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Wednesday 7 February 2024
Montgomery County Man Sentenced to 90 Years in Federal Prison After Secretly Recording Children in Bathrooms and Sexually Abusing Children he Drugged with MethamphetamineRead the Press Release
INDIANAPOLIS- Stan Eugene Hayes Jr., 40, of Montgomery County, has been sentenced to 90 years in federal prison after pleading guilty to ten counts of sexual exploitation and attempted sexual exploitation of a child.
According to court documents and evidence introduced during the sentencing hearing, on October 13, 2022, Stan Hayes was on probation for a prior felony offense when Montgomery County Probation Officers, assisted by members of the Montgomery County Sheriff’s Office, conducted a probation search of his home. Officers found methamphetamine and printed sexual images of children in plain sight. Investigators later discovered that the defendant hid cameras in bathrooms and bedrooms in two different residences belonging to his friends.
Investigators searching his electronic devices recovered hundreds of explicit images and videos of six identified children using the toilet and bathing, created with hidden cameras. Law enforcement officers also recovered over 1,600 files created by the defendant depicting two other children being caused to engage in sexually explicit conduct, including with the defendant. The sexual abuse of these children took place in Tennessee in the early 2000’s. Investigators learned that the defendant gave these two victims methamphetamine.
Investigators also found captions that the defendant added to many of the abuse images describing in detail the sexual abuse that he inflicted on the children, where he also stated that he gave the children methamphetamine to cause them to “submit” to him and “break their will to put up any more fight.” As a result, one of the children ultimately became addicted to methamphetamine. Investigators recovered electronic evidence that the defendant had been keeping tabs on his Tennessee victims via Facebook, over a decade after he sexually abused them.
Investigators located approximately 350,000 images and videos of other child sexual abuse material that Hayes downloaded and traded online. Law enforcement officers also located a variety of other items relating to child sexual abuse, including: a collection of his victims’ underwear, a digital picture frame displaying child sexual abuse material, and a child-sized sex doll.
“No child should ever suffer the nightmares this man inflicted on so many,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “No prison sentence can undo the trauma these victims suffered, but I hope that the victims can take another step towards healing and closure knowing that the monster who hurt them so deeply will never hurt another child ever again.”
“There are no words that will help erase the memory of the horrific abuse these children suffered at the hands of this predator, but I hope this sentence gives them some solace in knowing the FBI and our law enforcement partners worked tirelessly to hold him accountable and ensure he will never again be free to inflict these horrible crimes on any other child,” said Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office.
The FBI investigated this case, with assistance from the Montgomery County Sheriff’s Office. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Hayes be supervised by the U.S. Probation Office for life following any release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys MaryAnn T. Mindrum and Kyle M. Sawa as well as former Assistant U.S. Attorney Kristina M. Korobov, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood
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Missouri-Based Defense Department Contractor Admits FraudRead the Press Release
ST. LOUIS – A Defense Department contractor from St. Charles County, Missouri on Wednesday admitted illegally obtaining parts for the military overseas, undercutting domestic suppliers.
David Murar, 73, waived his right to indictment by a grand jury and pleaded guilty in U.S. District Court in St. Louis to one felony count of conspiracy to commit wire fraud. Murar admitted that from roughly April through October of 2022, he bid on and received at least nine U.S. government contracts by way of fraudulent misrepresentations, including that he would provide parts from domestic sources. Murar actually provided parts from China and other foreign countries. By doing so, Murar was able to underbid domestic suppliers. Murar broke the law by providing “military critical technical data,” which was restricted and protected information, to foreign individuals and/or entities. Murar also admitted to fraudulently using his wife’s name to gain a competitive advantage for one of his companies as a woman-owned small business, when he was really the actual owner and operator.
Murar fraudulently obtained contracts worth at least $333,465 for parts including nuts, bolts, washers, sleeves, and tools.
“Some of the parts that Murar’s companies supplied were designated as ‘critical,’ meaning they are essential to weapon system performance or the preservation of life or safety of personnel,” said U.S. Attorney Sayler A. Fleming. “Murar and his companies have already been suspended from government contracting and he has now pleaded guilty to a felony conspiracy charge. This case should serve as a stern warning to those whose actions could endanger members of the armed forces or who supply confidential data on military equipment to overseas entities.”
"The safety and readiness of the warfighter is the top priority of the Department of Defense Office of Inspector General's Defense Criminal Investigative Service (DCIS)," said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. "We remain committed to safeguarding the integrity of the DoD supply chain, and we will pursue any company that supplies substandard products. Along with our partners, we are likewise committed to protecting sensitive technology and seek to hold those accountable who subvert export controls, exposing technology to adversaries."
“Knowingly removing export control markings and illegally transmitting export-controlled military technology data overseas to produce substandard components for vital DOD contracts, while purporting the same to be made in America, puts U.S. warfighters at risk and undermines our national security. BIS is committed to vigorously investigating illicit technology transfers and holding violators accountable,” said Aaron Tambrini, Special Agent in Charge of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office.
“We will work with law enforcement partners to aggressively pursue cases involving anyone who provides false information in government databases to fraudulently win government contracts,” said Special Agent in Charge Jeffrey Ryan of the Midwest Investigations Division of the U.S. General Services Administration Office of Inspector General. “Legitimate woman-owned businesses deserve a level playing field when competing for contract opportunities.”
“Product substitution is a serious threat to Air Force assets, and negatively impacts aircraft safety and readiness,” said Special Agent in Charge William A. Rouse, Air Force Office of Special Investigations, Procurement Fraud Detachment 4, Wright-Patterson Air Force Base.
Murar owned three businesses: Midwest Metals, St. Louis Loft Metals, and Florence Metals.
Murar signed agreements not to provide access to military critical technical data to anyone other than his employees or other eligible persons and comply with U.S. export control laws and regulations. He also agreed to comply with laws and other restrictions requiring certain items purchased by the Defense Department to be domestically sourced. But Murar admitted scheming to obtain parts from China, Hong Kong and other countries, and sent requests for quotes, including diagrams of necessary parts, to suppliers in those countries. He removed document distribution statements, destruction notices and export control and arms export control warnings from those documents before sending them, his plea agreement says.
Murar wired funds to obtain the parts, which were then manufactured and sent to his home in St. Charles. He discarded their original packaging and repackaged them to conceal their origin overseas, his plea says.
Murar is scheduled to be sentenced May 7. The charge carries a penalty of up to 20 years in prison, a fine of up to $250,000, or both prison and a fine.
The General Services Administration Office of Inspector General, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, the Department of Commerce’s Office of Export Enforcement, the U.S. Air Force Office of Special Investigations and the U.S. Army Criminal Investigation Division, Fraud Field Office investigated the case. Assistant U.S. Attorneys Matthew Drake and Cort VanOstran are prosecuting the case.
Middlesex County Man Admits Role in Gunpoint RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in an attempted robbery in New Brunswick, New Jersey, where the victim was shot 14 times, U.S. Attorney Philip R. Sellinger announced.
Jonathan Rosales, 23, of New Brunswick, pleaded guilty today before U.S. District Judge Robert Kirsch in Trenton federal court to an indictment charging him with conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On Dec. 28, 2020, Rosales, along with his accomplices, Saul Peralta and Giovanni Hoyos-Jaimes, attempted to rob the victim in New Brunswick. During the struggle, the victim was shot 14 times causing him to sustain serious injuries. Peralta and Hoyos-Jaimes previously pleaded guilty before Judge Kirsch for their involvement in this incident.
The conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery counts each carry a maximum potential penalty of 20 years in prison. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for June 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI in Newark, under the direction of Special Agent in Charge James E. Dennehy; members of the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo; and members of the Middlesex County Prosecutor’s Office, under the leadership of Prosecutor Yolanda Ciccone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
rosales.indictment.pdfMiddle Tennessee Man Charged with Unlawful Possession and Transfer of Firearm SilencerRead the Press Release
NASHVILLE – On February 5, 2024, Paul Faye Sr., 55, of Cunningham, Tennessee, was arrested after being charged with the unlawful possession and transfer of an unregistered firearm silencer, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis.
The criminal complaint alleges that Faye spoke with an undercover FBI agent for months about a plan to travel to the United States – Mexico border to commit acts of violence against migrants and federal agents. In January 2024, Faye illegally transferred a silencer to an undercover agent with the FBI as they prepared to travel to the border to target migrants entering the United States.
After taking Faye into custody, law enforcement searched his property in Cunningham, Tennessee and recovered numerous firearms, including a short-barreled shotgun and a Springfield XD pistol, another firearm silencer, a militia patch, multiple jars of Tannerite, a brand of explosive targets that can be converted into improvised explosive devices, and hundreds of rounds of ammunition.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Michigan City Man Sentenced to 84 Months in PrisonRead the Press Release
SOUTH BEND – Eugene Dawson, 42 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Dawson was sentenced to 84 months in prison followed by 3 years of supervised release.
According to documents in the case, between January and February 2023, Dawson brokered the sale of a 9mm firearm to an individual in exchange for $650 dollars. He also provided cocaine to that individual during the firearm transaction. On two other dates, additional drug transactions took place. A search warrant was later executed on Dawson’s home where additional cocaine and marijuana was found in an area accessible to children, under 18, who were in the home. Dawson was previously convicted of selling cocaine in LaPorte County Superior Court, a felony, and as such, was prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the Michigan City Police Department, the LaPorte County Sheriff’s Department, and the LaPorte City Police Department. The case was prosecuted by Assistant United States Attorney Katelan M. Doyle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Miami woman sentenced to 70 months in prison after using COVID-19 funds to gamble and launder moneyRead the Press Release
MIAMI – On Feb. 5, a Miami woman was sentenced to 70 months in federal prison for money laundering of nearly $2 million in fraudulent COVID-19 relief loans, after previously pleading guilty in October 2023.
From April 2020 through April 2021, Maritza Morales Hermoso, 58, of Miami, Florida, and others, including co-defendant Javier Lazo Cabrera, conspired to defraud private lenders and the Small Business Administration (SBA) by filing false and fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, despite that several of those companies had no payroll and were not actively doing business at the time the loan applications were submitted. The applications were supported by fabricated payroll documents and inflated employee numbers. As a result of these false and fraudulent applications, a California-based SBA-approved PPP lender disbursed close to $2 million in fraudulent loan proceeds to bank accounts controlled by Hermoso.
Hermoso spent the proceeds from the fraudulent PPP and EIDL loans on gambling at South Florida casinos and various other personal expenses like cosmetic surgery, a Cadillac Escalade, and a Pomeranian puppy. Hermoso also disguised her misuse of funds by laundering the loan proceeds through multiple unrelated business accounts and withdrawing the money in cash.
Hermoso’s co-defendant, Cabrera, pleaded guilty to conspiracy to commit wire fraud in December 2023. Cabrera’s sentencing is scheduled for March 11 at 8:30 a.m. in Miami. Cabrera faces up to 20 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office announced the sentence.
