Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 12 February 2024
Canadian National Arrested and Extradited to the United States to Face Charges for Production of Child Sexual Abuse Material and Enticement of A MinorRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and extradition of Paul Creighton (67, Canada). Creighton is charged with enticement of a minor and production of child sexual abuse material. If convicted on all counts, Creighton faces a minimum mandatory sentence of 15 years, up to life, in federal prison.
Creighton, a citizen and resident of Canada, was arrested by Canadian authorities at the request of the United States on November 12, 2020. On February 8, 2024, Creighton was extradited from Canada to the United States. He appeared in Tampa before Untied States Magistrate Judge Sean P. Flynn on February 9, 2024, and was ordered detained pending trial.
According to the indictment, between 2012 and 2017, Creighton communicated via the internet with children throughout the United States. During this time, Creighton induced the children to send sexually explicit photos and videos of themselves. Creighton also sent pictures of himself, purchased sex toys for the children, and later flew to Orlando to meet with one of his victims.
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 investigation was led by the Federal Bureau of Investigation, Tampa Field Office. Substantial assistance was provided by the Department of Justice’s Office of International Affairs, the United States Marshals Service, and the Niagara Regional Police Service. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Arizona man sentenced for role in international drug trafficking ringRead the Press Release
ANCHORAGE, Alaska – An Arizona man was sentenced to 10 years in prison for his role in an international drug trafficking ring targeting Alaska.
According to court documents, Joel Rascone, 30, of Yuma, Arizona, was a member of Miguel Guevara’s drug trafficking ring that smuggled over a dozen kilos of meth, heroin and cocaine from Mexico into Alaska for six years. As part of his role in the enterprise, Rascone sold heroin for the organization in Alaska and sent wire transfers to Guevara’s coconspirators and suppliers in Mexico.
Rascone had four felony convictions in the state of Arizona prior to this case, including theft, possession of a dangerous drug, and two convictions for attempted unlawful use of means of transportation. In the 2017 theft case, Rascone and two other men robbed a gas station in Yuma, Arizona, at knifepoint, all wearing masks over their faces.
Three other defendants in this case have already been sentenced or pleaded guilty:
- Miguel Guevara, a.k.a. “Javi,” 40, has entered a plea of guilty and it is awaiting acceptance from the Court.
- Serena Joseph, 41, pleaded guilty to drug conspiracy and money laundering and was sentenced to 63 months imprisonment.
- Washahiotha Zaragoza, 46, pleaded guilty to drug conspiracy and was sentenced to 18 months imprisonment.
Four additional co-defendants are believed to be at large in Mexico."These prosecutions mark another milestone in our fight against criminals who come to Alaska from Outside to traffic dangerous drugs that harm our communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Dismantling drug trafficking organizations is a priority for my office, and we will continue to partner with law enforcement to keep drugs out of our state and keep Alaskans safe.”
The FBI Anchorage Field Office, U.S. Coast Guard Investigative Service (CGIS) and the Drug Enforcement Administration Seattle Field Office led the investigation, with support from the Anchorage Police Department, Homeland Security Investigations Sells, Arizona Office, U.S. Customs and Border Patrol, Alaska State Troopers, Ted Stevens Anchorage International Airport Police and Alaska National Guard.
Assistant U.S. Attorneys Ainsley McNerney, Christopher Schroeder and William Taylor are prosecuting the case, with assistance from former Assistant U.S. Attorney Allison O’Leary. The U.S. Attorney’s Office, District of Arizona, and law enforcement agencies in the state of Arizona provided additional support on the case.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
###
Saturday 10 February 2024
Dock Edward Hoilman Sentenced to 151 Months for Distribution and Possession of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On February 9, 2024, Dock Edward Hoilman, 64, currently of Kingston, Tennessee, was sentenced to 151 months by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Hoilman agreed to plead guilty to an indictment charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(2); and one count of possession of child pornography in violation of 18 U.S.C. 2252A(a)(5)(B) and 2252A(b)(2). Following his incarceration, Holliman will be on ten years’ supervised release, and he will be required to register with state sex offender registries and comply with special sex offender conditions.
According to the filed plea agreement, on May 27, 2022, Hoilman, a former Y-12 IT Systems Administrator with top secret clearance, distributed child pornography videos through the internet to unknown persons. On August 24, 2022, a search warrant was executed on his home. Hoilman was found to be in possession of 14 images and 25 videos of child pornography.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee; Inspector General , Teri L. Donaldson, United States Department of Energy, Office of Inspector General (DOE-OIG); and Special Agent in Charge Rana Saoud, of the Department of Homeland Security, Homeland Security Investigations (HSI) made the announcement.
The criminal indictment was the result of an investigation by the DOE-OIG, HSI and 9th District Attorney General’s Office. This investigation was led by DOE-OIG Special Agent Paul B. Gilbride and HSI Task Force Officer Cortney Duggar.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”
###
Friday 9 February 2024
Vero Beach resident pleads guilty to fentanyl distribution charges in federal courtRead the Press Release
MIAMI – On Feb. 7, a Vero Beach man pleaded guilty to two counts of distributing fentanyl.
In April 2023, Sudiata Neket Zanja Stinson, 47, of Vero Beach, Florida, sold approximately 20 grams of fentanyl to a purchaser in two separate occasions.
The sentencing hearing has not been set yet. Stinson faces up to 40 years in federal prison.
Stinson’s conviction is the result of a Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) fentanyl distribution operation.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Miami Field Division, and Sheriff Eric Flowers of IRCSO made the announcement.
DEA Miami Field Division, Port St. Lucie Resident Office and IRCSO investigated the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14040.
###
Vancouver Real Estate Developer Sentenced to Federal Prison for Fraudulently Obtaining Covid-Relief Funds, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—A real estate developer and part-time resident of Vancouver, Washington, was sentenced to federal prison today for fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds while on federal supervised release for a previous fraud conviction.
Michael James DeFrees, 62, was sentenced to 21 months in federal prison and five years’ supervised release. He was also ordered to forfeit $1.2 million and pay $1.3 million in restitution to the U.S. Small Business Administration (SBA).
“Michael DeFrees’s crimes demonstrated his indifference to both the many businesses suffering the economic effects of the COVID-19 pandemic and American taxpayers who funded the relief programs created to alleviate these impacts. Prosecuting COVID-19 fraud remains a top priority for the Department of Justice and our partners,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“Fraudulently using pandemic funds for personal gain is deplorable” said SBA Office of Inspector General (SBA-OIG) Western Region Special Agent in Charge Weston King. “This sentence demonstrates that those who defraud the nation’s vital economic programs will be held accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Crime doesn’t pay, as Mr. DeFrees is again finding today,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial crime like Covid-relief fraud hurts all of us and undermines programs meant to help those in need. Today’s sentencing is a reminder that IRS:CI is committed to fighting fraud for the well-being of all our neighbors and communities.”
According to court documents, between April 2, 2020, and April 4, 2022, DeFrees used two different business entities to obtain under false pretenses Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans administered by the SBA. The EIDL and PPP programs, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated shutdowns.
To perpetrate his scheme, DeFrees submitted multiple loan applications to the SBA and two banks in Washington State. In these applications, DeFrees indicated that he was the sole owner of two business entities—Gateway National Corporation, a construction company incorporated in Washington State, and Yacht Harbor, LLC, a real estate development company incorporated in Oregon—and that he, as the sole owner, had never been convicted of any disqualifying criminal offense or recently placed on parole or probation.
In reality, at the time he submitted the applications, DeFrees was on probation following a 2017 felony conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds through a third business entity and spent the funds on personal expenses.
On May 17, 2022, a federal grand jury in Portland returned a four-count indictment charging DeFrees with two counts of wire fraud and one count each of bank fraud and money laundering. On October 26, 2023, DeFrees pleaded guilty to all four charges.
This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Assistant U.S. Attorney Ryan W. Bounds prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Vale Man Sentenced to 45 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Vale, South Dakota, man convicted of Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Receipt of Child Pornography. The sentencing took place on February 5, 2024.
Timothy Scott White, 43, was sentenced to 30 years in federal prison for the Sexual Exploitation charge, 45 years in federal prison for the Attempted Enticement of a Minor charge, and 20 years in federal prison on the Receipt of Child Pornography charge, all to run concurrent. Additionally, White was sentenced to 10 years of supervised released, and order to pay a $300 special assessment to the Federal Crime Victims Fund and $28,000 in restitution. White will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
White was indicted for Production of Child Pornography by a Parent by a federal grand jury in January of 2023. He pleaded guilty on November 3, 2023.
The convictions stem from White producing child pornography of his minor daughter between January of 2020 and December of 2021. Evidence showed White also distributed hundreds of images of child pornography of other victims, as well as received thousands of images and videos.
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.
This case was investigated by the South Dakota Division of Criminal Investigation’s Internet Crimes Against Children Task Force, the FBI, and the Butte County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
White was immediately remanded to the custody of the U.S. Marshals Service.
U.S. Attorney’s Office Recovers More Than $90 Million in Fiscal Year 2023 for Crime Victims and the United States GovernmentRead the Press Release
BOSTON – Acting United States Attorney Joshua S. Levy announced today that the U.S. Attorney’s Office for the District of Massachusetts recovered more that $90 million in Fiscal Year 2023, including $42,233,999 in criminal actions and $25,730,882 in civil actions. The Office recovered another $22,451,124 in criminal and civil forfeiture proceedings in Fiscal Year 2023.
Through work that involved other U.S. Attorney’s Offices, components of the Department of Justice and whistleblowers, the District of Massachusetts collected an additional $918,412,292. Of this amount, the Office collected $29,621 in criminal actions and $918,382,671 in civil actions.
“Our Office is committed to restoring funds to victims of crime and depriving criminals of their ill-gotten gains. Our civil and criminal prosecutors work in close coordination from the outset of an investigation to identify, trace and seize assets to accomplish those important goals. In addition, we have a long history of success in recovering taxpayer dollars in False Claims Act cases. These cases protect the public and root out fraud against the United States in health care, government contracting, grants and other government expenditures. We will continue to make these important collection efforts a very high priority,” said Acting U.S. Attorney Levy.
In Fiscal Year 2023, the Asset Recovery Unit was responsible for the collection of over $41 million in restitution for crime victims. The Unit also recovered nearly $1 million in criminal fines and special assessments, as well as forfeiture of over $22 million in criminal proceeds or other property involved in crimes.
In addition to monetary recoveries, the Asset Recovery Unit: led the effort to return a stolen manuscript from 1527 signed by Hernando Cortez to the Mexican National Archives; returned stolen marksmanship medals to the Springfield Armory; and filed five civil complaints to forfeit cryptocurrency traceable to fraud schemes involving Massachusetts victims. The Asset Recovery Unit locates, seizes and forfeits proceeds of crime, including health care fraud, securities fraud, mail and wire fraud and drug trafficking, as well as money and property involved in money laundering. The Unit pursues forfeiture of ill-gotten gains both domestically and abroad and works closely with units across the Office and its law enforcement partners to ensure that crime doesn’t pay, and that assets are returned to victims.
The Office’s Affirmative Civil Enforcement Unit recovers government money lost to fraud or other offenses. In Fiscal Year 2023, the Unit entered into settlements with defendants totaling approximately $30 million. Among these recoveries, in January 2023, Johnson & Johnson, DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. agreed to pay $9.75 million to resolve Anti-Kickback Statute violations; in June 2023, Injured Workers Pharmacy agreed to pay $10 million to resolve allegations of improper drug dispensing and submitting false claims; and in May 2023 Massachusetts Eye and Ear paid over $5.7 million to resolve false claims allegations. Also in 2023, the Affirmative Civil Enforcement Unit filed suit against Bournewood Health Systems and First Psychiatric Planners for allegedly paying kickbacks to induce patients to choose Bournewood and FPP over other treatment facilities.
The Office’s Civil Rights Unit in the Civil Division also recovered $425,000 for victims of sexual harassment in housing.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Charges New Rochelle Man with Sexual Exploitation of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the unsealing of a Complaint charging CHARUDET SMITH, a/k/a “Charles Smith,” with sexual exploitation of a minor. SMITH was arrested yesterday and presented before U.S. Magistrate Judge Victoria Resnik this afternoon in White Plains federal court.
U.S. Attorney Damian Williams said: “Charudet Smith allegedly constructed an elaborate web of lies and fabricated multiple identities in order to gain the trust of an unsuspecting minor. Today’s arrest underscores the urgent need to protect children from the dangers posed by predators who use social media to prey on children both online and in person.”
As alleged in the Complaint:[1]
From at least on or about December 21, 2019, up to and including at least on or about February 13, 2020, SMITH impersonated various individuals and created and used a series of Instagram accounts, emails, and phone numbers in order to deceive a 17-year-old minor (“Victim-1”) into creating and sending sexually explicit videos and images to SMITH and agreeing to meet SMITH to engage in sexual activity in Seattle, Washington.
SMITH posed as an established freelance photographer for a well-known international camera company (“Company-1”) and told Victim-1, an aspiring teenage photographer, that he had numerous contacts within the media industry and could act as Victim-1’s mentor. SMITH then posed as multiple employees of Company-1 who purported to offer Victim-1 a position in a sought-after youth professional development program. In fact, SMITH was never an employee of Company-1 and had never been paid by Company-1 for any services or any employment.
Anyone who may have encountered CHARUDET SMITH, a/k/a “Charles Smith,” or whose child may have had any communications with SMITH is asked to contact the FBI at 1-800-CALL-FBI (225-5324).
* * *
SMITH, 31, of New Rochelle, New York, is charged with one count of sexual exploitation of a minor, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the efforts of the Federal Bureau of Investigation, the Connecticut U.S. Attorney’s Office, the U.S. Attorney’s Office for the District of Vermont, the Sherriff’s Office in Washington, Vermont, the Massachusetts State Police, the New Rochelle Police Department, and the Westchester County Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Trussville Man Pleads Guilty to Multi-Million-Dollar Health Care Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – Another individual has pleaded guilty in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
John Alan Robson, 40, of Trussville, pleaded guilty yesterday to health care fraud conspiracy.
According to the plea agreement, Robson was a sales representative who marketed to doctors’ offices various health care products and services, including topical prescription creams from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers.
Two of the sales reps named in Robson’s indictment as having engaged in the same conspiracy conduct have previously pleaded guilty to related crimes. Brian Bowman, 42, of Gadsden, and James Ewing Ray, 53, of Gadsden, each pleaded guilty to health care fraud conspiracy. As part of their respective plea agreements, Bowman agreed to forfeit more than $7.6 million, Ray agreed to forfeit more than $800,000, and Robson agreed to forfeit more than $1 million. All three will be ordered, at sentencing, to pay restitution to the victims of their crimes.
Dozens of defendants have been convicted in related cases.
Pharmacy cases. Among the medically unnecessary items Bowman, Ray, and Robson marketed were topical creams for specialty pharmacies including Global Compounding Pharmacy and Watson Rx Solutions. Bowman, Ray, and Robson were paid commissions to induce these prescriptions to be issued. According to Robson’s plea agreement, he and other marketers got blank pre-signed prescriptions from doctors and then completed the prescriptions to ensure the prescriptions would be paid for by insurance, regardless of whether the drugs were medically necessary for patients’ needs. Robson and other marketers also marked specific drugs or drug formulations to make sure insurance would pay for them. And they assured patients and providers that the pharmacies would not insist on collecting copays, which might discourage patients from getting the prescriptions filled. Sales reps also got prescriptions for themselves—regardless of whether there was a medical need—and Bowman, Ray, and Robson were paid commissions on those prescriptions.
More than two dozen defendants have been convicted in connection with the fraud at Global Compounding Pharmacy. Jason Akin, 46, of Florence, has pleaded guilty to health care fraud in connection with the fraud at Watson Rx Solutions.
QBR cases. Another service Bowman, Ray, and Robson marketed was electro-diagnostic testing, specifically, nerve conduction testing, provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Bowman, Ray, and Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. Medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks.
Dr. Eric Beck, 65, of Huntsville, pleaded guilty to health care fraud conspiracy for his role in the fraud at QBR. John Hornbuckle, 54, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud.
Medical practice cases. Defendants associated with multiple medical practices have also been convicted in related cases.
In one case, a jury convicted Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not.
In another case, David Lyle Shehi, 43, of Rainbow City, pleaded guilty to conspiracy to pay kickbacks and commit health care fraud. Shehi owned Etowah Pain, a pain clinic in Rainbow City, and pleaded guilty to receiving kickbacks in exchange for his practice’s ordering items or services that would be billed to Medicare and other health insurance programs.
Mark Murphy and Jennifer Murphy were each sentenced to twenty years in prison. Hornbuckle was sentenced to eighty months. Bowman, Ray, Robson, Shehi, and Akin are all awaiting sentencing. Other co-conspirators have already been sentenced.
The maximum penalty for conspiracy to commit health care fraud is ten years in prison.
The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it.
See related press here:
https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar
https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care
https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy
https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud
Three Defendants Convicted at Trial in $7.9 Million COVID-19 Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against JACOB CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”) that resulted in a loss to the SBA of approximately $7.9 million. The defendants were found guilty of all counts following a two-week trial before U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “As the jury’s swift verdict shows, the proof at trial was overwhelming. The defendants schemed to steal from a taxpayer-funded program that was intended to help small businesses that were in desperate need of assistance during the COVID-19 pandemic. Let this be a lesson that my Office will continue to work to bring justice to those who exploit and defraud government programs during a national emergency. We thank the FBI for their partnership in investigating and prosecuting the alleged scheme.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses. This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program. In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020 in order to provide vital economic support to help overcome the loss of revenue small businesses were experiencing due to COVID-19. Applicants seeking a loan under the EIDL program were also permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA generally provided while the loan application was pending.
From March through July 2020, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million in funds through the SBA’s EIDL Program (the “EIDL Applications”). In connection with the EIDL Applications, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN falsely represented to the SBA that the Applicants were the owners of businesses with 10 or more employees. However, that was a lie – the individuals did not own businesses or employ people. Based on the fraudulent EIDL Applications, the SBA made advance payments of approximately $7.9 million to the Applicants, who then kicked back a portion of the advance payments to CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN. After collecting hundreds of thousands of dollars in kickback payments, CARTER, QUADRI SALAHUDDIN, and ANWAR SALAHUDDIN took photographs of their stacks of cash, purchased expensive jewelry, and CARTER leased a Lamborghini.
* * *
CARTER, 38, of Capitol Heights, Maryland, and QUADRI SALAHUDDIN, 28, and ANWAR SALAHUDDIN, 38, both of Mount Vernon, New York, were each convicted of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The maximum and mandatory potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, Courtney L. Heavey, and Jared D. Hoffman are in charge of the prosecution, with the assistance of paralegal specialist Liam Ronan.
Texas Roofing Company Charged with Fraud Related to Asbestos Removal at Federal Prison in WisconsinRead the Press Release
MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced the filing of a criminal information and deferred prosecution agreement on February 7, 2024, charging Brazos Urethane, Inc. Texas City, Texas, with conspiracy to defraud the U.S. Department of Justice, Federal Bureau of Prisons (BOP).
Brazos contracted in 2014 with the BOP to replace roofs on buildings located at the Oxford Federal Correctional Institution (FCI Oxford) located in Oxford, Wisconsin, at a contract price of nearly $4,000,000. The roofing project involved the abatement of asbestos containing materials that required the use of special removal and disposal procedures to guard against asbestos contamination. As part of the BOP contract, Brazos certified that it would maintain a safe work environment, follow all federal and state laws regarding the removal and disposal of hazardous waste materials, and obtain all necessary permits from the Wisconsin Department of Natural Resources (DNR).
“Brazos dumping hazardous material on a residential property wasn’t just dangerous for the community, it was defrauding the United States government. The public can rest assured that the asbestos has been properly removed and disposed of, and that Brazos is being held accountable for its actions,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Midwest Region.
“The United States requires contractors like Brazos to comply with regulations for the proper removal and disposal of materials containing asbestos,” said U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin. “When contractors fail to comply, they not only defraud the United States, they also endanger their employees and the community. This charge is meant to hold Brazos accountable and deter other contractors from engaging in similar conduct."
Brazos dumped roofing waste materials from the FCI Oxford worksite onto a property he purchased near the prison in early 2015. The roofing waste materials were subsequently found to contain asbestos by Wisconsin DNR regulators on November 4, 2015, and by Environmental Protection Agency regulators on December 16, 2021. Brazos concealed this illegal dumping from the BOP and Wisconsin DNR, then lied about its cleanup efforts once the company was caught.
In 2022, Brazos was ordered by the Wisconsin DNR to properly and completely clean up the roofing waste. The cleanup project cost Brazos $480,000, and took three weeks to accomplish.
As part of the deferred prosecution agreement, Brazos agrees to immediately pay a monetary penalty of $300,000 which represents the amount of money Brazos attempted to save by engaging in the illegal dumping conduct. Brazos also agrees to enter into a three-year corporate compliance program designed to prevent further violations of contract fraud and federal environmental laws. At the end of the three-year program, the charge against Brazos will be dismissed.
The case against Brazos was the result of an investigation conducted by the U.S. Department of Justice, Office of Inspector General. The prosecution of the case was handled by Assistant U.S. Attorney Daniel J. Graber.
Testing Laboratory Co-owner Admits $3.8 Million in Fraudulent BillingRead the Press Release
ST. LOUIS – A former St. Louis County health care company owner on Friday admitted submitting more than $3.8 million in fraudulent claims to Medicare, Medicaid and private health care benefit programs.
Carlos Himpler, 44, now of Baton Rouge, Louisiana, pleaded guilty in U.S. District Court in St. Louis to a felony conspiracy charge.
Himpler, who at the time lived in St. Louis County, described himself as a “business development strategist” and owned or operated a series of health care-related businesses. Himpler’s co-defendant, Dr. Franco Sicuro, also owned businesses including Advanced Geriatric Management LLC (AGM) at 10199 Woodfield Lane in Creve Coeur. In the fall of 2014, Himpler and Dr. Sicuro decided to open an in-house testing lab at AGM. They also decided to open Genotec DX, which they held out as a clinical testing laboratory, and agreed to split profits 50-50. Genotec was in the same building and used the same testing machine as AGM’s lab.
Their goal was to maximize their profits from the lab testing business. Himpler and Dr. Sicuro sought accreditation for both labs under the Clinical Laboratory Improvement Amendments (CLIA), which set forth quality standards for laboratories that test blood, body fluid, and tissue taken from humans for diagnosis, prevention or treatment of disease. The pair did not disclose that both labs would employ the same part-time employee who would perform tests using the same machine, Himpler admitted in his plea. To convince CLIA to grant Genotec a final certificate of compliance in November 2015, Himpler participated in causing Genotec to make misrepresentations to CLIA, including that Genotec’s testing hours “changed” so that they no longer overlapped with AGM, Genotec and AGM kept separate laboratory logs and AGM stopped lab running samples and transferred its employees to Genotec in July of 2015, when Genotec began running urine toxicology tests, the plea says.
They also concealed Sicuro’s co-ownership of Genotec from Medicare, Medicaid and private health care insurers, while referring urine specimens from Sicuro’s own practice, AGM, to Genotec.
Himpler and Sicuro and other health care providers at AGM ordered urine toxicology tests for patients and referred those tests to AGM’s lab and Genotec, which in turn sent the samples to outside “reference” laboratories. Both men knew AGM and Genotec did not have the necessary testing equipment to confirm the amount of given toxin in the urine testing to a high degree of certainty, Himpler’s plea says. They then billed health insurers for the testing, despite knowing that Medicare, Medicaid and many private insurers bar “pass-through billing,” or billing for tests performed by others.
In March of 2015, Himpler and Sicuro incorporated another laboratory company, Midwest Toxicology Group LLC, but never obtained a CLIA certification or any lab equipment. Midwest was a lab in name only and was not authorized to perform tests on human specimens. When health insurers began scrutinizing claims submitted by Genotec and became resistant to paying them, Himpler and Sicuro created Midwest for the purpose of billing health insurers, the plea says. In many instances, each lab submitted a claim for the testing of the same specimen obtained from the same person on the same day of service, which is known as “split-billing.” The pair used Genotec’s CLIA number.
Himpler admitted in his plea agreement that Medicare, Medicaid and private health care insurers paid $1.4 million in pass-through billing and $2.4 million in split billing.
“Today’s announcement of an additional guilty plea in this investigation demonstrates that HHS-OIG will continue to hold individuals who exploit federal health care programs accountable,” said Curt L. Muller, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. "Health care providers have a responsibility to submit accurate and honest claims to federal health care programs, to ensure that these resources are available for eligible patients.”
Himpler is scheduled to be sentenced May 15. The conspiracy charge is punishable by up to five years in prison, a fine of up to $250,000, or both prison and a fine.
Dr. Sicuro pleaded guilty in November 2022 and was ordered to pay restitution. He also agreed to forfeit $3.1 million in assets.
The FBI, the U.S. Department of Health and Human Services Office of Inspector General and the IRS investigated the case. Assistant U.S. Attorneys Amy Sestric and Kyle Bateman are prosecuting the case.
Tampa Man Indicted for Gas Station RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Brandale Swails (29, Tampa) with Hobbs Act robbery and use of a firearm during and in relation to a crime of violence. If convicted on both counts, Swails faces a minimum mandatory sentence of seven years in federal prison.
According to court documents, on October 15, 2023, Swails arrived at a Tampa gas station on a bicycle, entered the business, pointed a gun at the clerk, and demanded money. The clerk immediately hid behind the counter, and Swails jumped over the counter. Swails stated he would shoot the victim if he did not open the register and demanded one-hundred-dollar bills. Swails continued to hold the victim at gunpoint while directing the victim into a bathroom. Swails then exited the business with an undisclosed amount of cash and fled on a bicycle. Swails was arrested two weeks later, hiding inside a bedroom closet.
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 Hillsborough County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Tallahassee Man Sentenced to 13 Years in Federal Prison for Receiving Methamphetamine Through the United States MailRead the Press Release
TALLAHASSEE, FLORIDA – Chason Michael Miles Johnson, 30, of Tallahassee, Florida, was sentenced to 13 years in federal prison after previously pleading guilty to conspiracy to distribute and possess with intent to distribute methamphetamine; possession with intent to distribute methamphetamine; and possession of ammunition by a convicted felon. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida.
“This investigation demonstrates the effectiveness and collaborative efforts of our local and federal law enforcement partners, to identify and intercept shipments of illegal substances via the United States Mail,” said U.S. Attorney Coody. “Moreover, the sentence should serve as a significant deterrent to those who would use the United States Postal Service to conduct illegal activities.”
Court documents reflect upon Johnson’s release from state prison in March 2022, he began receiving methamphetamine via the United States Postal Service from a source in Arizona. The United States Postal Inspection Service uncovered the plot after flagging one of the packages destined to Johnson, obtaining a search warrant, and discovering that it contained approximately half a pound of methamphetamine. A second package destined for Johnson was likewise intercepted, a search warrant obtained, and it was found to contain approximately a pound of methamphetamine. On August 24, 2022, a federal search warrant was executed at Johnson’s home, and officers found a .22 caliber pistol and ammunition, over an ounce of methamphetamine, and various other drugs.
“Many lives in America have been poisoned by the illicit drugs distributed by criminals such as Johnson,” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service will not stop targeting, disrupting, and dismantling every level of these drug trafficking organizations, which are poisoning the American people.”
“Deadly, dangerous, and highly addictive, methamphetamine has caused destruction in many communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This investigation highlights DEA Miami Field Division’s commitment to working with our local, state, and federal partners to track down those who bring this poison into our communities and hold them accountable for their actions.”
Johnson was prohibited from possessing firearms or ammunition, having been recently released from 5-year state prison sentence for aggravated battery with a deadly weapon and trafficking in methamphetamine.
Johnson’s prison sentence will be followed by 10 years of supervised release.
This prosecution resulted from a joint investigation conducted by the United States Postal Inspection Service, the Drug Enforcement Administration, and the Tallahassee Police Department. Assistant United States Attorney James A. McCain prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
St. Francis Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a St. Francis, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on February 1, 2024.
Meteo Running Enemy, age 19, was sentenced to four years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Running Enemy was indicted by a federal grand jury in July of 2023. He pleaded guilty on November 8, 2023.
The conviction stems from an incident that occurred in May of 2023 in St. Francis, wherein Running Enemy engaged in a sexual act with a minor who had attained the age of 12 years but had not attained the age of 16 years.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
Running Enemy was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Convicted Felon. The sentencing took place on January 29, 2024.
Nathan James Thompson, 40, was sentenced to four years and three months in federal prison, followed by three years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Thompson was indicted for Possession of a Firearm by a Prohibited Person (Felon) by a federal grand jury in February of 2023. He pleaded guilty on October 6, 2023.
According to court documents, Thompson was a driving a vehicle in Sioux Falls on December 25, 2022, and was arrested following a traffic violation. Law enforcement found a firearm in Thompson’s pocket. Thompson had previously been convicted of a felony for Possession of a Stolen Motor Vehicle, so was aware he was not allowed to possess firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth Ebert prosecuted the case.
Thompson was immediately remanded to the custody of the U.S. Marshals Service.
Samson, Alabama Pharmacy Liable for $110,000 Penalty for Recordkeeping Violations of the Controlled Substances ActRead the Press Release
Montgomery, Alabama - Today, Acting United States Attorney Jonathan S. Ross announced that King Drug Co., Inc. (King Drug), a pharmacy previously doing business in Samson, Alabama, along with owner Traci Revels McCoy, is liable to the United States for $110,000 in civil monetary penalties after failing to comply with recordkeeping requirements of the Controlled Substances Act (CSA).
The CSA aims to protect the public’s health and safety from highly addictive or dangerous controlled substances that are diverted into the illicit market, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes. To prevent diversion, the CSA regulates individuals and companies that manufacture, distribute, and dispense controlled substances. Entities dispensing controlled substances are required to have a valid Drug Enforcement Administration (DEA) registration number and must comply with various recordkeeping requirements.
According to the consent judgment and other court documents, King Drug was a registered retail pharmacy authorized to purchase and dispense Schedules II-V controlled substances. An inspection found that, between January 16, 2021, and December 14, 2021, King Drug and Traci McCoy failed to keep complete, timely, and accurate inventories and records of the receipt and dispensing of Schedule II controlled substances. These failures resulted in thousands of doses of hydrocodone, oxycodone, morphine, and methadone going unaccounted for. Based on those findings, the United States filed a lawsuit in the United States District Court for the Middle District of Alabama alleging numerous violations under the provisions of the CSA. King Drug has since ceased operation as a retail pharmacy. The court issued the consent judgment on February 2, 2024.
“Pharmacies serve a vital role in preventing the diversion and the resulting abuse of dangerous prescription drugs,” said Acting United States Attorney Ross. “The requirement to keep complete and accurate records is crucial for accountability and transparency. My office will use all available enforcement tools to ensure that controlled substances are properly handled and used for legitimate, medical purposes.”
“Prescription medications, when misused, can pose a grave threat to public health,” said Acting Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration. “That’s why meticulous recordkeeping by pharmacies is an essential line of defense against the opioid crisis. Every dose, every pill meticulously accounted for protects communities and saves lives.”
The DEA’s Tactical Diversion Squad, Diversion Control Division investigated this case. The matter was handled by Assistant United States Attorney Stephen D. Wadsworth and Investigative Analyst Rita E. Richard of the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the Middle District of Alabama.
Russian mobster extradited from Ukraine and sentenced in $9+ million fraud scheme involving exotic car leasing business catering to drug traffickers and othersRead the Press Release
ATLANTA - Mani Chulpayev, the leader of a luxury car leasing scheme that operated in the Atlanta and Miami areas from 2009 to 2016, has been sentenced to prison and ordered to pay more than $4.6 million in restitution. Chulpayev was arrested in October 2020 while hiding in Ukraine, using a fake identity, and working as a movie producer. His conviction marks the end of a multi-agency collaboration known as “Operation Riding Dirty,” which targeted a web of drug traffickers utilizing multiple, hard-to-trace cars, the fraudsters who laundered drug money for the traffickers and left banks and investors on the hook for millions of dollars of losses, and the corrupt government officials who facilitated and protected the traffickers.
“Chulpayev ran a sophisticated scheme that inflicted vast losses on banks and the individuals he recruited to assist his fraudulent scheme,” said U.S. Attorney Ryan K. Buchanan. “Chulpayev then used the fruits of his fraud – a fleet of exotic cars – to enable drug traffickers to operate, evade detection, and launder their illicit proceeds. The disruption of his illegal network is the culmination of an unrelenting, coordinated, and comprehensive investigation by our agency partners.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, “Through hard work, this illegal drug distribution and money laundering network has been removed from our streets. This criminal enterprise had no regard for the potential impact of their actions.”
“This sentence punishes the defendant’s extensive criminal conduct and serves as a significant deterrent to others who would think about engaging in these types of illegal activities,” said Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service Atlanta Division. “Postal Inspectors and our law enforcement partners are proud of the prosecutive results of this aggressive and extensive investigation to dismantle this criminal organization.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Chulpayev was born in the Soviet Union but moved to the United States with his family at the age of 12. By age 20, he acted as the lead money handler and scheme organizer for a Russian crime ring operating in Brooklyn and Queens, New York, and engaged in extortion, arson, kidnapping, human trafficking, and various frauds. Following a previous federal conviction and prison term, he moved to Atlanta, where he was soon arrested for operating a chop shop selling stolen cars with altered VINs and fraudulent titles. Following a second federal conviction and prison term, in 2009, he started a car leasing business in Atlanta catering to drug traffickers who used untraceable cash deposits to pay Chulpayev for cars registered in other people’s names. In 2012, Chulpayev expanded his operation to Miami with the help of coconspirators Paul Carruth, Lyle Stephen Livesay, and Kimberly Ann Reiss.
To create an inventory of these vehicles, Chulpayev and his associates recruited straw purchasers – people who would buy luxury cars in their names but had no intention of actually using the vehicles. The straw purchasers then gave the cars to Chulpayev to be leased to others, including to drug traffickers who used drug proceeds to pay Chulpayev for the pricey leases, and to high-profile clients connected to the music and sports industries. The straw purchasers bought the cars using bank loans and financed several luxury vehicles in a short period of time before the new loans appeared on their credit reports. Chulpayev and his associates gave the straw purchasers falsified documents, including fake paychecks, to use for the loan applications. Chulpayev initially made the loan payments for the straw purchasers. But when he stopped, his straw purchasers were left responsible for handling the payments. When the straw purchasers inevitably defaulted on the loans, Chulpayev left the banks to try to repossess the cars from the drug traffickers or to locate vehicles moved to other states, stolen, or exported to foreign countries. Chulpayev eventually orchestrated the purchase of more than 115 cars, including Bentleys, Aston Martins, Maseratis, Lamborghinis, Ferraris, and Porsches worth more than $9 million.
One of Chulpayev’s drug trafficking clients was Kevin Johnson, also known as “Webb,” who was the leader of a drug trafficking operation in the Atlanta area that moved packages of drugs through the mail and employed as a talent scout and booking agent for rap artists. Johnson leased several flashy cars for members of his drug trafficking operation. Following a federal wiretap investigation, Johnson and four of his associates were convicted of federal drug trafficking charges. In a spinoff investigation, 17 mail carriers and other employees of the U.S. Postal Service were convicted of collecting bribes to deliver packages of drugs through the mail.
Chulpayev also used relationships with corrupt law enforcement agents to advance and protect his scheme by helping him repossess cars, arrest competitors and enemies, and avoid arrest himself. He first gained the officers’ trust by feeding them information about his drug trafficker clients, but gradually curried their favor through bribes and other means. Robert Bentivegna was a Detective with the Dunwoody Police Department and a Task Force Officer with the U.S. Secret Service who received bribes from Chulpayev in the form of airline tickets, legal fees, and luxury cars for his children. In exchange, Bentivegna agreed to alert Chulpayev about any arrest warrants issued for him. Bentivegna was convicted of federal computer access crimes and sentenced to prison.
Mani Chulpayev, also known as “Mani Chilpayen,” and “Immanuel Cohen,” 46, of Kew Gardens, New York, was sentenced to ten years in prison, followed by three years of supervised release, and ordered to pay restitution of $4,663,978.73. Chulpayev was convicted of conspiracy to commit bank and mail fraud on July 31, 2023, after he pleaded guilty.
The following defendants were previously convicted as part of Operation Riding Dirty:
- Lyle Stephen Livesay, 36, of Colbert, Georgia, was sentenced on July 15, 2021, to eight years, one month in prison (with credit for four years served on a prior conviction), followed by three years of supervised release, and ordered to pay restitution of $2,644,722.15, after pleading guilty to conspiracy to commit bank and mail fraud and conspiracy to commit money laundering.
- Paul Alexander Carruth, 39, of Boynton Beach, Florida, was sentenced on November 28, 2018, to five years in prison, followed by three years of supervised release, and ordered to pay restitution of $93,498.36, after pleading guilty to conspiracy to commit bank fraud, mail fraud, and money laundering.
- Kimberly Ann Reiss, 38, of Miami Beach, Florida, was sentenced on July 15, 2021, to five years in prison, followed by three years of supervised release, and ordered to pay restitution of $2,674,563.05, after pleading guilty to conspiracy to commit bank and mail fraud and conspiracy to commit money laundering.
- Kevin Michael Johnson, 48, of Lilburn, Georgia, was sentenced on June 16, 2016, to six years, six months in prison, followed by four years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Walter Ray Hamilton, 42, of Stone Mountain, Georgia, was sentenced on November 2, 2016, to six years, three months in prison, followed by six years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and maintaining a place for distributing drugs within 1,000 feet of a school.
- James Robert Jones, also known as “Sean Jones,” 50, of Dallas, Georgia, was sentenced on November 2, 2016, to five years, ten months in prison, followed by three years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Jeorge Collier, 38, of Lithonia, Georgia, was sentenced on December 21, 2017, to five years, one month in prison, followed by seven years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
- Eric Swiney, 51, of Forest Park, Georgia, was sentenced on May 10, 2016, to five years, ten months in prison, followed by four years of supervised release, after pleading guilty to conspiracy to possess with the intent to distribute controlled substances.
- Robert Pasquale Bentivegna, 73, of Woodstock, Georgia, was sentenced on June 30, 2015, to two months in prison, followed by two years of supervised release, and ordered to pay a fine of $1,500, after pleading guilty to unauthorized use of a computer.
Additionally, from February 13, 2018, to March 30, 2023, 17 U.S. Postal Service employees and one non-postal employee were convicted in four separate indictments and sentenced to a range of three to nine years of prison for bribery, conspiracy to distribute controlled substances, attempt to distribute controlled substances, and unlawfully using the mail to distribute controlled substances.
This case was investigated by the Drug Enforcement Administration and U.S. Postal Inspection Service, with valuable assistance provided by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Marshals Service.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Readout of Disruptive Technology Strike Force One-Year SummitRead the Press Release
On Feb. 7 and 8, the Justice Department’s National Security Division hosted a summit in Phoenix, Arizona, to commemorate the one-year anniversary of the launch of its Disruptive Technology Strike Force – an interagency law enforcement effort aimed at preventing critical technologies from being acquired by authoritarian regimes and hostile nation-states.
Strike Force co-leads Assistant Attorney General (AAG) Matthew G. Olsen of the Justice Department’s National Security Division and Assistant Secretary for Export Enforcement Matthew Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS), were joined in Phoenix by U.S. Attorney Gary Restaino for the District of Arizona. Deputy Attorney General Lisa O. Monaco delivered virtual remarks to commemorate the one-year anniversary and highlighted all the progress that has been made since she first announced the creation of the Strike Force a year ago.
The two-day event began with a law enforcement-only day focused on case studies, best investigative practices, briefings on cutting-edge technologies, and one-year reports from all 15 of the local cells. On the second day, the Strike Force was joined by private sector and academia representatives from across the country for sessions describing the work of the Strike Force across multiple subject areas, corporate compliance, best practices for building trade compliance programs, and law enforcement outreach efforts. Along with U.S. government officials, the summit consisted of presenters from the private sector and academia, including officials from Arizona State University, which hosted the event at its Sandra Day O’Connor College of Law.
Members of the Ukrainian government attended the summit as honored guests to present on the use of advanced technology by Russia in its unlawful and full-scale war of aggression against Ukraine, and how the work of the Strike Force can assist Ukraine’s war efforts. Yuriy Bielousov, the Head of the War Crimes Department in the Office of the Prosecutor General; Dr. Nataliia Nestor, the Deputy Director of the Kyiv Scientific Research Institute of Forensic Expertise in the Ministry of Justice; and Vladyslav Vlasiuk, an advisor on sanctions in the Office of the President of Ukraine represented Ukraine at the summit. The three were among the Ukrainian officials with whom AAG Olsen and Assistant Secretary Axelrod met during their trip to Kyiv in late 2023. The Strike Force is grateful for its close partnership with the Ukrainian government.
During the event, AAG Olsen and Assistant Secretary Axelrod announced the expansion of the Strike Force to three new metropolitan areas and formally recognized the Defense Department’s Defense Criminal Investigative Service (DCIS) as a partner in the Strike Force. All five agencies that make up the Strike Force—the Justice Department’s National Security Division, the Commerce Department’s BIS, the FBI, the Department of Homeland Security’s Homeland Security Investigations (HSI), and DCIS—were represented at the one-year summit.
In addition to the co-leads of the Strike Force, attendees included Ryan Buchanan, the U.S. Attorney for the Northern District of Georgia; Jill Steinberg, the U.S. Attorney for the Southern District of Georgia; Markenzy Lapointe, the U.S. Attorney for the Southern District of Florida; Alamdar Hamdani, the U.S. Attorney for the Southern District of Texas; Ismail Ramsey, the U.S. Attorney for the Northern District of California; Joshua Levy, the Acting U.S. Attorney for the District of Massachusetts; Raj Parekh, the First Assistant U.S. Attorney for the Eastern District of Virginia; Grant Fleming, the Deputy Director for Investigative Operations at DCIS; and James Mancuso, the Assistant Director for HSI.
Rapid City Man Sentenced to over 23 Years on Drug Conspiracy and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm and Ammunition. The sentencing took place on February 7, 2024.
Sam Boyd, 35, was sentenced to 23 1/3 years in federal prison, followed by five years of supervised release, a $1,000 fine, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Boyd was indicted for Conspiracy to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm and Ammunition by a federal grand jury in February of 2022. He was convicted at a federal jury trial in November of 2023.
In the fall of 2020, Boyd began obtaining methamphetamine from a co-conspirator in Colorado Springs, Colorado. The methamphetamine was both mailed or transported to western South Dakota on multiple occasions by Boyd and his co-conspirators. Boyd then distributed the methamphetamine to others for use and to further distribute. Throughout the conspiracy, Boyd routinely possessed multiple firearms and ammunition, despite being prohibited from doing so due to a prior felony conviction.
This case was investigated by Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team, which is a local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Boyd was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Child Pornography ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on February 5, 2024.
James W. Williams, 28, was sentenced to four years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Williams will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Williams was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in May of 2021. He pleaded guilty on November 3, 2023.
Williams was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to suspected child pornography on Instagram. The Internet Crimes Against Children Taskforce traced the account back to Williams and interviewed Williams. Williams ultimately admitted to receiving the child pornography via Instagram. A forensic examination of Williams’ phone revealed images and videos of child sexual abuse material that Williams received between November of 2019 and December of 2020.
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.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Williams was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Receives 11 Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on February 6, 2024.
Burton Dave Chief, Jr., 35, was sentenced to 11 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Chief will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Chief was indicted for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Attempted Receipt of Child Pornography by a federal grand jury in August of 2023. He pleaded guilty on November 6, 2023.
Chief was arrested as a result of an undercover sex trafficking operation conducted during the 2023 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and sexually explicit text messages with a person Chief believed to be a 14-year-old girl, but who was in fact an undercover agent, Chief proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts.
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.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Chief was immediately remanded to the custody of the U.S. Marshals Service.
RICO Conspirators Responsible for Nationwide Computer Intrusions and Tax Fraud Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andi Junior Jacques and Dickenson Elan to federal prison terms for their roles in a RICO conspiracy involving cyber intrusions and millions of dollars of tax fraud. Six co-defendants were previously sentenced for their roles in the offense and one will be sentenced at a later date for his involvement in the conspiracy. See chart below for details.
Defendant
(Age, Residence)
Status
Charge(s)
Sentence Imposed
Louisaint Jolteus
(37, West Palm Beach)
Pleaded guilty July 6, 2022
RICO conspiracy
9 years, 2 months in prison; $2,928,841 in restitution
Louis Noel Michel
(29, Hollywood)
Pleaded guilty July 25, 2023
RICO conspiracy and aggravated identity theft
6 years, 8 months in prison; $1,941,533 in restitution
Andi Jacques
(42, Greenacres)
Pleaded guilty August 23, 2023
RICO conspiracy and aggravated identity theft
16 years in prison; $4,291,272 in restitution
Jeff Jordan Propht-Francisque
(29, Pompano Beach)
Pleaded guilty August 29, 2023
RICO conspiracy
4 years in prison; $2,574,235 in restitution
Michael Jean Poix
(33, West Palm Beach)
Pleaded guilty August 29, 2023
RICO conspiracy and aggravated identity theft
10 years, 10 months in prison; $130,771 in restitution
Alain Jean-Louis
(32, Miami)
Pleaded guilty August 31, 2023
RICO conspiracy and aggravated identity theft
8 years, 6 months in prison; $2,554,907 in restitution
Monika Shauntel Jenkins
(34, Hollywood)
Pleaded guilty September 18, 2023
RICO conspiracy and aggravated identity theft
7 years, 3 months in prison; $3,384,913 in restitution
Vladimyr Cherelus
(34, Lauderdale Lakes)
Pleaded guilty September 18, 2023
RICO conspiracy
Sentencing hearing is scheduled for February 29, 2024
Dickenson Elan
(40, Clearwater)
Found guilty (jury trial) November 6, 2023
RICO conspiracy
11 years, 3 months in prison; $4,291,272 in restitution
According to court documents, from 2015 through 2019, the defendants and numerous other conspirators—including a now-deceased conspirator who is referenced in the indictment as RICH4EVER4430—banded together to engage in a sophisticated cybercrime and tax fraud scheme. RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, and Cherelus used the dark web to purchase server credentials for the computer servers of Certified Public Accounting (CPA) and tax preparation firms across the country. They used those server credentials to remotely and covertly commit computer intrusions and exfiltrate the tax returns of thousands of taxpayers who were clients of those CPA and tax preparation firms.
Jacques, Elan, Jean-Poix, and Jolteus were involved with creating and operating fraudulent tax businesses to file false tax returns in the names of thousands of victims. They also registered preparer tax identification numbers with the Internal Revenue Service (IRS) using the names and information of identity theft victims to make it appear those victims were the individuals who were filing false returns in bulk.
RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, Cherelus, and other conspirators then partnered with Jacques, Elan, Poix, Jolteus, and others to form an enterprise through which they filed thousands of false tax returns in the names of more than 9,000 identity theft victims.
The conspirators directed the resulting tax refunds to debit cards and bank accounts they controlled. To make the businesses appear more legitimate, members of the enterprise opened bank accounts in the names of these fraudulent tax businesses to receive fake “tax preparer fees.”
As the RICO conspiracy evolved, members of the enterprise “hijacked” the IRS-issued identification numbers of CPA and tax preparation firms and used those identification numbers to file scores of additional false tax returns. Members of the enterprise filed false self-prepared tax returns using stolen identities as well. Altogether, the enterprise claimed more than $45 million in false tax refunds over approximately four years. The actual loss to the IRS and the United States was estimated to be more than $7 million.
“The recent sentencings of these co-conspirators, highlights the unwavering dedication of IRS-CI and our law enforcement partners in combating cybercrime. Our determination remains resolute in pursuing individuals who exploit technology as a means to commit unlawful activities,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “These sentences serve as a stark warning to potential wrongdoers that there is nowhere to hide, and IRS-CI will work tirelessly to bring you and your misdeeds to light.”
“This was a milestone investigation for the FBI because of the RICO cybercrime conspiracy,” said FBI Tampa Division Special Agent in Charge David Walker. “It underscores the evolution of the cyber threat and how criminals are learning cyber tradecraft in an attempt to advance their criminal enterprises. However, this case also demonstrates how the FBI and our law enforcement partners are evolving our approach to investigations and prosecutions to continue to successfully disrupt cyber gangs.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation in Orlando, with assistance from the FBI Miami and IRS-CI Minnesota. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang, John M. Gardella, William S. Hamilton, Dana E. Hill, and Special Assistant United States Attorney Matthew Del Mastro.
Phoenix Driver Sentenced to Prison for Conspiracy to Transport Five Border CrossersRead the Press Release
PHOENIX, Ariz. – Dinero Devon Washington, 46, of Phoenix, was sentenced last week by United States District Judge Michael T. Liburdi to 24 months in prison, to be followed by 36 months of supervised release. Washington pleaded guilty to Conspiracy to Transport Illegal Aliens on September 7, 2023.
On April 16, 2021, Washington and his co-conspirator, Alina Pablo, approached the fixed Border Patrol checkpoint in Ajo in a Ford F-150. Border Patrol agents noted five other passengers in the vehicle, all wearing camouflaged clothing with backpacks and carpeting on their shoes, indicators of having recently crossed the border between Mexico and the United States. Questioning by agents confirmed that all five passengers were citizens and nationals of Mexico or Guatemala with no permission to enter the United States and had recently been picked up by Washington and Pablo. Subsequent searches of Washington’s cell phone revealed detailed evidence of the planning and logistics of the smuggling effort, including pin drops, maps, and text messages. Pablo, Washington’s co-conspirator, pleaded guilty to her role in the offense and will be sentenced later this year.
Homeland Security Investigations-Phoenix office conducted the investigation in this case. Assistant U.S. Attorney Louis Uhl, District of Arizona, Yuma, handled the prosecution.
CASE NUMBER: CR-22-00544-MTL-2
RELEASE NUMBER: 2024-016_Washington# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Parmelee Man Sentenced for Possession of Unregistered Firearm, Possession of Firearm by a Prohibited Person, and Assault on a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Roberto A. Lange has sentenced a Parmelee, South Dakota, man convicted following two separate jury trials of Possession of Unregistered Firearm, Possession of Firearm by a Prohibited Person, and Assaulting, Resisting, and Impeding a Federal Officer. The sentencings took place on February 1, 2024.
Jeremy Duane Young, age 29, was sentenced to seven years in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $300.
Young was indicted by a federal grand jury in March of 2023 on the firearm offenses and in April of 2023 on the assault offense.
The firearm conviction stemmed from an incident in May of 2022 in the Soldier Creek community within the Rosebud Reservation. Young, a previously convicted felon who was prohibited from possessing firearms, was found in possession of a short-barrel 12-gauge shotgun, which was found after Young came into contact with law enforcement following a traffic stop. The short shotgun was not registered to Young in the National Firearms Registration and Transfer Record as required by law. As part of the investigation, Young admitted to law enforcement that he and another individual were on their way to Sioux Falls on a drug run to pick up methamphetamine.
The assault conviction stemmed from an incident in March of 2023, in the Soldier Creek community within the Rosebud Reservation, when Young assaulted a Rosebud Sioux Tribe Law Enforcement Officer. The officer had been called to the community over a concern of a running vehicle blocking the roadway, and determined Young was passed out in the driver’s seat. When the officer contacted Young to get out of the vehicle, Young refused to exit, became argumentative, combative, and engaged in a physical struggle with the officer. Young then punched the officer in the face and fled on foot. Young was located and arrested an hour later.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Meghan N. Dilges and Brian Murphy 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.
Young was immediately remanded to the custody of the U.S. Marshals Service.
Omaha Nation Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Susan Lehr announced that Dante Stabler, 23, of Walthill, Nebraska, was sentenced on February 9, 2024, in federal court in Omaha, Nebraska for assault with a dangerous weapon with intent to do bodily harm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Stabler to 72 months’ imprisonment. There is no parole in the federal system. After Stabler’s release from prison, he will begin a 2-year term of supervised release.
On February 22, 2023, on the Omaha Nation Indian Reservation, Stabler and another man got into an altercation over Stabler allegedly taking a vehicle from the other man without his permission. The man confronted Stabler and Stabler fired a handgun at the man as he approached him. The man continued to approach Stabler and the two ended up in a physical altercation, falling into the open door of a minivan. The minivan, driven by an unknown person, sped away with the two still struggling. Stabler fired the gun again, shooting the man in the pinky finger. The man was able to get out of the moving van and then went to the hospital. The initial altercation and the two falling into the van were caught on video by another witness.
This case was charged in federal court because an assault with a dangerous weapon in Indian Country is a felony level assault under the Major Crimes Act.
This case was investigated by Omaha Nation Law Enforcement Services and the FBI.
Ohio Man Pleads Guilty to Multiple Federal Charges, Including a Freedom of Access to Clinic Entrances (FACE) Act Violation, for Threatening a Reproductive Health Services ClinicRead the Press Release
An Ohio man pleaded guilty today to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally interfering with or intimidating any person because that person is providing reproductive health services. Mohamed Waes, 33, of Columbus, also pleaded guilty to felony charges of communicating interstate threats and conspiracy to commit money laundering.
According to court documents and statements made in court, on July 5, 2022, Waes intentionally interfered with and intimidated employees of Planned Parenthood of Greater Ohio by threatening over the phone to burn down their building because they were providing reproductive health services.
“Threatening to burn down facilities that provide reproductive health services is not just unlawful, it’s conduct that frightens and obstructs patients and providers of reproductive services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to protect all patients who seek reproductive health services and to protect all staff and facilities that provide these services.”
“We will hold accountable individuals who make threats of force against health service providers and institutions,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “At the U.S. Attorney’s Office, we will do our part in charging those who break federal laws. As a society, we must handle our disagreements in a more civil way than threats of violence and intimidation.”
“Mohamed Waes made a credible threat to commit violence and harm others,” said Acting Special Agent in Charge Cheryl Mimura of the FBI Cincinnati Field Office. “The FBI will continue to aggressively pursue civil rights violations and work with our partners to keep the community safe.”
“Waes played a crucial role in a business email compromise scheme by attempting to launder nearly $2 million in fraud proceeds,” said Acting Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS:CI) Cincinnati Field Office. “IRS:CI remains committed to following the money and bringing those who launder illegal proceeds to justice.”
According to court documents, Waes also conspired with others from on or about March 21, 2019, through on or about March 4, 2020, to launder funds using business email compromise (BEC) fraud schemes. As part of this conspiracy, scammers created fake email domains which mimicked legitimate email domains and then sent emails to various companies impersonating vendors and asking that payments be made on actual invoices to bank accounts controlled by Waes and others. Waes attempted to launder a total of $1,972,792.84 in BEC proceeds, of which he successfully laundered $273,982.08.
A sentencing hearing will be set at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Cincinnati Field Office and IRS:CI investigated the case.
Assistant U.S. Attorneys Jennifer Rausch and Peter Glenn-Applegate for the Southern District of Ohio and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.
Nurse Practitioner Arrested for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Christopher Viagrande, age 41, of Latham, New York, was arrested earlier this week and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
A criminal complaint charges Viagrande, a psychiatric nurse practitioner, with prescribing amphetamine (a Schedule II controlled substance) on 40 occasions to someone who was never his patient, from May 2021 to December 2023. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Viagrande was arrested on Tuesday and ordered released on Thursday with conditions, including a prohibition on his prescribing controlled substances.
If convicted on the charge in the complaint, Viagrande faces up to 20 years in prison and a fine of up to $1 million, as well as up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Anyone wishing to report information about Viagrande or his Latham-based practice, Crossroads Psychiatry NP, may contact the DEA Albany District Office at (518) 782-2000.
The DEA’s Tactical Diversion Squad (TDS) is investigating this case. TDS is comprised of DEA Special Agents and Diversion Investigators, as well as Investigators from the New York State Department of Health, Bureau of Narcotic Enforcement. Assistant U.S. Attorney Michael Barnett is investigating this case.
New York Man Sentenced for Failing to Pay Federal Payroll TaxesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Nanuet, New York, man convicted of Failure to Withhold, Properly Account For, and Pay Over Tax. The sentencing took place on February 7, 2024.
Asher Wagh, 48, was sentenced to 14 months in federal prison, followed by two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $273,766.98 in restitution to the Internal Revenue Service.
Wagh was indicted on ten counts of Failure to Withhold, Properly Account For, and Pay Over Tax by a federal grand jury in February of 2021. He pleaded guilty on October 16, 2023.
Between 2015 and 2017, Wagh was a co-owner and the sole manager of Captech International LLC, an ammunition component manufacturing company located in Rapid City, South Dakota. As the sole manager, Wagh was responsible for withholding, accounting for, and paying over federal payroll taxes, including federal income tax, Social Security, and Medicare taxes. Between 2015 and 2017, Wagh withheld the payroll taxes from employees’ paychecks and then willingly failed to pay over the taxes to the Internal Revenue Service. Thereafter, Wagh used at least a portion of the withholdings for his own personal use. In total, Wagh failed to pay over to the IRS more than $273,000.00.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Wagh was immediately remanded to the custody of the U.S. Marshals Service.
New Orleans Man Indicted for Federal Drug and Machinegun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that RENARD SANTIAGO, age 18, of New Orleans, was indicted on February 8, 2024, for violations of the Federal Gun Control Act and Federal Controlled Substances Act.
SANTIAGO is charged in Count 1 of the indictment with conspiracy to distribute and possess with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 846. He is charged in Count 2 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 3 with possessing a machinegun in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(B)(ii). He is charged in Count 4 with possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
As to Counts 1 and 2, SANTIAGO faces up to 5 years in prison, up to a $250,000 fine, and at least two years of supervised release. If convicted of Count 3, he faces a minimum of 30 years in prison up to a maximum sentence of life, which must run consecutive to any other sentence, up to a $250,000.00 fine, and up to five years of supervised release. If convicted of Count 4, he faces up to 10 years in prison, up to a $10,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Mexico Couple Sentenced to Prison for Methamphetamine ChargeRead the Press Release
United States Attorney Susan Lehr announced that Valerie Braswell, 43, and Michael Braswell, 42, of Taos, New Mexico, were sentenced February 9, 2024, in federal court in Omaha for conspiracy to distribute methamphetamine. United States District Court Judge Brian C. Buescher sentenced Valerie Braswell to 30 months’ imprisonment, and Michael Braswell to 180 months’ imprisonment. There is no parole in the federal system. After Valerie’s release from prison, she will begin a 2-year term of supervised release. After Michael’s release he will begin a 5-year term of supervised release.
On May 31, 2022, law enforcement utilized a cooperating witness who arranged for the delivery of 5 kilograms of methamphetamine to an Omaha location. Surveillance officers observed the Braswells arrive at the meet location in a vehicle where Michael exited the vehicle, removed a bag from the backseat and delivered it to the cooperating witness. Valerie was identified as the driver from surveillance cameras. The cooperating witness was wearing a recording device that captured Michael handing him a box containing 5 pounds of meth.
On July 10, 2022, the Braswells were stopped in Missouri and found in possession of approximately 3 grams of meth and a firearm (found on the passenger seat where Michael was sitting). After their arrest, Michael admitted they were coming back from a methamphetamine delivery and had made at least 4 other trips delivering approximately 10-15 pounds of methamphetamine on each trip. Valerie denied any knowledge of methamphetamine but did admit to going on prior trips with Michael.
This case was investigated by the Federal Bureau of Investigation.
Multi-Convicted Felon Sentenced to over Ten Years for Drug Trafficking and Firearms OffensesRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Antione Oshea Ladson (29, Orlando) to 10 years and 6 months in federal prison for drug trafficking and possessing a firearm and ammunition as a convicted felon. Ladson pleaded guilty on July 11, 2023.
According to court documents, on August 27, 2022, Ladson checked into a hotel in Orlando. While walking through an outdoor breezeway, Ladson encountered another man walking past him. After a brief verbal confrontation with the man, Ladson lifted his modified pistol and shot the man in the neck using a caliber of ammunition similar to that commonly found in military assault rifles (shell casing pictured below). The man survived the shooting.
On November 16, 2022, Ladson was apprehended by law enforcement at a convenience store in Orlando. Beneath a grocery shelf that Ladson was seen lifting, officers found a fanny pack containing Ladson’s wallet and Social Security card, two digital scales used for weighing narcotics, a pistol magazine, and plastic baggies containing cocaine and marijuana. Underneath Ladson’s fanny pack was a Glock 23 pistol loaded with 14 rounds of 9mm ammunition. At the time, Ladson had multiple prior felony convictions and is prohibited from possessing both firearms and ammunition under federal law. Ladson was arrested on state charges and subsequently released on bond.
On December 27, 2022, members of the Orange County Sheriff’s Office Gang Enforcement Unit observed Ladson driving near Orange Blossom Trail and initiated a traffic stop. A search of Ladson’s car revealed an XD9 firearm with 19 rounds of live ammunition, an additional 12-round magazine fully loaded with 9mm rounds, a drum-style magazine (pictured below), 4.8 grams of crack cocaine, and 61.4 grams of marijuana. Photographs of the firearm and drum magazine below:
Court documents further showed that Ladson frequently livestreamed himself driving around the Orlando area while fully armed, often with modified weapons (video stills below):
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, and the Orange County Sheriff’s Office Gang Enforcement Unit. It was prosecuted by Assistant United States Attorney David Pardo.
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.
Mishawaka Man Sentenced to 100 Months in PrisonRead the Press Release
SOUTH BEND – Jessie Warren, 44 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to possession with intent to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Warren was sentenced to 100 months in prison followed by 4 years of supervised release.
According to documents in the case, in December 2022, Warren possessed over 220 grams of methamphetamine. When police found him, he was alone in a car with the controlled substance, a firearm and a digital scale located in the trunk. Warren also had approximately $2,000 cash in his possession.
This case was investigated by the Drug Enforcement Administration with assistance from the Mishawaka Police Department and the Indiana State Police Laboratory. The case was prosecuted by Assistant United States Attorneys Jerome McKeever and Joel Gabrielse.
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.
Michigan Man Who Orchestrated International Computer Fraud Scheme and Online Drug Distribution Scheme Pleads GuiltyRead the Press Release
BOSTON – A Michigan man has pleaded guilty to organizing separate multi-year schemes that defrauded internet users via scam virus alerts and distributed controlled substances online.
Doyal Kalita, 36, of Redford, Mich., pleaded guilty to one count of wire fraud conspiracy, one count of conspiracy to import Schedule II and Schedule IV controlled substances and one count of money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 16, 2024. Kalita was arrested in August 2022.
“Mr. Kalita exploited people’s fears about cyber security by convincing them that their computers had viruses and selling them unnecessary services. Simultaneously, he lined his pockets by distributing deadly opioids into Massachusetts,” said Acting U.S. Attorney Joshua S. Levy. “This type of criminal behavior and victimization will not be tolerated. We will continue to be vigilant and hold those accountable that hide behind a keyboard to victimize others and pump dangerous drugs into our communities.”
“Doyal Kalita not only cheated unsuspecting victims around the world and here at home out of their hard-earned money by scaring them into paying for unnecessary and useless computer repair services, but he peddled deadly opioids into our communities too,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Fortunately, the FBI and our partners are experts at untangling such frauds, to ensure criminals like him are brought to justice to answer for their crimes.”
“The disruption of international criminal syndicates is a top priority for IRS Criminal Investigation” said Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations. “As a result of today’s guilty plea, we have successfully disrupted a complex network of international actors praying on the American people through their call center schemes and illegal narcotics distribution networks.”
In 2015, Kalita and co-conspirators organized a scheme to defraud internet users through the use of deceptive pop-up screens that falsely told victims that their computers were infected with viruses (or were otherwise damaged) and directed the victims to call for technical support. In fact, the victims were connected to Kalita’s call centers in India and in Michigan and were scared or deceived into buying products and services that they did not need.
Contemporaneously, Kalita and his co-conspirators launched an online drug distribution scheme that sold controlled substances, including opioids, that were shipped from suppliers in India and Europe to individuals in Massachusetts and elsewhere in the United States. Kalita and his co-conspirators facilitated online sales from multiple foreign drug suppliers and received controlled substances from abroad before repackaging and distributing them throughout the United States. To conceal the nature of the transactions, Kalita and his co-conspirators used PayPal and merchant accounts that purported to belong to non-existent consulting companies, health supplement stores, auto parts suppliers and travel agencies. In some instances, Kalita and his co-conspirators created fake travel itineraries and receipts to deceive credit card processors in the United States in order to keep the drug business from being detected.
Two of Kalita’s co-conspirators remain fugitives.
In January 2023, Manish Kumar – a partner in a Mumbai-based prescription drug companies and one of Kalita’s suppliers – was sentenced by U.S. District Court Judge Mark L. Wolf to 87 months in prison, three months of supervised release and was ordered to pay a fine of $100,000.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered funds, whichever is greater. The charge of conspiracy to import controlled substances provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Levy, FBI SAC Cohen and IRS-CI SAC Chavis made the announcement today. The United States Food & Drug Administration; Homeland Security Investigations; United States Customs & Border Protection; United States Marshals Service in Boston; and the U.S. Attorney’s Office for the Eastern District of New York provided valuable assistance in the investigation. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Mexican Citizen Sentenced to 60 Months for Alien Smuggling and Unlawful Possession of a FirearmRead the Press Release
PLATTSBURGH, NEW YORK – Rey Felix-Rubio, age 32, a citizen of Mexico, was sentenced today to 60 months in prison for conspiracy to commit alien smuggling and unlawful possession of a firearm. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
As part of his earlier guilty plea, Felix-Rubio, an illegal alien who entered the United States unlawfully in 2021, admitted that in February 2023, he traveled to the northern border in Chateauguay, New York, where he smuggled five Mexican citizens into the United States for profit. Felix-Rubio smuggled the aliens while unlawfully possessing a loaded firearm as an illegal alien.
United States District Judge Mae A. D’Agostino also imposed a 1-year term of supervised release following Felix-Rubio’s release from prison. Felix-Rubio will be taken into Immigration and Customs Enforcement (ICE) custody for deportation proceedings following his release from prison.
HSI and the Border Patrol investigated this case. Assistant U.S. Attorney Jeffrey C. Stitt prosecuted the case.
Marion County Convicted Felon Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces that Michael Latrelle Simpson (23, Ocala) has pleaded guilty to possession of a firearm by a convicted felon. Simpson faces a maximum penalty of 10 years in federal prison. A federal grand jury indicted Simpson on July 19, 2022. A sentencing date has not been set.
According to court documents, on January 26, 2022, Simpson was a passenger in a vehicle stopped by law enforcement for a traffic infraction. A handgun was located near where Simpson was seated in the vehicle. Simpson’s DNA was found on the magazine, slide, and sights of that firearm. Simpson has multiple prior state convictions, including for battery on detention staff, felony battery, and fleeing or attempting to elude law enforcement with disregard for safety. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Ocala Police Department. It is being prosecuted by Assistant United States Attorneys Robert E. Bodnar, Jr., and Sarah Janette Swartzberg.
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.
Manatee County Man Convicted of Producing and Possessing Child Sexual Abuse Material and Transporting Minor Victims with Intent to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Roger Lee Caldwell, Jr. (40, Bradenton) guilty of producing child sexual abuse material, two counts of transporting minors with intent to engage in sexual activity, and possession of child sexual abuse material. Caldwell faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 15, 2024. Caldwell was indicted on May 17, 2023.
According to testimony and evidence presented at trial, Caldwell sexually abused both victims for approximately five years, beginning at the age of eight. Caldwell also produced an image of one of the victims at the age of nine, while forcing her to engage in a sex act. The image, recovered from Caldwell’s cellphone, depicted Caldwell wearing a uniquely designed belt, the same belt worn by Caldwell at the time of his arrest.
In March 2022, Caldwell traveled alone with both victims to Ohio, where he sexually abused them multiple times during the trip. Upon their return home, both victims disclosed the sexual abuse to law enforcement. One of the victims retained a pair of underwear worn after the last time Caldwell had sexually assaulted her during the road trip. A DNA analysis of the underwear confirmed the presence of Caldwell’s semen.
Caldwell also had a collection of child sexual abuse material on a computer seized during a search of his home.
This case was investigated by the Federal Bureau of Investigation, the Manatee County Sheriff’s Office, the Bradenton Police Department, the Palmetto Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Stacie Harris, Courtney Derry, and Abigail King.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Extradited from Spain Pleads Guilty to Child Sex AbuseRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced that on February 8, 2024, Kristian Ignacio Feliz, age 24, of Connecticut, pled guilty to sexual exploitation of a child. Feliz was indicted in March 2023, and extradited from Spain last November to face federal charges. Sentencing is scheduled to proceed on May 29, 2024, before U.S. District Court Judge Jane M. Beckering. Feliz faces a mandatory minimum sentence of 15 years in federal prison, up to a maximum of 30 years.
“My office is committed to protecting our most vulnerable citizens from child exploitation,” said U.S. Attorney Mark Totten. “I appreciate the Government of Spain, FBI, and Kalamazoo Department of Public Safety for their persistent and successful efforts to bring Mr. Feliz to justice.”
As part of his plea, Feliz admitted that from October 2022 through January 2023, he used Discord, an internet-based messaging platform, to coerce a minor in Kalamazoo, Michigan, to create and distribute child pornography of herself. Then, from January 3-5, 2023, Feliz traveled to Kalamazoo and made videos of himself having sex with the same minor. Feliz also had at least one of those videos sent to his Discord account.
"Those who dare to victimize innocent children will face the full force of the law," said Cheyvoryea Gibson, the Special Agent in Charge of the FBI in Michigan. "The FBI is relentless in its commitment to safeguarding children from dangerous predators and will leave no stone unturned in pursuing criminals, no matter where they hide. We extend our gratitude to our law enforcement partners, especially the Kalamazoo Department of Public Safety and the dedicated staff of the FBI's West Michigan Based Child Exploitation Task Force (WEBCHEX), for their unwavering efforts in protecting the most vulnerable members of our society. The FBI urges the public to report alleged crimes of child sexual and physical abuse by calling 1-800-CALLFBI (1-800-225-5324), contacting your Legal Attaché Office, or submitting tips online to tips.fbi.gov."
“The Kalamazoo Department of Public Safety recognizes that these types of crimes are complex and difficult to investigate at the local level,” said KDPS Chief David Boysen. “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, we were able to see a successful outcome in this investigation.”
The U.S. Attorney’s Office worked with the FBI and the U.S. Department of Justice’s Office of International Affairs (OIA) to prepare and submit a request to the Government of Spain for Kristian Ignacio Feliz’s provisional arrest, followed by a formal request for his extradition. U.S. Attorney Totten and Special Agent in Charge of the FBI Michigan Cheyvoryea Gibson extend their appreciation and thanks to the Government of Spain.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case is being prosecuted by Assistant U.S. Attorney Patrick Castle, and investigated by the FBI, the Kalamazoo Department of Public Safety. The U.S. Department of Justice’s Office of International Affairs and the U.S. Department of State provided critical assistance in securing Feliz’s arrest and extradition.
###
Mobile Woman Sentenced for Lying to Bankruptcy CourtRead the Press Release
MOBILE, AL – A United States District Judge sentenced a woman to five years of probation for lying in a Bankruptcy Court proceeding.
According to court documents, in April 2023, Lucinda “Lou” Miller, 48, of Mobile, was convicted of making false statements under oath in a bankruptcy proceeding. United States District Judge Terry F. Moorer sentenced her to be supervised by a United States Probation officer for five years, the first year of which she will be on home confinement with electronic montoring.
According to court records filed in connection with her guilty plea, Miller was in Chapter 13 bankruptcy in 2020, when she obtained the court’s permission to buy a car. In a written order, the bankruptcy judge authorized Miller to spend no more than $18,000 on this purchase. In a ploy to unlawfully squat in a home, Miller offered to purchase a home for $450,000. When the seller’s realtor pressed Miller’s realtor to provide proof of funds for the purchase, Miller delivered to her realtor a falsified order purporting to authorize her to purchase a home for up to $500,000, altered from the legitimate order permitting her to buy a car. Miller’s realtor then provided the false court order to the seller’s realtor. The seller’s realtor contacted the Bankruptcy Court Clerk’s office to verify the order's validity. The clerk’s office notified the court of the fake order, and ultimately, Miller lied under oath in a bankruptcy proceeding when she said she knew nothing about it. Miller, who has filed for bankruptcy in Mobile eleven times since 1995, has been barred by the bankruptcy court judge whose order she faked from filing for bankruptcy anywhere in the United States for 30 months due to her abuse of the bankruptcy court proceedings.
“The bankruptcy court is a mechanism for people in financial trouble to seek a fresh start by liquidating their assets or getting the court’s protection to extend the time to pay back their creditors,” said Sean P. Costello, United States Attorney for the Southern District of Alabama. “This defendant abused the bankruptcy court and exploited its authority for her own benefit when she ginned up a bogus court order and then lied about it under oath. With our law enforcement partners, we stand ready to protect bankruptcy proceedings by prosecuting those who lie and jeopardize the court system's integrity.”
Assistant U.S. Attorney Alex F. Lankford prosecuted the case on behalf of the United States. The Federal Bureau of Investigation investigated the case. Bankruptcy Fraud or lying under oath in bankruptcy proceedings can be reported to FBI Mobile at 438-3674.
Local woman imprisoned for threatening to harm federal judgeRead the Press Release
HOUSTON – A 50-year-old Houston resident has been sentenced for using interstate communications to threat, kidnap or injure, announced U.S. Attorney Alamdar S. Hamdani.
Tiffani Shea Gish aka Evelyn Salt pleaded guilty Nov. 9, 2023.
U.S. District Judge David Hittner has now ordered Gish to serve 37 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence about mental health problems and that Gish had previously left threatening messages for various government agencies. In handing down the sentence, Judge Hittner noted that he was concerned for the safety of the public and protecting the judiciary.
“Upholding the rule of law is one of the main priorities of the Department of Justice, and that means protecting public servants from violence,” said Hamdani. “Holding Tiffani Gish accountable for her threats to assassinate a federal judge sends a strong message that we have no tolerance for those – who often hide behind a far-off keyboard or phone line – seeking to undermine our democratic institutions by threatening the safety of the people who help those same institutions thrive.”
On Sept. 1, 2022, Gish left three threatening voicemails on the chamber’s telephone of a U.S. district judge from Florida. In the messages, Gish claimed to be a member of several military combat units, trained and familiar with weapons of war.
In the first message, she said the victim was marked for assassination and would get a bullet in the head. Gish then reiterated the same threat in two subsequent messages and used expletives when adding that she had ordered snipers and a bomb to the victim’s house and would to throw a bullet to the victim’s head.
Gish will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Steven Schammel prosecuted the case.
Lincoln Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Susan Lehr announced that Alexander Horse, 22, of Lincoln, Nebraska, was sentenced on February 9, 2024 in federal court in Lincoln for being a felon in possession of a firearm. United States District Court Judge John M. Gerrard sentenced Horse to 60 months’ imprisonment. There is no parole in the federal system. After Horse’s release from prison, he will begin a 3-year term of supervised release.
On September 5, 2022, around 3:35 am, Horse was dropped off at a McDonald’s parking lot in Lincoln just before another car arrived. Two occupants with firearms got out and began shooting at Horse who retreated on foot through the drive-through. Circumstantial evidence collected by police showed that Horse returned fire with his own gun. The two individuals shooting at Horse fled the scene before police arrived. A witness at the scene said Horse asked her to hide his gun from police after the shooting. Police arrived, located the gun in the witness’s car, and found it to be a Beretta model 950 BS semiautomatic .25 caliber pistol. The gun was covered in Horse’s blood according to DNA analysis. Two different calibers of casings were collected at the scene; three were .25 caliber. Ballistics analysis confirmed the .25 caliber casings were fired from Horse’s Beretta model 950 BS semiautomatic .25 caliber pistol. Horse was shot multiple times and suffered injuries from the shooting. Investigators obtained a search warrant for Horse’s phone and located videos showing Horse shooting firearms on occasions other than September 5.
At the time of the crime, Horse was a convicted felon out of Lancaster County, Nebraska, and was serving a term of post-release supervision for those felony convictions. As a felon, he was not permitted to possess a firearm. Horse’s sentence was enhanced because he possessed more than three firearms, and at least one was a semi-automatic firearm capable of accepting a large capacity magazine.
This case was investigated by the Lincoln Police Department and the FBI. 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.
Lexington Doctor Found Guilty of Engaging in International Money Laundering Scheme, Importing Illegal Merchandise and Receipt and Delivery of a Misbranded DrugRead the Press Release
BOSTON – A Lexington, Mass. doctor was convicted today following a 14-day jury trial in connection with an international money laundering scheme involving importing illegal, misbranded drugs.
Rahim Shafa, 66, was convicted of international money laundering, illegally importing merchandise contrary to law and receiving and delivering misbranded drugs. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for May 15, 2024. The defendant was indicted by a federal grand jury in August 2020 and subsequently charged in a superseding indictment in June 2021.
“For roughly a decade, this defendant manipulated and exploited our healthcare system. He circumvented the FDA approval process for drugs from overseas – systems established to protect and support public health and safety,” said Acting United States Attorney Joshua S. Levy. “This conduct jeopardized patient safety and undermined the very foundation of our regulatory system. Such conduct will never be tolerated.”
“U.S. consumers rely on the FDA to ensure that the medications they take are safe and effective. Unlawful, misbranded medical drugs put consumers’ health at risk,” said Special Agent in Charge Fernando McMillian, FDA Office of Criminal Investigations’ New York Field Office. “We will continue to pursue and bring to justice those who place profits above consumers’ health.”
“This defendant orchestrated a scheme that jeopardized the health of vulnerable patients seeking help with their addiction,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “As this conviction demonstrates, HHS-OIG and our law enforcement partners will continue working together to protect both public safety and our health care system.”
Shafa was a psychiatrist who owned and operated Novel Psychopharmacology. From approximately January 2008 through January 2018, Shafa engaged in an international money laundering scheme to purchase naltrexone pellet implants as well as disulfiram pellet implants and injections from Hong Kong. Naltrexone and disulfiram are approved by the U.S. Food and Drug Administration (FDA) in certain forms for the treatment of alcohol dependence and alcohol and opioid dependence, respectively. However, the implantable pellet form of the drug that Shafa purchased are not approved by the FDA. Shafa falsified shipping documents to conceal that the packages containing the drugs were shipped from Hong Kong to Shafa in Massachusetts. For example, packages containing naltrexone pellet implants were falsely declared as ‘plastic beads in plastic tubes’ in shipping documents. Shafa sold these drugs to patients of Novel and implanted them into patients bodies, without fully understanding the risks of the drugs. Patients testified at trial regarding infections and complications they experienced from the pellet implantation procedure.
The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of importing merchandise contrary to law provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of receiving and delivering a misbranded drug with provides for a sentence of up to one year in prison, one year of supervised release and a fine of $1,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FDA SAC McMillan and HHS-OIG SAC Coviello made the announcement today. Valuable assistance was provided by the Massachusetts State Police, the Milford Police Department and the Lexington Police Department. Assistant U.S. Attorneys John T. Mulcahy, Howard Locker and Kaitlin J. Brown of the Criminal Division are prosecuting the case.
Kansas Woman Sentenced for Witness Retaliation PlotRead the Press Release
United States Attorney Susan Lehr announced that Jennifer Norwood, age 44, of Omaha, Nebraska, was sentenced on February 9, 2024, in federal Court in Omaha, Nebraska, for conspiracy to tamper with documents or proceedings, conspiracy to assault a witness, and making a false statement during the purchase of a firearm. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Norwood to 37 months’ imprisonment. There is no parole in the federal system. After Norwood’s release from prison, she will begin a 3-year term of supervised release.
In the fall of 2021, Johnny Dolph (hereinafter “Dolph”) was being investigated by the United States Secret Service for financial crimes to include crimes involving counterfeit currency and checks. Dolph claims to be a “shot caller” in the Irish Mob Gang, a street gang that originated in Oklahoma. In September 2021, Victim 1’s husband came to Nebraska to assist Dolph in his forgery activities. Victim 1’s husband was stopped by the Richardson County Sheriff’s Office in September 2021 and found to be in possession of numerous forgery related items to include counterfeit currency, forged Treasury checks, and document making implements. Following Victim 1’s husband’s arrest, Dolph and Jennifer Norwood A/K/A Jennifer Dolph (hereinafter “Norwood”) began contacting Victim 1 in attempts to prevent her from cooperating with law enforcement. Dolph believed Victim 1 and Victim 1’s husband were cooperating with law enforcement. As a result, Dolph put a “green light” on Victim 1 and her husband. Victim 1 reported receiving threatening communications from Dolph and Norwood. Dolph, Norwood, and others began researching and attempting to locate where Victim 1 was located.
In the fall of 2021, Norwood conducted a straw-purchase for Dolph a Hi-Point C9 9mm handgun from gunbroker.com. The transfer was completed on October 25, 2021. A straw purchase is an illegal purchase of a firearm by one person for another. Dolph was prohibited from possessing a firearm due to eleven felony convictions in Oklahoma and Kansas as well as due to two misdemeanor crimes of domestic violence in Kansas.
In October 2021, a search warrant was obtained through the United States District Court for the District of Nebraska for Dolph’s apartment in Omaha. This search warrant was signed by a United States magistrate judge and the affiant for the warrant was a Special Agent with the United States Secret Service.
Following the execution of the search warrant, Dolph and Norwood began researching the affiant agent and magistrate judge listed on the search warrant. Dolph and Norwood also reached out to individuals outside of Nebraska providing information about Victim 1, where Victim 1 resides, and where family members of Victim 1 lived.
On November 19, 2021, Dolph contacted Kate Ruth A/K/A Kate Winter A/K/A Kate Hill (hereinafter “Ruth”) and requested that she travel from Kansas to Omaha, Nebraska to attempt to carry out his “green light” on Victim 1. Dolph instructed Ruth to go to Greyhound and attempt to pick up a ticket that had been purchased in a third party’s name. Ruth was instead driven to Nebraska from Kansas by Gibson. Gibson obtained a red pickup truck to drive she and Ruth to Omaha. During the drive to Nebraska, Dolph sent Gibson and Ruth money for gas over CashApp, inquired to the status of their travel, and provided directions on where to park once they arrived at his apartment. Dolph and Norwood let Gibson and Ruth stay at their apartment in Omaha. While there, Dolph, Norwood, Gibson, and Ruth researched Victim 1. At Dolph’s direction, Ruth and Gibson drove to a residence in Omaha at which Victim 1 was believed to be staying.
On March 1, 2022, law enforcement attempted to arrest Dolph on a state warrant. Dolph was located and the Hi-Point C9 9mm handgun that Norwood had illegally purchased for him was recovered.
Following his arrest on the state warrant, Dolph was Federally indicted for the firearms charges and was incarcerated at the Douglas County Correctional Center. On March 30, 2022, at 19:58 hours and at 20:14 hours, Dolph called Norwood. Dolph used his assigned inmate PIN number and called Norwood at her known phone number. Inmates are advised that all non-attorney calls are recorded. In the calls, Norwood told Dolph that she was going to their trailer per his earlier request. The trailer was later identified and located at a storage facility in Omaha. Dolph then provided step-by-step instructions over the phone to Norwood on how to retrieve an item that was concealed in an air compressor in the trailer. Dolph instructed Norwood to burn the item using gasoline and a blow torch. During the call, Dolph was very agitated that the item be destroyed and said it will send him to prison. Dolph also expressed concern that Norwood did not destroy it and was going to turn it over to law enforcement. Dolph then asked Norwood to take a picture of the item burning to prove to him that she destroyed it. An image of the item burning was found on Norwood’s phone.
The individual from Kansas was sentenced in 2022 to time-served after serving a nine-month sentence for possession of counterfeit currency and possession of a document making implement or authentication feature and is currently serving a five-year term of supervised release. On August 17, 2023, Dolph was sentenced to a total of 150 months’ imprisonment for felon in possession of a firearm; possession of a firearm following a misdemeanor crime of domestic violence; 2 counts of false statement during the purchase of a firearm; conspiracy to tamper with documents or proceedings; tampering with documents or proceedings; 2 counts of conspiracy to assault a witness; and 2 counts for attempted assault of a witness. On November 21, 2023, Gibson was sentenced to 24 months’ imprisonment for conspiracy to assault a witness and attempted assault of a witness. Ruth is currently pending trial and are presumed innocent unless and until she is proven guilty.
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service, the Omaha Police Department, and the Richardson County Sheriff’s Office with assistance from the Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against Wisconsin LandlordsRead the Press Release
The Justice Department announced today that Richard and Mary Donahue, landlords who own more than 100 residential rental units in and around Janesville, Wisconsin, have agreed to pay $500,000 in monetary damages and a $123,965 civil penalty to the government to resolve a Fair Housing Act (FHA) lawsuit concerning Richard Donahue’s sexual harassment of female tenants over more than 20 years.
“A home should be one’s sanctuary, not a place where you are subjected to dehumanizing and prolonged periods of sexual harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When landlords sexually harass their tenants, they deprive them of the ability to feel safe and secure in their own homes. This agreement sends a strong message that the Justice Department will continue to enforce federal civil rights laws to ensure all tenants are protected from unlawful discrimination.”
“The lengthy course of sexual harassment and retaliation against female tenants in this case is disturbing and unacceptable,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “Our office remains committed to holding landlords accountable for violations of the Fair Housing Act.”
Under the terms of the proposed consent decree, which still must be approved by the court, Richard and Mary Donahue will pay $500,000 in monetary damages to 13 female tenants harmed by Richard Donahue. The defendants are also required to seek to vacate any retaliatory eviction judgments obtained against these tenants and to take steps to correct the tenants’ credit histories. The defendants are also permanently enjoined from managing residential rental properties in the future and must retain an independent property manager to manage their rental properties for the duration of the decree. Finally, the defendants must pay a $123,695 civil penalty to the government, the maximum civil penalty allowed under the FHA.
The lawsuit alleged that, since at least 2000, Richard Donahue harassed female tenants by making repeated and unwelcome sexual comments, touching tenants’ bodies without their consent, demanding sexual activity in exchange for rent and housing-related benefits and taking adverse actions against tenants who resisted his sexual advances or complained about the harassment. The suit was filed in May 2022.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Wisconsin handled the case.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 38 lawsuits alleging sexual harassment in housing and recovered more than $11.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division, along with U.S. Attorneys’ Offices, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Johnstown Man Sentenced to Seven Years in Prison for Cocaine and Crack-Cocaine ViolationsRead the Press Release
JOHNSTOWN, Pa. – On February 8, 2024, a resident of Johnstown, Pennsylvania, was sentenced in federal court to 84 months in prison followed by four years of supervised release on his conviction of conspiracy to distribute and possession with intent to distribute quantities of cocaine and crack-cocaine, United States Attorney Eric G. Olshan announced today.
United States Senior District Judge Kim R. Gibson imposed the sentence on Perry King, 48.
According to information presented to the Court, from in and around May 2021 to June 2021, in the Western District of Pennsylvania, King conspired to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack,” and a quantity of a mixture and substance containing a detectable amount of cocaine. King also possessed with the intent to distribute a quantity of crack in and around both October 2019 and January 2020, totaling 28 grams or more on the latter occasion. King was intercepted on a federal wiretap obtaining quantities of cocaine and crack-cocaine that he distributed to others.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of King. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies.
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.
Jacksonville Woman Pleads Guilty to Stealing over $100k of Veteran Affairs FundsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Tamiko L. Williams (48, Jacksonville) has pleaded guilty to theft of government money. Williams faces a maximum penalty of 10 years in federal prison. A sentencing date has not been scheduled. As part of her plea, Williams agreed to forfeit $103,820, the proceeds of her criminal conduct.
According to court documents, between December 2019 and continuing through April 2022, Williams agreed to be a fiduciary for Veterans Affairs (VA) funds that were meant to benefit her disabled family member. During that time, Williams made large cash withdrawals from the fiduciary account and used it for personal spending until she was removed from the fiduciary account in April 2022.
“Today’s guilty plea sends a clear message that the VA OIG will vigorously investigate those who steal from vulnerable veterans who are unable to manage their financial affairs,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG appreciates the support of the U.S. Attorney’s Office for their efforts to stop fraud within the VA’s Fiduciary Program.”
This case was investigated by Department of Veterans Affairs - Office of Inspector General’s Southeast Field Office and the Social Security Administration Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Brenna Falzetta. The forfeiture is being handled by Assistant United States Attorney Jennifer Harrington.
International cybercrime malware service dismantled by federal authorities: key malware sales and support actors in Malta and Nigeria charged in federal indictmentsRead the Press Release
ATLANTA – As part of an international law enforcement effort, federal authorities seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes.
“Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.”
“Daniel Meli not only profited off this malicious malware but took the extra step to train others on how to use it.” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Cybercriminals may believe they are beyond the reach of the FBI, but this case proves anyone who helps or profits from criminal cyber activity will be brought to justice, no matter where they are located. Our goal is to protect victims and safeguard our country from these dangerous actors.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware – a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to the court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission.
Investigations by the FBI in Boston and Atlanta also led to two indictments against individuals involved in selling and supporting the Warzone RAT and other malware.
Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7 at the request of the United States, following a coordinated operation by the Malta Police Force and the Office of the Attorney General of Malta, with the support of the FBI and Justice Department. Meli made his initial appearance before a Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, with four offenses, including causing unauthorized damage to protected computers, illegally selling and advertising an electronic interception device, and participating in a conspiracy to commit several computer intrusion offenses. According to the charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals on online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States.
Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 with conspiracy to commit multiple computer intrusion offenses, including to obtain authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to the charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware. Law enforcement officers of the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission arrested Odinakachi on Feb. 7.
The disruption of the Warzone RAT infrastructure was the product of a robust international law enforcement effort led by FBI special agents in Boston and Atlanta and coordinated with international partners in large part through Europol. According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, the FBI covertly purchased and analyzed the Warzone RAT malware, confirming its multiple malicious functions. Separately, law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands, and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure.
The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater.
Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are handling the criminal prosecution of Meli. Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants and Drabick is handling the criminal prosecution of Odinakachi.
The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Federal authorities also wish to acknowledge the cooperation and assistance of the FBI Boston and Atlanta Field Offices, Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria's Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police for their valuable assistance.
Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
International Cybercrime Malware Service Dismantled by Federal Authorities: Key Malware Sales and Support Actors in Malta and Nigeria Charged in Federal IndictmentsRead the Press Release
The Justice Department announced today that, as part of an international law enforcement effort, federal authorities in Boston seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes.
Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware — a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission.
Investigations by the FBI Boston and Atlanta Field Offices also led to two indictments against individuals involved in selling and supporting the Warzone RAT and other malware.
Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7 at the request of the United States, following a coordinated operation by the Malta Police Force and the Office of the Attorney General of Malta, with the support of the FBI and Justice Department. Meli made his initial appearance before a Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, for four offenses, including causing unauthorized damage to protected computers, illegally selling and advertising an electronic interception device, and participating in a conspiracy to commit several computer intrusion offenses. According to charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals through online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States.
Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 for conspiracy to commit multiple computer intrusion offenses, including obtaining authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware. Law enforcement officers of the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission arrested Odinakachi on Feb. 7.
The disruption of the Warzone RAT infrastructure was the result of an international law enforcement effort led by FBI special agents in Boston and Atlanta and coordinated with international partners in large part through Europol. According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, the FBI covertly purchased and analyzed the Warzone RAT malware, confirming its multiple malicious functions. Separately, law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands, and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure.
“Today’s actions targeting the Warzone RAT infrastructure and personnel are another example of our tenacious and unwavering commitment to dismantling the malware tools used by cybercriminals,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We will turn over every stone to prevent cybercriminals from attacking the integrity of our computer networks, and we will root out those who support such cybercriminals so they will be held accountable. Those who sell malware and support cybercriminals using it should know that they cannot hide behind their keyboards or international borders.”
“Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.”
“This action highlights the FBI’s commitment to disrupting cybercriminal actors and taking down their infrastructure,” said Assistant Director Brian Vorndran of the FBI’s Cyber Division. “The FBI is proud of the international coordination involved in this law enforcement effort, and we will continue to build global partnerships to go after cybercriminals who seek to harm the American people.”
The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater.
Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants, and Drabick is prosecuting Odinakachi. Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are prosecuting Meli.
The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Federal authorities also wish to acknowledge the cooperation and assistance of the FBI Boston and Atlanta Field Offices; Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria's Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police for their valuable assistance.
Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Warzone RAT splash page.
International Cybercrime Malware Service Dismantled by Federal AuthoritiesRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that, as part of an international law enforcement effort, federal authorities in Boston seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes.
Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware – a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to the court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission.
Additionally, two indictments have been unsealed against individuals involved in selling and supporting the Warzone RAT and other malware.
Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7, and appeared for an initial appearance before Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, with causing unauthorized damage to protected computers; illegally selling and advertising an electronic interception device; and participating in a conspiracy to commit several computer intrusion offenses. According to the charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals on online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States.
Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was arrested by the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission on Feb. 7. Odinakachi was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 with conspiracy to commit multiple computer intrusion offenses, including to obtain authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to the charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware.
According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, Warzone RAT malware was covertly purchased and analyzed confirming its multiple malicious functions.
“This week's actions targeting the Warzone RAT infrastructure and personnel are another example of our tenacious and unwavering commitment to dismantling the malware tools used by cybercriminals,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We will turn over every stone to prevent cybercriminals from attacking the integrity of our computer networks, and we will root out those who support such cybercriminals so they will be held accountable. Those who sell malware and support cybercriminals using it should know that they cannot hide behind their keyboards or international borders.”
“Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.”
“Today, the FBI and our international law enforcement partners dismantled a sophisticated malware service that cybercriminals bought and utilized to infect the computer systems of unsuspecting victims here in Massachusetts, and around the world,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This operation highlights the FBI’s ongoing commitment to unmask and bring to justice anyone who uses today’s technology nefariously. We urge anyone who is a victim of a Warzone RAT intrusion to report it to us at wzvictims.ic3.gov.”The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; FBI SAC Cohen; and U.S. Attorney Buchanan made the announcement today. Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants and Drabick is handling the criminal prosecution of Odinakachi. Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are handling the criminal prosecution of Meli.The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Authorities also wish to acknowledge the cooperation and assistance of the Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police. Law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure.
Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 9 was:
Jeffrey Francis Wood, 54, of Livingston, on charges of possession of an unregistered silencer and possession of a firearm with an obliterated serial number. If convicted of the most serious crime, Wood faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release. Wood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office conducted the investigation. PACER case reference. 23-124.
Appearing on Feb. 8 was:
Jason Edwin Dynes, 37, of Red Lodge, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Dynes faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Dynes was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Montana Probation and Parole conducted the investigation. PACER case reference. 24-8.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 6 was:
Jarred Lane Saunders, 26, of Reed Point, on charges of possession with intent to distribute fentanyl, prohibited person in possession of firearms and ammunition and possession of stolen firearms. If convicted of the most serious crime, Saunders faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Saunders was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, Butte-Silver Bow Law Enforcement, Montana Highway Patrol, Montana Division of Criminal Investigation and Helena Police Department conducted the investigation. PACER case reference. 23-17.
Joshua Nzeyiman, 23, of Helena, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Nzeyiman faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Nzeyiman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Montana Probation and Parole conducted the investigation. PACER case reference. 24-1.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto pleading not guilty on Feb. 6 was:
Emily Ann Svoboda, 30, of Missoula, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of controlled substances. If convicted of the most serious crime, Svoboda faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years to life of supervised release. Svoboda was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and the Missoula High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-8.
Keith Andre Green, 49, of Missoula, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking. If convicted of the most serious crime, Green faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years to life of supervised release on the drug charges and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms charge. Green was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and the Missoula High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-8.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX