencing in federal court on July 29, 2024. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Vigneault previously entered a guilty plea and is scheduled for sentencing on May 20, 2024.
Repeat felon pleads guilty to federal drug and firearms chargesRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to possession with intent to distribute cocaine and being a felon in possession of firearms and ammunition.
According to court documents, on Sept. 19, 2023, Richmond Police Narcotics Detectives and the Virginia State Police Tactical Team executed a search warrant at the residence of Errez Tekel Perry, 30. After there was no response when the team knocked and announced, the team breached the door and entered the residence. Perry ran from the front door area toward the rear of the house, ignoring the team’s commands, and was taken into custody.
Investigators recovered two semi-automatic firearms, ammunition, two drum ammunition magazines, approximately 64 grams of cocaine, packages of Suboxone, baggies with numerous pills, several baggies with approximately 200 grams of suspected marijuana, baggies with residue, digital scales, a cash counter, and two cellphones.
Perry had been convicted previously of felony drug trafficking, felony drug possession, possession of a firearm with Schedule I and II controlled substances, possession with intent to distribute heroin, and possession of a firearm and ammunition by a convicted felon. As a previously convicted felon, Perry could not legally possess a firearm or ammunition.
Perry is scheduled to be sentenced on July 30. He faces a maximum of 15 years in prison for being a felon in possession of a firearm and ammunition and a maximum of 20 years in prison for possession with intent to distribute cocaine. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Rick Edwards, Chief of Richmond Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorney Olivia L. Norman and Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-163.
Registered Sex Offender Sentenced to 10 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Las Vegas resident who is a registered sex offender was sentenced yesterday by United States District Judge Gloria M. Navarro to 10 years in prison to be followed by 35 years of supervised release for unlawful possession of child sexual abuse material (CSAM) on his cell phone.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) forwarded a CyberTip to the Las Vegas Metropolitan Police Department that a user uploaded 30 files containing CSAM. On September 30, 2021, William Spahr – a sex offender who was convicted of lewdness with a child under the age of 14 in Clark County – was arrested for failing to register his current address which is required under the Sex Offender Registration Notification Act. A forensic examination of Spahr’s cell phone revealed that he had a total of 33 images of CSAM on the device.
In October 2023, Spahr pleaded guilty to possession of child pornography.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. An Assistant United States Attorney prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. 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.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or https://report.cybertip.org.
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Portland Area Fentanyl Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A local drug trafficker who sourced large quantities of fentanyl from out-of-state contacts with ties to Mexican cartels for redistribution and sale in the Portland area and directed the transport and sale of firearms was sentenced to federal prison today.
Francisco Moncada, 28, who maintained residences in Portland and Vancouver, Washington, was sentenced to 108 months in federal prison and five years’ supervised release.
According to court documents, in October 2021, special agents from the U.S. Drug Enforcement Administration (DEA) Portland District Office began investigating a drug trafficking organization operating in the Portland area and parts of Washington State. In April 2022, investigators learned that Moncada, who was later determined to be a manager within the drug trafficking organization, was communicating with multiple Portland area drug traffickers to discuss fentanyl sourcing.
On April 18, 2022, law enforcement officers stopped a vehicle being used by Moncada and several associates to transport approximately 15 pounds of fentanyl. Just under two weeks later, on April 28, 2022, officers stopped Moncada a second time and seized an additional 10 pounds of fentanyl. Within days, investigators also obtained information that Moncada had instructed other members of his organization to sell various firearms.
On May 20, 2022, investigators searched Moncada’s Portland and Vancouver residences and seized seven firearms and two pounds of fentanyl. Between October 2021 and August 2022, investigators located and seized 50 pounds of fentanyl, 40 pounds of methamphetamine, and smaller quantities of cocaine, heroin, and marijuana from Moncada and his associates, and made 16 arrests connected to their organization.
On May 21, 2022, Moncada and three others were charged my federal criminal complaint with conspiring with one another to possess and possessing with intent to distribute fentanyl. On June 14, 2022, a federal grand jury in Portland returned a six-count indictment charging Moncada and eight associates for conspiring with one another to distribute fentanyl. Moncada was also charged with possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
On December 20, 2023, Moncada became the tenth member of his organization to plead guilty and, today, becomes the seventh member to be sentenced to federal prison. Four others are awaiting sentencing, and one is a fugitive.
This case was investigated by DEA with assistance from the FBI Vancouver Resident Agency, Vancouver Police Department, Oregon State Police, Oregon City Police Department and Washington State Department of Corrections. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Owner of Massage Parlors Offering Commercial Sex Federally ChargedRead the Press Release
A massage parlor owner whose employees offered illicit commercial sex has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Shaoping Wen, 64, and her associate, Xu Wang, 41, were charged via criminal complaint with conspiracy to use interstate travel in aid of racketeering enterprises. They were arrested in New Mexico on March 21 and made their initial appearances in Las Cruces Wednesday. They are now awaiting removal to Lubbock to face justice in a Northern District of Texas federal court.
According to the complaint, Ms. Wen allegedly owned and operated at least seven massage parlors where Asian women engaged in commercial sex. Mr. Wang, who identified himself as Ms. Wen’s son, allegedly operated the parlors on her behalf when Ms. Wen was out of state.
On at least 10 occasions between June 2023 and February 2024, undercover officers purchased $60 massages at Ms. Wen’s parlors in Texas and New Mexico. The officers were generally greeted by lingerie-clad women who allegedly agreed to have sex with them for an additional fee of between $140 and $200. Several of the women allegedly used translation apps to negotiate sexual services.
When the women were arrested for prostitution, they identified themselves as Chinese citizens and listed their occupation as simply, “laborer.” On multiple occasions, Ms. Wen or Mr. Wang allegedly showed up to pay the arrested women’s cash bond.
Officers also observed Ms. Wen’s vehicle transporting Asian females directly from the airport to her massage parlors. Neighbors said the women never left the building. Searches of the premises revealed beds placed on the floors, suggesting the women lived at the massage parlors.
On at least one occasion, a passerby heard a woman screaming and entered the parlor to check-in. He reported seeing three women between the ages of 30 and 50 dressed in provocative clothing.
Officers found the massage parlors advertised on sites often used to advertise commercial sex. The ads included photos of partially naked women and promoted “100% sexy” girls who “like to spend time with nice upscale gentlemen.” They advertised the “girlfriend experience,” “porn star experience,” and “fantasy outfits on request.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, Ms. Wen and Mr. Wang face up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency, Homeland Security Investigation’s Dallas Field Office, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation with the assistance of the FBI’s Albuquerque Field Office, HSI’s Albuquerque Field Office, the Lubbock County Sheriff’s Office, Immigration & Customs Enforcement (ICE), the Wolfforth Police Department, the Eddy County Sheriff’s Office, the Carlsbad Police Department, the Roswell Police Department, the Clovis Police Department, the Roswell Fire Department, the Carlsbad Fire Department, the Lubbock County District Attorney’s Office, and the U.S. Attorney’s Office for the District of New Mexico. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Omaha Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Susan Lehr announced that Dominique Boyd, age 31, of Omaha, Nebraska, was sentenced on March 27, 2024, in federal court in Omaha for failure to register as a sex offender. United States District Court Judge Brian C. Buescher sentenced Boyd to 18 months’ imprisonment. There is no parole in the federal system. After Boyd’s release from prison, he will begin a 5-year term of supervised release.
Boyd has a lifetime registration requirement to register as a sex offender due to a 2010 conviction for Attempted Sexual Assault in the First Degree in the District Court of Douglas County, Nebraska. Boyd had previously registered as a sex offender in the state of Nebraska and moved to the state of Michigan in February 2023. Between May 13th and August 8th of 2023, Boyd returned to Nebraska from Michigan and failed to update his sex offender registration as required.
This case was investigated by the United States Marshals Service.
Omaha Man Sentenced for COVID-19 Relief Program FraudRead the Press Release
United States Attorney Susan Lehr announced that Richard L. Kelly, 61, of Omaha, Nebraska, was sentenced on March 27, 2024, in federal court in Omaha for wire fraud. United States District Court Judge Brian C. Buescher sentenced Kelly to 5 years’ probation and ordered him to pay $196,029.15 in restitution, which reflects the balance remaining after a payment of $9,831.00 was applied before sentencing. As a condition of probation, Kelly must pay at least $1,000 per month toward restitution.
During 2020 and 2021, Kelly, assisted by another person, submitted applications for Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program loans. Those loan programs were created or expanded by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
The applications misrepresented how much Kelly’s business had paid employees in past compensation and how much revenue Kelly’s business had received, resulting in applications for significantly inflated loan amounts under the PPP and EIDL programs. The PPP applications were supported by false tax documents. The fraudulent applications on behalf of Kelly sought loans totaling approximately $675,094, and he obtained $189,997.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation and the Small Business Administration, Office of Inspector General.
Ocean County Man Admits Conspiring with Convicted Ponzi Schemer and Others to Defraud Investors of Tens of Millions of Dollars and Obstruct JusticeRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted conspiring with Eliyahu “Eli” Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million, and others to defraud investors of more than $35 million in a new fraud scheme and to obstruct justice, U.S. Attorney Philip R. Sellinger announced.
Joel Wittels, 57, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud, one count of conspiracy to obstruct justice, and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs.
U.S. Attorney Philip R. Sellinger“Wittels scammed innocent victims into handing over their money by hiding a twice-convicted fraudster’s identity and capitalizing on the COVID pandemic, the war in Ukraine, and even shortages of baby formula. Instead of investing the money in legitimate ventures, Wittels and his conspirators took it and used some of it to pay off other investors in a classic Ponzi scheme.”
Three of Wittels’ conspirators, Christopher Anderson, 47, and Richard Curry, 36, and Alaa Hattab, 35, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing. Charges are still pending against Wittels’ conspirators, Weinstein, Aryeh “Ari” Bromberg, and Shlomo Erez.
According to documents filed in this case and statements made in court:
Weinstein was convicted twice in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels.
Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by Anderson and Curry. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Optimus.
In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.
In August 2022, the conspirators had a series of meetings in which Weinstein revealed his true identity to Anderson and Curry. In these meetings, at least two of which included Wittels, Weinstein also admitted to making various false statements about purported Optimus deals and to misappropriating Tryon investor money. Both during and after these August 2022 meetings, the conspirators agreed to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi Scheme from falling apart and to cover up the conspirators’ fraud.
In addition to defrauding investors, Wittels also conspired with Weinstein, Bromberg, and others to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release.
Wittels also engaged in a separate criminal conspiracy with Curry and others to distribute wholesale quantities of prescription drugs, including insulin, on the secondary market without a wholesale license.
The conspiracy charges are each punishable by a maximum of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Aug. 20, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, and the Food and Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office, under the direction of Special Agent in Charge George Scavdis, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Carolyn Silane, Jonathan Fayer, and Marko Pesce, of the Economic Crimes Unit in Newark.
The charges and allegatioins against Weinstein, Bromberg, and Erez are merely accusations, and they are presumed innocent unless and until proven guilty.
wittels.information.pdfNew Haven Man Admits Stealing and Selling Catalytic ConvertersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL ALMODOVAR, also known as “Eme ElColorado,” 30, of New Haven, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to offenses related to his participation in a stolen catalytic converter trafficking ring.
According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
The investigation revealed that Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford, purchased stolen catalytic converters from a network of thieves, including Almodovar, and then transported and sold the catalytic converters to recycling businesses in New York and New Jersey.
Business records seized during the investigation revealed that, between March 2022 and May 2022, Downpipe Depot paid Almodovar $34,445 for catalytic converters. In one incident, while Almodovar was in the process of stealing a catalytic converter from a car parked in a parking lot, he was interrupted by a witness who used his cellphone take pictures of Almodovar. Almodovar attacked the witness, smashed his car window, cut him with the saw he used to steal the converter, and then fled. The next day, Almodovar sold six converters to Downpipe Depot in exchange for $2,180.
Almodovar pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of five years, and one count of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years. Judge Nagala scheduled sentencing for June 18.
Almodovar was arrested on November 28, 2023. He is detained pending sentencing.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Nampa Man Sentenced to over 15 Years in Federal Prison for Possession with Intent to Distribute 10 Pounds of FentanylRead the Press Release
BOISE – Tyler Watson, 40, of Nampa, was sentenced to 188 months in federal prison for possessing ten pounds of fentanyl with intent to distribute it to others, U.S. Attorney Josh Hurwit announced today.
According to court records, Watson was a mid-level fentanyl distributor for a large drug trafficking organization with direct ties to Mexico. Watson locally sold approximately $15,000 worth of fentanyl pills and powder on a weekly basis. When he was arrested on June 7, 2022, he had four and a half kilos (approximately ten pounds) of fentanyl powder, 74.63 grams of fentanyl in pill form (approximately 750 pills), 55 grams of methamphetamine, and $8,608 in drug proceeds.
“With our law enforcement partners, our office will continue to vigorously pursue fentanyl traffickers,” said U.S. Attorney Hurwit. “A tiny amount of fentanyl is considered a lethal dose, and in this case, it is estimated that the defendant possessed enough fentanyl to theoretically kill 439,000 people. The magnitude of this threat is sobering, but cases like this demonstrate that, together, law enforcement is rising to the challenge of keeping Idahoans safe.”
“The Drug Enforcement Administration and our partners will work tirelessly to stop drug traffickers like Mr. Watson from dealing their poison in our communities,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The lengthy prison term that Mr. Watson received should serve as a warning to those who would seek to destroy others’ lives for their own financial gain because, if they do, we will find them and bring them to justice.”
“Collaboration and teamwork with local, state, and federal partners is necessary to keep the pressure on drug dealers,” said Nampa Police Chief Joe Huff. “These criminals need to understand we’re working together all of the time, and on every level, to keep the Treasure Valley safe. I’m very proud of the work that’s happening in my community.”
“This case illustrates the sheer magnitude of dangerous, illicit drugs with direct ties to Mexico and the Mexican Drug Cartels that are in our communities and on our streets here in Idaho,” said Canyon County Sheriff Kieran Donahue. “And this is just one example. We must continue working collaboratively with our local, state, and federal partners to enforce the rule of law and stop this blatant criminality. The very safety of our republic depends on it.”
Senior U.S. District Judge B. Lynn Winmill also ordered Watson to pay a $1,000 fine and to serve five years of supervised release following his prison sentence. Watson pled guilty to the charge on November 13, 2023.
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration Task Force consisting of officers from the United States Marshals Service, the United States Probation Office, the Nampa Police Department, the Boise Police Department, the Meridian Police Department, the Ada County Sheriff’s Office, the Canyon County Sheriff’s Office, and the Idaho Department of Correction Probation and Parole. Assistant U.S. Attorney David Morse prosecuted this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Mobile Man Sentenced to 300 Months in Prison for Conspiring to Distribute Cocaine and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 240 months in prison for conspiring to distribute cocaine and a consecutive 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Edward Duran McGee, 42, was arrested by Mobile police in July 2021 during a traffic stop. As officers approached the vehicle, they saw drug paraphernalia in the door pocket and an open bag of white powder on the passenger side floorboard. During an inventory search of the vehicle, officers found a loaded Kahr CW40 pistol. Officers also found a black digital scale, four bags of green plant material, two large bags of powder cocaine, one large bag of crack cocaine, and a large bag of assorted pills.
In addition to the 300-month prison sentence, United States District Judge William H. Steele ordered McGee to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Judge Steele ordered McGee to pay $200 in special assessments and forfeited McGee’s pistol and four rounds of ammunition to the United States.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Drug Enforcement Administration (DEA) and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Luis F. Peral and Jessica S. Terrill prosecuted the case on behalf of the United States.
Middlesex County Man Sentenced to 27 Months in Prison for Embezzling $2.37 Million from his Employer while the Controller of CompanyRead the Press Release
TRENTON, N.J.– A Middlesex County, New Jersey, man was sentenced to 27 months in prison for his role in a scheme to embezzle $2.37 million from his employer while his was the company’s controller, U.S. Attorney Philip R. Sellinger announced today.
Gerard Beauzile, 63, South Plainfield, New Jersey, pleaded guilty before former Chief U.S. District Judge Freda L. Wolfson, an indictment charging him with one count of wire fraud. U.S. District Judge Michael A. Shipp imposed the sentence on March 26, 2024, in Trenton federal court.
According to documents filed in the case and statements made in court:
From 2014 through December 2020, Beauzile abused his position as controller of a New York-based company to embezzle funds by issuing fraudulent company checks to himself and then depositing those checks into his bank account for his own personal benefit. Beauzile issued approximately 140 company checks to himself with a total value of $2.37 million. Beauzile concealed the theft from the company by falsely entering the fraudulent checks into the company’s accounting system under various company vendor names as the payees, causing the accounting system to falsely reflect that the checks were made payable to company vendors instead of to Beauzile. He also falsified vendor invoices to correspond to the entries made in the accounting system, and company bank statements by removing and altering opening, running, and closing balances, check payment entries, summary check listings, and inter-account transfers.
In addition to the prison term, Judge Shipp sentenced Beauzile to three years of supervised release and ordered restitution of $2.37 million and forfeiture of $2.37 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
Mexican resident convicted of trying to smuggle ammunition and firearms back to MexicoRead the Press Release
McALLEN, Texas – A 67-year-old resident of Guadalajara, Mexico, has pleaded guilty to attempting to smuggle multiple firearms and hundreds of rounds of ammunition in vehicle roof rack, announced U.S. Attorney Alamdar S. Hamdani.
On Jan. 11, Jose De Jesus Pena Dieguez attempted to enter Mexico through the Progreso Port of Entry in a Nissan Xterra. Upon inspection, authorities noticed tampering on the screws of a compartment connected to the vehicle's roof rack. An x-ray examination also showed anomalies within the compartment.
A subsequent search revealed 16 firearms, 31 firearm magazines, assorted firearm parts and 800 rounds of ammunition.
"Dieguez potentially put lives at risk for his own personal gain - intending to profit by selling firearms illegally smuggled out of the United States,” said Hamdani. “These crimes not only affect our residents, they also endanger innocent Mexican citizens. It’s an international issue, and we remain relentless in our efforts to bring safety and security in taking these traffickers off the streets. Put simply, try to take guns to Mexico and you will pay for it with your freedom.”
Dieguez admitted he purchased the firearms and intended to illegally export them to Mexico.
U.S. District Chief Judge Randy Crane will impose sentencing June 11. At that time, Dieguez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Customs and Border Protection conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Mexican National Sentenced to 5 Years’ Imprisonment for Cocaine and Gun ChargeRead the Press Release
United States Attorney Susan Lehr announced that Jesus Camarillo-Soria, 45, of Guanajuato, Mexico, was sentenced March 20, 2024, in federal court in Omaha, Nebraska, for possession with intent to distribute cocaine and possession of a firearm in relation to a drug trafficking crime. United States District Court Judge Brian C. Buescher sentenced Camarillo-Soria to 60 months and 1 days’ imprisonment. After Camarillo-Soria’s release from prison, he will be deported to Mexico as he is not a United States citizen.
On August 14, 2022, law enforcement executed a search warrant on Camarillo-Soria's residence in South Omaha and found 141 grams of cocaine along with a digital scale inside a shoebox. Cash in the amount of $881 was found inside Camarillo-Soria's wallet. Within a few feet of the drugs, officers found a Ruger Redhawk 44 magnum pistol and venue to Camarillo-Soria underneath the pistol. During a post arrest interview, Camarillo-Soria admitted to possessing the cocaine and the pistol, and that he gave some of the cocaine to his friends.
This case was investigated by the Omaha Police Department.
Member of Skagit and Whatcom drug distribution ring sentenced to prisonRead the Press Release
Seattle – A 38-year-old resident of Maple Falls, Washington was sentenced today in U.S. District Court in Seattle to six years in prison for his role in distributing fentanyl and methamphetamine, announced U.S. Attorney Tessa M. Gorman. Jesse Witteveen was arrested November 1, 2022, when he fled at high speeds from law enforcement, tossing bags of drugs from the car. At the sentencing hearing U.S. District Judge Lauren King said, “Knowing what drugs have done to your life, you chose to perpetuate the cycle of drug addiction in others.”
According to records filed in the case, the Drug Enforcement Administration, Bellingham Resident Office (DEA), working with the Whatcom County Drug and Gang Task Force identified a drug trafficking organization spreading large amounts of fentanyl and meth in Whatcom and Skagit Counties. Beginning in April 2022, law enforcement monitored various members of the drug conspiracy as they conducted their drug sales.
On November 1, 2022, law enforcement was surveilling Witteveen as he met with a drug supplier. They followed Witteveen, but since he was driving at a high rate of speed, surveillance was ended. A short time later, Whatcom County Sheriff deputies spotted the car near the town of Van Zandt and attempted to pull it over. Witteveen began driving at a high rate of speed. A bag – later found to contain fentanyl and methamphetamine – was thrown from the car. A search of Witteveen’s home and car turned up turned up fentanyl pills, meth, multiple cell phones, firearms parts, and ammunition.
Overall, in this case law enforcement seized: 11.5 kilos of fentanyl pills, 2.8 kilos of fentanyl powder, 5.7 kilos of cocaine, 1.6 kilos of heroin and 8.7 kilos of crystal meth, more than $186,000 in cash and nine firearms.
The leader of the drug ring, Enoc Martinez Lopez, aka “Victor,” 29, of Marysville, Washington was sentenced to eight years in prison; Casey Landis, 41, of Bellingham, a drug distributor was sentenced to seven years in prison.
Witteveen was sentenced to four years of supervised release to follow prison, and Judge King recommended he be admitted to the Bureau of Prisons residential drug treatment program.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was led by the Drug Enforcement Administration, Bellingham Resident Office (DEA), working with the Whatcom County Drug and Gang Task Force, the Whatcom County Sheriff’s Office, the Skagit County Interlocal Drug Enforcement Unit, Homeland Security Investigations (HSI), Bureau of Indian Affairs, Washington State Patrol, U.S. Customs and Border Protection (CBP), Snohomish Regional Drug Task Force, the CBP Air & Marine Operations, the Lummi Police Department, the Everson Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Member of Minneapolis Highs Gang Pleads Guilty to Firearms Violations Involving Fentanyl TraffickingRead the Press Release
MINNEAPOLIS – A member of the Minneapolis Highs gang has pleaded guilty to possessing a firearm as a felon and to carrying a firearm while trafficking fentanyl, announced United States Attorney Andrew M. Luger.
According to court documents, in March 2023, investigators with the Minneapolis Police Department received information that James Edward Hollman, Jr., 32, who at the time was on supervised release for a prior felon-in-possession conviction, carried a firearm while conducting narcotics transactions inside rental vehicles with out-of-state license plates. On March 15, 2023, officers went to Hollman’s apartment complex in Brooklyn Center to execute search warrants on Hollman’s person, rental vehicle, and apartment unit. When officers observed Hollman enter his rental vehicle parked at his apartment complex, they moved in and detained Hollman. Officers recovered a loaded Glock pistol with an obliterated serial number, an inserted high-capacity magazine, and an attached red laser pointer, a knotted plastic baggie containing 252 blue round “M-30” fentanyl pills, and Hollman’s driver’s license from the vehicle’s center console. Officers also recovered a loaded 50-round drum magazine from the front-passenger seat’s rear map pocket. Officers also recovered about $900 cash from Hollman’s apartment.
Hollman pleaded guilty today in U.S. District Court before Judge Jerry W. Blackwell to one count of possessing a firearm as a felon and one count of carrying a firearm during and in relation to a drug-trafficking crime. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, U.S. Postal Inspection Service, IRS Criminal Investigations, Minnesota Department of Corrections, and Homeland Security Investigations.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Maryland Man Sentenced to Six Years in Federal Prison for Lying to a Federal Grand Jury in Connection with a MurderRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced John Willie Kennedy, a/k/a “Cognac” and “Yak,” age 46, of Gaithersburg, Maryland, to six years in federal prison, followed by three years of supervised release, for obstruction of justice, specifically for lying to a federal grand jury and to law enforcement in connection with a murder.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Richard Worley of the Baltimore Police Department; Chief Gregory Der of the Howard County Police Department and Howard County State’s Attorney Rich Gibson.
According to court documents, on September 3, 2017, Meiko Locksley was found shot in front of a townhouse in the 5500 block of Harpers Farm Road in Columbia, Maryland. Locksley was transported to the hospital, where he was pronounced deceased. Kennedy, who called 911 to report the shooting, lived in the townhouse row directly behind the townhouses where Locksley was found. In the days following the shooting, law enforcement interviewed Kennedy about the shooting, but Kennedy claimed he had not seen anything. Kennedy said he was at home and found Locksley after hearing a loud “bang” and going to investigate. Although Kennedy claimed not to have seen Locksley on September 3, phone records showed that the two had a series of calls shortly before Locksley was killed.
According to his plea agreement, on January 4, 2018, investigators interviewed Kennedy again, confronting him with the phone contact between his cellphone and Locksley’s cellphone. Kennedy admitted that he “might have” sold marijuana to Locksley but denied having any information about the shooting. Kennedy again maintained that he was in his house and only went out to investigate after hearing gunshots. After the murder weapon was found in Baltimore City in March 2020, federal investigators obtained a search warrant for location data for Kennedy’s cellphone at the time of the murder. The location data proved that at the time of the murder, Kennedy was in the parking lot in front of the townhouse where Locksley was killed.
As detailed in the plea agreement, on April 4, 2021, Kennedy falsely testified before the federal grand jury that he was in his house at the time that Meiko Locksley was shot. Federal investigators subsequently learned that witnesses saw Kennedy in front of the townhome where Locksley was shot immediately before and after the shooting. Kennedy was seen putting something in the back of his truck immediately after the shooting, then ran towards the direction of his townhome. Kennedy admits that he lied to the grand jury and that by doing so he obstructed the proceeding and impeded the investigation.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Kim Hagan and Colleen Elizabeth McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Maryland Fraudster Sentenced to More Than Six Years in Federal Prison for Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Archie Arnold Paul, a/k/a “Carter Hill” and “Zion Davis,” age 31, of Laurel, Maryland, to 78 months in federal prison, followed by five years of supervised release, for conspiracy, bank fraud, aggravated identity theft, and for being a felon in possession of a firearm and ammunition. Judge Messitte also ordered Paul to pay at least $151,091.16 in restitution and to forfeit a 9mm caliber semi-automatic pistol bearing no serial number and more than 250 rounds of 9mm ammunition recovered during the execution of a search warrant at Paul’s residence on May 12, 2020.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Christina Bentham of the U.S. Secret Service – Baltimore Field Office.
According to Paul’s plea agreement, he conspired with Jalen Craig McMillan, Jovan Bell, Tiffany Rainel Williams and John Fitzgerald Washington, and others to defraud Bank A. Specifically, Paul, the primary leader and organizer of the scheme, and his co-conspirators, obtained and used fictitious identities and the personal identifying information (“PII”) of real persons. Paul worked with Washington and others to manufacture and procure fraudulent identification documents displaying the PII of the victims, but photographs of others. Paul, Williams, and others used the fraudulent identification documents to impersonate the victims, open account using fraudulent information and make large withdrawals from Bank A that belonged to the victims. McMillan and Bell used their positions as “Member Service Representatives” at Bank A to facilitate both the opening of accounts in the names of identity theft victims provided by Paul and his co-conspirators, and subsequent financial transactions, including assisting with loans. Paul and his co-conspirators, using the information of more than 10 victims, successfully defrauded Bank A of $151,091.16 and tried to obtain more than $405,000.
U.S. Attorney Erek L. Barron commended the U.S. Secret Service for its work in the investigation and thanked the City of Laurel Police Department for its assistance. Mr. Barron also thanked Assistant United States Attorneys Bijon Mostoufi and Ranganath Manthripragada, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man Sentenced to 9 Years for Meth ConspiracyRead the Press Release
United States Attorney Susan Lehr announced that Jose Luis Garcia-Perez, 23, a Mexican citizen living in Omaha, Nebraska, was sentenced March 27, 2024, in federal court in Omaha for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. United States District Court Judge Brian C. Buescher sentenced Garcia-Perez to 108 months’ imprisonment. There is no parole in the federal system. After Garcia-Perez’s release from prison, he will begin a 3-year term of supervised release.
On August 2, 2023, Garcia-Perez arrived at an Autozone parking lot in Omaha to receive approximately 22.75 kilograms of meth coming from Texas. He was arrested by DEA agents along with three co-defendants. In a post-arrest interview after he was advised of his rights, Garcia-Perez admitted to agents that he was sent a message on Facebook to go to the Autozone parking lot to pick up some “things,” which he knew were drugs. Garcia-Perez further admitted this was not his first time picking up drugs.
Co-defendants Gregorio Mina-Falcon, 35, of Omaha and Eliuth Montero-Barrera, 24, of Dallas have pleaded guilty to the same charge and are scheduled to be sentenced in May. Co-defendant Alexis Rodriguez, 22, of Dallas is scheduled to plead guilty to the same charge on March 28, 2023.
This case was investigated by the Drug Enforcement Administration.
Man Sentenced for $87M Healthcare Fraud Kickback ConspiracyRead the Press Release
UPDATE
The defendant’s conviction was overturned pursuant to a decision by the Seventh Circuit, and he was acquitted on all counts.
An owner of a durable medical equipment (DME) company was sentenced yesterday to three and a half years in prison and ordered to forfeit $1.8 million for his participation in a healthcare fraud kickback conspiracy.
According to court documents and evidence presented at trial, Mark Sorensen, 53, of Chicago, owned Symed Inc. (Symed), a Chicago DME pharmacy that paid illegal kickbacks to obtain patients to bill to Medicare, TRICARE, and the Department of Labor’s Office of Workers’ Compensation Programs. Between 2015 and 2018, Sorensen illegally bought patient leads from Bernie Perconti, who in turn obtained the leads from others, including Craig O’Neil and Christine Anderson. Sorensen and his co-conspirators also tricked patients into agreeing to receive braces. Many times, patients received braces that they did not need or want, and sometimes received four, five, or six braces. The co-conspirators also repeatedly called and faxed doctors to get them to sign the prescriptions authorizing the braces. In total, Sorensen and his co-conspirators, through Symed, fraudulently billed Medicare $87 million and received $23.6 million.
Perconti, O’Neil, and Anderson each pleaded guilty to conspiracy to pay and receive kickbacks in October 2019, July 2020, and January 2021, respectively. Perconti and O’Neil are scheduled to be sentenced at a later date. Anderson was sentenced in April 2022.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Robert W. Wheeler Jr. of the FBI Chicago Field Office; Special Agent in Charge Mario Pinto for the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Irene Lindow for the Department of Labor Office of Inspector General (DOL-OIG); and Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.
The FBI, HHS-OIG, DOL-OIG, and DCIS are investigating the cases.
Assistant Chief Leslie S. Garthwaite and Trial Attorney Jeffrey Crapko of the Criminal Division’s Fraud Section are prosecuting the case.
Man Charged with Damaging Religious PropertyRead the Press Release
Suspect Painted Nazi Symbols on Jewish House of Worship
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today charged Jiafeng Chen, 27, with damaging religious property. The Information charges that in November 2023, Chen spray-painted swastikas on the Chabad House of Kalamazoo. A prominent menorah in front of the house was also defaced. The menorah is a seven-branched candelabrum historically associated with the Jewish faith.
“Every faith community in this country has the right to gather and worship free from intimidation,” said U.S. Attorney Mark Totten. “Defacing religious property is not mere vandalism. It’s an attack on a constitutional right that tries to tell certain people they’re not welcome in the community. We will continue to work with our partners to prevent these crimes and hold those who commit them swiftly accountable.”
The Information alleges that Chen vandalized the house because of the Jewish characteristics of individuals associated with it. The Chabad organization conducts religious, cultural and community activities at the house, including Jewish religious services.
“This single incident created confusion, fear, and intimidation in our community,” said Kalamazoo Department of Public Safety Chief David Boysen. “We are thankful to have such dedicated officers, like Detective Stolsonburg, who put countless hours into this investigation. Only due to the continued partnerships and support of the U.S. Attorney’s Office for the Western District of Michigan, the FBI, and the Task Force Officer’s position, were we able to see successful charges in this investigation.”
“People of all faiths should not live in fear because of the religion they choose to practice,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and our law enforcement partners have remained vocal advocates of protecting all places of worship and are committed to removing those from our communities who resort to bias-motivated violence.”
The charge in an information is merely an accusation, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Lyon County Man Sentenced to over Four Years in Federal Prison for Possessing Child PornographyRead the Press Release
Paducah, Ky. – A Lyon County, Kentucky, man was sentenced yesterday to 4 years and 3 months in federal prison for possessing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of Homeland Security Investigations Nashville and Lyon County Sheriff Brent White made the announcement.
According to the court documents, Taylor Glass, 34, of Kuttawa, Kentucky, was sentenced to 4 years and 3 months in federal prison, followed by 10 years of supervised release, for possessing child pornography. Glass was also ordered to pay $41,000 in restitution to multiple victims in the case.
There is no parole in the federal system.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations (HSI) and the Lyon County Sheriff’s Office.
Assistant United States Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Local students exposed to art through U.S. Attorney’s Office art mentoring programRead the Press Release
MIAMI – For the first time since COVID-19, the Artify Art Mentoring Program of the U.S. Attorney’s Office (USAO) for the Southern District of Florida has returned.
Part of the Law Enforcement Coordination and Community Outreach Section, USAO, this program pairs Paul L. Dunbar K-8 Center students with art mentors from New World School of the Arts, Visual Arts Program, in Miami.
The program, which staff began in 2016, was started because research showed the arts provide students with more creative outlets, additional skills, and career options. The proximity of Dunbar K-8 Center to New World School of the Arts made it a natural choice to pilot the program.
“It’s a way for a seasoned college art student to provide knowledge on different art subjects to young students who may not get that exposure otherwise,” said Law Enforcement Coordination Specialist Michael L. Martinez. “Each mentor may focus on different mediums. This year, for instance, we have one mentor who specializes in sculpting but has a background in drawing and painting.”
Job opportunities for art students include fine artist creating and selling original work; illustrator; graphic designer; art teacher; and interior/furniture designer, among others.
“We are always trying to find new ways to impact the lives of our youth and communities in the best way possible,” said Law Enforcement Coordination Specialist Mark McKinney. “Art is a way for students to express themselves and the feelings they have in that moment, plus learn life skills that may benefit them down the road.”
New World School of the Arts mentors work with the entire Dunbar 8th-grade class, which comprises 17 students. The mentors come to Dunbar and work with the class twice per month. The small class size ensures plenty of one-on-one instruction.
“The students see the same mentor each session,” said Martinez. “It’s a good way for them to establish trust and build a rapport. You can see the relationship grow. At first, the students may be hesitant to participate or ask questions of the mentor, but as time moves on, they really open up. It’s nice to see.”
Past ideas for the students have included new murals on school walls and minor repairs to existing murals, in addition to various assignments provided by the art mentor.
“Artify promotes self-esteem, fosters creativity, builds positive relationships, and teaches life skills like problem solving, persistence, and collaboration,” said Community Outreach Specialist Robin McCowen. “Students learn that they have options, and they feel empowered to make positive choices and contribute to their communities.”
It’s not just the students who are excited, the mentors also enjoy the interaction.
“They’re excited to be in the program,” said Martinez. “Their enthusiasm comes through when teaching the kids. You can see it when they have that lightbulb moment and learn a new skill. It’s special for the mentors.”
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
A New World School of the Arts mentor recently showed Paul L. Dunbar 8th-grade students techniques to produce art projects using a cyanotype paper, sun exposure, and water to create an almost x-ray effect. The mentorship program is a collaboration between Law Enforcement Coordination & Community Outreach Section of the U.S. Attorney’s Office and the Visual Arts Program of New World School of the Arts.
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Lancaster County Man Who Discarded Murder Victim on Westville Highway Sentenced to Federal Prison for Gun and Drug OffensesRead the Press Release
COLUMBIA, S.C. — Shannon Layne Myers, 51, of Lancaster, was sentenced to 30 years in federal prison after pleading guilty to a wide range of federal gun and drug charges, including conspiracy to distribute methamphetamine and heroin, four counts of possession with intent to distribute methamphetamine or heroin, three counts of being a felon in possession of a firearm, two counts of possessing a firearm in furtherance of drug trafficking, and one count of brandishing a firearm in furtherance of drug trafficking.
Evidence presented to the court showed that Myers was helping to lead a drug distribution operation in Lancaster and Kershaw counties, which was being directed by Daniel Shannon, an inmate serving a life sentence in the South Carolina Department of Corrections. After coming to believe that one of his drug couriers had been robbed, Shannon sent his associates to retaliate, and a Kershaw man was shot and killed in September of 2019. Daniel Shannon then sent Shannon Myers to help clean up the murder scene, and Myers discarded the victim’s body alongside a highway in Westville.
In November of 2019, agents with Homeland Security Investigations (HSI) and the Lancaster County Sheriff’s Office executed search warrants at Myers’ home in Lancaster, where they found over 700 grams of methamphetamine, smaller quantities of heroin and other drugs, cash, scales, drug ledgers, and several loaded firearms. Myers was arrested but released on bond in the spring of 2020. He and his associates quickly went back to dealing drugs, and he was even captured on video waiving a gun in front of drug customers, while weighing methamphetamine and counting money. Investigators searching his home in June 2020 once again found drugs, scales, and a loaded gun.
“These defendants operated without regard for life or the law,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Illegal drug trafficking rings like this jeopardize the health and safety of our community.”
“This lengthy sentence highlights the severity of Myers’ actions and their impact on the community,” said Kyle Burns, Acting Special Agent in Charge of HSI Charlotte, which covers North and South Carolina. “HSI is committed to holding those accountable who recklessly distribute their poison into our communities.”
“Inmates with illegal contraband cellphones are the biggest threat to public safety in America, and this is another tragic example,” said Bryan Stirling, Director of the South Carolina Department of Corrections. “We need a permanent solution to remove this menace from society and make our communities safer.”
Myers pleaded guilty to all charges the day before he was scheduled for trial in October of 2023. The leader of the conspiracy, Daniel Shannon, also pleaded guilty and was sentenced to life in federal prison in June of 2023.
United States District Judge Sherri A. Lydon sentenced Myers to 360 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by Homeland Security Investigations, South Carolina Department of Corrections-Office of Inspector General, Lancaster County Sheriff’s Office, and the Kershaw County Sheriff’s Office. Assistant U.S. Attorneys Chris Schoen, Everett McMillan, and Ben Garner prosecuted the case.
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La Vista Woman Sentenced to more than 11 Years’ Imprisonment for Drug ChargeRead the Press Release
United States Attorney Susan Lehr announced that, Asia Gabriel Blackburn, 29, of La Vista, Nebraska, was sentenced March 27, 2024, in federal court in Omaha, Nebraska, after having pled guilty to conspiracy to possess with intent to distribute fentanyl, cocaine, and methamphetamine. United States District Court Judge Brian C. Buescher sentenced Blackburn to 140 months’ imprisonment on the drug charge. After completing her term of imprisonment, Blackburn will be required to serve a 5-year term of supervised release. There is no parole in the federal system.
On October 22, 2022, law enforcement located a suspicious parcel at a Omaha UPS facility. After a drug detecting canine indicated the presence of narcotics in the parcel, a search warrant was obtained. A subsequent search revealed approximately 123 grams of blue M-30 fentanyl pills, 523 grams of cocaine, and 13.4 grams of meth.
On October 24, 2022, law enforcement obtained an anticipatory search warrant for a controlled delivery to the South Omaha residence the parcel was addressed to. A law enforcement officer acting in an undercover capacity delivered the parcel where Asia Blackburn accepted it and took it inside the residence. The search warrant was executed shortly thereafter revealing the unopened package.
During the execution of the search warrant Blackburn’s cell phone was seized. A search warrant executed on Blackburn’s phone revealed text messages referencing delivery of the package to Blackburn’s residence.
This case was investigated by the Drug Enforcement Administration.
Kern County Man Sentenced to over 5 Years in Prison for $850,000 Credit Card Fraud SchemeRead the Press Release
FRESNO, Calif. — Miguel Leyva, 36, of Wasco, was sentenced today to five years and five months in prison and ordered to pay $693,614 in restitution for conspiring to commit bank fraud and aggravated identity theft in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court records, between February 2016 and August 2022, Leyva and his partner and co-defendant, Karina Arceo, stole the personally identifiable information (PII) for more than 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked.
According to court documents, Leyva and Arceo used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities. They used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses so that any communications related to the credit cards would go to them instead of the victims. They then made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Kern County and elsewhere. The fraudulent purchases included home appliances, automobile accessories, designer clothing, tickets to concerts and sporting events, and travel, among other items.
Often times, Leyva and Arceo resold the items that they fraudulently purchased for cash and reaped a windfall because they did not actually pay for the items. They also used checks that had been stolen from companies in Kern County to access the companies’ bank accounts and make fraudulent payments towards the credit cards so as to keep their scheme going. Altogether, their scheme caused a loss of more than $825,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.
Charges are pending against Arceo. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Keene Man Indicted for Possession and Access with Intent to View Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Keene man was indicted for possession and access with intent to view child sexual abuse material, U.S. Attorney Jane E. Young announces.
Connor Mueller, 29, was indicted on February 14, 2024, on one count of Possession and Access with Intent to View Child Pornography. Mueller will appear in federal court today at 4:15p.m.
According to the charging documents on or about August 24, 2023, Mueller possessed material that contained one or more images of child sexual abuse, including images depicting minors who have not attained 12 years of age. These images were transported in and affecting interstate commerce by any means, including by computer.
The charge of Possession and Access with Intent to View Child Pornography provides for a sentence of up to 20 years in prison, a minimum of 5 years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire Internet Crimes Against Children Task Force and the Keene Police Department. Assistant U.S. Attorney Geoffrey Ward is 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.
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.
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KC Tax Preparer Pleads Guilty to Wire Fraud, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer pleaded guilty in federal court today to a wire fraud scheme in which he filed federal income tax returns for his clients that contained false information.
Ebens Louis-Loradin, 44, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of wire fraud and 10 counts of aiding in the preparation of false tax returns.
Louis-Loradin, who has been a tax preparer since 2012, admitted that he engaged in a scheme to defraud the IRS and obtain money by preparing and electronically filing federal tax returns containing false items over a six-year period from March 20, 2013, to April 14, 2019. Louis-Loradin claimed items on his clients’ federal tax returns that his clients were not entitled to claim, including dependents, inflated income tax withholding amounts, credits for child and dependent care expenses, American opportunity credits, earned income credits, itemized deductions, and business losses. These false claims had the effect of reducing his clients’ taxable income and increasing his clients’ tax credit eligibility.
Under federal statutes, Louis-Loradin is subject to a sentence of up to 20 years in federal prison without parole for his conviction of wire fraud and up to three years in federal prison without parole for his conviction on each of the 10 counts of aiding in the preparation of false tax returns. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Aug. 1, 2024.
This case is being prosecuted by Assistant U.S. Attorney Nicholas P. Heberle. It was investigated by IRS-Criminal Investigations.
Justice Department Secures Agreement with Information Technology Staffing Company to Resolve Hiring Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Frank Recruitment Group Incorporated (FRG), an information technology staffing company that does business under eight brand names (Revolent Group, Nigel Frank International, Mason Frank International, Washington Frank International, Anderson Frank International, Nelson Frank International, Jefferson Frank International and FRG Technology Consulting) at locations throughout the United States. The agreement resolves the department’s determination that FRG violated the Immigration and Nationality Act (INA) by excluding or deterring certain non-U.S. citizens with permission to work in the United States from applying to job opportunities because of their citizenship status.
“Employers cannot unlawfully discriminate against individuals granted asylum or refugee status in hiring,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will continue to hold employers accountable for imposing barriers to employment based on citizenship status, in violation of our nation’s civil rights laws.”
The department’s investigation determined that FRG published several online job advertisements with language that restricted eligibility to U.S. citizens and lawful permanent residents, even though FRG had no lawful basis to do so. FRG’s restrictive job ads excluded and deterred other potentially qualified individuals, including individuals granted asylum or refugee status by the federal government, based on their citizenship or immigration status. Under the INA, employers cannot discriminate in hiring based on citizenship or immigration status unless a law, regulation, executive order or government contract requires such discrimination.
Under the terms of the settlement, FRG will pay $100,000 in civil penalties to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and be subject to monitoring by the department.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information about how employers can avoid discrimination in hiring and recruiting on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar or watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
Jonathan Bash Sentenced to 21 Years Imprisonment for Distribution of A Fentanyl Analogue Resulting in DeathRead the Press Release
CHATTANOOGA, Tenn. – Today, Jonathan Bash, 25, of Chattanooga, Tennessee, was sentenced to 252 months’ imprisonment by the Honorable Curtis L. Collier, United States District Court Judge for the Eastern District of Tennessee at Chattanooga, after distributing para-fluorofentanyl, resulting in the overdose death of Charlotte Gallant. Following his incarceration, he will be on supervised release for five years.
As part of the plea agreement filed with the court, Bash pled guilty to distributing para-fluorofentanyl, a fentanyl analogue, that resulted in the death of 19-year-old Charlotte Gallant, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). According to the plea agreement, Bash sold a fentanyl analogue to a young man who shared it with his girlfriend, Ms. Gallant. According to filed court documents, Bash misrepresented the drug as ketamine, a commonly abused “club drug” that is often used for its perceived anesthetic and hallucinogenic effects. Both the young man to whom Bash sold the fentanyl analogue and Ms. Gallant overdosed. The young man suffered serious bodily injuries but ultimately survived the overdose. Paramedics were unable to revive Ms. Gallant, who died shortly after ingesting the drug.
“This is a tragic case. Using any kind of narcotic acquired on the streets or even from a friend, regardless of how the drug appears to be marketed, can unknowingly lead to the use of fentanyl, and the effects can be lethal,” said United States Attorney Francis M. Hamilton, III. “Our office will continue to prosecute these cases to bring justice to the community and the families of the victims, including Ms. Gallant and her family.”
“The U.S. Postal Inspection Service values our law enforcement partners and the U.S. Attorney’s office in the Eastern District of Tennessee who brought justice to this investigation,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This case sends a clear message that the U.S. Postal Inspection Service along with our law enforcement partners will work tirelessly to protect the communities we serve by combating the flow of deadly drugs like fentanyl and holding drug traffickers accountable.”
“A 21-year sentence highlights the serious risks fentanyl poses and serves as a testament to HSI’s collaborative efforts in combating drug trafficking,” said HSI Nashville Special Agent in Charge Rana Saoud. “Fentanyl has a devastating impact on our communities and HSI will continue to fight alongside our law enforcement partners to disrupt and dismantle illicit narcotics organizations.”
“The most impactful investigations occur through meaningful collaboration and coordination with our local, state, and federal partners. The FBI is a proud federal partner of the U.S. Postal Inspection Service and Homeland Security Investigations, said Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation.”
The criminal investigation was the result of an investigation by the United States Postal Inspection Service, Homeland Security Investigations, the Federal Bureau of Investigation, and the Chattanooga Police Department.
Assistant U.S. Attorneys James Brooks and Frank Clark represented the United States.
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Johnstown Man Sentenced to Five Years in Prison for Conspiring to Possess CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, was sentenced in federal court to 60 months in prison, to be followed by four years of supervised release, on his conviction of conspiracy to possess with intent to distribute cocaine, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Kim R. Gibson imposed the sentence on Clinton Dudley, 36.
According to information presented to the Court, in and around August 2021, in the Western District of Pennsylvania, Dudley knowingly, intentionally, and unlawfully attempted to possess with intent to distribute 500 grams or more of cocaine.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Postal Inspection Service and the Federal Bureau of Investigation’s Safe Streets Task Force for the investigation that led to the successful prosecution of Dudley.
Jamaican National Admits Making False Statement in United States Passport ApplicationRead the Press Release
NEWARK, N.J. – A Jamaican national admitted making a false statement in an application for a U.S. passport, U.S. Attorney Philip R. Sellinger announced today.
Stefan Anderson, 47, of Jamaica, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court on March 26, 2024, to one count of false statement in a passport application. The matter, originally indicted in the Western District of Michigan, Southern Division, was transferred by consent to the District of New Jersey for plea and sentencing.
According to documents filed in this case and statements made in court:
On April 21, 2022, Anderson applied for a U.S. passport in Wyoming, Kent County, Michigan. Anderson falsely claimed to be another individual, a United States citizen. Anderson also presented a Michigan Temporary State Identification card bearing that individual’s name and personal identifying information in support of the application.
The count of false statement in a passport application carries a maximum potential penalty of 10 years in prison, and a fine of $250,000. Sentencing is scheduled for June 6, 2024.
U.S. Attorney Sellinger credited the U.S. Department of State, Diplomatic Security Service, Detroit Resident Office and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Detroit Field Office with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
anderson.indictment.pdfIllegally Armed Domestic Abuser Sentenced to over Two Years in Federal Prison After Threatening to Kill Girlfriend with GunRead the Press Release
INDIANAPOLIS- Jose de Jesus Rodriguez-Soto a/k/a Pedro Torres, 34, of Mexico, has been sentenced to 28 months in federal prison after pleading guilty to unlawful possession of a firearm by an illegal alien.
According to court documents, on June 27, 2023, IMPD officers were dispatched to investigate a domestic violence incident near Eagledale, in Indianapolis. Once officers arrived, the victim’s daughter reported that Torres came to their home with a pump-action shotgun and threatened to “kill them all.” Torres was still at the home and sitting in his vehicle with the firearm visible. Torres resisted the officers, but they were ultimately able to safely arrest him and secure the weapon.
The victim later informed officers that Torres sent her threatening text messages, which included a picture of the shotgun he brought to her home. Later that evening, Torres called the victim from jail and attempted to get her to drop the charges against him.
Torres is a Mexican national who was in the United States without lawful authorization, prohibiting him from legally possessing a firearm.
“Violent, illegally armed abusers pose a profound danger to those closest to them, police, and the entire community,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Through our LEATH initiative, federal prosecutors will continue to work hand in hand with HSI, IMPD, and law enforcement agencies across the district to save lives by disarming domestic abusers and removing them from our communities.”
Homeland Security Investigations and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Torres be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jeremy C. Fugate, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also 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.
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Hopkinsville Felon Sentenced to over 4 Years for Illegally Possessing a FirearmRead the Press Release
Paducah, KY – A Hopkinsville man was sentenced yesterday to 4 years and 9 months in prison for illegally possessing a firearm after having been previously convicted of a felony offense.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to court documents, Eric L. Clark, 42, was sentenced to 4 years and 9 months in prison, followed by 3 years of supervised release, for unlawfully possessing a RG Industries .22 caliber revolver on December 31, 2020. Clark was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On April 26, 2017, in Christian Circuit Court, Clark was convicted of first-degree trafficking in a controlled substance (less than 4 grams of cocaine), first offense.
On April 26, 2017, in Christian Circuit Court, Clark was convicted of first-degree trafficking in a controlled substance (less than 4 grams of cocaine), first offense (two counts).
There is no parole in the federal system.
This case was investigated by the Hopkinsville Police Department and the ATF Bowling Green Field Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, 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.
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Georgetown Woman Indicted for Falsifying Statements to Federal Investigators Regarding 2009 Kidnapping and Murder of Brittanee DrexelRead the Press Release
CHARLESTON, S.C. — A federal grand jury has returned a three-count indictment against Angel Cooper Vause, 56, of Georgetown, for making false statements to federal investigators.
According to the indictment, in May 2022, Vause is alleged to have lied to investigators with the FBI during the investigation into the 2009 disappearance and murder of Brittanee Drexel. Vause was arrested this morning and is scheduled to be arraigned today in Charleston at 1 p.m. before Magistrate Judge Molly H. Cherry.
The case was investigated by the FBI Columbia Field Office. Assistant United States Attorneys Winston Holliday and Elle E. Klein are prosecuting the case.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Gang Member Indicted for Conspiracy to Commit Bank Fraud, Aggravated Identify Theft, Witness Tampering, Destruction of Evidence, and Possession of AmmunitionRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg the announces the return of an indictment charging Tyler Jacob (24, Winter Haven) with conspiracy to commit bank fraud, aggravated identify theft, witness tampering, destruction of evidence, and possession of ammunition. If convicted, Jacob faces a minimum mandatory sentence of 2, up to 20 years, in federal prison.
According to the criminal complaint and indictment, Jacob used check writing software to create fraudulent or fictitious checks and then submitted those checks at various financial institutions with forged signatures. The funds obtained from the deposited checks were then quickly withdrawn, defrauding the financial institution or business prior to the financial institution or business being able to identify the deposited checks as fraudulent.
Jacob utilized dozens of willing participants to accomplish his scheme. Specifically, these co-conspirators provided him with bank account information in their own names, deposited checks themselves, and withdrew those funds on Jacob’s behalf. Between 2021 and 2023, more than 100 victims and over 15 financial institutions throughout the Middle District of Florida were defrauded.
On January 23, 2024, the FBI executed a search warrant at Jacob’s residence. During the search, Jacob barricaded himself inside the residence, and began to use a shredding machine to destroy evidence. Investigators eventually found shredded papers on both floors of the residence and a shredding machine that was jammed. Jacob also threw documents inside his washing machine. Investigators located a checkbook and financial documents in the names of other individuals, printers, a scanner, and approximately 25 rounds of .556 rifle ammunition. As a convicted felon, Jacob was prohibited from possessing ammunition.
After his arrest, Jacob made phone calls to an individual and attempted to have that individual dispose of evidence and lie to law enforcement.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Polk County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Gamma Healthcare and Three of Its Owners Agree to Pay $13.6 Million for Allegedly Billing Medicare for Lab Tests That Were Not Ordered or Medically NecessaryRead the Press Release
Gamma Healthcare Inc. (Gamma), a laboratory located in Poplar Bluff, Missouri, and three of its owners, Jerry W. Murphy, Jerrod W. Murphy and Joel W. Murphy (the Murphys), have agreed to pay the United States $13,619,660.18 to resolve allegations that they violated the False Claims Act (FCA) by submitting or causing the submission of claims to Medicare for lab tests that were not ordered by health care providers and were not medically necessary. Gamma, Jerry W. Murphy and Jerrod W. Murphy also agreed to a 15-year exclusion from participating in federal health care programs.
The settlement announced today resolves allegations that, from Jan. 1, 2020, to Oct. 31, 2020, Gamma and the Murphys submitted or caused to be submitted claims to Medicare for medically unnecessary polymerase chain reaction (PCR) urinalysis laboratory tests that were not ordered by treating physicians. When a physician ordered a urinalysis (UA) with culture and sensitivity (C&S) or just a C&S, Gamma automatically performed, and submitted claims for payment to Medicare for, a urinary tract infection (UTI) panel of tests by PCR (the UTI PCR Tests). Medicare reimbursements for the UTI PCR Tests were significantly higher than reimbursements for a UA with C&S — on average, Medicare paid approximately $11 for a UA with C&S but paid an additional $573 for a panel of UTI PCR Tests. Gamma’s requisition forms were structured in a way that did not allow physicians to opt out of the UTI PCR Tests. Physicians expressed concerns to Gamma about the UTI PCR Tests as early as March 2020, including concerns that they did not order the tests, that the tests were expensive and that they were not medically necessary.
“Laboratories are permitted to bill federal healthcare programs only for medically necessary tests that are actually ordered by physicians,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to hold accountable those who seek to misuse federal healthcare programs for their own financial gain.”
“We’d like to thank the whistleblower for bringing his concerns forward,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “As a result, Gamma and its owners who were responsible for this fraud will not be able to participate in federal health care programs for 15 years, and a large sum of money is being returned to Medicare.”
“Health care providers who cause the submission of Medicare claims for medically unnecessary services pose a significant risk to the program and the patients who rely on it,” said Special Agent in Charge Linda Hanley of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG works diligently with our law enforcement partners to hold accountable individuals who, to satisfy their own greed, exploit federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Bradley Bibb M.D., a physician who owns a number of health care clinics and provided services to patients for whom Gamma performed laboratory tests. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bibb v. Gamma Healthcare Inc. et al., No. 1:20-cv-00250-SNLJ (E.D. Mo). Bibb will receive $2,315,342.23 of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Missouri, with substantial assistance from HHS-OIG and FBI. Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorney Suzanne Moore for the Eastern District of Missouri handled the matter, with the assistance of Financial Analyst Sheryl Paynter of the Civil Division.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementFormer Wayne County Sheriff’s Deputy Pleads Guilty to His Role in a Drug Trafficking and Procurement Fraud ConspiraciesRead the Press Release
WILMINGTON, N.C. – Michael Kenneth Cox, age 49, pled guilty to two federal charges related to his role in a drug trafficking conspiracy and a procurement mail and wire fraud conspiracy. Cox, who was employed by the Wayne County Sheriff’s Office (WCSO) from 1996 until he retired as the head of the drug unit in 2018, pled guilty to one count of conspiracy to distribute and possess with intent to distribute quantities of cocaine, methamphetamine, oxycodone, and marijuana. Cox also pled guilty to one count of conspiracy to commit procurement wire and mail fraud with his co-defendant Christopher Worth in connection with contracts his business received from WCSO. When sentenced, Cox faces up to 20 years for each charge.
“As a leader of the Drug Unit, Cox’s job was to put drug traffickers behind bars, not go into business with them,” said U.S. Attorney Michael Easley. “We trust law enforcement to uphold the law, but a rare few choose to abuse their positions with criminal side-hustles. Corruption like this undermines our institutions, cheats taxpayers, and endangers the public. The people of Eastern North Carolina, and all the honest cops who put their lives on the line, deserve better and we won’t stand for it.”
"Law enforcement officers are entrusted with an incredible responsibility to serve our communities and ensure justice. Anyone who takes advantage of their position for personal gain or in persistence of criminal activity must and will be held accountable. The Federal Bureau of Investigation (FBI) will continue to root out public corruption on behalf of the vast majority of hard-working officers who carry out their duties honestly and honorably," said FBI Special Agent in Charge, Robert M. DeWitt.
According to court documents and other information presented in Court, while Cox was a sheriff’s deputy, he helped various drug traffickers operating in Wayne County evade charges. In one instance, he intercepted a drug trafficker who had made a purchase from the target of a Drug Enforcement Administration (DEA) investigation. Rather than arrest the trafficker, he seized the drugs and reimbursed him $2000 for the sale, claiming it had been a planned, controlled purchase. Even after his retirement, Cox continued his relationships with the drug traffickers, facilitating the purchase of drugs for other individuals. In addition, Cox was engaged in a scheme in which contracts for upfits of WCSO vehicles were steered to a business owned by Cox, and employing co-defendant Worth, regardless of whether Cox’s company provided such work at the lowest price as required by the Wayne County procurement requirements. Cox was indicted in August of 2023.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Chief District Judge Richard E. Myers II accepted the plea. The FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are investigating the case and Assistant U.S. Attorneys Dennis Duffy and Nick Hartigan are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-260.
Former Pike County deputy sentenced to more than 8 years in prison for excessive use of forceRead the Press Release
COLUMBUS, Ohio – A former Pike County deputy was sentenced in federal court here today to 100 months in prison for committing civil rights violations while employed as a law enforcement officer.
In August 2023, Jeremy C. Mooney, 49, was convicted by a federal jury of two counts of violating a victim’s constitutional rights by pepper spraying and punching the victim in the head, while the victim was in the custody of the Pike County Sheriff’s Office and posed no threat to himself or others. The jury found that Mooney’s offenses involved the use of a dangerous weapon and resulted in bodily injury.
“This defendant is being sentenced for the violent assault of an inmate who was confined to a restraint chair and unable to protect himself or escape from the abuse,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All people in our country have a right to be free from excessive force by law enforcement officers. The Justice Department will continue to aggressively prosecute any law enforcement officer who willfully violates the civil rights of the people they are sworn to protect and serve.”
“Communities trust in law enforcement officers to uphold the rule of law and, as public servants, they must honor that responsibility, not deprive individuals of their civil rights,” said U.S. Attorney Kenneth L. Parker. “Law enforcement officials who abuse their powers like Mooney did will be held accountable.”
According to court documents and trial testimony, on Nov. 18, 2019, Mooney transported the victim from the jail to the Pike County Sheriff’s Office headquarters, where he placed the victim in a restraint chair. The restraint chair secured the victim’s hands behind his back and prevented him from being able to move most of his body. For more than an hour, Mooney unlawfully used force against the victim on several occasions.
Mooney dragged the victim — who was in the restraint chair — outside and pepper sprayed him directly in the face. The victim writhed in pain and tipped the chair back off the curb, landing on his back. Mooney then stood over the victim and deployed the pepper spray directly into the victim’s face a second time. Mooney brought the victim back inside the building and walked away. Over the course of several minutes, Mooney returned to that part of the building, where the victim was still handcuffed and secured in the restraint chair and punched the victim in the head 11 times. Mooney punched the victim with enough force to break his own hand.
A former Pike County Sheriff’s Office supervisor, William Stansberry Jr., 47, of Chillicothe, Ohio, was also charged. Stansberry violated the victim’s constitutional rights by willfully failing to intervene to prevent Mooney’s conduct. He pleaded guilty in July 2023 to deprivation of civil rights under color of law and was sentenced on March 5 to six months in prison. Stansberry was also ordered to serve three years of supervised release, with the first six months to be served under home detention.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate and Trial Attorney Cameron A. Bell from the Justice Department’s Civil Rights Division are representing the United States in this case.
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Former Ohio Sheriff's Office Deputy Sentenced for Violating the Civil Rights of an Inmate by Using Excessive ForceRead the Press Release
A former Pike County, Ohio, Sheriff's Office deputy was sentenced today to 100 months in prison and three years of supervised release for federal civil rights violations involving excessive force.
In August 2023, Jeremy C. Mooney, 49, was convicted by a federal jury of two counts of violating a victim’s constitutional rights by pepper spraying and punching the victim in the head, while the victim was in the custody of the Pike County Sheriff’s Office and posed no threat to himself or others. The jury found that Mooney’s offenses involved the use of a dangerous weapon and resulted in bodily injury.
“This defendant is being sentenced for the violent assault of an inmate who was confined to a restraint chair and unable to protect himself or escape from the abuse,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All people in our country have a right to be free from excessive force by law enforcement officers. The Justice Department will continue to prosecute law enforcement officers who willfully violate the civil rights of the people they are sworn to protect and serve.”
“Communities trust in law enforcement officers to uphold the rule of law and, as public servants, they must honor that responsibility, not deprive individuals of their civil rights,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Law enforcement officials who abuse their powers like Mooney did will be held accountable.”
“As a law enforcement officer, Mooney had a duty to protect the civil rights of everyone in his community,” said Special Agent in Charge Elena Iatarola of the FBI Cincinnati Field Office. “By abusing a person in his custody, he violated his oath and federal law. The FBI will continue to hold accountable rogue officers who commit civil rights violations and use excessive force against those they are sworn to protect.”
According to court documents and trial testimony, on Nov. 18, 2019, Mooney transported the victim from the jail to the Pike County Sheriff’s Office headquarters, where he placed the victim in a restraint chair. The restraint chair secured the victim’s hands behind his back and prevented him from being able to move most of his body. For more than an hour, Mooney unlawfully used force against the victim on several occasions.
Mooney dragged the victim — who was in the restraint chair — outside and pepper sprayed him directly in the face. The victim writhed in pain and tipped the chair back off the curb, landing on his back. Mooney then stood over the victim and deployed the pepper spray directly into the victim’s face a second time. Mooney brought the victim back inside the building and walked away. Over the course of several minutes, Mooney returned to that part of the building, where the victim was still handcuffed and secured in the restraint chair, and punched the victim in the head 11 times. Mooney punched the victim with enough force to break his own hand.
A former Pike County Sheriff’s Office supervisor, William Stansberry Jr., 47, of Chillicothe, Ohio, was also charged. Stansberry violated the victim’s constitutional rights by willfully failing to intervene to prevent Mooney’s conduct. He pleaded guilty in July 2023 to deprivation of civil rights under color of law and was sentenced on March 5 to six months in prison. Stansberry was also ordered to serve three years of supervised release, with the first six months to be served under home detention.
The FBI Cincinnati Field Office investigated the case.
Assistant U.S. Attorney Peter K. Glenn-Applegate for the Southern District of Ohio and Trial Attorney Cameron A. Bell of the Justice Department’s Civil Rights Division prosecuted the case.
Former Mt. Oliver Resident Charged with Illegal Possession of Firearm by Convicted FelonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal firearms law, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Johvian Everett, 24, formerly of Mt. Oliver borough, as the sole defendant.
According to the Indictment, on October 21, 2021, Everett knowingly possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation leading to the Indictment.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Los Angeles Deputy Mayor Found Guilty of Racketeering Conspiracy that Corrupted City Real Estate Development ProjectsRead the Press Release
LOS ANGELES – A former deputy mayor and long-time Los Angeles city official was found guilty by a jury today of accepting tens of thousands of dollars in bribe money and facilitating illicit payoffs from property developers to then-Los Angeles City Councilmember José Huizar as part of a long-running conspiracy that corrupted the approval of city real estate projects.
Raymond She Wah Chan, 67, of Monterey Park, was found guilty of all 12 felony counts he faced: one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, seven counts of honest services wire fraud, three counts of bribery, and one count of making false statements to a federal government agency.
“Chan used his leadership position in City Hall to favor corrupt individuals and companies willing to play dirty,” said United States Attorney Martin Estrada. “The residents of Los Angeles deserve much better. With today’s verdict, we send a strong message that the public will not stand for corruption and that pay-to-play politics has no place in our community.”
“Mr. Chan made decisions to enrich himself and his corrupt colleagues instead of advancing projects to benefit the residents of Los Angeles, and then lied about it when confronted with the facts,” said Mehtab Syed, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The ‘Casino Loyale’ investigation has shined a light on the city of Los Angeles, and the FBI will continue to weed out corruption to ensure local government operates honestly to improve the lives of Angelenos.”
Chan formerly was the general manager of the Los Angeles Department of Building and Safety (LADBS) and, later, served as the city’s deputy mayor of economic development from 2016 to 2017.
Huizar, 55, of Boyle Heights, represented Council District 14 (CD-14) on the Los Angeles City Council from December 2005 until his resignation in October 2020. CD-14 encompassed downtown Los Angeles and some of its surrounding areas. During his years on the City Council, Huizar chaired the Planning and Land Use Management (PLUM) Committee, which oversaw all major commercial and residential development projects in the city.
Huizar was sentenced on January 26 to 13 years in federal prison and also was ordered to pay $443,905 in restitution to the City of Los Angeles and $38,792 in restitution to the IRS. He pleaded guilty in January 2023 to one count of racketeering conspiracy and one count of tax evasion.
According to evidence presented at a 12-day trial, Chan and Huizar operated the “CD-14 Enterprise,” a criminal conspiracy that tainted the city approval of real estate projects in the downtown area. Huizar led the enterprise from at least February 2013 until July 2020 and Chan played a key role in ensuring the enterprise’s success during that period.
As part of the conspiracy, while he was the general manager of LADBS and a deputy mayor, Chan established a secret business partnership with real estate development consultant George Chiang, securing a lucrative real estate consulting agreement with Chinese real estate developer Shenzhen Hazens. As part of that agreement, Chan agreed to accept hundreds of thousands of dollars in bribes to advise and pressure city officials in favor of Hazens’ Luxe Hotel redevelopment project.
To maintain the conspiracy’s political power, Chan also facilitated a $100,000 campaign contribution commitment from Hazens in support of Huizar’s wife’s candidacy for the CD-14 seat in exchange for Huizar’s votes to approve the project. A central goal of the enterprise was the succession plan of Huizar’s wife taking over Huizar’s council seat so that Huizar would still have control over downtown through his wife.
Hazens’ U.S. subsidiary, Jia Yuan USA Co. Inc., which was seeking to redevelop the Los Angeles Luxe City Center Hotel, has paid $1.05 million to resolve the government’s investigation into its conduct related to this case, which included bribery and illegal campaign contributions.
Chan also facilitated payment of more than $1 million in bribes to Huizar from billionaire developer Wei Huang, 58, a resident of Shenzhen, China, including $600,000 to settle a sexual harassment lawsuit and luxury-laden gambling trips. At the time he provided these bribes, Huang’s company, Shen Zhen New World I LLC, was planning to redevelop the L.A. Grand Hotel into the tallest tower west of the Mississippi, which would require city approvals and Huizar’s help.
At Huizar’s and Chan’s request – and after Huizar had helped save Chan’s city position by helping to prevent a planned merger that would have eliminated Chan’s department – Huang paid $600,000 to fund a settlement of a sexual harassment lawsuit filed against Huizar by a former CD-14 staffer that threatened his 2015 re-election campaign and thus the enterprise’s political power base. Chan also lied to FBI agents in November 2018 about his involvement in facilitating and structuring the $600,000 settlement, that Huang had no real estate projects needing Huizar’s political support, and that Huang had never asked Huizar for any help with his properties.
Huang, who is charged with several felonies, has yet to make a court appearance in this case and is considered a fugitive believed to be in China.
Following today’s guilty verdicts, United States District Judge John F. Walter scheduled a June 10 sentencing hearing, at which time Chan will face a statutory maximum sentence of 20 years in federal prison for each count of racketeering conspiracy and honest services wire fraud, up to 10 years in federal prison for each bribery count, and up to five years in federal prison for the false statements count.
Previously, in June 2022, real estate developer Dae Yong Lee, a.k.a. “David Lee,” 59, of Bel Air, and one of his companies, 940 Hill LLC, were convicted of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project. Lee is serving a six-year federal prison sentence. 940 Hill LLC was sentenced to five years’ probation, was fined $1.5 million, and was ordered to pay the costs of prosecution.
In November 2022, Huang’s downtown Los Angeles-based company Shen Zhen New World I LLC was convicted of eight felonies for – through the actions of its owner, Huang – paying more than $1 million in bribes – including luxury trip expenses, casino gambling chips and the $600,000 sham loan – to Huizar to obtain city approval to build a 77-story skyscraper. The company was sentenced to five years of probation, fined $4 million, and ordered to pay the costs of prosecution.
Prosecutors also have secured guilty pleas from Chiang, George Esparza, Huizar’s former special assistant, political fundraiser Justin Jangwoo Kim, and lobbyist Morrie Goldman for their roles in the CD-14 Enterprise. Each of these defendants cooperated with the government, testified during at least one trial, and awaits sentencing.
The FBI investigated this matter.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section are prosecuting this case.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s email tip line at https://tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Former Fort Campbell Soldier Sentenced to Life in Prison for Aggravated Sexual Abuse of a MinorRead the Press Release
Louisville, KY – An Illinois man was sentenced this week to life in federal prison for aggravated sexual abuse of a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge John McCabe of the United States Army’s Criminal Investigation Division (CID) at Fort Campbell made the announcement.
Larry Bryan Nash, 40, of Nokomis, Illinois, formerly of Fort Campbell, Kentucky, was sentenced to life in federal prison, followed by a life-term of supervised release, for aggravated sexual abuse of a minor. According to court documents, while enlisted in the United States Army and stationed at Fort Campbell Military Reservation located in Christian County, Kentucky, Nash knowingly caused Jane Doe, a minor, to engage in sexual acts. Nash did so on multiple occasions on or about and between March 5, 2020, and September 16, 2021, and specifically on September 29, 2021, by using force against her. On these occasions, Jane Doe was older than 12 but younger than 16 years old and under Nash’s supervisory control. Nash had sexually abused Jane Doe for several years prior.
There is no parole in the federal system.
This case was investigated by the United States Army CID at Fort Campbell.
Assistant U.S. Attorney Jo E. Lawless prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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