USSS Miami, SBA OIG, Investigations Division’s Eastern Region, and FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Roger Cruz prosecuted the case. Assistant U.S. Attorneys Mitchell Evan Hyman is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20360.
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Mexican Springs Man Pleads Guilty to Second Degree MurderRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Timothy Chischilly pleaded guilty in federal court to second degree murder. Chischilly, 53, of Mexican Springs, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
Chischilly and his co-defendant, Stacey Yellowhorse, were indicted by a federal grand jury on Aug. 11, 2020. According to publicly available court documents, Chischilly and Yellowhorse, his then girlfriend, invited Jane Doe to sleep over at Chilschilly’s house within the exterior boundaries of the Navajo Nation on the night of Jan. 23, 2020. During the night, Chischilly and Yellowhorse killed Jane Doe by nailing her to the floor, hammering a nail into her head, and bludgeoning her to death. Afterwards, Chischilly and Yellowhorse burned Jane Doe’s body and spread the remains at different locations.
Chischilly confessed to the murder to his family days later.
At sentencing, Chischilly faces up to life in prison.
Yellowhorse remains in custody pending trial, which is currently scheduled for March 25, 2024.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Gallup Police Department. Assistant U.S. Attorneys Kimberly Brawley and Tavo Hall are prosecuting the case.
View the Plea Agreement# # #
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Meth trafficking sends Billings man to prison for six yearsRead the Press Release
BILLINGS — A Billings man who admitted to bringing large quantities of methamphetamine from Denver, Colorado, for distribution and trading guns for meth was sentenced today to six years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Paul Andrew Guiot, 45, pleaded guilty in September 2023 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in the summer of 2021, officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force began investigating Guiot for drug trafficking. Guiot made trips to Denver alone and with his girlfriend, Jaide Alexander, of Billings, to buy drugs. In October 2021, officers served a state search warrant on a trailer where Guiot and Alexander lived. Officers located a small amount of narcotics and several loaded firearms. Guiot admitted to law enforcement that he and Alexander were importing large amounts of meth from Denver. He admitted he regularly traded guns for drugs in Montana and would then take the guns to Colorado to trade for more drugs. Alexander previously was sentenced to five years in prison, to be followed by five years of supervised release, for her guilty plea to possession with intent to distribute meth.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Eastern Montana High Intensity Drug Trafficking Area Task Force, Drug Enforcement Administration and FBI investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Member of Drug Trafficking Organization Admits Fentanyl Analogue Distribution and Money LaunderingRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role as a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, U.S. Attorney Philip R. Sellinger announced.
Sean Tighe, 48, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a second superseding indictment charging him with drug trafficking conspiracy and international promotional money laundering conspiracy.
According to documents filed in this case and statements made in court:
Tighe admitted that from March 2014 through September 2020, he and others agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl, fentanyl analogues, synthetic cathinones, also known as “bath salts,” such as ethylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey. Tighe admitted that other members of the conspiracy provided him with controlled substances and analogues pressed into small pills for distribution.
The defendants allegedly paid for the drugs they imported by sending, or recruiting others to send, international wire payments to the Chinese sources of supply. Tighe admitted to having been responsible for transferring at least $14,000 to China from April 2014 to June 2014.
The count of drug trafficking conspiracy carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine. The count of international promotional money laundering conspiracy carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is scheduled for Nov. 19, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s guilty plea. He also thanked HSI in Philadelphia, the FBI – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark and Trial Attorneys Stephen Sola and Alexander Hasapidis-Sferra of the Justice Department’s Money Laundering and Asset Recovery Section. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.
This case 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.
tighe.ssindictment.pdfMember of Criminal Organization Pleads Guilty to Deadly Kidnapping in El PasoRead the Press Release
EL PASO, Texas – An El Paso man who served as a soldier in a transnational criminal organization (TCO) pleaded guilty in a federal court in El Paso to kidnapping resulting in death.
According to court documents, Armando Leonardo Moreno aka Cholo, 21, conspired with other TCO members on or around Sept. 13, 2021, to kidnap a subject from an El Paso stash house. The kidnappers drove the subject to another address, dragged him out of the vehicle and beat him in the front yard of the home before taking him inside and beating him further. On Sept. 16, 2021, the subject was found deceased in Las Cruces, New Mexico, with multiple gunshot and stab wounds.
Moreno faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Codefendant Michelle Karen Avila was previously sentenced to 120 months in prison, while codefendant Ruben Pimentel was sentenced to 188 months. Codefendants Alberto Rodriguez and Ricardo Matthew Gutierrez remain in federal custody awaiting sentencing.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations, the El Paso Police Department, the New Mexico State Police, and the Texas Department of Public Safety are investigating the case.
Assistant U.S. Attorneys Sarah Valenzuela and Ian Hanna are prosecuting the case.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 270 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 210 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
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McCook Man Sentenced to 31 Years for Production of Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Jeron Messersmith, 29, formerly of McCook, Nebraska, was sentenced on February 7, 2024, in federal court in Lincoln, Nebraska, for attempted production of child pornography and production of child pornography. Senior United States District Judge John M. Gerrard sentenced Messersmith to 372 months’ imprisonment. There is no parole in the federal system. After Messersmith’s release from prison, he will begin a 20-year term of supervised release. Additionally, Messersmith was ordered to pay $9,000 in restitution.
In February of 2021, Messersmith’s cellphone was downloaded and reviewed as part of a child sex assault investigation. While reviewing the phone, law enforcement discovered child pornography. Law enforcement additionally found numerous text messages and social media conversations between Messersmith and several minor females. In the conversations, Messersmith often requested sexually explicit files from each minor and engaged in romantic and sexual conversations. Photos or videos of each of the minor victims were located on Messersmith’s phone. Pursuant to some of the messages, Messersmith had attempted to travel to another state to engage in sexual relations with one of the minor females.
This case was investigated by the McCook Police Department and brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
McAlester Resident Pleads Guilty to Sexual Exploitation of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amanda Lynn Howerton, age 40, of McAlester, Oklahoma, entered a guilty plea to one count of Sexual Exploitation of a Minor/Use of a Child to Produce a Visual Depiction.
The Indictment alleged that on January 22, 2023, Howerton created a visual depiction of a minor engaged in sexually explicit conduct for the purposes of transmitting that image over the internet.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Judge Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Howerton was remanded to the custody of the United States Marshal pending sentencing.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
Massachusetts Commercial Fisherman Pleads Guilty to Tax EvasionRead the Press Release
A Massachusetts man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.
According to court documents and statements made in court, Rodolfo Membreno, of Fall River, worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Membreno did not report over $1.3 million in income between 2013 and 2021. For 2013 to 2019, and again for 2021, Membreno did not file federal income tax returns or pay taxes. In 2020, he filed a false tax return that overstated business expenses. For 2012, Membreno filed a tax return but did not pay the tax that was due. To conceal his income, Membreno regularly cashed his paychecks from the fishing companies and used the cash to pay for personal expenses. In total, he caused a tax loss to the IRS of approximately $293,118.
Membreno is scheduled to be sentenced on May 15 and faces a maximum sentence of five years in prison. The defendant also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Ezra Spiro and Acting Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.
Man Pleads Guilty to Opioid Distribution and Money Laundering ConspiracyRead the Press Release
A New Jersey man pleaded guilty today to drug trafficking and money laundering conspiracy charges.
According to court documents, from March 2014 to September 2020, Sean Tighe, 48, of Kearny, conspired to distribute and to possess with intent to distribute over nine kilograms of furanyl fentanyl and nine kilograms of 4-fluoroisobutyryl fentanylsynthetic cathinones (also known as bath salts), including ethylone; and ketamine. In addition, from March 2014 to May 2019, Tighe conspired to launder funds. In furtherance of the conspiracy, from April 2014 to June 2014, Tighe sent five wire payments from the United States to China to purchase controlled substances and/or controlled substance analogues.
Tighe pleaded guilty to conspiracy to distribute controlled substances and controlled substance analogues, including 100 grams or more of fentanyl analogues, synthetic cathinones, and ketamine, and conspiracy to launder monetary instruments. He is scheduled to be sentenced on Nov. 19. If the court accepts the guilty plea, the government and Tighe will agree to a sentence of approximately 12 to 15 years in prison, at least five years of supervised release for the drug conspiracy count, and a maximum of three years of supervised release for the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, and Special Agent in Charge Michael Alfonso of Homeland Security Investigations (HSI) Newark made the announcement.
HSI Newark is investigating the case.
Trial Attorney Alexander Hasapidis-Sferra and Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Sammi Malek for the District of New Jersey are prosecuting the case. Special Financial Investigations Unit Financial Investigator Kathryn Montemorra provided significant assistance.
Man Convicted of $300M Securities Price Manipulation and Wire Fraud Cryptocurrency ConspiracyRead the Press Release
A federal jury in the Southern District of Florida convicted a Pennsylvania man today for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.
According to court documents and evidence presented at trial, Shane Hampton, 32, of Philadelphia, served as the head of financial engineering at Hydrogen Technology and orchestrated a months-long scheme to manipulate the price of HYDRO. Hampton and his co-conspirators hired an outside firm, Moonwalkers Trading Limited of South Africa, to run an automated trading system or “bot” to manipulate the price of HYDRO on a cryptocurrency exchange in the United States by flooding the market with fake and fraudulent orders from October 2018 to April 2019.
Hampton and his co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. Collectively, these spoof and wash trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO so that Hampton and his co-conspirators could sell Hydrogen Technology’s own holdings of HYDRO for over $1.5 million over the course of a seven-month period.
The jury convicted Hampton of conspiracy to commit securities price manipulation and conspiracy to commit wire fraud. He is scheduled to be sentenced on April 29 and faces a maximum penalty of five years in prison for the conspiracy to commit securities price manipulation conviction and 20 years in prison for the conspiracy to commit wire fraud conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hampton is the fourth defendant to be convicted as part of the case. Michael Kane, the CEO of Hydrogen Technology, pleaded guilty to the same charges and is awaiting sentencing; Andrew Chorlian, an engineer at Hydrogen Technology, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and is awaiting sentencing; and Tyler Ostern, the CEO of Moonwalkers Trading Limited, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and has been sentenced to two years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI Miami Field Office investigated the case. Former Assistant U.S. Attorney Eric Morales for the Southern District of Florida assisted in the investigation of the case.
Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting the case.
Man Convicted of Tampering and Vandalism at Sleeping Bear Dunes National LakeshoreRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrew Blair Howard, 63, of Frankfort, Michigan was convicted of tampering and vandalism at Sleeping Bear Dunes National Lakeshore in connection with an August 15, 2022, diversion of the Platte River. Both crimes are federal misdemeanors.
“The Sleeping Bear Dunes National Lakeshore is a Michigan jewel,” said U.S. Attorney Mark Totten. “Every year countless visitors enjoy its pristine waters, towering sand dunes, and rolling forests. Mr. Howard had a policy dispute with the National Park Service and took matters into his own hands, breaking the law rather than using lawful means to advocate for his position. His actions resulted in significant financial and ecological harm and altered the landscape so many enjoyed. Today and always my office commits to protect Michigan’s natural treasures.”
The Platte River flows through the Sleeping Bear Dunes National Lakeshore before it empties into Lake Michigan. In the summer, paddlers, tube floaters, and beachgoers drift down its meandering waters. In August 2022, National Park Service law enforcement officers investigated reports of a diversion of the Platte River near its mouth. On August 15, 2022, Howard used a shovel to dig sediment and rocks from the river basin and stacked large rocks on a dam to divert the river’s natural water flow toward a newly created channel out to Lake Michigan, contrary to a decision by the National Park Service to let the river follow its natural course. The diversion created an unauthorized access for large boats to enter Platte Bay. Within days, the natural power of the water and the dam caused the new channel to reach approximately 200 feet wide.
The following aerial photograph on the left, taken in May of 2022, shows the natural flow of the Platte River running parallel to Lake Michigan. The photograph on the right shows the same area approximately 3 days after the diversion, with the channel emptying directly into Lake Michigan.
May 2022 August 2022In a bench trial, federal Magistrate Judge Ray Kent convicted Howard of two counts: one count of tampering (Count 1) and one count of vandalism (Count 2), under Title 36 C.F.R. § 2.31(a)(2) and (3) respectively, which provides for the proper use and protection of natural resources within areas under the jurisdiction of the National Park Service. In so ruling, Judge Kent held that the defendant “intended to and in fact did divert the flow of the Platte River into Platte Bay.”
“The National Park Service appreciates the support of the U.S. Attorney’s Office in enforcing the laws that help protect this place for future generations.” said Superintendent Scott Tucker. “Sleeping Bear Dunes National Lakeshore was created in 1970 to preserve and protect this spectacular place.”
The National Park Service investigated this case. Assistant United States Attorney Lauren F. Biksacky prosecuted it on behalf of the United States.
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Man Charged with Abusive Sexual Contact with Children Under 12Read the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Tyler Chinana was arraigned in federal court on an indictment charging him with two counts of abusive sexual contact. Chinana, 34, of Jemez Pueblo, and an enrolled member of the Jemez Pueblo, will remain on conditions of release in the third-party custody of a halfway house pending trial, which has not been scheduled.
According to court records, between Jan. 1 and Dec. 31, 2012, Chinana engaged in sexual contact with Jane Doe 1, a child who had not then attained the age of 12 years. Then, between Nov. 4 and Nov. 6, 2022, Chinana engaged in sexual contact with Jane Doe 2, a child who had not then attained the age of 12 years.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Chinana faces up to life in prison.
The FBI Albuquerque Field Office investigated this case with the assistance of the Jemez Pueblo Police Department. Assistant U.S. Attorney Meg Tomlinson is prosecuting the case.
View the Indictment# # #
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Man Admits Burglarizing Missouri Post Office Twice in Clown MaskRead the Press Release
ST. LOUIS – A man admitted breaking into a Franklin County, Missouri post office and twice stealing packages while masked.
Scott Weatherby, 28, pleaded guilty in U.S. District Court in St. Louis to two counts of burglary of a post office. He admitted breaking into the U.S. Post Office in St. Albans, in northeastern Franklin County, on August 6, 2023. Weatherby was wearing a clown mask at the time he stole packages and again the next day when he returned. After he was identified as a suspect, investigators went to an address associated with him in Pacific, Missouri. Weatherby fled out of the back door of the home but was caught after a brief chase. A clown mask and multiple stolen packages were found in his vehicle.
Weatherby is scheduled to be sentenced May 7. Each count is punishable by up to five years in prison, a fine of up to $250,000, or both prison and a fine.
The U.S. Postal Inspection Service, the Franklin County Sheriff’s Office and the Jefferson County Sheriff’s Office investigated the case. Assistant U.S. Attorney Nicholas Lake is prosecuting the case.
Malden Man Who Robbed Market with Airsoft Gun Pleads GuiltyRead the Press Release
BOSTON – A Malden man pleaded guilty today in federal court in Boston to robbing a local market using an airsoft gun in December 2021.
John Schurko, 58, pleaded guilty to one count of interference with commerce by robbery. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 15, 2024. Schurko was charged by criminal complaint in December 2021 and subsequently indicted by a federal grand jury in March 2022.
On Dec. 12, 2021 at approximately 8 p.m., Schurko entered the Harvard Market in Malden, displayed what appeared to be a black handgun, went behind the counter and demanded money from the clerk. On Dec. 16, 2021, Schurko’s getaway vehicle was located in a hotel parking lot in Medford where he was subsequently arrested. A search of the vehicle recovered, among other things, a black Airsoft gun that resembled a real firearm.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Malden Police Chief Glenn Cronin; Medford Police Chief Jack Buckley; Billerica Police Chief Roy Frost; and Woburn Police Chief Robert F. Rufo Jr. made the announcement. Assistant U.S. Attorney Robert E. Richardson of the Major Crimes Unit is prosecuting the case.
- Lexington Man Sentenced for Transporting Child Pornography
Lead of 7 defendants in multi-state narcotics, money laundering conspiracies case sentenced to 16 years in prisonRead the Press Release
COLUMBUS, Ohio – The lead defendant charged in a narcotics and money laundering conspiracies case was sentenced in U.S. District Court today. Seven defendants are responsible for conspiring to traffic thousands of oxycodone pills and more than three kilograms of methamphetamine into Ohio from Florida and California, and for conspiring to launder more than $2.5 million in drug proceeds.
Michael J. Moore, 47, of Inglewood, California, was sentenced to 192 months in prison for conspiring to launder the proceeds of methamphetamine and oxycodone trafficking and for conspiring to possess with intent to distribute the drugs.
According to court documents, from at least 2015 through at least 2018, Moore and six women conspired to distribute and possess with intent to distribute methamphetamine and oxycodone. The defendants illegally diverted and transported oxycodone pills from Florida to Ohio and from California to Ohio. They trafficked methamphetamine from California to Ohio.
For example, Moore obtained fraudulent oxycodone prescriptions in Florida on approximately 10 occasions between 2015 and 2016, allowing him to obtain more than 1,000 pills.
Lower-level members of the conspiracy fraudulently obtained a substantial number of pills, providing them to higher-level members and keeping the balance of the pills as payment to feed their addictions.
In total, the group obtained and distributed between 5,656 and 100,000 30-milligram oxycodone pills, which were then sold for between $20 and $30 per pill.
Moore was involved in the shipping and distribution of at least 3,114 grams of methamphetamine that was approximately 98 percent pure.
Moore and the others conspired to launder the drug proceeds by opening bank accounts at several financial institutions, making money transfers, and concealing cash and flying it on commercial flights.
The other defendants convicted in this case include:
Name
Age
City
Sentence Imposed
Mykell Reeneesha Uneek Hawes
33
Cerritos, California
132 months in prison
Brandy Monique Casey
44
Inglewood, California
30 months in prison
Marisa A. Wallace
29
Columbus, Ohio
72 months in prison
Angela N. Faber
41
Reynoldsburg, Ohio
48 months in prison
Heather M. Russell
36
Columbus, Ohio
48 months in prison
Janette M. Breckenridge
33
Columbus, Ohio
48 months in prison
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation (IRS-CI) announced the sentence imposed today by U.S. District Judge Michael H. Watson. The U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA) and Whitehall Police Department assisted in the investigation. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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La Crosse County Man Sentenced to 5 Years for Trafficking MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Alfredo Almanza, 43, La Crosse, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 5 years in federal prison for possessing 50 grams or more of methamphetamine for distribution and maintaining a drug trafficking place. Almanza pleaded guilty to these charges on October 31, 2023.
Law enforcement began investigating Almanza for drug trafficking after receiving complaints from citizens that he was selling methamphetamine out of his home in La Crosse County. On March 15, 2023, law enforcement officers followed a known drug trafficker as he drove to the alley behind Almanza’s home, then exit his vehicle and return a short time later. Law enforcement stopped and searched the vehicle as it left Almanza’s house and found 95 grams of methamphetamine. GPS records indicated that this drug trafficker had been at Almanza’s residence four other times in the month of March.
On March 22, 2023, law enforcement executed a search warrant at Almanza’s home. They found approximately 284 grams of methamphetamine along with drug trafficking paraphernalia. An examination of Almanza’s cell phone messages showed communications involving the sale of methamphetamine between Almanza and other individuals.
At sentencing, Judge Conley noted that, despite a prior conviction for methamphetamine distribution, Almanza continued to sell methamphetamine, which endangered others. In ordering this sentence, Judge Conley further noted that this prison term would be longer that any previous sentence Almanza had served and encouraged him to use the time productively, including by engaging in available drug treatment programs.
The charges against Almanza were the result of an investigation conducted by the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Assistant U.S. Attorneys Kathryn Ginsberg and Colleen Lennon prosecuted this case.
Kearney Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Royce Love, 45, of Kearney, Nebraska, was sentenced on February 2, 2024, in federal court in Lincoln, Nebraska, for receipt of child pornography. Senior United States District Judge John M. Gerrard sentenced Love to 84 months’ imprisonment. There is no parole in the federal system. After Love is released from prison, he will begin an 8-year term of supervised release.
Love was contacted online by a vigilante group who posed as a minor female. A conversation ensued in which the group attempted to get Love to agree to meet with the minor female for a sex act. Ultimately, Love stopped communicating with the account and blocked it without ever agreeing to meet. The group then confronted Love in person at his residence and called police.
Love agreed to allow to law enforcement to search his phone. When the search was performed, police discovered multiple images of child pornography involving minor females. Police contacted Love again about a week later when the search was complete. After being advised of the Miranda warnings, Love was asked about the images. Love said he could not remember exactly where he had obtained the images, but he did acknowledge receiving them over the internet.
Additional electronic devices were seized after the second interview. When those devices were searched, police located additional images depicting children engaging in sexually explicit conduct.
This case was investigated by the Kearney Police Department and brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Secures Agreement with Staffing Company to Resolve Claims of Employment DiscriminationRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Latitude Inc. (Latitude), a staffing company in Hanover, Maryland. The agreement resolves the department’s determination that Latitude violated the Immigration and Nationality Act (INA) by discriminating against certain non-U.S. citizens with permission to work in the United States and excluding them from job opportunities based on their citizenship status.
“Companies cannot unlawfully exclude all non-U.S. citizens with permission to work in the United States from job opportunities based on their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who engage in such behavior that violates our nation’s federal civil rights laws.”
The department’s investigation determined that, from at least April 2022 through July 2023, Latitude refused to refer, recruit or hire any non-U.S. citizens for several positions with a client company that had requested the restriction without any legal basis. These actions harmed lawful permanent resident workers, non-citizen national workers and workers who have been granted asylum or refugee status by unlawfully deterring them from applying to and failing to advance those who did apply for further consideration in the hiring process.
Under the terms of the settlement, Latitude will train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Latitude will pay civil penalties to the United States.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected] or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Justice Department Gathers Stakeholders, Advocates for Inaugural National Elder Justice Law Enforcement SummitRead the Press Release
The Justice Department today convened the National Elder Justice Law Enforcement Summit, which represents the first national gathering of local, state, and federal law enforcement to focus on efforts to combat elder abuse, neglect, financial exploitation, and fraud.
During the two-day event, held at the U.S. Securities and Exchange Commission (SEC)’s headquarters in Washington, D.C., representatives from local, state, and national law enforcement organizations from around the country will join federal law enforcement representatives to discuss and learn about the various forms of elder abuse; identify promising practices, resources and tools available to state and local law enforcement; and foster greater collaboration between law enforcement and elder justice professionals to prevent, identify, and address elder abuse in their communities. Some of the specific topics to be addressed will include how dementia may impact elder abuse investigations; how to overcome challenges associated with investigating financial exploitation; how trauma impacts older victims and the importance of connecting older victims with services; and the unique challenge of investigating abuse and neglect committed against nursing home residents.
“Tragically, millions of older Americans suffer from some form of elder abuse each year,” said Acting Associate Attorney General Benjamin C. Mizer, who opened the event. “While the pandemic brought to light some of the most egregious elder abuses, we know that far too many cases still go unreported.”
In his remarks, the Acting Associate Attorney General emphasized the value of collaboration among all levels of law enforcement, adding: “While the Department is steadfast in our commitment to pursue elder justice, it’s clear that none of us can do this work alone. You are valued partners in the Department’s fight against elder abuse and fraud, and we continue to reap the benefits of working collaboratively with you.” He reiterated the Department’s commitment to supporting the critical work of state and local partners.
In October 2023, the Justice Department released its fifth Annual Justice Report to Congress, highlighting its ongoing efforts to root out heinous activity that strategically targets and exploits vulnerable, older populations. During the period covered by the report of July 2022 through June 2023, the Department pursued nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Also noted in the report, the Department has returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older.
The Summit was organized by the Justice Department’s Elder Justice Initiative, with support from the Office for Victims of Crime and the Office of Community Orienting Policing Services. The event was also supported by members of the Elder Justice Coordinating Council, including the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Health and Human Services Administration for Community Living.
To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit the Department’s Elder Justice Website, where information on the Summit also is available.
Justice Department Announces Charges and Arrest in Two Separate Illicit Technology Transfer Schemes to Benefit Governments of China and IranRead the Press Release
In two separate cases out of U.S. Attorneys’ Offices on opposite coasts, several individuals are charged – one of whom was arrested yesterday – in connection with sophisticated schemes to transfer sensitive technology, goods, and information for the benefit of hostile foreign adversaries, in violation of U.S. law.
In the Eastern District of New York, two Iranian nationals are charged with conspiring to export equipment used in the aerospace industry to the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA), in connection with an alleged conspiracy to illegally export U.S. goods and technology without the required licenses.
In the Central District of California, a man was arrested for allegedly stealing trade secrets developed for use by the U.S. government to detect nuclear missile launches and track ballistic and hypersonic missiles.
“One year ago, I launched the Disruptive Technology Strike Force to strike back against adversaries trying to steal our nation’s most powerful technology and use it against us,” said Deputy Attorney General Lisa O. Monaco. “Since then, working with our partners at the Commerce Department, we have arrested more than a dozen corporate executives, engineers, distributors, and other high-profile targets on charges that include sanctions and export control violations, and other offenses involving the unlawful transfer of sensitive information and technology. Today’s charges against three additional defendants for seeking to illegally transfer U.S. software and semiconductor technology with military applications to benefit Iran and China highlight the critical importance of our fight against this national security threat.”
“The FBI continues to take aggressive investigative action to hold accountable those who seek to violate sanctions and illegally provide sensitive technology to foreign adversaries,” said FBI Deputy Director Paul Abbate. “Stealing U.S. trade secrets and technology, especially when it can be used for military purposes, will not be tolerated. We will continue to work closely with our partners in the Disruptive Technology Strike Force to stop such activity and protect the national security of the United States.”
“In its first year, the Disruptive Technology Strike Force has strengthened enforcement and disrupted numerous criminal schemes to smuggle highly-sensitive technology that foreign adversaries wield to advance their military and other malign agendas,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The cases announced today underscore the commitment of the Justice Department and our partners to disrupt illegal efforts to siphon off U.S. ingenuity and to safeguard American security and innovation. “
“In the just one year since the launch of the Disruptive Technology Strike Force, we’ve stood up over a dozen local investigative cells, opened scores of investigations, and brought criminal charges against more than a dozen individuals and companies associated with nation-state adversaries,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Today’s announcement provides the latest example of our unwavering mission — keeping our country’s most sensitive technologies out of the world’s most dangerous hands.”
United States v. Bazzazi (EDNY)
Note: View a copy of the indictment here.According to court documents, between January 2008 and August 2019, Abolfazi Bazzazi, 79, of Iran, and his son Mohammad Resa Bazzazi, 43, of Iran, and their co-conspirators sought to evade U.S. sanctions and export laws by working to procure goods and technology, including aeronautical ground support equipment, ultraviolet flame detectors, and firefighting equipment, from U.S. companies for end users in Iran, including the Government of Iran, without obtaining the required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
“As alleged, the Bazzazis devised an intricate scheme to evade U.S. export laws in obtaining U.S. equipment and technology to be exported to Iran and for the Government of Iran which has been designated by the United States government as a state sponsor of terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants allegedly attempted to obtain commercial and military aircraft items from multiple U.S. companies that supply the military, aerospace, and firefighting industries. These charges demonstrate the resolve of this office and the Department of Justice to prosecute those who seek to aid the Government of Iran, in violation of U.S. sanctions.”
According to the indictment, the defendants sought to obtain components that could be used by Iran’s aerospace industry. Additionally, they disguised the final destination of U.S. goods by attempting to forward them through intermediaries in Europe and elsewhere. As alleged, the Bazzazis acted on behalf of the Government of Iran.
The Bazzazis are charged with conspiracy to violate the IEEPA, which carries a maximum penalty of 20 years in prison; and smuggling goods from the United States, which carries a maximum penalty of 10 years in prison. The defendants remain at large.
The Commerce Department’s Bureau of Industry and Security (BIS) and FBI are investigating the case.
Assistant U.S. Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Adam Amir for the Eastern District of New York are prosecuting the case, with assistance provided by Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Gong (CDCA)
Note: View a copy of the complaint here.As alleged, Chenguang Gong, 57, of San Jose, California, was arrested yesterday in San Jose and is expected to make his initial appearance today in the Northern District of California. Gong is a native of China and became a United States citizen in 2011.
Gong is charged in a criminal complaint with theft of trade secrets. According to court documents, Gong transferred more than 3,600 files from the research and development company where he worked — identified in court documents as the victim company — to personal storage devices during his brief tenure with the company last year. The files Gong allegedly transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles, and blueprints for sensors designed to enable U.S. military aircraft to detect incoming heat-seeking missiles and take countermeasures, including by jamming the missiles’ infrared tracking ability. Some of these files were later found on storage devices seized from Gong’s temporary residence in Thousand Oaks, according to the affidavit in support of the complaint.
Together with the U.S. government and others, the affidavit states, the victim company “has invested tens of millions each year for more than seven years to develop the technology,” and it “would be extremely damaging economically” to the victim company if the technology were obtained by its competitors and “dangerous to U.S. national security if obtained by international actors.”
“We will do everything to protect our nation’s security, including from foreign threats,” said U.S. Attorney Martin Estrada for the Central District of California. “Mr. Gong, who had previously sought to provide the People’s Republic of China with information to aid its military, stole sensitive and confidential information related to detecting nuclear missile launches and tracking ballistic and hypersonic missiles. We know that foreign actors, including the PRC, are actively seeking to steal our technology, but we will remain vigilant against this threat remain vigilant against this threat by safeguarding the innovations of American businesses and researchers.”
“The FBI is committed to protecting our nation’s critical technologies and to pursuing those who look to steal trade secret information for their benefit or for the benefit of foreign adversaries,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “The theft of trade secrets, especially of sensitive military technology, undermines our national security, erodes U.S. competitiveness in the global market, and harms the businesses and individuals who have invested time, resources, and creativity into developing innovative technologies. Our actions today send a strong message that anyone willing to steal proprietary information from U.S. businesses will face consequences in the criminal justice system.”
As alleged in the affidavit, the victim company hired Gong in January 2023 to work at one its laboratories as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. Beginning on approximately March 30, 2023, and continuing until his termination on April 26, 2023, Gong transferred thousands of files from his work laptop to three personal storage devices, including hundreds of files after he had accepted a job on April 5, 2023, at one of the victim company’s main competitors.
Many of the files Gong allegedly transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles while providing resilience and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments. Gong also allegedly transferred trade secret files relating to the development of “next generation” sensors capable of detecting low observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the victim company’s sensors. This information was among the victim company’s most important trade secrets worth hundreds of millions of dollars, according to the complaint, and many of the files were marked “[VICTIM COMPANY] PROPRIETARY,” “FOR OFFICIAL USE ONLY,” “PROPRIETARY INFORMATION,” and “EXPORT CONTROLLED.”
During the investigation, the affidavit states, the FBI discovered that, between approximately 2014 and 2022 while employed at several major technology companies in the United States, “Gong submitted numerous applications to ‘Talent Programs’ administered by the People’s Republic of China government.” The affidavit explains that “the PRC has established talent programs through which it identifies individuals located outside the PRC who have expert skills, abilities, and knowledge that would aid in transforming the PRC’s economy, including its military capabilities.” To entice applicants, “the PRC government rewards Talent Recruits with significant financial and social incentives,” noting that the “salaries often meet or exceed salaries the Talent Recruits draw through their non-PRC employment.”
In 2014, while employed at a U.S. information technology company headquartered in Dallas, Texas, the affidavit states that Gong sent a business proposal to a contact at the 38th Research Institute of the China Electronics Technology Group Corporation, a high-tech research institute in China focused on both military and civilian products. In his proposal, translated from Chinese, Gong described a plan to produce high-performance analog-to-digital converters similar to those produced by his employer, noting that the global market for those products “is basically monopolized by several companies in the United States” and that the export of those items from the United States requires a “government export license.” On May 8, 2023, the FBI executed a search warrant at Gong’s temporary residence in Thousand Oaks, California, and recovered several digital devices containing hundreds of documents marked as confidential or proprietary belonging to the U.S. information technology company, the affidavit alleges.
In another Talent Program application in September 2020, the affidavit states, Gong proposed to develop “low light/night vision” image sensors for use in military night vision goggles and civilian applications. In a video presentation included with Gong’s submission, Gong used a video containing the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019.
According to the affidavit, Gong also travelled to China several times to seek Talent Program funding to develop sophisticated analog-to-digital converters. In his Talent Program applications, Gong underscored that the high-performance analog-to-digital converters he proposed to develop in China had military applications, explaining that they “directly determine the accuracy and range of radar systems” and that “[m]issile navigation systems also often use radar front-end systems.” In a 2019 email, translated from Chinese, Gong remarked that he “took a risk” by traveling to China to participate in the Talent Programs “because [he] worked for . . . an American military industry company[]” and thought he could “do something” to contribute to China’s “high-end military integrated circuits.” The affidavit states that Gong “continued to seek funding from Chinese government programs through at least March 2022.”
BIS and the FBI are investigating the case.
Assistant U.S. Attorneys Nisha Chandran and David Lachman for the Central District of California are prosecuting the case, with valuable assistance provided by Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.
These cases were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.
An indictment and a criminal complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury convicts Dighton man of child exploitation chargesRead the Press Release
WICHITA, KAN. – A federal jury convicted a Kansas man on child exploitation charges.
The jury found Daniel Kroeker, 49, of Dighton, guilty of receiving child pornography via his social media account in July 2019. The jury also found he possessed a laptop and cell phone containing pornographic images of a child under the age of 12 when agents conducted a search in December 2020.
Kroeker is scheduled to be sentenced on April 24, 2024 and faces a maximum penalty of 20 years in prison of each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Kansas Bureau of Investigation, North Dakota Bureau of Investigation, and Homeland Security Investigations (HSI) – North Dakota are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.###
Jury Convicts Mississippi Man of Drug and Firearm OffensesRead the Press Release
Gulfport, Miss. – A Gulfport resident was convicted by a federal jury of possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon.
Mark Anthony Robillia, 54, was found guilty following a two-day trial in U.S. District Court in Gulfport.
According to court documents and evidence presented at trial, on December 1, 2022, the DEA and Gulfport Police Department executed a search warrant at a residence in Gulfport where they found Robillia, along with four firearms in plain view. Officers also found three identification cards belonging to Robillia and a letter addressed to him at that residence. They also discovered a fifth firearm and approximately 40 grams of methamphetamine wrapped in 13 separate baggies hidden in a closet.
Further investigation revealed that Robillia purchased three of the firearms and the remaining two were given to him. Robillia had been previously convicted and incarcerated for aggravated assault, being a felon in the possession of a firearm, and possession with intent to distribute a controlled substance. The evidence also indicated that Robillia was distributing methamphetamine from the house where the search warrant was executed.
Robillia is scheduled to be sentenced on May 14, 2024. He faces a maximum sentence of twenty years in prison for the drug offense and fifteen years for the gun offense.
U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration and the Gulfport Police Department investigated the case.
Assistant U.S. Attorneys Jonathan Buckner and Lee Smith prosecuted the case.
Jury Convicts Glens Falls Man of Transmitting ThreatsRead the Press Release
ALBANY, NEW YORK – Jesse Bedell, age 35, of Glens Falls, New York, was convicted yesterday of transmitting threats to injure another person, following a 2-day trial. 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.
The evidence at trial established that Bedell applied to work at Medline Industries’ NAMIC Division in Glens Falls and received an employment offer conditioned upon passing a background investigation. Bedell, however, failed to disclose a prior criminal conviction. As a result, on January 9, 2020, Medline withdrew the employment offer. The following morning, Bedell phoned Medline employees in Neptune, New Jersey, and Northfield, Illinois, and threatened to burn down and blow up the Glens Falls plant. Bedell also threated to kill the employee in Illinois.
The jury took 20 minutes to convict Bedell on both counts. Sentencing is scheduled for June 12, 2024, before United States District Judge Mae A. D’Agostino in Albany, at which time the defendant faces a maximum term of imprisonment of 5 years, a fine of up to $250,000 and a term of supervised release of up to 3 years. The 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.
The case was investigated by the Glens Falls Police Department and HSI, with assistance from the Warren County District Attorney’s Office. Assistant U.S. Attorney Douglas Collyer is prosecuting the case.
Holyoke Man Who Possessed Fentanyl-Laced Heroin, Cocaine and Firearm Sentenced to 10 Years in PrisonRead the Press Release
BOSTON – A Holyoke man has been sentenced in federal court in Springfield in connection with drug and firearm offenses.
Jonathan Mercedes, 31, was sentenced on Feb. 5, 2024 by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and four years of supervised release. In July 2023, Mercedes pleaded guilty to one count of possession with intent to distribute 40 grams of more of fentanyl; one count of possession with intent to distribute cocaine; and one count of possession of firearms in furtherance of drug trafficking felonies.
On April 7, 2022, Mercedes possessed with intent to distribute 60 grams of fentanyl laced heroin and 59 grams of cocaine. Mercedes also possessed a Ruger .22 caliber semi-automatic handgun loaded with nine rounds of .22 caliber ammunition and a Smith and Wesson 9mm semi-automatic handgun loaded with 11 rounds of 9mm ammunition.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Holyoke Police Chief Manuel Febo made the announcement today. Assistant United States Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.
Greenwich Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut announced that CHRISTOPHER BATES JR., 37, of Greenwich, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to a child exploitation offense.
According to court documents and statements made in court, an international law investigation revealed that an IP address at Bates’ residence was being used to access the dark web to view images and videos depicting the sexual abuse of children. On November 30, 2022, Homeland Security Investigations (HSI) agents interviewed Bates, who consented to a search of his electronic devices. A forensic review of one of his laptops revealed approximately 1,222 images and two videos depicting the sexual abuse of children, including infants.
Bates, who is an attorney admitted to practice in New York and Connecticut, pleaded guilty to possessing and accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
Bates was arrested on December 13, 2022. He is released on a $300,000 bond under electronic monitoring pending sentencing.
This matter has been investigated by HSI with the assistance of Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Daniel Gordon.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Gang member found guilty in assault on correctional officerRead the Press Release
ATLANTA - Cody Ryan Todd has been found guilty by a federal jury of assault on a Bureau of Prisons correctional officer at the U.S. Penitentiary in Atlanta, Georgia (USP-Atlanta).
“Detainees and inmates cannot commit crimes with impunity while they are behind bars,” said U.S. Attorney Ryan K. Buchanan. “Correctional officers in Bureau of Prisons facilities perform an essential role in safeguarding the welfare of penitentiary staff and inmates. Assaults committed against these law enforcement officers will not be tolerated.”
“This case shows the risk correctional officers face daily. Todd’s intent to do harm towards this officer will be met with serious consequences,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate such attacks against members of law enforcement, and Todd will now face further consequences for his actions.”
“The Federal Bureau of Prisons appreciates the U.S. Attorney’s Office and our law enforcement counterparts for their hard work and diligence in bringing this case to justice. Our employees safety is paramount. This prosecution sends a clear message that this behavior will not be tolerated and underscores our commitment to creating a safe and secure environment for our employees and those in our care,” said Randilee Giamusso, Spokesperson for the Federal Bureau of Prisons.
According to U.S. Attorney Buchanan, the charges and other information presented in court: On January 28, 2021, Cody Todd assaulted a correctional officer while Todd was in custody as a pretrial detainee at USP-Atlanta. Todd hit the officer in the face, knocked him to the floor, and then struck the officer several more times while the officer was incapacitated. This assault left the officer with significant injuries.
At the time of the assault, Todd was being detained on charges of racketeering activity in connection with his crimes committed as a member of the Ghost Face Gangsters. The racketeering activity included, among other offenses, murder, attempted murder, kidnapping and robbery.
Cody Ryan Todd, 34, of Carrollton, Georgia, was separately convicted of conspiracy to commit racketeering and sentenced to 16 years in prison. Todd had also previously been convicted of battery on four separate occasions. He is scheduled to be sentenced before U.S. District Judge Victoria Calvert on May 8, 2024, at 10:00 a.m.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Prisons.
Assistant U.S. Attorneys Richard Beaulieu and Alison Prout are prosecuting the case.
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.
Gang Member Sentenced to 12 Years in Prison for Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 144 months in prison for his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Tre Byrd, aka “Bands,” aka “G Bandz,” 22, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Byrd was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. In March 2019, Byrd worked with other members and associates of the gang to murder a gang rival, who was fatally shot on March 20, 2019, in Irvington, New Jersey. On June 20, 2020, Byrd and at least one other member and associate of the gang robbed a victim at gunpoint in Newark.
In addition to the prison term, Judge Wigenton sentenced Byrd to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS- Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller, as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the Newark Police Department, under the direction of Public Safety Director Fragé, the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Armando B. Fontoura’s direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
Gang Member Sentenced for Gang Related Activity Resulting in the Murders of 16-Year Old and 33 Year-OldRead the Press Release
HAMMOND- Eduardo Luciano, 35, of Hammond, Indiana, was sentenced by the United States District Court Senior Judge Jon E. DeGuilio, after a jury found him guilty of conspiracy to participate in racketeering activity, conspiracy to possess with intent to distribute and distribute cocaine and marijuana, and two counts of using a firearm to commit murder, announced U.S. Attorney Clifford. D. Johnson.
Luciano was sentenced to two Life sentences in prison for using a firearm to commit each murder. He was also sentenced to Life in prison for conspiracy to participate in racketeering activity along with 240 months in prison for conspiracy to possess with intent to distribute and distribute cocaine and marijuana. All sentences are to run concurrently.
According to documents in this case, on June 29, 2015, Luciano, who was a leader of the Hammond faction of the Latin Counts, a criminal street gang, and other Latin Count members formulated a plan to shoot and kill members of the Latin Kings, a rival criminal street gang. The Latin Kings were attending a vigil for a slain member on the 5500 block of Beall Avenue in Hammond, Indiana. After planning the shooting, gang members drove to the vicinity of the vigil and fired multiple shots into the crowd. Christopher White (33), who was visiting family on Beall Avenue, was shot in front of the family member’s home, and later died. Lauren Calvillo (16) was shot and killed while on the front porch of her family’s Beall Avenue home.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Area Task Force and the Hammond, Indiana Police Department with assistance from the Federal Bureau of Investigation/Gang Response Investigative Team, the Drug Enforcement Administration, the United States Marshal’s Service, the Internal Revenue Service-Criminal Investigation Division, the Indiana State Police, the Gary Police Department, the East Chicago Police Department, the Chicago Police Department, and the Lake County Prosecutor’s Office. The case was handled by Assistant United States Attorneys David J. Nozick, Caitlin M. Padula, and Kimberly L. Schultz.
This case is also 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.
Former Postal Employee Pleads Guilty to Workers’ Compensation FraudRead the Press Release
CHARLOTTE, N.C. – Johnnie Franklin Sullivan, Sr., 73, of Mooresville, N.C., appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to workers’ compensation fraud for a job-connected injury, announced Dena J. King, U.S. Attorney for the Western of North Carolina.
Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, Sullivan, Sr. was employed by the U.S. Postal Service as a mail processing clerk in Charlotte. In May 2005, Sullivan, Sr. sustained an injury at work. Later that year, Sullivan, Sr. began to receive workers’ compensation benefits administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP) for employees covered by the Federal Employees’ Compensation Act (FECA). In order to receive and maintain FECA benefits, Sullivan, Sr. was required to submit periodic reports regarding his physical condition and his inability to perform a Postal Service job.
Court documents show that, on multiple occasions, Sullivan, Sr. made false statements and material misrepresentations regarding his physical abilities and medical restrictions. Among the false claims Sullivan, Sr. made was that he was unable to sit for long periods of time, that he could only drive short distances, that he needed to use a cane when he walked, and that he was unable to travel or engage in hobbies and other recreational activities due to his medical condition. As a result of the false statements, over the years Sullivan, Sr. received payments totaling more than $103,261.
According to court records, during the time that Sullivan, Sr. made these false claims, he was posting on social media photos of his many long-distance trips and physically rigorous activities. For example, Sullivan, Sr. posted photos of himself traveling to places in Europe and the United States; walking long distances over different types of terrain; ziplining in Niagara Falls, New York; using surf boards and boogie boards during beach vacations; and participating in shag dancing events.
“For years, Sullivan, Sr. lied about his pain and suffering caused by an on-the-job injury to bilk the federal workers’ compensation program out of thousands of dollars, and used the funds to pay for recreational activities,” said U.S. Attorney King. “When individuals defraud an important program meant to protect injured federal workers, my Office will make sure they are held accountable for their actions.”
“Most postal employees who collect workers’ compensation benefits have legitimate claims. A small percentage, however, abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs. Therefore, USPS OIG Special Agents will continue to relentlessly pursue those identified as fraudulently collecting workers’ compensation funds from the Postal Service,” said USPS OIG Special Agent in Charge Krafels.
Sullivan, Sr. pleaded guilty to making a false report in connection with federal compensation benefits and theft of government funds. He was released on bond after the court hearing. A sentencing date has not been set.
The USPS OIG investigated the case. Assistant U.S. Attorney Kenneth M. Smith of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Former City of Pittsburgh Building Inspector Pleads Guilty to BriberyRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one count of bribery concerning programs receiving federal funds, United States Attorney Eric G. Olshan announced today.
Walter Eiseman, 58, pleaded guilty before United States Chief District Judge Mark R. Hornak.
In connection with the guilty plea, Eiseman admitted that, as a building inspector for the City of Pittsburgh, he was responsible for performing inspections of properties that were the subject of applications for certificates of occupancy. In 2018, a developer was working on a project to redevelop a commercial building in downtown Pittsburgh as luxury apartments and hotel rooms. As part of the financing for the project, the developer sought a historical tax credit, which would only be granted after the developer obtained a temporary certificate of occupancy for one of the project’s floors by the end of December 2018. In support of his guilty plea, Eiseman admitted performing inspections on two floors of the project during the month of December, which resulted in a temporary certificate of occupancy being issued. In return for such official action, Eiseman accepted home appliances from the developer, which were delivered in early January 2019. Eiseman also admitted that he solicited a set of kitchen cabinets from the developer, which were ordered but ultimately not delivered to Eiseman’s residence.
“Walter Eiseman breached the trust placed in him by the public and the City of Pittsburgh when he sought out and accepted bribes in exchange for using his authority as a building inspector to prioritize the approval of a lucrative temporary certificate of occupancy,” said U.S. Attorney Olshan. “Whether it’s a bag of cash, a car, or a set of kitchen appliances, a bribe is a bribe all the same. This office and our partners at the FBI are committed to rooting out corruption at all levels of government. The public expects a level playing field, and it is our job to keep it that way.”
Chief Judge Hornak scheduled sentencing for June 6, 2024. The law provides for a maximum total sentence of up to ten years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Eiseman.
Former Attorney Sentenced to Two Years in Prison for Bribery SchemeRead the Press Release
BOSTON – A former Massachusetts attorney was sentenced today for engaging in a scheme to bribe the Chief of Police in Medford, Mass. to obtain approval for a client to sell recreational marijuana.
Sean O’Donovan, 56, of Somerville, Mass., was sentenced by Senior U.S. District Court Judge William G. Young to two years in prison to be followed by three years of supervised release. O’Donovan was also ordered to pay a fine of $150,000 and a $300 special assessment. In October 2023, O’Donovan was convicted by a federal jury on two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds.
“Driven by greed, Mr. O’Donovan tried his hand at an old school bribery scheme in which he tried to bribe a police chief for the sake of lining his own pockets. Fortunately, his attempt was promptly thwarted by the integrity of the Police Chief he targeted, as he immediately reported him to federal authorities,” said Acting United States Attorney Joshua S. Levy. “Our office remains committed to rooting out corruption in public offices. Today’s sentence should serve as a warning to anyone who thinks they can corrupt government officials for personal gain: your conduct will be uncovered, and will land you in federal prison – regardless of who you are.”
“Attorney Sean O’Donovan thought he was beyond the reach of the law when he orchestrated a back-door deal, funded by bribes, to line his own pockets. In doing so, he betrayed his client, and all hard-working businesses trying to play by the rules,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Such blatant corruption is toxic to the public trust, and today’s sentence makes it clear that crime truly does not pay. The FBI is committed to stamping out corruption, and we are very grateful to the Medford Police Chief and his brother who worked with us to thwart his shameful scheme.”
O’Donovan sought to corrupt the City of Medford’s political process for selecting retail marijuana companies by attempting to influence the Medford Police Chief in connection with O’Donovan’s client’s recreational marijuana business. At the time, the Chief had recently been appointed to serve on a committee to rank such applications on behalf of the Mayor, who would ultimately select three applicants to open retail marijuana stores in Medford.
O’Donovan approached the Chief’s relative and offered to pay as much as $50,000 in tax-free cash to the Chief’s relative in exchange for the Chief’s official support for his client’s anticipated application to sell recreational marijuana in Medford. Specifically, O’Donovan sought to have the Chief favorably rank his client’s application and, separately, to advise and pressure the Mayor to select the client. O’Donovan was slated to receive a stream of income of at least $100,000 annually from his client’s marijuana business if its Medford application was successful. After the relative informed the Chief of O’Donovan’s corrupt offer, the Chief immediately alerted federal authorities. Both the Chief and his relative cooperated with the investigation. O’Donovan never informed his client of the bribery scheme.
Acting U.S. Attorney Levy; SAC Cohen; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement today. Assistant U.S. Attorney Kristina E. Barclay with the Public Corruption Unit for the District of Massachusetts and Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and prosecuted the case.
Former Attorney Sentenced for Bribery SchemeRead the Press Release
A Massachusetts man was sentenced today to two years in prison for engaging in a scheme to bribe the chief of police of Medford, Massachusetts, to obtain approval for a client to sell recreational marijuana.
According to court documents and evidence presented at trial, Sean O’Donovan, 56, of Somerville, paid a bribe to influence the Medford police chief to take official acts to benefit O’Donovan’s client, a recreational marijuana business. At the time, the chief had recently been appointed to serve on a committee that ranked applicants seeking to operate marijuana dispensaries in Medford on behalf of Medford’s mayor. Medford’s mayor had the ultimate authority to select three applicants to open retail marijuana stores in Medford.
In furtherance of the scheme, O’Donovan approached a close family relative of the police chief and offered to pay as much as $50,000 in tax-free cash to the relative in exchange for the chief’s official support for his client’s anticipated application to sell recreational marijuana in Medford. Specifically, O’Donovan sought to have the chief favorably rank his client’s application and, separately, to advise and pressure the mayor to select the client to open a retail marijuana store in Medford. O’Donovan was slated to receive a stream of income of at least $100,000 annually from his client’s marijuana business if its Medford application were successful. O’Donovan never informed his client of the bribery scheme.
After the relative informed the chief of O’Donovan’s corrupt offer, the chief immediately alerted federal authorities. Both the chief and his relative cooperated with the investigation.
On Oct. 27, 2023, a federal jury convicted O’Donovan of two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jodi Cohen of the FBI Boston Field Office made the announcement.
The FBI Boston Field Office investigated the case.
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Kristina E. Barclay for the District of Massachusetts prosecuted the case.
Five Arrested on Federal Grand Jury Indictment Alleging San Gabriel Valley Crew Shipped Methamphetamine to Australia and New ZealandRead the Press Release
LOS ANGELES – Five alleged members of an international drug trafficking ring based in the San Gabriel Valley were arrested today on a 27-count federal grand jury indictment charging them with conspiring to distribute and possess with intent to distribute methamphetamine.
Two of the defendants also have been charged with maintaining a drug premises where the methamphetamine was stored and packaged. Specifically, the defendants are engaged in the mailing and shipping of methamphetamine from Los Angeles County to New Zealand and Australia.
The following defendants were arrested this morning are scheduled to be arraigned tomorrow in United States District Court in Santa Ana:
- Yangqiang Chen, 45, of Monterey Park;
- Jie Chen, 40, of Rosemead;
- MeiMei Chen, 41, of Rosemead;
- Guorong He, 50, of Rosemead; and
- Yien He, 32, of Rosemead.
Zuxing Lin, 44, of Rosemead is currently a fugitive. Xingyun Chen, 54, is currently in Louisiana in immigration custody.
As part of this investigation, law enforcement has seized 91 packages of methamphetamine destined for foreign countries. In those packages, law enforcement seized almost 200 kilograms of methamphetamine. The value of the drugs seized, if sold in Australia and New Zealand, exceeds $20 million, according to law enforcement estimates.
During search warrants executed today at three locations in Rosemead and Monterey Park, law enforcement seized approximately 40 pounds of methamphetamine, more than $100,000 in cash, and more than 1,000 gift cards from various retailers.
According to the indictment returned on Tuesday, defendants Yangqiang Chen and Jie Chen ordered and received items from online retailers, such as spools of 3D printing filament, utility cases, wine opener sets, and drive shafts, for use in concealing methamphetamine in international shipments to foreign drug customers.
Zuxing Lin, Meimei Chen, Xingyun Chen, Guorong He, and Yien He packaged the methamphetamine, at a residence in Monterey Park and elsewhere, for delivery to foreign drug customers. Yangqiang Chen, Zuxing Lin, Meimei Chen, Xingyun Chen, and Yien He delivered the packages containing methamphetamine to UPS stores and international shipping companies so they could be shipped to foreign drug customers.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, each defendant would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
The FBI; the Drug Enforcement Administration; Homeland Security Investigations; IRS Criminal Investigation; the Los Angeles Police Department; the Los Angeles County Sheriff’s Department; and the United States Postal Inspection Service are investigating this matter.
This case is the result of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Central District of California, FBI, DEA, and IRS. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, firearms trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.
Felon Pleads Guilty to Unlawful Possession of Four Firearms and AmmunitionRead the Press Release
CONCORD – A former Dover man pleaded guilty in federal court to being a felon in possession of firearms and ammunition, U.S. Attorney Jane E. Young announces.
Christopher T. Brown, 38, pleaded guilty to being a felon in possession of firearms and ammunition. Sentencing was scheduled for May 14, 2024, with U.S. District Court Judge Steven J. McAuliffe. Brown was first charged on April 26, 2023.
On January 9, 2023, the defendant’s spouse called emergency services and reported that she and the defendant had an argument, and that the defendant had a gun to his head. Dover police officers responded to the emergency call at the defendant’s home. The defendant’s spouse consented to a search of the house, and officers found four firearms. Those guns included two pistols, a .40 caliber rifle, and a 12-gauge sawed-off shotgun. Officers also recovered ammunition.
The defendant later admitted to owning the firearms and knowing that he could not lawfully possess them as a felon. The defendant also admitted that he used a straw purchaser to purchase three of the firearms and asked that straw purchaser to file a false police report that the firearms she bought were stolen.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led the investigation. Valuable assistance was provided by the Dover Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Federal Grand Jury Indicts Calloway County Man for Methamphetamine TraffickingRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on January 9, 2024, charging an Almo, Kentucky man with possessing with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Sheriff Ryan Norman of the McCracken County Sheriff’s Office made the announcement.
According to the indictment, Robert William Grundy, 52, was charged with possessing with the intent to distribute 50 grams or more of methamphetamine on June 14, 2023.
On February 5, 2024, Grundy made an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. The defendant remains in federal custody pending trial. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the DEA Paducah Post of Duty Office and the McCracken County Sheriff’s Office.
Assistant U.S. Attorney Seth Hancock, Chief of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts 19 Individuals for Roles in a Fraudulent Scheme to Obtain COVID-19 Relief FundsRead the Press Release
SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of 19 individuals for their participation in a scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Grand Jury charged the defendants with multiple counts of wire fraud and money laundering.
The charging documents allege that from April 2020 through February 2024, the defendants and their co-conspirators caused the submission of at least 30 Paycheck Protection Program (PPP) loan applications seeking the illegal disbursement of at least $587,442 in federal recovery funds from the U.S. Small Business Administration (SBA) and Bank 1.
“This is the fifth round of defendants charged since April 2023 relating to this fraud scheme. The investigation remains ongoing, and we expect more charges,” said U.S. Attorney Muldrow. “Today I make the same recommendation that I have in the past – if you are involved in criminal activity, contact law enforcement and cooperate. It will be better for you if you come forward than if you wait for the feds to knock on your door.”
“In IRS Criminal Investigation we have been working on these complex cases for almost three years. The investigations include multiple special agents and expert personnel from several federal agencies,” said Matthew D. Line, Special Agent in Charge of the IRS-CI Office in Miami. “Twenty-four IRS:CI special agents coordinated today’s operation were responsible for the arrest of five people this morning. Our message is one and it is clear: we will continue to work tirelessly to bring to justice those who commit criminal acts or defraud our taxpayers, no matter who they are or where they are.”
“Scheming to fraudulently obtain federal funds that are meant to provide assistance to the nation’s small businesses is unacceptable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “OIG will aggressively root out organized fraud rings that seek to wrongfully take advantage of pandemic relief program funds. Today’s arrests serve as a reminder that each fraudulent action is like footprints in concrete, and wrongdoers will be brought to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
The United States Secret Service, the Small Business Administration Office of the Inspector General, the Treasury Inspector General for Tax Administration, and the Internal Revenue Service Criminal Investigations conducted the investigation with the collaboration of the Puerto Rico Treasury Department, the Puerto Rico Bureau of Special Investigations, the Puerto Rico Police Bureau, and the Guaynabo Municipal Police.
According to court documents, defendants José Carmona Morales, a.k.a. “Cheka” and Cecy Casiano Santiago, together with Manfred A. Pentzke Lemus, a.k.a. “Man/Contable/El Gestor”, Rodolpho R. Pagesy Roussel, a.k.a. “El Banquero”, Augusto A. Lemus Berrios, a.k.a. “Primo”, Jonatan Ben David Prieto Ruiz De Val, a.k.a. “Johnny Millones”, Ligia María Lemus De Pentzke, and others knowingly devised a scheme to defraud the SBA and Bank 1 to obtain federal money and property by means of materially false and fraudulent pretenses, representations, and promises submitted through applications for EIDL and PPP loans made available through the CARES Act to help small businesses recover from the impact of the pandemic. Pentzke Lemus, Pagesy Roussel, Lemus Berrios, Prieto Ruiz De Val, and Lemus De Pentzke were previously charged in April 2023 in a separate indictment.
The defendants are:
[1] José Carmona Morales, a.k.a. “Cheka”
[2] Cecy Casiano Santiago
[3] Arnaldo Dávila Rivera
[4] Cruz Sheila Pérez Guzmán
[5] Emmanuel Maysonet Cruz
[6] Janelle Irene Fe Cooney Delgado
[7] Jesús Rodríguez Maysonet
[8] Julia Cecilia Santiago Salgado
[9] Nelson Noriega Sotomayor
[10] Héctor Martínez Ortiz
[11] Carolyn González Marrero
[12] Edyel León Rivera
[13] Ángel Febus Muñoz
[14] Verónica Vázquez Molina
[15] Karishna Ayala Otero
[16] Lilliam Collazo Pérez
[17] Rebecca Serrano Martínez
[18] Rosa Casanova Salgado
[19] Tatiana Lebrón
The CARES Act authorized federal assistance through the issuance of SBA loans to small businesses and non-profit entities that experienced revenue loss due to the COVID-19 worldwide pandemic. The EIDL program was one such loan assistance program for small businesses. To procure the loan, applicants had to fill out an online application detailing operational information for the 12‑month period prior to the COVID-19 pandemic, such as the number of employees in the business, the gross business revenues realized, and the cost of goods sold. Another form of assistance provided by the CARES Act was the authorization of United States taxpayer funds in forgivable loans to small businesses for job retention and certain other expenses, such as interest on mortgages, rent and utilities, through the Paycheck Protection Program (PPP).
The indictment alleges that the defendants submitted at least 30 fraudulent PPP loan applications containing materially false and fraudulent information and false documents, including false and fictitious tax documents, payroll records, bank records, and identification documents, to procure the disbursement of PPP assistance loans by Bank 1. The indictment further alleges that the defendants and their co-conspirators directed the recipients of the fraudulently obtained PPP loans to remit a portion of the proceeds of the loans to the defendants and their co-conspirators and used the loan proceeds to benefit themselves and others, and to pay for expenses prohibited under the requirements of the PPP programs.
Defendants José Carmona Morales, a.k.a. “Cheka” and Cecy Casiano Santiago are facing one count of conspiracy to commit money laundering, for knowingly conducting financial transactions involving the proceeds of wire fraud, together with other individuals previously indicted. The defendants, including José Carmona Morales, a.k.a. “Cheka”, are also alleged to have recruited other unindicted co-conspirators to not only obtain additional EIDL and PPP loans under false pretenses, but recruit others to submit fraudulent applications.
If convicted, the defendants are facing up to 30 years in prison for the wire fraud counts. José Carmona Morales, a.k.a. “Cheka” and Cecy Casiano Santiago are also facing up to 20 years of imprisonment for the money laundering count.
Assistant U.S. Attorney (AUSA) Timothy R. Henwood, Chief of the Criminal Division, and AUSA Daniel J. Olinghouse are in charge of the prosecution of the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Engineer Arrested for Allegedly Stealing Trade Secret Technology Designed to Detect Nuclear Missile Launches and Track MissilesRead the Press Release
LOS ANGELES – A former engineer at a Southern California company has been arrested on federal charges alleging he stole trade secret technologies developed for use by the United States government to detect nuclear missile launches and to track ballistic and hypersonic missiles, the Justice Department announced today.
Chenguang Gong, 57, of San Jose, California, was arrested Tuesday morning. Gong, who is a native of China and became a United States citizen in 2011, is being held in custody until a detention hearing scheduled for later today.
Gong is charged in a criminal complaint with theft of trade secrets. According to court documents unsealed today, Gong transferred more than 3,600 files from a Los Angeles-area research and development company where he worked – identified in court documents as the victim company – to personal storage devices during his brief tenure with the company last year. The files Gong allegedly transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles, as well as blueprints for sensors designed to enable U.S. military aircraft to detect incoming heat-seeking missiles and take countermeasures, including by jamming the missiles’ infrared tracking ability. Some of these files were later found on storage devices seized from Gong’s temporary residence in Thousand Oaks, according to the affidavit in support of the complaint.
Together with the United States government and others, the victim company “has invested tens of millions each year for more than seven years to develop the technology,” the affidavit states, and it “would be extremely damaging economically” to the victim company if the technology were obtained by its competitors and “dangerous to U.S. national security if obtained by international actors.”
“We will do everything to protect our nation’s security, including from foreign threats,” said United States Attorney Martin Estrada. “Mr. Gong, who had previously sought to provide the People’s Republic of China with information to aid its military, stole sensitive and confidential information related to detecting nuclear missile launches and tracking ballistic and hypersonic missiles. We know that foreign actors, including the PRC, are actively seeking to steal our technology, but we will remain vigilant against this threat by safeguarding the innovations of American businesses and researchers.”
“The FBI is committed to protecting our nation’s critical technologies and to pursuing those who look to steal trade secret information for their benefit or for the benefit of foreign adversaries,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The theft of trade secrets, especially of sensitive military technology, undermines our national security, erodes U.S. competitiveness in the global market, and harms the businesses and individuals who have invested time, resources, and creativity into developing innovative technologies. Our actions today send a strong message that anyone willing to steal proprietary information from U.S. businesses will face consequences in the criminal justice system.”
As alleged in the affidavit, the victim company hired Gong in January 2023 to work at one its laboratories as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. Beginning on approximately March 30, 2023, and continuing until his termination on April 26, 2023, Gong transferred thousands of files from his work laptop to three personal storage devices, including more than 1,800 files after he had accepted a job on April 5, 2023, at one of the victim company’s main competitors.
Many of the files Gong allegedly transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments. Gong also allegedly transferred trade secret files relating to the development of “next generation” sensors capable of detecting low observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the victim company’s sensors. This information was among the victim company’s most important trade secrets worth hundreds of millions of dollars, according to the complaint, and many of the files were marked “[VICTIM COMPANY] PROPRIETARY,” “FOR OFFICIAL USE ONLY,” “PROPRIETARY INFORMATION,” and “EXPORT CONTROLLED.”
During the investigation, the affidavit states, the FBI discovered that, between approximately 2014 and 2022, while employed at several major technology companies in the United States, “Gong submitted numerous applications to ‘Talent Programs’ administered by the People’s Republic of China government.” The affidavit explains that “the PRC has established talent programs through which it identifies individuals located outside the PRC who have expert skills, abilities, and knowledge that would aid in transforming the PRC’s economy, including its military capabilities.”
In 2014, while employed at a U.S. information technology company headquartered in Dallas, the affidavit states that Gong sent a business proposal to a contact at a high-tech research institute in China focused on both military and civilian products. In his proposal, translated from Chinese, Gong described a plan to produce high-performance analog-to-digital converters similar to those produced by his employer.
On May 8, 2023, the FBI executed a search warrant at Gong’s temporary residence in Thousand Oaks, California, and recovered several digital devices containing hundreds of documents marked as confidential or proprietary belonging to the information technology company, the affidavit alleges.
In another Talent Program application in September 2020, the affidavit states, Gong proposed to develop “low light/night vision” image sensors for use in military night vision goggles and civilian applications. In a video presentation included with Gong’s submission, Gong used a video containing the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019.
According to the affidavit, Gong also travelled to China several times to seek Talent Program funding to develop sophisticated analog-to-digital converters. In his Talent Program applications outlined in the affidavit, Gong underscored that the high-performance analog-to-digital converters he proposed to develop in China had military applications, explaining that they “directly determine the accuracy and range of radar systems” and that “[m]issile navigation systems also often use radar front-end systems.” In a 2019 email, translated from Chinese, Gong remarked that he “took a risk” by traveling to China to participate in the Talent Programs “because [he] worked for…an American military industry company” and thought he could “do something” to contribute to China’s “high-end military integrated circuits.”
The affidavit states that Gong “continued to seek funding from Chinese government programs through at least March 2022.”
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charge of theft of trade secrets carries a statutory maximum penalty of 10 years in federal prison.
The FBI’s Los Angeles Field Office is investigating this matter. The FBI’s San Francisco Field Office and the U.S. Attorney’s Office for the Northern District of California provided substantial assistance.
Assistant United States Attorneys David C. Lachman of the Terrorism and Export Crimes Section and Nisha Chandran of the Cyber and Intellectual Property Crimes Section are prosecuting this case. Department of Justice Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section is providing substantial assistance.
Elmira man with prior child sex conviction going to prison on new child pornography chargeRead the Press Release
Rochester, N.Y.-U.S. Attorney Trini E. Ross announced today that Eugene R. Criss, Jr., 55, of Elmira, NY, who was convicted of possession of child pornography by an individual with a prior sex offense conviction, was sentenced to serve 120 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that in July 2013, Criss was convicted of Criminal Sex Act – 1st Degree – Victim Less Than 11 Years Old. On April 5, 2023, Criss possessed a cellphone, a thumb drive, a tablet, and a laptop, which contained over 1,000 images and videos of child pornography, some of which depicted prepubescent children engaged in sexually explicit conduct and violence or the sexual abuse of an infant or toddler.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Elkhart Man Sentenced to 160 Months in PrisonRead the Press Release
SOUTH BEND – Sean Posey, 40 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty, after pleading guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
Posey was sentenced to 160 months in prison, 15 years of supervised release, and was ordered to pay $22,500 in restitution to victims of the offense.
According to documents in the case, between August and September 2021, Posey possessed over 900 photos and 7 videos on his cell phone consisting of child sexual abuse material, including images of minors under the age of 12. Posey had previously been convicted of sexual misconduct with a minor which required him to register as a sex offender.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana State Police Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Hannah T Jones.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Electrician at Federal Detention Center recognized by U.S. Attorney General for outstanding work on behalf of DOJRead the Press Release
Seattle – An Electrical Worker Supervisor at the Federal Detention Center at SeaTac was recognized last week with the Attorney General’s Cubby Dorsey Award for outstanding service. Charles D. Treadway II was presented the award at a ceremony in Washington DC. The award reads for “Outstanding Service in support of programs and operations through extraordinary performance and achievements.”
“I am so pleased that Attorney General Merrick Garland recognized the outstanding work of Charles Treadway,” said U.S. Attorney Tessa M. Gorman. “He demonstrates the best of the federal workforce with his dedication to making improvements to benefit the staff and people in custody at the FDC.”
In the Bureau of Prisons nomination form, it notes that Mr. Treadway saved taxpayers more than $55,000 with his innovative approach to a lighting project at the Federal Detention Center. FDC SeaTac, a high-rise building, needed outdoor lighting to reduce areas of dark shadow that posed a security risk. BOP had estimated it would need to spend $60,000 for a major project to improve the lighting. Mr. Treadway improvised with new LED lighting fixtures designed for stadiums and was able to complete the project for just $5,000 – a significant savings. Mr. Treadway is also working to improve the lighting in recreation areas with bulbs that can be protected from recreation equipment. This too will improve security at the facility.
Charles Treadway was also recognized for his quick work to complete projects that benefit staff and those in custody. For example, when BOP decided to allow tablets for inmates, Mr. Treadway developed the plans for charging locations and completed the installation months ahead of schedule.
The Bureau of Prisons further commended Treadway for his teamwork, by volunteering to fill corrections posts when short staffed and reporting for work in off hours when there are power outages. His work with outside contractors sets an example for other employees.
Mr. Treadway is the sole employee in federal service receiving this year’s Cubby Dorsey Award for Outstanding Service by a wage Grade Employee.
El Departamento de Justicia llega a un acuerdo con una empresa de dotación de personal para resolver unas acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Latitude Inc. (Latitude), una empresa de dotación de personal en Hanover, Maryland. El acuerdo resuelve la determinación del departamento que Latitude vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a ciertos no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos y los excluyó de oportunidades laborales con base en su estatus de ciudadanía.
«Las compañías no pueden excluir, de manera ilegal, a todo no ciudadano de los EE. UU. que tenga permiso para trabajar en los Estados Unidos de oportunidades laborales debido a estatus de ciudadanía», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a aquellos cuyas acciones vulneren las leyes federales de derechos civiles de nuestra nación».
La investigación del departamento determinó que, desde al menos abril del 2022 hasta julio del 2023, Latitude se negó a recomendar, reclutar o contratar a no ciudadanos de los EE. UU. para varios puestos en una empresa cliente que había solicitado la restricción sin ninguna base jurídica. Estas acciones perjudicaron a los trabajadores que son residentes permanentes legales, a los trabajadores nacionales que no son ciudadanos y a los trabajadores a los que se les ha otorgado el asilo o el estatus de refugiado, al disuadirles, de manera ilícita, de presentar una solicitud y no avanzar por el proceso de contratación, para mayor consideración, a aquellos que sí solicitaron un trabajo.
En virtud de los términos del acuerdo, Latitude capacitará a su personal en cuanto a los requisitos de la INA, revisará sus políticas de empleo y que se someterá a los requisitos de supervisión y declaración departamentales. Por otra parte, Latitude pagará sanciones civiles a los Estados Unidos.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde IER.
East Hartford Man Sentenced to 11 Years in Federal Prison for Gang-Related Drug TraffickingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that LUIS FELICIANO, also known as “Louminaty,” 39, of East Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 132 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl and other narcotics.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Feliciano distributed fentanyl and heroin, often with a xylazine additive, as well as cocaine and crack, to his Los Solidos associates, other customers and distributors in the Hartford area, and also to individuals in Schenectady, New York and Bangor, Maine.
Feliciano was arrested on April 13, 2022, after searches of his East Hartford residence and a Hartford apartment he used to store and process drugs revealed more than two kilograms of fentanyl, more than a kilogram of heroin, quantities of crack and powder cocaine, vials of xylazine, drug processing and packaging items, and 40 rounds of ammunition.
On June 8, 2022, a federal grand jury returned an indictment charging Feliciano and 15 others with various narcotics distribution and firearm possession offenses.
Feliciano has been detained since his arrest. On February 17, 2023, he pleaded guilty to conspiracy to possess to distribute and to possess with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin.
Feliciano’s criminal history includes felony convictions for drug distribution, firearm possession, and assault offenses, and he was on state probation at the time of his federal arrest in April 2022.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
District Man Pleads Guilty to Child Cruelty and Felony StrangulationRead the Press Release
WASHINGTON – Keenan Smith, 42, of Washington, D.C., pleaded guilty today to one count of second-degree cruelty to children and one count of felony strangulation for an assault on a child which took place in Washington, D.C., on November 17, 2023, announced U.S. Attorney Matthew Graves.
U.S. Superior Court Judge Lynn Leibovitz set a sentencing date of April 5, 2024. Smith faces a sentence of up to five years for felony strangulation and up to 10 years for second-degree child cruelty to children. The prison term will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to the government’s evidence, on November 17, 2023, Smith grabbed the child by his throat, using both of his hands, and slammed the child to the floor, causing the child to hit the back of his head. The defendant strangled the child by squeezing the child’s throat with both of his hands, restricting the normal circulation of blood, and breathing of the child. Smith strangled the child until he lost hearing and vision and blacked out.
Smith fled the scene and was arrested the next month pursuant to an arrest warrant. He has been in custody since January 23, 2024, where he will remain until sentencing.
This case is being investigated by the Metropolitan Police Department.
The case is being prosecuted by Assistant U.S. Attorney Molly K. Smith of the Domestic Violence Unit of the U.S. Attorney’s Office for the District of Columbia.
District Felon Pleads Guilty to Unlawful Firearms PossessionRead the Press Release
WASHINGTON - Mysire Poge, 23, of Washington, D.C., pleaded guilty today to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year, announced U.S. Attorney Matthew M. Graves, Chief Pamela Smith, of the Metropolitan Police Department (MPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Poge entered the guilty plea in U.S. District Court for the District of Columbia before the Honorable Carl Nichols. Judge Nichols scheduled sentencing for May 16, 2024. The defendant has been detained since November 9, 2023.
According to the government’s evidence, on June 16, 2023, law enforcement officers were on the 300 block of 51st Street, NW when Poge rode by on a moped. Poge spotted the officers heading in his direction. He stopped, turned around, and jumped a sidewalk curb to flee southbound down a walkway on the 200 block of 51st St. NE. The defendant pulled into an alleyway and jumped off his moped. On the sidewalk on Division Avenue, Poge saw a uniformed police officer who was following him and again, ran towards an alley. Poge darted between two houses on Division Avenue and jumped over a chain-link fence. As Poge ran he threw a firearm that landed in a backyard. He continued to run in a circle before officers arrested him. Law enforcement recovered a Glock 27, 40 caliber semi-automatic pistol in the backyard with a 22-round capacity magazine.
The case was investigated by the MPD and ATF as part of Project Safe Neighborhood. It is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar.